Edexcel Business A Level Revision

Business ethics - The moral principles that guide the way a business behaves Remuneration - Reward for employment in the form of pay, salary, or wage, including allowances, fringe benefits, bonuses, cash incentives etc. Ethics can be reflected in the way the business recruits, motivates and rewards staff. Is it ethical to pay just the living wage? Should London businesses pay above the living wage? Should senior managers be paid higher remuneration than others in the business? Is it ethical for CEO's to be paid hundreds of more times better than the average employee in the business. The recruitment process needs to be fair and free from bias and should at least follow the law. A company needs to spend money regularly on staff training and development. The trade-off is that these strategies require a significant amount of ongoing financial investment which reduces the business's profits, at least in the short term. Rewards for staff, such as basic pay and bonuses, n...

Bonus - designed to motivate employees by rewarding them for achieving particular targets or standards set by the employer. KEY FEATURES  Can help to recruit, motivate and retain staff Can increase employee commitment to the business ADVANTAGES A bonus payment to an employee can be used as an incentive, especially in a field where employees must make sales or meet specific goals. Bonus payments do not have to be awarded on a holiday, at the end of the year or as an incentive. A bonus payment can also be used as a means of appreciation for an employee’s hard work throughout the year or in a specified amount of time in the year. Receiving a bonus payment will not only show the employee he was appreciated for his hard work, but it will motivate him to continue to work hard for further rewards. DISADVANTAGES Not all jobs show a clear link between performance and productivity or profit Employees may neglect other goals to concentrate on bonus targets. Because bonus...