Business unit 2 definitions 0.0 / 5 ? Business StudiesDefinitionsASAQA Created by: LeighLeigh_Created on: 15-05-15 20:11 Payment systems - Piece rate A method of paying employees for each unit of output they produce 1 of 20 Payment systems - Time rates Employees are paid a set rate for a specific length of time (e.g per hour) 2 of 20 Payment systems - Salary Monthly payments, based on annum 3 of 20 Payment systems - Fringe benefits Payments to workers in a non-monetary form (e.g company cars or private healthcare) 4 of 20 Bonuses Additional financial reward given to a worker in recognition for their contribution 5 of 20 Performance related pay Used to motivate employees by linking their pay to the achievement of pre-agreed performance targets 6 of 20 Profit sharing A scheme which involves distributing a share of the profits made by the company to its workforce 7 of 20 Share ownerships Employees gain shares in the company & then receive a share of profits via dividend distribution 8 of 20 Improving job design Job must be meaningful and interesting - the 'design' must be well suited for the person 9 of 20 Job enrichment The system of making an employees tasks more interesting 10 of 20 Job enlargement Giving workers more tasks to do in the same production process (so they can see a product from start to finish) 11 of 20 Empowering employees Giving employees greater control by providing them with decision-making powers (that have an effect on their working lives) 12 of 20 Price skimming Setting a high initial price for a new product in order to recoup costs 13 of 20 Price penetration Setting a low initial price for a new product in order to get a foothold in the market 14 of 20 Price leaders Where firms that dominate a market with an existing product set the price and other firms in the market follow suit 15 of 20 Price takers Where firms set their prices based on the market price 16 of 20 Loss leaders The selling of products at below the cost of making the product 17 of 20 Psychological pricing Occurs when the firm set a price for the product in order to entice the customer into making a purchase 18 of 20 Destroyer pricing Deliberate price cutting to force rivals out of business 19 of 20 Price discrimination Charging a different price for the same good / service in different markets 20 of 20
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