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Motivation in Practice (Financial Reward), Ma. Fernanda Moreno - Coggle…
Motivation in Practice (Financial Reward)
Salary
sum of money paid per month on a regular basis. Helps to get security to have incomes monthly.
Example:
A employee has a salary of $3000 (gross salary) and the deductibles will be $283,5. So what the employee will really win will be $2.716,5
Some deductibles from the salary may include taxes and insurance.
Wages
Wages (piece rates)
money paid for each unit produced (i.e. artesans)
Example:
Artists when they sell their paintings.
Wages (time rates)
hour-based pay or how many hours they do per week
When working overtime you will also receive a payment
Example:
Mc Donald's workers have a salary based on how many hours they work in a week.
Commission
Employees are paid by results represented in percentages or a flat flee
Motivational factor:
Employees will be motivated as they will be rewarded from their results.
Example
: Real-state agents win commissions with every sale they do to different customers.
Performance- related pay (PRP)
Bonus paid in addition to employee's original salary
Motivational factor:
Employees will be motivated to keep improving their work to make extra money.
Example:
A manager follows orders and as a result he achieves a gres a bonusater a target, because of this, he receives a bonus.
Profit-related pay
Business divides equally its profits for the employee (not in every country)
Motivational factor
: May encourage to contribute to the business success.
Example:
Holiday Bonus
Employee share-ownership schemes
Payment in form of shares (used in public limited companies)
Motivational factor
: Make employees to work harder as they now have a stake in a business.
Fringe Payments (perks)
Types of extras that a business may offer to the employees.
Motivational factor: Some of the fringe benefits taxes may not be claimed by the workers, this as a result makes the employees to pay a cheaper price to the after-tax salary.
Example:
Business may include health insurance to employees.
Ma. Fernanda Moreno