IB Business Management 2.4 Motivation and Demotivation Key Definitions

Appraisals are formal evaluations of an employee's performance over a specific period.

Commission is a payment based on sales performance, often used in sales roles.

These schemes offer employees shares in the company, aligning their interests with long-term business success.

External recruitment involves hiring candidates from outside the organization through job postings, recruitment agencies, or networking.

Extrinsic motivation comes from external rewards, such as salary, promotions, or bonuses.

Financial rewards are monetary incentives provided to employees in exchange for their work. These rewards can be direct, like salaries and bonuses, or indirect, such as benefits and profit-sharing schemes.

Fringe payments (or benefits) are non-cash rewards that enhance an employee's compensation package.

Induction training is the process of introducing new employees to the organization, its culture, and their specific roles.

Internal recruitment involves filling job vacancies with existing employees through promotions, transfers, or redeployment.

Intrinsic motivation comes from within, employees find satisfaction in the task itself (e.g., solving complex problems, learning new skills).

Labour turnover is the percentage of employees who leave an organization over a specific period, usually a year.

Off-the-job training involves formal education or training conducted outside the workplace.

On-the-job training involves employees learning skills while performing their tasks in the workplace.

PRP rewards employees for meeting or exceeding specific targets. It can take the form of bonuses or salary increases.

Profit-related pay involves sharing a portion of the company's profits with employees.

Recruitment is the process of identifying, attracting, and selecting the best candidates to fill job vacancies.

A salary is a fixed annual payment, typically divided into monthly installments. It provides stability and predictability for employees.

Wages are payments based on hours worked or units produced. They are often used for hourly or piece-rate workers.