Study Notes: People Management

Financial motivation - time-rate pay

Time rates are used when employees are paid for the amount of time they spend at work. This is the most common method of payment in the UK.

The usual form of time rate is the weekly wage or monthly salary. Usually the time rate is fixed in relation to a standard working week (e.g. 35 hours per week).

The employment contract for a time-rate employee will also stipulate the amount of paid leave that the employee can take each year (e.g. 5 weeks paid holiday).

Time worked over this standard is known as overtime. Overtime is generally paid at a higher rate than the standard time-rate – reflecting the element of sacrifice by an employee. However, many employees who are paid a monthly salary do not get paid overtime. This is usually the case for managerial positions where it is generally accepted that the hours worked need to be sufficient to fulfil the role required.

The main advantages of time-rate pay are:

• Time rates are simple for a business to calculate and administer

• They are suitable for businesses that wish to employ staff to provide general roles (e.g. financial management, administration, maintenance) where employee productivity is not easy to measure

• It is easy to understand from an employee’s perspective

• The employee can budget personal finance with some certainty

• Makes it easier for the employer to plan and budget for employee costs (e.g. payroll costs will be a function of overall headcount rather than estimated output)

The main disadvantages of time-rate pay are:

• Does little to encourage greater productivity – there is no incentive to achieve greater output

• Time-rate payroll costs have a tendency to creep upwards (e.g. due to inflation-related pay rises and employee promotion.

HRM Strategy

HRM introduction  HRM objectives  HRM influences  Hard & Soft HRM  

Organisational Structure

Org charts  Delayering  Span of control  Centralisation & decentralisation  Matrix structures  

Motivation at work

What is motivation?   Theory - Maslow  Theory - Herzberg  Theory - Taylor  Theory - McGregor  

Financial motivation  Pay Package  Time rate  Piece rate  Commission  Performance pay  

Share options  Job rotation  Job enlargement  Delegation & empowerment  

Recruitment & Training

Recruitment intro  Internal / external  Job descriptions  Interviews  Job analysis  

Job advertising  Person specification  Training - intro  Induction training  On-the-job training  Off-the-job training  

Workforce planning

Workforce planning  Flexible working  Benefits & issues  Labour supply  Workforce roles & workload  

Annual hours  Job sharing  Temporary staff  Teleworking   Flexible hours  

Communication

Overview  Barriers  Benefits  Employee Representation