Essay about Compensation

928 Words Oct 3rd, 2014 4 Pages
Part 1 (Short Response)
1- How do differing perspective (society, managers and employee) affect the views of compensation?

• Societal perspective: compensation is viewed as a measure of justice as well as a cause of increased taxes and price increases.
• Managers: view compensation as a major expense and a means to influence employee behaviour.
• Employees: view compensation as a return in an exchange with their employer, an entitlement, or a reward.

2- Explain the difference between base pay and performance pay.

• Base pay: Base pay-wage or salary is the monetary compensation an employee receives for the work performed. For example, the base wage for machine operators may be $18 an hour but some individual operators might
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5- Explain the difference between egalitarian versus hierarchical pay structure.

• Egalitarian structures have fewer level and smaller differentials between adjacent levels and between the highest- and the lowest- paid workers. Hierarchical structures (have more levels) are consistent with a belief in the motivational effects of frequent promotions. Hierarchies value the differences in individual employee skill, responsibilities and contributions to the organization.

6- Describe the major decisions involved in a job analysis.

• Job analysis refers to any systematic gathering, documenting, and analyzing of information about the content of work performed by people in organizations, the worker attributes related to work performance, or the context, both psychological and physical, in which the work is performed.
Job analysis: does not refer to just one methodology but rather to a range of techniques
• is formal, structured process carried out under a set of guidelines established in advance
• breaks down a job in different parts, rather than looking at the job as a whole

7- What are the differences between a job and a task?

• Job: Group of task performed by one person that makes up the total work assignment of that person for example customer representative.

• Task: Smallest unit of analysis, a specific statement of what a person does e.g. answer the phone.

Case scenario assignment 1

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