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Business Studies

Ch10- Human Needs & Rewards

TermDefinition
Flat Rate This is a set rate of pay, based on a set number of hours. For example, $200 for a 40-hour week. This method would be easier to calculate, but it doesn't give the workers any motivation to work harder.
Time Rate This is paid based on the length of time spent working, rather than the quantity of output achieved. For example, a worker being paid $12 per hour.
Piece Rate This payment method is used to determine the wages of an employee only on the number of items that the employee has produced.
Bonus This is paid as an additional encouragement to employees. It can be paid out of additional profits earned by the company as a result of the employee's hard work. Bonuses encourages employees to keep up a high output.
Commission This is a payment made as a percentage of the sales a salesperson has made. In a retail store, an employee might receive 10% of each sale made. This acts as an incentive for the employees to sell more.
Fringe Benefits These are non-financial incentives given to employees.
Created by: Jennie HSU