
After a very successful year in 2021, the Staffordshire Mining Company gave all of its mining employees an extra £6,000, and equivalent of two month’s wages.
This payment can be BEST described as ……?
Select ONE answer:
- performance related pay
- job enrichment
- piecework
- a bonus
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 4
- Not correct – performance related pay is linked to whether an employee has met their individual targets whereas every employee receives this bonus no matter if they have met their own targets.
- Not correct – job enrichment is when employees are given more responsibility and more meaningful tasks and has no connection to any form of financial remuneration.
- Not correct – piecework is when employees are rewarded individually according to how much they produce whereas a bonus is paid collectively.
- Correct – Definition of a bonus e.g. an extra payment made in recognition of the contribution of employees, often linked to profits and sales. This is in addition to their normal salaries/wages and is a one off payment. The bonus is paid to all employees as a recognition of the good performance of the business.
This work is licensed under a Creative Commons Attribution 4.0 International License.
You must be logged in to post a comment.