Lesson 6: Compensation/Wages and Performance Appraisal (PPT)

Question 1

all forms of pay given by employers to their employees for the performance of their jobs

Answer 1

compensation

Question 2

a process undertaken by the organization, usually done once a year, designed to measure employees’ work performance

Answer 2

performance evaluation

Question 3

the connection created among employees/workers as they do their assigned tasks for the organization to which they belong

Answer 3

employee relations

Question 4

series of actions initiated by employee groups toward an end or specific goal.

Answer 4

employee movements

Question 5

the principle of combination for unity of purpose and action

Answer 5

unionism

Question 6

gift, prize, or recompense for merit, service, or achievement, which may have a motivating effect on the employee

Answer 6

reward

Question 7

refers to money, finance, or currency reward

Answer 7

monetary reward

Question 8

refers to intrinsic rewards which do not pertain to money or finance

Answer 8

nonmonetary reward

Question 9

internal and external factors affecting compensation/wages

Answer 9

actual worth of the job, compensation strategy of the organization, conditions of the labor market, cost of living, area wage rates

Question 10

forms of compensation

Answer 10

direct, indirect, nonfinancial compensation

Question 11

examples of direct compensation

Answer 11

workers’ salaries, incentive pays, bonuses, commission

Question 12

examples of indirect compensation

Answer 12

travel, educational, and health benefits

Question 13

includes benefits given by employers other than financial remunerations

Answer 13

indirect compensation

Question 14

examples of nonfinancial compensation

Answer 14

recognition programs, being assigned to do rewarding jobs, enjoying management support, ideal work environment, convenient work hour

Question 15

differs in relation to factors such as geographical area and industry or sector

Answer 15

daily minimum wage rate

Question 16

government agency concerned with minimum wage determination in the country

Answer 16

national wage and productivity commission

Question 17

among the important considerations in preparing compensation packages

Answer 17

pay equity

Question 18

based on the idea that an employee’s pay must be commensurate to his or her effort.

Answer 18

pay equity

Question 19

represents a reward that an employee receives for good performance that contributes to the company’s success.

Answer 19

compensation pay

Question 20

another theory of motivation which predicts that employees are motivated to work well because of the attractiveness of the rewards or benefits that they may receive from a job assignment. The employee’s perception of the compensation or pay attached to a job position is an important factor in ascertaining the motivational value of compensation.

Answer 20

expectancy theory

Question 21

bases for compensation

Answer 21

piecework, hourly, daily, weekly, monthly basis

Question 22

when pay is computed according to the number of units produced.

Answer 22

piecework basis

Question 23

computed according to the number of work hours rendered.

Answer 23

hourly basis

Question 24

computed according to the number of workdays rendered.

Answer 24

daily basis

Question 25

when pay is computed according to the number of workweeks rendered

Answer 25

weekly basis

Question 26

pay is computed according to the number of work months rendered

Answer 26

monthly basis

Question 27

internal factors influencing compensation rates

Answer 27

organization’s compensation policies, importance of the job, employees’ qualifications in meeting the job requirements; employer’s financial stability

Question 28

external factors influencing compensation rates

Answer 28

local and global market conditions, labor supply, area/regional wage rates, cost of living, collective bargaining agreements, national and international laws

Question 29

purpose for performance evaluation

Answer 29

administrative and development

Question 30

These are fulfilled through appraisal/ evaluation programs that provide information that may be used as a basis for compensation decisions, promotions, transfers, and terminations. Human resource planning may also make use of it for the recruitment and selection of potential employees.

Answer 30

administrative purposes

Question 30

These are fulfilled through appraisal/ evaluation programs that provide information about employee’s performance and their strengths and weaknesses that may be used as a basis for identifying their training and developmental needs.

Answer 30

developmental purposes