6. Answer the questions.

1. How do wages change in connection to the demand and supply in the labour market?

2. What is a minimum wage?

3. Why do companies prefer to pay above the equilibrium wage?

4. What are efficiency and reservation wages aimed at?

5. What is the difference between a salary and a wage?

6. What is included into fringe benefits?

7. What is a stock (share) option ?

8. Who is a fat cat?

9. What is a golden parachute?

7. Discuss the following problems:

• CEOs and top senior executives the so called “fat cats” really deserve a “golden parachute”, the sum of money they are guaranteed when they leave the company.

• The most effective tools to measure the performance of an employee.

• A pay rise is better than a job in a caring company.

8. Complete the passage about job satisfaction with the best word.

Herzberg's Theory of Job Satisfaction

Frederick Irving Herzberg (1923–2000) was a management professor at the University of Utah known internationally for his work on helping companies understand how to motivate workers and increase productivity. He is known for his 'Motivation-Hygiene Theory'. According to Herzberg, five factors increase job satisfaction and staff motivation to perform:

1. Achievement

i.e., a sense of………………¹ or pride whenever a demanding task is ............................² out successfully.

One way managers can contribute to this is by encouraging employees to set clear, realistic professional goals for themselves.

2. Recognition

i.e., the.............................³ of an individual's or group's efforts, or contributions.

For example, managers can highlight staff efforts and contributions in meetings. They can also give a genuinely positive performance.............................⁴ and devise a judicious system of.............................⁵, such as housing allowances or extra holidays.

3. Challenging Work

For work to be.............................⁶, there must be tasks that are challenging or motivating, just as each individual prefers some tasks more than others, each finds some tasks more challenging than others.

4. Responsibility

When staff feel responsible and......,................⁷ fortheir own work, and when they are somehow involved in the decision-making process, their job satisfaction increases. Managers can gradually increase staff............................. ⁸ and decision making as they gain expertise.

5. Growth and Development

Everyone needs to continue to develop personally and professionally on the job. When there are limited opportunities for.............................⁹ and development, motivation decreases. Employees may commit energy to other aspects of their personal lives, seek other employment, or.............................¹⁰ out. Managers can advocate educational or special training,............................¹¹ for staff and encourage them to attend training programmes and conferences.

a) inspiration	b) evaluation	c) testing	d) interrogation
a) perks	b) autonomy	c) accomplishment	d) liberty
a) rise	b) remuneration	c) separateness	d) astonishment
a) carried	b) awards	c) praise	d) loyalty
a) satisfying	b) increase	c) growth	d) raise
a) break	b) broken	c) brought	d) pulled
a) reward	b) fulfilled	c) completed	d) retaining
a) mature	b) run	c) fire	d) burn
a) absence	b) congratulation	c) prize	d) acknowledgement
a) examination	b) accountable	c) mindful	d) comfortable
a) dependence	b) period		d) term