REWARDS MANAGEMENT (BLUE) Flashcards by Jasmin Baricorot

Q

Indicates both tangible (compensation and benefits) and intangible (learning and development) aspects.

A

TOTAL REWARD MODEL

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Q

Reasons for employees to become loyal and devoted to the organization.

A

TOTAL REWARD MODEL

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Q

It also gives satisfaction to the members of the workforce.

A

TOTAL REWARD MODEL

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Q

Provides real impact and meaning of rewards to employees.

A

TOTAL REWARD MODEL

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Q

All types of compensation and benefits that employees receive in exchange for all forms of work performance.

A

REWARDS

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Q

The ability to translate it into something that will increase an employee’s satisfaction and loyalty to the organization.

A

RETENTION

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Q

Refers to the compensation and benefits plan made by the firm.

A

REMUNERATION

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Q

REMUNERATION

Tangible equivalent of any work or task performed in the organization; can be either direct or indirect.

A

COMPENSATION

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Q

COMPENSATION

Monetary rewards such as salaries, wages, commissions, bonuses, allowance and other forms of monetary payments.

A

Direct

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Q

COMPENSATION

Benefits offered by companies to employees such as hospitalization, insurance, day-offs, summer outings, sports fest, among others.

A

Indirect

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Q

COMPENSATION AND BENEFITS

A

Base Pay - job-based, skill or competency-based, market-based and combination of the three
Incentive
Allowances
Overtime Pay
Risk Benefits
Retirement Benefits
Equity Compensation
Perquisites

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Q

CRITERIA OF AN EFFECTIVE COMPENSATION PLAN

A

Cost-containment
Objective
Motivating
Productivity
Equitable
Non-discriminating
Sustaining
Adequate Legal Compliance
Time-bound
Inducing Loyalty
Obligatory
No Insecurity

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Q

CRITERIA OF AN EFFECTIVE COMPENSATION PLAN:

Ability of the company to pay the right compensation package.

A

Cost-containment

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Q

CRITERIA OF AN EFFECTIVE COMPENSATION PLAN:

Based on the tasks being performed by the employee as well as his/her skills and knowledge about the job.

A

Objective

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Q

CRITERIA OF AN EFFECTIVE COMPENSATION PLAN:

Should boost employee morale.

A

Motivating

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Q

CRITERIA OF AN EFFECTIVE COMPENSATION PLAN:

Ensure that employees are happy and satisfied.

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A

Productivity-providing

Q

CRITERIA OF AN EFFECTIVE COMPENSATION PLAN:

Fair to all that commensurate to the employee’s contribution.

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A

Equitable

Q

CRITERIA OF AN EFFECTIVE COMPENSATION PLAN:

Based on performance free from prejudices based on age, religion, civil status, gender and other discriminatory factors.

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A

Non-discriminating

Q

CRITERIA OF AN EFFECTIVE COMPENSATION PLAN:

Should provide for the employees’ needs and is concerned with his/her welfare.

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A

Sustaining

Q

CRITERIA OF AN EFFECTIVE COMPENSATION PLAN:

Adhere to the law.

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A

Adequate Legal Compliance

Q

CRITERIA OF AN EFFECTIVE COMPENSATION PLAN:

Should be given on time.

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A

Time-bound

Q

CRITERIA OF AN EFFECTIVE COMPENSATION PLAN:

Induce employees to stay in the company.

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A

Inducing Loyalty

Q

CRITERIA OF AN EFFECTIVE COMPENSATION PLAN:

Obligation to pay their employees well.

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A

Obligatory

Q

CRITERIA OF AN EFFECTIVE COMPENSATION PLAN:

Should make the employees feel secured.

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A

No Insecurity

EXTERNAL FACTORS AFFECTING COMOPENSATION PLAN

1. Demand and Supply Labor 2. Prevailing Economic Conditions 3. Government Intervention in Compensation

EXTERNAL FACTORS AFFECTING COMOPENSATION PLAN: Profession requires extensive educational background.

Demand and Supply Labor

EXTERNAL FACTORS AFFECTING COMOPENSATION PLAN: Varies from one industry to another.

Prevailing Economic Conditions

EXTERNAL FACTORS AFFECTING COMOPENSATION PLAN: Regulations like minimum wage law.

Government Intervention in Compensation

INTERNAL FACTORS AFFECTING COMOPENSATION PLAN

1. Budget 2. Employee Motivation 3. Employee Productivity

COMPENSATION STRATEGIES USED BY FIRMS

1. Minimum or Average Level Strategy 2. Above Average Pay Strategy 3. Competitive and Comparable Pay Strategy

COMMON MODES OF PAYMENT

1. PAYMENT FOR TIME WORKED - can be adjusted based on any of the following: a. across-the-board increase b. merit increase c. Cost-of-Living Allowances d. Seniority Pay 2. FLAT RATES OR COLLECTIVE BARGAINING AGREEMENT (CBA) - negotiated rates - given to those who reach and exceed their sales targets 3. COMPENSATION THROUGH INCENTIVES - based on output (merit, piece rate, commission) 4. PAYMENTS BASED ON SKILLS, KNOWLEDGE OR CREDENTIALS 5. EXECUTIVE PAYMENTS 6. SPECIAL PAYMENTS a. Overtime Pay b. Holiday Pay c. Premium Pay - for special holidays d. Night Differential Payments e. Service Charges f. Separation Pay g. Retirement Pay h. nth Month Pay

Benefits to motivate and make employees loyal to the firm.

RETENTION

Objectives of Retention

1. to attract and retain highly-skilled or high performing employees 2. to promote employee commitment and loyalty to the organization 3. to fulfill of the needs of the employees

2 Employee Benefits

1. Government-Mandated Benefits 2. Voluntary Benefits

Government-Mandated Benefits

SSS/GSIS Pag-Ibig (HDMF) PhilHealth Program Service Incentive Leave Maternity Leave Paternity Leave Special Leave for Women

Voluntary Benefits

Vacation Leaves Sick Leaves Emergency Leaves Summer Outings Sports Fest Rice Subsidy Meal Subsidy Shuttle Service Hospitalization Group Life Insurance Programs Bonuses Profit-sharing Scheme Stock Options Christmas Party and Packages Cash Bonuses Emergency Loan Free Uniform or Clothing Allowances Executive Perquisites