Business Management SL
Business Management SL
6
Chapters
175
Notes
Unit 1 - Introduction To Business Management - QB
Unit 1 - Introduction To Business Management - QB
Unit 2 - Human Resource Management - QB
Unit 2 - Human Resource Management - QB
Unit 3 - Finance & accounts - QB
Unit 3 - Finance & accounts - QB
Unit 4 - Marketing - QB
Unit 4 - Marketing - QB
Unit 5 - Operations management - QB
Unit 5 - Operations management - QB
Unit 6 - Assessment
Unit 6 - Assessment
IB Resources
Unit 2 - Human Resource Management - QB
Business Management SL
Business Management SL

Unit 2 - Human Resource Management - QB

Unveiling The Secret To Employee Motivation: Financial Vs. Non-Financial Rewards

Word Count Emoji
642 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited onย 5th Nov 2024

Table of content

Financial rewards ๐Ÿ’ผ

  • Salary

    • ๐Ÿ’ฐ Motivation: Provides financial security.

    • โŒ Disadvantage: Relies on staff's professionalism for quality.

      Example: A doctor receiving a monthly paycheck regardless of the number of patients seen.

  • Wages (Time rates)

    • ๐Ÿ’ฐ Motivation: Regular income + possibility of overtime pay.

    • โŒ Disadvantage: Potential slow work, overtime can mean stretched hours.

      Example: An hourly cashier getting paid more for extra hours during holiday seasons.

  • Wages (Piece rates)

    • ๐Ÿ’ฐ Motivation: Higher output = higher pay.

    • โŒ Disadvantage: Emphasizes quantity over quality, can be repetitive.

      Example: A shoe factory worker getting paid per shoe stitched.

  • Commission

    • ๐Ÿ’ฐ Motivation: Paid by results. Sell more, earn more!

    • โŒ Disadvantage: Can promote wrong sales; decreased earnings during slow periods.

      Example: Real estate agents earning a percentage from house sales.

  • Profit-related pay

    • ๐Ÿ’ฐ Motivation: Employees share in company success.

    • โŒ Disadvantage: Profits fall, pay falls!

      Example: If a startup profits $1M, an employee might get a bonus related to that profit.

  • Performance-related pay (PRP)

    • ๐Ÿ’ฐ Motivation: Surpass targets, get bonuses.

    • โŒ Disadvantage: May not work for cognitive tasks; potential divisions among staff.

      Example: Sales rep getting a bonus for exceeding the monthly sales target.

  • Employee share-ownership schemes

    • ๐Ÿ’ฐ Motivation: Feeling of business ownership; bonus in shares.

    • โŒ Disadvantage: Risks if company performance drops; potential for favoritism.

      Example: Tech companies giving shares to their employees. If the company thrives, so does their bank account!

  • Fringe Payments (Perks)

    • ๐Ÿ’ฐ Motivation: Extra benefits! Health insurance, company cars, or hotel discounts.

    • โŒ Disadvantage: Potential division among staff; dependency on these perks.

      Example: Google employees getting free meals and gym access!

Non - financial rewards ๐Ÿ’ผ

  • Job Enrichment

    • โค๏ธ Motivation: Make jobs more meaningful & challenging.

    • โŒ Disadvantage: Not suitable for all roles.

      Example: A factory worker given additional tasks of quality checking.

  • Job Rotation

    • โค๏ธ Motivation: Experience different roles = more learning!

    • โŒ Disadvantage: Initial productivity dips with each new role.

      Example: A management trainee rotating through marketing, sales, and HR roles.

  • Job Enlargement

    • โค๏ธ Motivation: Variety in tasks.

    • โŒ Disadvantage: Can lead to employee stress if just means more tasks.

      Example: Receptionist also managing social media channels.

  • Empowerment

    • โค๏ธ Motivation: Control over decisions = more rewarding work.

    • โŒ Disadvantage: Risk of poor decisions.

      Example: A customer service rep given the power to issue refunds without supervisor approval.

  • Purpose or Opportunity

    • โค๏ธ Motivation: Making a real difference.

    • โŒ Disadvantage: Losing sight of profit goals.

      Example: Employees at NGOs feeling fulfilled as they make positive social impacts.

  • Teamwork

    • โค๏ธ Motivation: Working together = group cohesion.

    • โŒ Disadvantage: Team conflicts can hurt productivity.

      Example: A project team at Apple working collaboratively to launch the next iPhone.

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IB Resources
Unit 2 - Human Resource Management - QB
Business Management SL
Business Management SL

Unit 2 - Human Resource Management - QB

Unveiling The Secret To Employee Motivation: Financial Vs. Non-Financial Rewards

Word Count Emoji
642 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited onย 5th Nov 2024

Table of content

Financial rewards ๐Ÿ’ผ

  • Salary

    • ๐Ÿ’ฐ Motivation: Provides financial security.

    • โŒ Disadvantage: Relies on staff's professionalism for quality.

      Example: A doctor receiving a monthly paycheck regardless of the number of patients seen.

  • Wages (Time rates)

    • ๐Ÿ’ฐ Motivation: Regular income + possibility of overtime pay.

    • โŒ Disadvantage: Potential slow work, overtime can mean stretched hours.

      Example: An hourly cashier getting paid more for extra hours during holiday seasons.

  • Wages (Piece rates)

    • ๐Ÿ’ฐ Motivation: Higher output = higher pay.

    • โŒ Disadvantage: Emphasizes quantity over quality, can be repetitive.

      Example: A shoe factory worker getting paid per shoe stitched.

  • Commission

    • ๐Ÿ’ฐ Motivation: Paid by results. Sell more, earn more!

    • โŒ Disadvantage: Can promote wrong sales; decreased earnings during slow periods.

      Example: Real estate agents earning a percentage from house sales.

  • Profit-related pay

    • ๐Ÿ’ฐ Motivation: Employees share in company success.

    • โŒ Disadvantage: Profits fall, pay falls!

      Example: If a startup profits $1M, an employee might get a bonus related to that profit.

  • Performance-related pay (PRP)

    • ๐Ÿ’ฐ Motivation: Surpass targets, get bonuses.

    • โŒ Disadvantage: May not work for cognitive tasks; potential divisions among staff.

      Example: Sales rep getting a bonus for exceeding the monthly sales target.

  • Employee share-ownership schemes

    • ๐Ÿ’ฐ Motivation: Feeling of business ownership; bonus in shares.

    • โŒ Disadvantage: Risks if company performance drops; potential for favoritism.

      Example: Tech companies giving shares to their employees. If the company thrives, so does their bank account!

  • Fringe Payments (Perks)

    • ๐Ÿ’ฐ Motivation: Extra benefits! Health insurance, company cars, or hotel discounts.

    • โŒ Disadvantage: Potential division among staff; dependency on these perks.

      Example: Google employees getting free meals and gym access!

Non - financial rewards ๐Ÿ’ผ

  • Job Enrichment

    • โค๏ธ Motivation: Make jobs more meaningful & challenging.

    • โŒ Disadvantage: Not suitable for all roles.

      Example: A factory worker given additional tasks of quality checking.

  • Job Rotation

    • โค๏ธ Motivation: Experience different roles = more learning!

    • โŒ Disadvantage: Initial productivity dips with each new role.

      Example: A management trainee rotating through marketing, sales, and HR roles.

  • Job Enlargement

    • โค๏ธ Motivation: Variety in tasks.

    • โŒ Disadvantage: Can lead to employee stress if just means more tasks.

      Example: Receptionist also managing social media channels.

  • Empowerment

    • โค๏ธ Motivation: Control over decisions = more rewarding work.

    • โŒ Disadvantage: Risk of poor decisions.

      Example: A customer service rep given the power to issue refunds without supervisor approval.

  • Purpose or Opportunity

    • โค๏ธ Motivation: Making a real difference.

    • โŒ Disadvantage: Losing sight of profit goals.

      Example: Employees at NGOs feeling fulfilled as they make positive social impacts.

  • Teamwork

    • โค๏ธ Motivation: Working together = group cohesion.

    • โŒ Disadvantage: Team conflicts can hurt productivity.

      Example: A project team at Apple working collaboratively to launch the next iPhone.

Unlock the Full Content! File Is Locked Emoji

Dive deeper and gain exclusive access to premium files of Business Management SL. Subscribe now and get closer to that 45 ๐ŸŒŸ