2.5.4 - Financial Motivation Methods

What is remuneration?

• The bonuses employees get for good performance

• The money employees receive in exchange for working for the business

• The promotions employees receive for their hard work

• The benefits employees receive for working extra hours

Which method of remuneration is variable?

• Wages

• Salary

• Bonus

• Commission

What is a common drawback of the time rate method?

• It encourages efficiency

• It is easy to forecast employee pay

• It provides employees with job security

• It may disgruntle efficient workers

What is a piece rate method?

• Pay based on the amount of hours worked

• Pay based on the amount of products produced

• Fixed monthly pay

• Additional pay for working extra hours

What is a potential drawback of the piece rate method?

• It encourages employees to work less

• It may result in sub-standard goods

• It provides employees with job security

• It makes it easier to forecast employee pay

What is overtime pay?

• Pay based on the amount of products produced

• Fixed monthly pay

• Additional pay for working above contracted hours

• Pay based on the amount of hours worked

What is a common benefit of salary payments?

• They are variable

• They provide employees with safety and comfort

• They are based on performance

• They are paid weekly

What is performance-related pay?

• Additional pay for working extra hours

• Pay based on employee performance

• Fixed monthly pay

• Pay based on the amount of hours worked

What is a bonus?

• Pay based on the amount of hours worked

• Additional payment made to employees on top of their standard pay

• Fixed monthly pay

• Pay based on the amount of products produced

What is commission?

• Fixed monthly pay

• Additional payment based on sales or profit

• Pay based on the amount of products produced

• Pay based on the amount of hours worked