Payment methods

Managers can motivate staff by paying a fair wage. Payment methods include:

  • time rate - staff are paid for the number of hours worked
  • overtime - staff are paid extra for working beyond normal hours
  • piece rate - staff are paid for the number of items produced
  • commission - staff are paid for the number of items they sell
  • performance related pay - staff get a bonus for meeting a target set by their manager
  • profit sharing - staff receive a part of any profits made by the business
  • salary - staff are paid monthly no matter how many hours they work
  • fringe benefits - are payments in kind, eg a company car or staff discounts

Non-pay methods of motivation

Managers can motivate staff using factors other than pay through:

  • job rotation - staff are switched between different tasks to reduce monotony
  • job enlargement - staff are given more tasks to do of similar difficulty
  • job enrichment - staff are given more interesting and challenging tasks
  • empowerment - staff are given the authority to make decisions about how they do their job
  • putting groups of workers in a team who are responsible together for completing a certain task
Organisations motivate their staff with non-payment methods such as empowerment, job enlargement, job rotation, job enrichment  and working in teams