02:Identify and explain two advantages to TUKAN of introducing non-financial methods of reward.[4]

[Dania]

TUKAN makes a range of soft drinks using flow production. All employees are paid a good wage but do not
receive non-financial rewards. A high percentage of employees leave the business each year. A common
reason given for leaving is that they have no involvement in decision-making. Last year, TUKAN’s revenue
increased by $25m but profit did not increase. The Managing Director said: ‘The economy is in the growth
stage of the business cycle. However, we need to improve efficiency. Lean production methods might help.
We need to recruit a new Operations manager who could have some ideas about this.’

02:Identify and explain two advantages to TUKAN of introducing non-financial methods of reward.[4]

Possible KN'S points:[/b]
>Some options cost little or no each year, Flow money
>Improve motivation Lean production.
>Help retention
>New ideas
>Can lead to more did not increase, Looking flexible work force