What's it: A piece-rate wage is a wage system in which workers are paid based on the output produced. This is an alternative to time-based wages, calculated based on hours worked. This pay system is suitable for businesses where their products
Human Resources
Fringe Benefits: Examples, Advantages, Disadvantages
What's it: Fringe benefits are compensation provided to employees beyond salary or wages. Common examples are insurance, retirement plans, family leave, and gym facilities. Some companies may also provide non-general or specific benefits such as
Share-Ownership Scheme: Its Importance, Pros, and Cons
What's it: A share-ownership scheme is an incentive to employees and management by giving them the right to purchase stock in the company they work for. It could be an employee stock ownership plan (ESOP) and a management stock ownership plan
Non-Financial Motivation: Why Is It Important? What are the Types?
What's it: Non-financial motivation is an employee's encouragement without involving direct monetary compensation such as salary. Rather, it involves factors related to the employee's job and self. Several methods are available, including job
Maslow’s Hierarchy of Needs: Importance, Order of Needs and Criticism
What's it: Maslow's hierarchy of needs is a theory to show how our needs vary and have levels, from the most basic to the least important. Maslow divides our needs into a pyramid with five hierarchies, starting from the lowest (most basic) to
Herzberg’s Theory of Motivation: Examples and Explanations
What's it: Herzberg's theory of motivation outlines two important factors for satisfying and motivating us. First, we have basic needs, and when they are met, we are satisfied. And, if not fulfilled, we are disappointed. However, meeting these
McClelland’s Theory of Needs: Types and How to Satisfy
What's it: McClelland's theory of needs explains how the needs for achievement, affiliation, and power influence individual actions. These three needs underscore why a person is motivated. Some predominate on the need for affiliates to explain
Adam’s Equity Theory: How It Works and A Brief Explanation
What's is: Adam's equity theory is a motivational theory by links employee motivation and satisfaction with fairness for what is received from the company. Therefore, employees will naturally compare what they give to the company with what they
Pink’s Theory of Motivation: Elements and A Brief Explanation
What's it: Pink's theory of motivation describes three vital elements for intrinsically motivating employees: autonomy, mastery, and purpose. Employees have a psychological need to support them to grow and develop. All three play an important
McGregor’s Theory X and Theory Y: Categories, Characteristics, and Implications
What's it: McGregor's Theory X and Theory Y describe two groups of employees. One is motivated by external incentives and requires supervision because they are less likely to take the initiative. Others need autonomy in their work to actualize
Financial Motivation: Why It Matters and Types
What's it: Financial motivation is an encouragement to employees to do something involving monetary compensation or the like. Companies have many variations to motivate employees. Salary or wages are the most common to encourage them to work
Self-appraisal: How it Works, Advantages, Disadvantages
What's it: Self-appraisal is an employee appraisal method by asking them to responsibly evaluate their own performance. For example, your company asks employees to fill out an evaluation form. Then, they submit it to their manager or supervisor
Peer Appraisal: Importance, Advantages, and Disadvantages
What's it: Peer appraisal is an appraisal program involving colleagues at the same level and division or team. It excludes the supervisor or manager as an appraiser. This method seeks to provide an objective assessment by involving more people.
One-to-One Appraisal: How It Works, Advantages, Disadvantages
What's it: One-to-one appraisal is an appraisal method in which superiors directly evaluate their subordinates' performance. It is a traditional method where appraisal is the job of the manager. Employees go to the manager to discuss how well
Why Are Well-Motivated Employees Important To Business?
Motivated employees are important to achieve success and generate more profits. They tend to be more productive, allowing your company to produce more output. They also contribute to providing superior customer service, enabling strong customer
Cognitive Training: Types, Advantages, and Disadvantages
What's it: Cognitive training is training to improve brain-related abilities, including memory, reasoning, and information processing. It is important to develop core abilities and self-control. The method can be through cardiovascular
Off-the-job Training: Types, Advantages, and Disadvantages
What's it: Off-the-job training refers to training conducted outside the workplace or office. Your employees learn from the experts and professionals out there. Training providers can come from training centers or universities.
Employee Appraisal: Types, Costs, and Benefits
What's it: Employee appraisal refers to a program to assess employee performance. It assesses how effective an employee is in their current role in relation to pre-set criteria and targets. Also known as performance appraisal, performance
Apprenticeship: Costs and Benefits
What's it: Apprenticeship is an on-the-job training program where participants are still studying, usually for four or five years. It's not a supplementary or extracurricular program but rather a way to acquire new skills and gain hands-on field
Intrinsic and Extrinsic Motivation: Examples and Differences
Intrinsic and extrinsic motivation is essential in encouraging your employees to be more productive. They are passionate about doing daily tasks and achieving your company's targets. In addition, when adopting a new competitive strategy - to respond
Taylor’s Theory of Motivation: How it Works, Principles and Criticism
What's it: Taylor's motivation theory underscores money as the only way to motivate employees. The company is profit-oriented and seeks to produce more output at the least possible cost. Thus, they will pay more only if they get a higher output.