Financial Motivators

This is paid every week, sometimes in cash and sometimes directly in the bank

• Salary

• Wages

• Commission

• Bonuses

This is NOT a disadvantages of paying wages by time rate (tick the one which is NOT a disadvantage)

• Time consuming

• Hard to calculate

• Good & Bad workers are paid the same

• Supervisors are needed to ensure quality is achieved. This is expensive

• Clocking in system is required to determine the number of hours worked

Answer explanation

Its so easy to calculate, even though it is time consuming. The employee exactly knows for how many hours has he / she worked.

The workers may be tempted to make large numbers of quantity and ignore quality when they are paid

• Heavy bonuses for extra production

• Good salary for producing more

• Wages according to piece rate

• Fringe benefits like electronics for household

Often paid monthly, straight into the bank account

• Fringe benefits

• Bonus

• Salary

• Wages

This is NOT a benefit of paying SALARY

• Workers motivated to work for extra time

• Easy to calculate

• Employer has money for longer time

• Makes the worker stay with the company for a longer period of time than daily wages

The following are the characteristics of BONUS

• Paid at the end of each month directly into bank account

• a lump sum paid when workers have worked well

• it is in addition to the standard wage or salary

• Paid at end of the year or at regular intervals

• Everyone in the company is happy; no bad feelings at all

Difference between COMMISSION and PIECE RATE WAGES is....

• One is paid to sales staff and the other to daily wagers

• One is a motivator and the other is a demotivater

• One is extra and the other is NOT extra

The following are valid reason/s for PROFIT SHARING

• Too many workers in the company makes it difficult to calculate BONUS

• The fringe benefits are sometimes not needed by the workers

• It is difficult to identify an individual worker's contribution to the increased profits

• Giving some workers BONUS creates resentment in others

Who will use PROFIT SHARING more?

• Manufacturer

• Retailer

• Service provider

• Wholesaler

Rajesh works in M&M cars factory. He has been given a company car to travel and free admission in the company run school. What kind of motivator is this?

• BONUS

• PROFIT SHARING

• FRINGE BENEFITS

• COMMISSION