Commission

Type of financial payment system that rewards workers a certain percentage of the sales of each good or service that they are responsible for completing.

Differentiated piece rate

Financial payment system advocated by F.W. Taylor to reward workers based on the level of their output or productivity.

Employee share ownership scheme

Type of financial payment system that involves giving workers shares in the company they work for, either free of charge or at a discounted price.

Empowerment

The delegation of decision-making power to workers, granting them the autonomy and authority to be in charge of their own jobs and to execute their own ideas.

Equity theory

J.S Adams’ theory of motivation suggests that people make social comparisons of fairness in the workplace (based on the ratio of their input (effort) to output (rewards).

Esteem needs

In Maslow’s hierarchy of needs, this refers to the desire of people to feel respected, having value and having self-respect.

Fringe benefits

Also known as perks, these are financial benefits of a job in excess of the basic pay (wage or salary).

Gratuity pay

Financial reward for long-term service or for the completion of a fixed-term contract.

Hierarchy of needs

A. Maslow’s theory of motivation that people are motivated by different levels of needs: physiological, safety, social (love and beginning), esteem and self-actualization.

Hygiene factors

Also known as maintenance factors, these are the factors that F. Herzberg argued cause dissatisfaction in the workplace (rather than motivation), so must be addressed.

Job enlargement

A type of non-financial motivation that takes place when more tasks or activities are added to a worker’s job description.

Job enrichment

Type of non-financial reward, involving enhancing the experiences of workers, giving workers a wide range of challenging tasks and more responsibility at work.

Job rotation

Type of non-financial motivation that involves workers switching between jobs (tasks) for a period of time.

Job security

The assurance given to employees that they will keep their current job for the foreseeable future, usually stated in an employment contract.

Motivation

The intrinsic desire to do something, which exists when workers do something because they actually want to, rather than because they have to.

Motivators

Also known as growth factors, these factors address the higher level needs in Herzberg’s motivation theory and are based around the job itself, e.g. achievement, purpose and responsibility.

National minimum wage

The lowest hourly pay, as stipulated by the law, that employers can remunerate their workers.

Performance-related pay (PRP)

Type of financial payment system used to pay people a bonus for reaching or exceeding a set target.

Physiological needs

Also known as basic needs, these are the requirements for human survival in Maslow’s hierarchy of needs.

Piece rate payment systems

Financial reward that pays workers based on their output or productivity, e.g. $8 per unit of output.

Profit-related pay

Type of financial reward system which remunerates workers a certain percentage of the annual profits that the business earns.

Purpose

An intrinsic, non-financial type of motivation involving people doing genuinely meaningful work, making a difference on a personal, professional or social level.

Remuneration

The overall financial package of a person, e.g. salaries, commission, profit-related pay, performance-related pay, share ownership schemes, and fringe benefits.

Safety needs

Also known as security needs, these are the requirements in Maslow’s hierarchy of needs that make people feel safe, such as job security.

Salary

Type of financial payment that rewards workers a fixed annual amount of money, but paid in monthly instalments.

Scientific Management

F.W. Taylor’s theory of motivation, that people are, above all things, motivated by higher wages. Hence, there is one best way to motivate these employees.

Self-actualisation

This is the highest level of needs in Maslow’s hierarchy of needs, which occurs when people become the very best that they can be and fulfil their potential.

Social needs

Also known as love and belonging needs, this refers to the requirements in Maslow’s hierarchy of needs about being accepted by others.

Teamwork

A form of non-financial motivation, involving the combined efforts of a group of workers to achieve of an organizational goal.

Time-based payment systems

Financial reward system that pays workers based on their time input in the production process, e.g. $10 per hour.

Wages

Type of financial reward payment system based on time or output. Wages are paid as time rate (hours) or piece rate (output).