ZIMSEC O Level Business Studies Notes: Financial Reward Systems
- These are procedures, rules, and standards associated with allocation of benefits and compensation to employees.
- Financial rewards involve the flow of money from the organisation in order to reward employees
- Employees receive financial payment in return for the labour services they render to the business/organisation
- These financial incentives act as a way of inducing/motivating employees to accomplish the organisation’s goals
- Financial rewards are also known as extrinsic forms of motivation
- They are not technically part of the job/task but they are still important
- Financial reward systems take many forms including:
- Time rate
- Piece Rate
- Productivity Agreements
- Fringe benefits
- Profit sharing and Share Options
NB Click on the relevant link to learn about each productivity system
To access more topics go to the O Level Business Notes page.