Unit 4.1 - Total Rewards

Question 1

What are the 6 strategic objectives of compensation?

Answer 1

1. Legal
2. Adequate
3. Motivating
4. Equitable
5. Secure (provides security; fixed monthly income)
6. Cost/benefit effective

Question 2

What are the 3 labor markets?

Answer 2

• Blue-collar and non-supervisory white collar
• Professional employees
• Supervisors and executives

Question 3

What are the 4 major factors that influence pay?

Answer 3

1. External factors
2. Organizational factors
3. Job factors
4. Individual factors

Question 4

What are the 3 wage decisions?

Answer 4

Wage-level decision - How do our wages compare with the wages of other companies?

Wage-structure decision - How much does one job pay relative to other jobs in our company?

Individual wage decision - How much do people performing the same job get paid relative to each other?