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
• Commissions
• Salaries
• 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.