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Financial and Non-Financial Rewards Activity

This document discusses financial and non-financial rewards that can be used to motivate employees. Financial rewards include salary, wages, commission, profit-related pay, and performance-related pay. Non-financial rewards include job enrichment, job rotation, empowerment, having a sense of purpose, and teamwork. Both financial and non-financial rewards can motivate employees but also have disadvantages, such as financial rewards relying on employees' professionalism and non-financial rewards not always being applicable to all jobs. The document provides information on the motivation factors and potential disadvantages of different reward types.

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Aldrin Cruz
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150 views3 pages

Financial and Non-Financial Rewards Activity

This document discusses financial and non-financial rewards that can be used to motivate employees. Financial rewards include salary, wages, commission, profit-related pay, and performance-related pay. Non-financial rewards include job enrichment, job rotation, empowerment, having a sense of purpose, and teamwork. Both financial and non-financial rewards can motivate employees but also have disadvantages, such as financial rewards relying on employees' professionalism and non-financial rewards not always being applicable to all jobs. The document provides information on the motivation factors and potential disadvantages of different reward types.

Uploaded by

Aldrin Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Accounting and Business Management 11

Human Resource Management Activity Sheet

Topic: Financial Rewards vs Non-Financial Rewards

Name: _______________________________ Score: ____ / 72 Points

Grade and Section: __________________________ Date: _____________

Directions: With the given lecture regarding the financial rewards and non-financial rewards, provide
information about what are the possible motivational factor and possible disadvantages of the given financial
and non-financial rewards.

Types of How it is being Paid Motivation Factor Disadvantages


Financial
Rewards

The employer is
The main motivator is typically relying on
Employees are paid a sum of likely to be the security of the professionalism
Salary
money per month. receiving a regular of the staff to provide
income. the quality and
quantity expected.

Employees are paid an hourly rate,


Wages (time or for a number of hours per week.
rates) It is possible that overtime rates of
pay are used too.

Wages (piece Employees are paid for each unit


rates) (or batch) produced

Employees are paid by results, for


Commission example, a flat fee or a percentage
for each item sold

The amount an employee receives


Profit-related
is linked to the amount of profit the
pay
business makes
PRP is usually a bonus paid in
addition to the employee’s ordinary
compensation. PRP is ordinarily
Performance-
used with those employees whose
related pay
productivity or output cannot be
(PRP)
measured precisely. However, the
pay is based upon pre-established
performance targets.

These come in two forms. The first


is as some type of bonus; however,
the payment is shares in the
business rather than cash. The
Employee
second is some type of employee
share-
savings plan whereby employees
ownership
are allowed to purchase shares
schemes
through a payroll deduction
(typically a fixed amount per pay
period) without having to pay
brokerage fees.
Fringe payments, or perks, are the
many types of extras that
businesses over their employees.
They can include medical
Fringe insurance, a car, and private
payments pension plans, among other forms
(perks) of payment. They often include
perks related to the nature of the
business (a hotel chain may offer
discounted rates at its hotels to
employees).

Types of
Non-
Main Feature Motivation Factor Disadvantages
Financial
Rewards
Employees typically
prefer to have Job enrichment cannot
Job enrichment makes an responsibilities that be applied in all work
employee’s job “richer”, or more are challenging. situations, either
Job
meaningful and rewarding, by Employees who are because of the type of
enrichment
allowing employees to use the full more satisfied are work involved or
range of their abilities. typically more because of the caliber
motivated to work of the workers
hard.

Job rotation involves having an


individual employee rotated through
different divisions in a business over
Job rotation a period of time. It is often used with
young employees as a form of
training but can be used at many
different stages of a career

Empowerment involves giving


individuals access to resources and
information to do their jobs and the
Job power to make decisions. In an
enlargement employment context, empowerment
means giving employees
considerable control over how their
jobs should be done.
Purpose or Purpose or opportunity to make a
opportunity to difference in the world refers to the
make a ability of businesses or other
difference organizations to connect employees
to the aims of the organization other
than profit. Non-profit organizations
have this advantage, as they
typically exist to meet some social or
environmental need. Many for-profit
businesses today, however, have
adopted the other-than-profit aims to
their objectives.

Teamwork involves working


Teamwork cooperatively with a group of people
to achieve a goal.

Grading Scale on each of the responses:

3 - Demonstrates Understanding

 Response demonstrates a thorough understanding of the possible motivation factors and disadvantages of rewards.
 Response is clear and concise, and presents ideas in a coherent manner.

2 - Needs Improvement

 Response demonstrates some weaknesses in content, language, or format.


 Response may be incomplete or unclear in some areas.

1 - Limited Understanding

 Response demonstrates significant weaknesses in content, language, or format.


 Response is incomplete or unclear in several areas

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