NON-FINANTIALLY REWARDS
JOB ROTATION
Its when employees change jobs for a period of time to learn a new task within a work process, e.g. the different tasks in assembly line production work.
ADVANTAGES: Learning different tasks in an assembly line production team. The person takes the order, one person prepares the bread, then the bread is passed on. There is a variety of tasks and can improve motivation.
DISADVANTAGES: You have to depend on other for you job to be done. If incorrect or well done you are not directly responsible for it since its was shared by the whole team.
Subtopic
JOB ENRICHMENT
Its when employees are given added tasks that require more skill or training.
ADVANTAGES: this involves giving employees more responsibility and training in their work.
DISADVANTAGE: It means that an employee might be given added tasks to accomplish, which may require more understanding and different skill sets.
FINANTIALLY REWARDS
Fringe Payments
any type of remuneration awarded to employees in addition to their basic pay (staff discounts, car etc.)
Disadvantage: Increased Company costs
Advantage: Increases the work attractiveness
Wages
wages piece rates
paying wages based on the number of products made of items sold.
for example 1.5 dollars per kilos of fruit packs in a farm
disadvantages: quality vs quantity not very secure and adds pressure.
Advantages: incentives to work hard, motivation and productivity, helps set prices for a product.
Wages time
wage is based on the amount of hours one works
8£ per hour working in a restaurant.
the advantage is that it is straight forward
Disadvantages are: not rewarded for effort but for time, no motivation and minimum wages
PRP
Used to pay people who reach/exceed a required standard/ target (Bonuses- increase wages)
Disadvantage:Can be costly for the Business if the Bonuses are too easily reached
Advantages:Can increase worker motivation/drive
Commission
Reward payed to employee every time they sell a good or service. Payed as a percentage value.
disadvantages: team work might be ejected, customer service might decline if workers focus on the number of customers they have. it can encourage a hostile culture and lack of security workers might be encouraged in the short term not in the long term.
incentive for workers to produce or sell more, customer service is likely to be improved, identify staff that needs more training.
profit related pay
A bonus for staff based on the profits of the business
Often too small, Individual efforts are not recognized
advantages: Promotes employee loyalty and team spirit, Managers and employees work together to achieve higher levels of profit
Haupt Topic
Employee Share Ownership Schemes
Financial incentive, that rewards employees with shares in the company they work for
Disadvantage: Dilutes ownership in the company - inreasing the strategic decision making time
Advantage: Results in an inreased employee loyalty/ trust
Salary
it is an annual sum of compensation. It is a fixed cost for a company.
one example being teachers. They get payed on a monthly bases on a fixed cost irrespective of the homework they have to mark or the amount of lessons they have.
Disadvantages are that it is difficult to reward people who are doing more work. There is no motivation to work harder.
One advantage is that there is stable income and security as well as. It is also a good reward when it is not easy to measure.
