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19 Cards in this Set
- Front
- Back
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What are extrinsic rewards?
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Rewards that costs the company money. Examples are money, benefits, trips etc.
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What are intrinsic rewards?
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Rewards that come with the job. Emotional satisfaction, emotionally rewarding.
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What are some examples of tangible services.
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Money, the company car, trips etc.
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What are intangible services and what are some examples of them?
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Intangible services are those with little or no monetary value. Examples are relationships, networking, references, experience, etc.
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What percent of a company's budget is spent on compensation?
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40-70% of a company's budget is spend on compensation making it the single largest operating expenditure. Canadian employers spend about $800 billion in wages and salaries and another $100 billion is spend on employee benefits.
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What are the 3 types of compensation strategies? And how to company's choose which compensation strategy to go with?
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1. Lead the market
2. Match the market 3. Lag the market Company's choose the compensation strategies that will benefit their competitive edge or the work/employees that they are looking for. |
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What are the 3R's in the 3R analogy?
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1. Retention
2. Results (products, services, profits) 3. Recruitment |
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What is the difference between incentives and rewards?
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Incentives are used to draw people in and to get them to do something whereas rewards are to compensate actions that have already occurred.
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What are some examples of indirect compensation?
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- Paying for time not worked (vacation pay),
- protection programs (workers comp., disability etc.) - employee services (daycare, massage therapy) |
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True or False:
In order to keep people within a company, you only need to satisfy their extrinsic needs. |
False. Everyone can get paid anywhere and eventually they will leave the company to find somewhere else that pays them a higher wage. In order to keep employees you will need to satisfy their intrinsic needs.
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What are some examples of extrinsic needs?
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Survival, security, social needs, needs for recognition
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What are some examples of intrinsic needs?
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Self-esteem, achievement, growth, development
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What is merit pay?
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Rewards for working above and beyond what was required of them
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What is COLA and who gives it?
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Cost of Living Allowance. Public sectors give this.
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What are some examples of direct compensation?
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Base pay, merit pay, incentives, COLA
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What is a reward strategy?
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A plan for the mix of rewards
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What is an Optimal Reward Strategy?
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The reward system that adds the most value to the organization. It allows people to grow based on performance.
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If a system is fair, which types of justice will the system have?
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1. Distributive justice (equal allocation of compensation)
2. Procedural justice (rules of compensation) 3. Interactional justice (communication mechanisms/feedback) |
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What is the most widely used method to pay people with?
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The point method
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