This is the standard wage scheme used by small business, basically wage will be set per hour, and any extra work done above the set time will be paid at an overtime rate. E. g. minimum wage per hour could be i?? 5 and overtime rate could be 7. 50. Salary: flat rate: It is fixed rate which is paid weekly/monthly, based on a set number of hours. This makes it easy to calculate and administer but main drawback of this scheme is that harder working employees will be paid the same as employees who are not working very hard.
Piece rate: This system is commonly employed in the textile & electronics sector and many other sectors where employees are paid for the each item produced that meets quality standards. The benefit of system is that it obviously motivates workers to put in effort to produce higher quantity of items. It is not suitable for jobs where time and care is required. Many jobs particularly in the service sector produce outputs which are impossible to measure. Bonus: Bonuses are paid as an added encouragement & motivation towards employees.
It is generally paid out of the additional profits earned by the employer as a result of the employee’s effort and hard work. Also paid as an incentive as a result of the employees might be inclined to slacken efforts at time such as Christmas or summer holiday times. Commission: Commission is a payment made as a percentage of sales a salesperson has made. Commission is commonly achieved at currency exchange points and car sales. Output related schemes: This type of system is generally used to reward manual labour workers. It combines time rate plus bonus or any other type of incentive.
Standards are set in man Standards are set in many ways, varying from casual assessment to a detailed work study, based on method study and work measurement. A standard allowable time is set in according to the stages. The workers pay is then determined according to the success of the third stage. Performance related pay: In recent year, the emphasis in a number of organisations has shifted towards performance related pay. Performance is assessed against working objectives and ‘company goals’ scoring systems are then worked out to assess performance against objectives and these distinguish levels of attainment, e. g. high, medium or low.
Managerial jobs are commonly affected by performance related pay. Performance related pay is based upon performance appraisal techniques, such schemes have been adopted in a wide range of occupations, including the police force, universities, insurance and banking. Evidence indicates that up to three quarters of all employees are now using some form of performance appraisal to set pay levels. One way of rewarding performance is to give increments as targets are met, with the employee progressing up an incremental ladder each year. Profit sharing:
This is an incentive which involves the process of giving paying employee based on profit or bonuses based on profit performance of a business. This scheme motivates employees are they will be able to see that if the business is succeeding than it will lead to personal rewards. Share options: Share options is simply where employees are encourage to take up shares in the company they are working in, this often would be part of a reward scheme. When employees take out shares then they are rewarded according to the performance of the business. If the business does well than the value of the shares and dividends do well.
Attribution theory: All business have a need to explain the world, both to themselves and to other people, attributing cause to the events around them. This gives us a greater sense of control. When explaining behaviour, it can affect the standing of people within a group (especially ourselves). When another person has erred, the business will often use internal attribution, saying it is due to internal personality factors. When they have erred, they will more likely use external attribution, attributing causes to situational factors rather than blaming ourselves.
And vice versa. They will attribute our successes internally and the successes of our rivals to external ‘luck’. When a football team wins, supporters say ‘we won’. But when the team loses, the supporters say ‘they lost’. Business attributions are also significantly driven by our emotional and motivational drives. Blaming other people and avoiding personal recrimination are very real self-serving attributions. They will also make attributions to defend what they perceive as attacks. businesses will point to injustice in an unfair world.
They will even tend to blame victims (of us and of others) for their fate as we seek to distance ourselves from thoughts of suffering the same plight. They will also tend to ascribe less variability to other people than ourselves, seeing themselves as more multifaceted and less predictable than others. This may well because they can see more of what is inside themselves (and spend more time doing this). In practice, we often tend to go through a two-step process, starting with an automatic internal attribution, followed by a slower consideration of whether an external attribution is more appropriate.
As with Automatic Believing, if we are hurrying or are distracted, we may not get to this second step. This makes internal attribution more likely than external attribution. Non-Financial: Goal setting: Establishing goals for employees to work towards can be an important motivational factor as the achievement of these goals then creates a sense of achievement and personal fulfilment. Goals can be established for an individual, team or for the whole organisation and achievement may be related to promotion at work.
If goals are set by other people without our involvement, then we are much less likely to be motivated to work hard at it than if we feel we have set or directed the goal ourselves. When we are working in the task, we need feedback so we can determine whether we are succeeding or whether we need to change direction. Naturally positive feedback (if it is sympathetically done) is found to be encouraging and motivating. Negative self-talk is just as de-motivating as negative comments or feedback from peers. The technique we use to achieve a goal will depend on the goal itself.
A directional goal is one where we are motivated to arrive at a particular conclusion. We will therefore narrow our thinking, selecting beliefs, etc. that support the conclusion. There are also accuracy goals; these are ones where we are provoked to arrive at the most accurate possible conclusion. These types of goals are mostly used when the chances of being inaccurate are high. Naturally, people will tend to put in more effort in achieving accuracy goals, as any deviation costs, and a large deviation may well more.
Using these types of goals deliberately will make sure that they known that there is a chance that the goal cannot be met. When using these goals and we cannot come to a good enough conclusion we will keep on searching for improvements. Both of the methods mentioned above will work as they will influence or choices of belief and decision making rules. Goal setting can be compared, in a financial sense with performance related pay as employees are given incentives in accordance with goals set by the company. Perks and status symbols:
They are handy motivational tools used by companies. Generally a perk is something extra given, so in a business sense it is extra incentive provided by the company form motivational purposes. E. g. if you work for a business which provides football tickets and you position is quite important than you might get free football game ticket. Status symbols are also important motivators. Most evident status symbols are things like having big office, having a sign outside your office door with your name on it possibly.
People will tend to react very positively to status symbols because these mark them out as being special therefore employees will be motivated to work harder in order for them to be the special person. Appraisals: Appraisals are common motivators whether it is at home, school, at work anywhere. Appraisals make a person feel good or proud about themselves. Generally staff will be appraised directly or indirectly, here are some of them stages: 1. Line managers meet with the job holder to talk about what is expected.
The decided expectations may possibly be expressed in terms of targets, performance standards or required job behaviours such as attributes, skills and attitudes. 2. Outcome of the meeting is then recorded and signed by both parties. 3. Then the job holder will carry out the job for half a year. 4. Finally at the end of the six months period the job holder and the line manager will get together to discuss and review progress achieved. A new action plan may be drawn up which will be designed in such a way that it deals with the identified problems as well as agreed targets and standards for the next period.
Meeting training needs: There are two types of methods which allow achievement of training needs. First method is the mentoring needs and second method is coaching needs. These methods are seen as essential ways of motivating employees so that they feel valued as well as cared for in their work. Mentoring needs: This involves an employee who is experienced paired with a trainee. The trainee will carry out jobs and the ‘mentor’ will be used to discuss problems and the best way of solving that problem. This type of method is highly used in many lines of work.
E. g. Common practice for a trainee teacher would be to work with a mentor who’s responsible for their early training and development. The trainee teacher will match the mentor teacher before starting his or her own teaching. The mentor will then give fragmentary guidance to the apprentice teacher on how best to advance his or her performance. If the apprentice teacher has any problems or difficulties he or she can talk to the mentor for advice. Coaching needs: This is the second method used when providing personal coaches to individuals in a workplace.
Coaching skills is required to be learnt for the person doing the coaching not only this but he/she will also need to have timeslot for the coaching to be able to take place. Rating Within the context of appraisal requirements, rating means evaluating employee performance against the elements and standards in an appraisal plan. The rating of record is based on work performed during the entire 12-month appraisal period. The rating assigned reflects the level of the employee’s performance as compared to the standards established.