compen 1

Question 1

based structures relies on the work
content tasks, behaviors, and responsibilities.

Answer 1

Job

Question 2

based structures relies on the employee’s skills, knowledge, and competencies.

Answer 2

Person

Question 3

External factors

Answer 3

• Economic pressures
• Govt. policies, laws
• Stakeholders
• Cultures and custom

Question 4

Organization factors

Answer 4

• Human capital
• HR policy
• Employee acceptance

Question 5

Internal structures

Answer 5

• Levels
• Differentials
• Criteria

Question 6

Strategic choices in designing internal structures

Answer 6

1. Tailoring the pay structure to the internal structure
   a. Tailored pay structure
   b. Loosely coupled structure
2. Egalitarian and Hierarchical Structures

Question 7

Consequences of structures

Answer 7

• Efficiency
• Fairness
• Compliance

Question 8

refers to the organization or classification of work roles in a company or institution based on specific job functions, tasks, responsibilities, and skills required for each position.

Answer 8

Job-Based Structure

Question 9

This structure focuses on grouping similar jobs together to establish clear roles, responsibilities, reporting lines, and career paths for employees

Answer 9

Job-Based Structure

Question 10

► What shapes internal structures?

Answer 10

External factors
Organization factors

Question 11

It refers to the monetary rewards or
payments given to employees in
exchange for their work or services.

Answer 11

FINANCIAL COMPESATION

Question 12

TYPES OF FINANCIAL
COMPENSATION

Answer 12

Salary or Wages
Bonuses
Commissions
Overtime Pay
Benefits
Stock Options or Equity
Incentives

Question 13

is any employee compensation that doesn’t
involve cash. Many companies find creative ways to offer employee benefits that make them feel valued and appreciated. Often, this form of compensation can be a great method for establishing trust and loyalty between an
employer and an employee

Answer 13

NON-FINANCIAL COMPENSATION

Question 14

TYPES OF NON-FINANCIAL COMPENSATION

Answer 14

Developmental Opportunities
Recognition
Flexible Schedules

Question 15

A set amount of money paid to an employee
for their work.

Answer 15

Salary or Wages

Question 16

Extra payments or rewards given based on
performance, company profits, or meeting specific goals.

Answer 16

Bonuses

Question 17

Earnings that are directly linked to sales or business targets.

Answer 17

Commissions

Question 18

Additional compensation for work performed
beyond the standard working hours, often paid at a higher rate.

Answer 18

Overtime Pay

Question 19

Non-cash compensation, including health insurance,nretirement contributions, paid time off (PTO), life insurance, and other perks

Answer 19

Benefits

Question 20

Ownership stakes or options to buy company shares, often offered by startups or large corporations as part of the compensation package.

Answer 20

Stock Options or Equity

Question 21

Financial rewards given for achieving specific targets, often used to drive performance, such as achieving sales goals or completing projects ahead of schedule.

Answer 21

Incentives

Question 22

Employers can choose to provide developmental opportunities

Answer 22

Developmental Opportunities

Question 23

Employees prefer to be recognized by their
employers for the hard work they complete

Answer 23

Recognition

Question 24

Employees seek flexible schedules when
searching for new roles in attempt to prioritize a healthy work-life balance when choosing an employer

Answer 24

Flexible Schedules

Question 25

Often called, Internal Equity, it refers to the pay relationships. Among different jobs/skills/competencies within a single organization

Answer 25

INTERNAL ALIGNMENT

Question 26

It refers to the array of pay rates for different work or skills within a single organization. The number of levels, the differentials in pay between the levels, and the criteria used to determine those differences describe the structure.

Answer 26

Pay structure

Question 27

These roles focus on administrative and support tasks, such as processing paperwork, maintaining employee records, and assisting with recruitment

Answer 27

Entry-Level (HR Assistant / Coordinator)

Question 28

At this level, HR professionals take on more specialized or generalist responsibilities, such as employee relations, compliance, and benefits administration.

Answer 28

Mid-Level (HR Specialist / Generalist)

Question 29

These roles involve strategic HR decision-making, managing teams, and working closely with leadership on workforce planning

Answer 29

Senior-Level (HR Manager / Business Partner)

Question 30

These executives shape company-wide HR strategies, align workforce initiatives with business goals, and influence company

Answer 30

Leadership-Level (HR Director / CHRO – Chief Human Resources Officer)

Question 31

Criteria

Answer 31

Content Value

Question 32

refers to work performed in a job and how it gets done

Answer 32

Content

Question 33

refers to the worth of the work; its relative contribution to the organization’s objectives

Answer 33

Value

Question 34

reflects the value of goods or services an employee produces in a job.

Answer 34

Use value

Question 35

is whatever wage the employer and employee agree on for a job

Answer 35

Exchange value

Question 36

-Systematically determines the relative worth of jobs - Creates a job structure for the organization

Answer 36

JOB EVALUATION

Question 37

Is based on a combination of

Answer 37

Job content Skills required Value to the organization Organizational culture External market

Question 38

are compensation and job classification systems that focus on an individual's skills, knowledge, and competencies rather than their specific job role or position. Instead of being based on job descriptions, these structures reward employees based on their abilities and expertise.

Answer 38

PERSON-BASED STRUCTURES

Question 39

TYPES OF PERSON-BASED STRUCTURES

Answer 39

Skill-Based Pay Competency-Based Pay Knowledge-Based Pay

Question 40

BENEFITS OF NON-FINANCIAL COMPENSATION

Answer 40

A. Increases Employee Motivation B. Enhances Employee Retention C. Improves Job Satisfaction D. Strengthens Company Culture E. Fosters Loyalty and Commitment F. Encourages Professional Growth

Question 41

The pay structure should:

Answer 41

* Support the organization strategy, * Support the work flow * Motivate behavior

Question 42

BENEFITS OF PERSON-BASED STRUCTURES

Answer 42

Encourages employee learning and development Creates a more flexible and skilled workforce Motivates employees to acquire new knowledge and skills

Question 43

POTENTIAL CHALLENGES:

Answer 43

More complex compensation systems Higher costs for training and skill assessment