Week 3 (Compensation)

Question 1

forms of pay linked to an employees performance as an individual, group member, or organization member
what is this ?

Answer 1

incentive pay

Question 1

rate of pay per unit produced
what is this ?

Answer 1

piecework rate

Question 2

incentive pay in which the employer pays the same rate per piece, no matter how much the worker produces
what is this ?

Answer 2

straight piecework plan

Question 3

inceptive pay in which the piece rate is higher when a greater amount is produced
what is this ?

Answer 3

differential piece rates

Question 4

an inceptive plan that pays workers extra for work done
what is this ?

Answer 4

standard hour plan

Question 5

a system of linking pay increases to ratings on performance appraisals
what is this ?

Answer 5

merit pay

Question 6

incentive pay calculated as a percentage of sales
what is this ?

Answer 6

commissions

Question 7

group incentive program that measures improvements in productivity and effectiveness objectives and distributes a portion of each gain to employees
what is this ?

Answer 7

gainsharing

Question 8

incentive pay in which payments are a percentage of the organizations profits and do not become part of the employees base salary
what is this ?

Answer 8

profit sharing

Question 9

rights to buy a certain number of shares of stock at a specified price
what is this ?

Answer 9

stock options

Question 10

an arrangement in which the organization distributes shares of stock to all its employees by placing them in a trust
what is this ?

Answer 10

employee stock ownership plan (ESOP)

Question 11

a combination of performance measures directed toward the company’s long and short term goals and used as the basis for awarding incentive pay
what is this ?

Answer 11

balanced scorecard

Question 12

the rewards, usually monetary in nature (either short and/or long term) that reinforce behavior, organizational membership, performance and retention
what is this ?

Answer 12

compensation

Question 13

• programs link performance appraisal ratings to annual pay increases
• increase grid combines an employees performance rating with the employees position in a pay range to determine the size and frequency of his or her pay increase
• increase grids can also help bring about perceived pay equity
• some important conditions required for this based pay (e.g., individual performance can be measure, increases decided equitably based on performance
  what is this ?

Answer 13

merit based compensation

Question 14

variable income sales reps earn in additon to their base salary
1. funding: organization targets need to be met to fund bonus pools
2. distribution: bonus pools distributed according to plan
what is this ?

Answer 14

incentive compensation

Question 15

a model of compensation in which a persons skills and experience determines their salary
what is this ?

Answer 15

skill based pay

Question 16

the process of measuring products, services, and processes against those of organizations known to be leaders in one or more aspects of their operations
what is this ?

Answer 16

benchmarking

Question 17

all forms of pay and benefits an employee receives
what is this ?

Answer 17

total compensation

Question 18

the combination of benefits, compensation and rewards that employees receive from their organizations
what is this ?

Answer 18

total rewards