Business Studies Collins Revision Guide. - StudyGuide.PK

●●●REWARDING EMPLOYEES (1)Employees can be rewarded by pay, fringe benefits or incentives.Fringe benefits are commonly known as ‘perks’ and are extras otherthan money. Incentives include giving payment linked to outputor performance.Pay may not be the best method of motivation but a good rate ofpay may prevent workers from being demotivated. It can be one ofthe factors involved in people changing their jobs if the otheraspects of the job are similar.The method of paying workers can be chosen to make peoplework harder.Methods of payment●The main methods of payment are: time rate, piece rate, bonuspayments.Time rate●●Workers are paid for the number of hours taken to do the job. Thepay is normally given as an hourly rate for production workers, forexample £4.50 per hour. For certain staff the pay will be given as anannual salary, for example £13 000 per year.Advantages■ It is simple to operate and can be used easily with time clockswhere workers ‘clock in’ and ‘clock out’ at either end of the day.■ It is easy to compare the rates of pay given by different employers.■ If the job cannot be completed in the normal working hours, therate of pay can be increased. This is known as overtime pay.Workers are often prepared to stay for extra time or work on a daythey do not usually work if they are paid time-and-a-half or doublepay for it. Some workers rely on overtime to increase their pay.24