- Employees are primarily motivated by money.
- Productivity can be improved by aligning output and efficiency targets with remuneration.
- Division of labour (scientific management): breaking down different aspects of a job or task and assigning different people to each particular part of the work.
- Piece rate system: workers are paid a standard level of output and receive a higher rating they exceed that level.
Drawbacks
- Ignores the non-physical contributions of workers.
- Hard to measure in some professions.
- Ignores non-financial factors that motivate people.
- Fails to acknowledge that workers can be innovative and independent.
- Entails monotonous tasks, leading to employee dissatisfaction.
- Sets clear goals for the workforce and the consequences of their work are transparent.
- Gives workers a sense of target.
- Does not take into account individual differences.
- Views workers as machines with only financial needs.
