Page 89 - Cambridge IGCSE Business Studies

6: Motivating workers
Revision checklist Exam practice questions
● Many factors which motivate people to work
were identified by the research of Taylor,
Maslow and Herzberg.
● Financial and non-financial motivation
methods can be used to make sure a
business has a well-motivated workforce.
TOP TIPS
Information in examinations
might be presented in the form
of diagrams. Make sure you
understand what such diagrams
show.
1 The diagrams below show the payment received by
workers in two manufacturing companies, Company A
and Company B.
Company A is a manufacturer of televisions. The number of
televisions produced by the workforce during the past four
weeks were 270, 240, 280 and 250.
Company B are manufacturers of pottery items. Workers do
not require any special skills to complete their tasks. Many
workers leave before completing one year of employment
with the company.
Company A pays workers based on an hourly rate. Workers
work an average of 40 hours per week.
In addition to their wage, Company B provides all workers
with fringe benefi ts.
Company A Company B
Average weekly wage $200 Average weekly wage 87
Output per week Output per week
a What is meant by ‘fringe benefi ts’? [2]
b Calculate the hourly rate Company A pays its workers. [2]
c Identify and explain the method of payment
Company B uses to reward its workers. [4]
d Identify and explain two fi nancial methods
Company A could use to improve the motivation
of its workers. [6]
e The management of Company B believes that money
is the only way to motivate workers. Do you agree?
Justify your answer. [6]