Lesson 3.3.1

3.3.1 Financial methods of motivation Quiz: NCFE Business & Enterprise, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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This lesson covers the ways a business uses pay to motivate staff: salary, time rate, piece rate, bonus, commission, performance-related pay and profit sharing. It explains how each links effort to money, where each works best, and why Herzberg argues that pay alone does not drive extra effort.

Key points

  • A salary is a fixed yearly sum paid in monthly instalments, giving the worker steady income and the employer a predictable wage bill.
  • Time rate pays for the hours worked, which suits jobs where quality matters more than speed or output is hard to count.
  • Piece rate pays for each item completed, so it pushes speed but needs careful quality checks and suits countable work such as packing.
  • A bonus is an extra lump sum for hitting a target, while commission is a percentage of the value of what a worker sells.
  • Performance-related pay rewards an individual according to their appraisal, whereas profit sharing depends on how well the whole firm does.
  • Profit sharing encourages staff to think like owners, cut waste and work together.
  • Herzberg classed pay as a hygiene factor that prevents dissatisfaction, so a pay rise alone may not improve effort.

Key terms

Salary
A fixed annual amount of pay, usually paid monthly regardless of hours or output.
Piece rate
Pay based on the number of items a worker completes.
Commission
Pay calculated as a percentage of the value of the sales a worker makes.
Bonus
An extra payment added to normal pay when a target is achieved.
Performance-related pay
Extra pay linked to how well an individual scores against agreed targets in an appraisal.
Profit sharing
A payout to employees based on the profit the whole business has made.
Hygiene factor
In Herzberg's theory, something like pay or conditions that stops unhappiness but does not drive extra effort.

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The 20 questions

  1. Which reward is classified as a financial method of motivation?

    • Staff parking space
    • Commission on sales
    • Flexible working hours
    • Praise from manager

  2. How is a salaried employee typically paid?

    • Per item produced
    • Hourly wage rate
    • Percentage of sales
    • Fixed annual sum

  3. What is worker pay based on under a piece-rate payment system?

    • Hours spent working
    • Monthly company profit
    • Daily attendance record
    • Number of items finished

  4. Under a time-rate system, what determines a worker's weekly pay?

    • Items produced
    • Hours worked
    • Profit earned
    • Sales made

  5. What does performance-related pay link an employee's extra pay to?

    • Total hours worked
    • Total business profits
    • Annual appraisal scores
    • Weekly factory output

  6. What term best describes an extra financial payment made to staff for hitting targets?

    • Overtime
    • Bonus
    • Dividend
    • Commission

  7. An estate agent earns 2% of the price of every house they sell. What is this pay called?

    • Profit share
    • Time rate
    • Piece rate
    • Commission

  8. How does profit sharing typically encourage employees to change their workplace behaviour?

    • Ignore company waste
    • Demand higher wages
    • Work fewer hours
    • Reduce operating costs

  9. How do financial rewards primarily motivate workers to improve performance?

    • Link effort to pay
    • Provide better office views
    • Increase job security
    • Reduce daily working hours

  10. Which job role is most suitable for a piece rate pay system?

    • Department manager
    • Business adviser
    • Secondary teacher
    • Packing fruit

  11. According to Herzberg, which job factor acts as a genuine motivator?

    • Working conditions
    • Company policy
    • Basic salary
    • Job enrichment

  12. According to Herzberg, what type of factor is basic pay?

    • Hygiene factor
    • Motivator factor
    • Core reward
    • Primary driver

  13. Which workplace change addresses one of Herzberg's hygiene factors?

    • Offering promotion
    • Giving more autonomy
    • Adding complex tasks
    • Fixing broken heating

  14. What is the main benefit of using job rotation for repetitive tasks?

    • Cuts working hours
    • Adds responsibility
    • Reduces basic pay
    • Increases task variety

  15. Which factor would Herzberg classify as a true motivator?

    • Safe premises
    • Company policy
    • Personal achievement
    • Hourly wage

  16. A supermarket moves staff from the tills to the bakery to shelf-filling each week. Which method is this?

    • Job rotation
    • Job enrichment
    • Empowerment
    • Job enlargement

  17. In terms of Maslow's hierarchy, what need is primarily met by working in strong teams?

    • Basic survival
    • Social needs
    • Physiological needs
    • Self-actualisation

  18. Which managerial action best meets an employee's esteem needs under Maslow?

    • Fixing room lights
    • Paying the wage
    • Providing a chair
    • Public praise

  19. What term describes giving staff the authority to make decisions without managerial approval?

    • Job rotation
    • Piece rate
    • Empowerment
    • Delegation

  20. How does funding professional training primarily affect worker motivation?

    • Builds perceived value
    • Lowers job targets
    • Decreases pay rates
    • Reduces daily tasks

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