Basic standards
A basic standard is one which remains unchanged over the years and is used to show trends. It is a standard that is set at a point in time and is not updated. Basic standards tend to be used for monitoring changes in efficiency over long periods.
(1 mark)

Ideal standards
An ideal standard is one which can be attained under perfect operating conditions: no wastage, no inefficiencies, no idle time, and no breakdowns.
(1 mark)

Effect on employee motivation:

Ideal standards may be seen as long-term targets but are not very useful for day-to-day control purposes since they cannot be achieved under normal circumstances. Employees may find them de-motivating as they will always result in adverse variances, which may be perceived as unrealistic and unattainable.
(1.5 marks)
Basic standards, on the other hand, may also have an unfavorable effect on motivation, as employees may find them too easy to achieve over time, resulting in complacency or lack of challenges.
(1.5 marks)
(Total = 5 marks)