2.5.4b Financial and non-financial methods of motivating employees Quiz: Pearson Edexcel Business, Unit 10

The 20 questions

1. Which financial method of motivation involves paying employees extra for reaching a set sales target?

   • Job rotation
   • Job enrichment
   • Bonus
   • Autonomy

2. Which is a fringe benefit that a business might offer to employees?

   • A commission on each sale
   • A higher basic salary paid each month
   • Private health insurance
   • A cash bonus at the end of the year

3. What is remuneration?

   • The cost of renting office space for the business each year
   • The number of hours that an employee is contracted to work
   • The profit left after all expenses have been paid
   • The total pay and rewards an employee receives for their work

4. Which financial method pays employees in direct proportion to the sales they make?

   • Job rotation
   • Fringe benefit
   • Fixed salary
   • Commission

5. What is the aim of promotion as a motivation method?

   • To reduce the wages paid to an employee who has performed well in the job
   • To reward good performance and give the employee new responsibilities and pay
   • To move an employee to a role with no change in responsibility or pay at all
   • To reduce an employee's responsibilities so that they are able to rest more often at work

6. Which non-financial method gives employees control over when and how they complete tasks?

   • Autonomy
   • Commission
   • Bonus
   • Remuneration

7. A business pays staff a bonus of £600 each and has 15 employees. What is the total bonus cost?

   • £900
   • £9,000
   • £600
   • £15,000

8. A salesperson earns a basic salary of £1,200 a month plus a commission of 5% on sales of £20,000. What are the total monthly earnings?

   • £1,200
   • £1,000
   • £2,200
   • £21,200

9. Which is a disadvantage of a commission-based pay system for employees?

   • Pay is always higher than a fixed salary for every employee
   • Pay is unaffected by how well the employee performs at work
   • Pay is paid in advance before any sales have been made
   • Pay can fall sharply in a period when sales are low

10. Which is an advantage of a commission-based pay system for a business?

    • The business pays commission even when no sales have been made
    • The business does not need to track sales to calculate commission
    • Staff are paid more when they sell more, which links pay to results
    • Staff are paid the same amount regardless of how much they sell

11. Why might a business use job enrichment instead of a pay rise to motivate a team?

    • It means staff no longer need to complete any of their tasks in the working week
    • It can increase satisfaction at lower cost by giving more meaningful work
    • It is always more expensive than a pay rise for every employee in the team each year
    • It is only effective for senior managers and never for other members of staff at all

12. A business offers a pension contribution of 3% of salary. An employee earns £28,000 a year. What is the contribution?

    • £84
    • £840
    • £8,400
    • £2,800

13. A business uses autonomy and job rotation together. Which result is most likely?

    • Staff are unable to perform any tasks because they must choose their own work
    • Staff feel more in control and have more variety, which can increase motivation
    • Staff are paid higher wages because they are moving between roles
    • Staff are more confused about their roles and become less productive

14. Which method would most suit a business that cannot afford to raise pay this year?

    • Raising the basic salary of every member of staff by 10%
    • Increasing the commission rate for all sales staff by 5%
    • Offering more responsibility and recognition for good work
    • Giving a large cash bonus to every employee for the same year

15. What is a possible drawback of job rotation for a business?

    • It removes the need for any staff training during the year because staff move between roles
    • It means that staff never gain any new skills or experience from the work they do
    • It can take time for staff to learn new tasks, which may reduce short-term output
    • It always makes staff more bored because they have to change tasks frequently during the week

16. Why might a business offer both financial and non-financial rewards to a manager?

    • Pay and recognition together may motivate the manager more than either alone
    • Managers are never motivated by any reward, so the business should offer none
    • Non-financial rewards are only given to employees who are paid nothing at all
    • Financial rewards are illegal for managers, so non-financial rewards are required

17. Which of these is a financial method used to attract candidates to a business?

    • A volunteer programme with no pay for any role
    • A competitive starting salary with a pension scheme
    • An unpaid internship for every new recruit
    • A rule that employees may not discuss pay with anyone

18. A business has a bonus scheme that is paid only if the whole team hits its target. What is a possible drawback?

    • Staff who work harder may feel unfairly treated if the team target is missed
    • Staff are unable to see how their work relates to the target that has been set for them
    • The business must pay the bonus even if the target is never reached by the team at all
    • Staff are paid more for missing the target than for meeting it in the same period

19. Explain why a business should check whether its motivation methods are working.

    • Checking methods is unnecessary because staff never comment on how they feel about work
    • Motivation methods never change in effect once they have been introduced in the business
    • Motivation methods are fixed by law, so the business cannot review them in any way
    • Staff needs and preferences change, so methods that worked before may stop being effective

20. Explain why a mix of financial and non-financial rewards can improve retention.

    • It guarantees that staff will stay for their whole working life with the business
    • It removes the need for staff to be paid at all in a year
    • It meets both pay needs and job satisfaction needs, so staff are less likely to leave
    • It means that staff never receive a pay rise, which keeps them in their job

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