Business Project

1. Date: 10/04/2022

2. In addition to regular compensation, financial rewards are monetary
incentives that an employee earns as a result of good performance.
These rewards are aligned with organizational goals. When an
employee helps an organization in the achievement of its goals, a
reward often follows. Modern organizations give financial rewards to
their employees that we will see below.
Introduction

3. Purpose
The objectives of this presentation is to explain what has been learned
with this project and to highlight in detail and with emphasis all the important points.
I hope I can correctly convey financial rewards and their types.

4. • Today the modern organizations are using two types of financial rewards. The
first are the time rates that includes the wages and the salaries. The second are
the incentive schemes that includes the bonuses, the commission, profit share,
the performance related pays and the share ownership.

5. Time Rates
With time rates, employees are paid for the length of time that they work. This may be an hourly rate,
common in the retail sector, or a weekly wage for completing a set number of hours.
Salary
Employees on a salary system are paid an agreed
sum for a year's work. There is more flexibility in
terms of when, and how long an employee works in
a day, week or month.
Wages
Piece rates
A piece-rate system pays employees for each unit of
output (each product) they produce. There is no
guaranteed level of basic pay, and no sickness or
holiday pay. Piece rates are used mainly in
manufacturing industries, such as clothing factories.

6. Insentive Schemes
Businesses use several ways to improve the financial incentive (motivation) to encourage people
to work harder. these include bonuses, commission, performance-related pay, profit share and
share ownership.
Performance related
Pay
This provides a financial
reward to an employee
for meeting agreed,
individual targets. PRP is
closely linked to
appraisal. An appraisal
is where an emplovee
has their performance
reviewed and targets
set. If the employee
meets the targets, he or
she may be awarded a
PRP bonus.
Profit share
With profit-share
schemes, employees are
offered a share in the
annual profits of the
organisation. In contrast
to PRP, profit sharing
encourages employees
to work collectively (as a
team)for the benefit of
the whole organisation.
Depends on how much
of the profit is actually
shared - and whether
there is any profit at all!
Share ownership
Incentive schemes that
provide company
shares as a reward
produce similar
benefits to profit-share
schemes. As
shareholders,
employees benefit
financially from the
success of the business.
Issuing shares as a
reward is very common
in start-up companies
or high-tech firms.
Bonuses
A bonus is the general
term for an additional
financial reward
given to an employee.
Examples include:
•Bonus - additional
payment for each unit
of output an employee
produces above a
stated target
Commission
Commission is a fee
paid to an employee,
usually for a sale. It is
often used in car
dealerships where a
percentage of the
selling
price of the car is paid
to the salesperson as a
reward for making
the sale. This method is
used for sales teams all
around the world.

7. • We can conclude that incentives focus the efforts of employees on
specific performance goals. Provide a motivation that produces
important benefits for the real employee and the company. Incentive
payments are variable costs that are achieved with the achievement
of results.
Coclusion

8. • First i want to thanks to our teacher Israel for having sent me this task
since thanks to him i have acquired knowledge of value for my life. On
the other hand, i'm grateful to technology as it has allowed me to
make a very educational presentation with free elements. On the
other hand i want to thank the internet as it has provided us with a
lot of valuable information that i have included in our presentation.
Special Thanks

9. • One of the main resources is the internet because i'm finding good
information about this topic and learning differents things about the
financial rewards and somethings that i didn't know, i think that those
little things can help me in the future because i require a lot of
knowledge.
Resources

10. • Cambridge IGCSE Business Studies STUDENT’S BOOK
Bibliographic Reference

11. v
Apendices
Apendix 1 Apendix 2 Apendix 3