1.4.4 key terms

• Commission


  A payment to a worker based on a percentage of the value of sales.
• Consultation


  Employees opinions/feedback are sought when making business decisions
• Delegation


  Authority to pass down from superior to subordinate
• Empowerment


  Giving official authority to employees to make decisions and to control their own work activities
• Financial incentives


  Monetary rewards used to help improve staff motivation and achievement. They can include Piecework, commission, bonuses, profit sharing and performance related pay
• Flexible workforce


  Employees have choice over how/when they work by agreement with the company. E.g. zero hours contracts, homeworking, part time
• Herzberg's two factor theory


  A theory of motivation that is split into two categories: Motivators and Hygiene factors
• Job enlargement


  Giving an employee more work to do of a similar nature, horizontally extending their work role
• Job enrichment


  Giving employees greater responsibility and recognition by vertically extending their work role
• Job rotation


  The changing of jobs or tasks
• Maslow's hierarchy of needs


  The order of people’s needs, starting with basic human needs
• Mayo's human relations theory


  Emphasises the importance of the ways in which people interact and how they are treated. Motivation can improve when employees feel more involved
• Motivation


  The reason for people's actions, willingness and goals.
• Non-financial techniques


  Ways of encouraging employees without the use of monetary rewards e.g Delegation, consultation, empowerment, team working, flexible working, job enrichment, job rotation and job enlargement
• Performance-related pay

  A financial reward to employees whose work is considered to have reached a required standard
• Piece rate


  A payment system where employees are paid an agreed rate for every item produced
• Profit sharing


  A form of financial incentive given to employees, where part of the profit of the business is shared amongst the employees.
• Taylor's scientific management


  Suggested a job could be broken down into constituent parts, so that the most efficient way of working could be calculated. He believes workers are motivated by money
• Teamworking

  Organising people into working groups that have a common aim
• Working conditions


  The physical surroundings and the atmosphere of the workplace, and the way staff are treated by managers