Which of the following represents a disadvantage of financial motivation methods?

Prepare for the OCR Business Paper 1 Test with engaging quizzes featuring flashcards and multiple-choice questions. Each question includes hints and explanations, ensuring you're well-prepared for your exam!

The correct choice points to the high costs associated with financial motivation methods as a significant disadvantage for businesses. Financial motivation typically involves compensations such as bonuses, raises, or other monetary rewards aimed at incentivizing employees. While these methods can effectively enhance motivation and productivity, they also incur considerable expenses for the organization.

When a company invests in financial motivation techniques, it must allocate a substantial portion of its budget to salaries, bonuses, and other reward systems. This can strain financial resources, especially if not aligned closely with overall performance goals. Moreover, relying heavily on financial incentives can lead to a cycle where employees continuously expect higher rewards for their performance, potentially resulting in unsustainable salary increases and increased operational costs over time.

In contrast, higher employee morale, immediate satisfaction, and low employee retention might not directly reflect the prevalence of financial motivation methods. While higher employee morale and immediate satisfaction can be positive outcomes of these methods, they do not inherently reflect the potential financial burden they can create. Similarly, low employee retention is typically seen as an issue that arises from various factors including job satisfaction and engagement, rather than a direct outcome of financial incentive structures. Therefore, while the other choices may relate to employee experience, they do not encapsulate the core financial implications that the

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy