Remuneration (Quick Revision)

Question 1

Define: Remuneration

Answer 1

Remuneration is the rewards available to employees.

Question 2

State three elements of a effective remuneration scheme.

Answer 2

• Cost effective
• Motivating
• Easy to administer and understand

Question 3

What are fringe benefits?

Answer 3

Fringe benefits are rewards in addition to the main payment (e.g. a pension scheme)

Question 4

State four types of payment systems.

Answer 4

• Piecework
• Salary
• Commission
• Profit share

Question 5

State two problems of developing a remuneration system.

Answer 5

• Cost - it may not be possible to afford the amount employees would like
• Not everyone wants the same thing

Question 6

What is the Examiner’s note for Remuneration?

Answer 6

The remuneration system plays an important role in helping to ensure that employees’ behavior assists the organisation in achieving its objectives.

Question 7

What is the Evaluation point for Remuneration?

Answer 7

The most appropriate system for remuneration depends on the type of work (e.g. can individual effort be measured separately from the team work?), on individual needs (e.g. does the individual need the security of a salary?) and on what others are receiving.