Podcast
Questions and Answers
What method of payment compensates employees based on their output or completed tasks?
What method of payment compensates employees based on their output or completed tasks?
- Bonuses
- Salary
- Commission
- Piece rate (correct)
Which payment method is characterized by employees receiving a fixed amount over a specified time period?
Which payment method is characterized by employees receiving a fixed amount over a specified time period?
- Bonuses
- Commission
- Time-based payment (correct)
- Profit sharing
Why is it significant for businesses to review their payment methods regularly?
Why is it significant for businesses to review their payment methods regularly?
- To attract customers
- To ensure compliance with tax regulations
- To maintain competitive pricing
- To ensure fairness and alignment with company goals (correct)
Which of the following payment methods is NOT directly tied to an employee's performance?
Which of the following payment methods is NOT directly tied to an employee's performance?
How can payment methods influence employee retention?
How can payment methods influence employee retention?
Flashcards
Time-Based Payment
Time-Based Payment
Paying employees based on the hours they work, like hourly wages or salaries.
Salary Payment
Salary Payment
A fixed amount of pay over a set period, such as monthly or annually.
Piece Rate Payment
Piece Rate Payment
Paying employees for each item produced or task completed.
Commission Payment
Commission Payment
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Employee Bonuses
Employee Bonuses
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Study Notes
Payment Methods in Business
- Payment methods significantly affect employee motivation and productivity.
- Time-based pay, like hourly wages or salaries, pays employees based on work hours.
- Salaries provide employees with a fixed amount paid over a set period (monthly/annually).
- Piece rate pay compensates based on the number of units produced or tasks completed.
- Commission-based pay rewards employees with a percentage of sales generated.
- Bonuses are extra payments for exceeding performance goals.
- Profit sharing distributes a portion of company profits to employees.
- Choosing the right method depends on the job, company finances, and desired results.
- Payment methods impact employee retention, turnover, and satisfaction.
- Businesses should regularly review and adjust payment methods for fairness, competitiveness, and alignment with company goals.
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