Page 408 - Cambridge IGCSE Business Studies

IGCSE Business Studies Student CD-ROM

Methods of motivation – financial rewards

Earnings based on hours
Hourly wage rate
worked not on output

Fixed amount earned per
Salary year not based on hours
worked or output

Earnings based on the
Piece-rate/commission number produced or
number sold
Financial rewards
Additional amount paid for
Bonus schemes
reaching production target

Includes company cars,
Fringe benefits staff discounts and pension
schemes

Workers receive a share of
Profit-sharing
the yearly profit

Methods of motivation – non-financial rewards

Workers switch to different
Job rotation
tasks to increase variety

Increasing or widening tasks to
Job enlargement
increase variety

Organising tasks so workers
Job enrichment are able to use their full
abilities
Non-financial rewards
Groups of workers meet on a
Quality circles regular basis to discuss work-
related problems

Organising production so
Team-working groups of workers complete
the whole unit of work

Passing authority to lower
Delegation level workers to complete
tasks

© Cambridge University Press 2014 IGCSE Business Studies Section 2 – Mind maps 2