Consider each of the following three methods PF could use to motivate its employees. Which method should PF use? Justify your answer. - Paying bonuses - Piece-rate - Job rotation Paying bonuses: . . . . . Piece-rate: . . . . . Job rotation: . . . . . Recommendation: . . . . .

Business
IGCSE&ALevel
CAIE
Exam No:0450_s25_qp_21 Year:2025 Question No:1(b)

Answer:

Justification might include:
- Paying a bonus is the best way to motivate the \(\mathbf{2 0}\) employees as this will add extra to their wages for the work they do producing shoes and encourage them to work harder. Paying piecerate may be difficult to calculate each week as employees do different jobs, and some may take longer than others. Job rotation may be difficult to introduce if the tasks are very different.
- Paying workers using piece-rate is the best way to motivate employees as this means that employees who work harder producing shoes will be rewarded with higher wages which will make them feel it is all worth the effort, based on Taylor's theory of motivation.
- Job rotation is the best way to motivate employees as this is the only one which makes the job of producing shoes more interesting and less boring. Money motivates only for a short time and then the effects will decrease.





Knowledge points:

2.1.1.1. Why people work and what motivation means
2.1.1.2. The benefits of a well-motivated workforce: labour productivity, reduced absenteeism and labour turnover
2.1.1.3. The concept of human needs, e.g. Maslow’s hierarchy
2.1.1.4. Key motivational theories: Taylor and Herzberg
2.1.2.1. Financial rewards, e.g. wage, salary, bonus, commission and profit sharing
2.1.2.2. Non-financial methods, e.g. job enrichment, job rotation, teamworking, training, opportunities for promotion
2.1.2.3. Recommend and justify appropriate method(s) of motivation in given circumstances

Solution:

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