Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
13 Cards in this Set
- Front
- Back
|
Direct Compensation |
basic wages and performance-based pay.
Direct Compensation: Fixed Pay
Fixed pay - Also known as "base pay," is compensation that does not vary according to performance or results achieved. It usually is determined by the organization's pay philosophy and structure.
Examples:Yearly Salary Hourly Wage |
|
|
Direct Compensation |
Direct Compensation: Fixed PayFixed pay - Also known as "base pay," is compensation that does not varyaccording to performance or results achieved. It usually is determined bythe organization's pay philosophy and structure. Examples:Yearly SalaryHourly Wage |
|
|
Organization-Wide Variable Incentive Plans
|
Cash plans - provide for payment of profit shares at regular intervals, typically monthly or yearly based on profitability.
Wage-dividend plans (a special type of cash plan) set the percentage of profits paid to employees according to the amount of dividends paid to stockholders Gainsharing - Payout is based on operational measures (productivity, quality, spending, service), that improve the “line of site” in terms of what employees do and how they are compensated |
|
|
Individual Variable Incentive Plans
|
Stock Options - the opportunity for a manager to buy an organization's stock at a later date, but at a price established when the option is granted. Piecework - Employees are guaranteed a standard pay rate for each unit of output, also called a piece rate. Sales Incentive Plans - Apply to salespeople and managers, who generally receive their pay in the form of commissions. |
|
|
Individual Variable
|
Merit Pay – Based an employee's salary and his or her performance, over a predetermined period (usually a performance management cycle) and according to an agreed upon criteria.
|
|
|
_______________ is paid out based on a broad financial measure of the organization’s profitability.
|
1) Gainsharing
2) Cash Plan 3) Wage-dividend plans 4) Sales commissions |
|
|
An indirect compensation method used to keep cost down while helping the organization achieve its goals.
|
1. Bonuses 2. Benefits 3. Incentive pay 4. Variable Pay |
|
|
An indirect compensation method used to keep cost down while helping the organization achieve is goals. |
1. Bonuses 2. Benefits 3. Incentive pay 4. Variable pay |
|
|
The Georgia Widget Company offered Susan a job as a Widget Inspector Specialist at a starting rate of $42,850 per year. After taking the job offer over with some of her friends who work for the company Susan make a counter-0ffers that she be compensated $50 per widget inspected. |
1. The Georgia Widget Company is offering variable compensation and Susan has a counter offer with variable compensation.
2. The Georgia Widget Company is offering fixed compensation and Susan has a counter offer with fixed compensation. 3. The Georgia Widget Company is offering variable compensation and Susan has a counter offer with variable compensation. 4. The Georgia Widget Company is offering fixed compensation and Susan has counter offer with variable compensation. |
|
|
Which of the following are examples of direct compensation (select all that apply.)
|
1. Sales commisions 2. Bonus 3. Vacation 4. Piece work |
|
|
Bob would like to increase productivity within the Georgia Widget Company. He has turned to you for a recommendation on which variable compensation method would best help the organization achieve this strategic goal. What would you recommend? |
1. Ensure all employees are salary 2. Ensure all employees have benefits 3. Ensure all employees are part of a gain-sharing plan 4. Ensure all employees are part of a profit sharing plan. |
|
|
The Georgia Widget Company has had tremendous growth over the past 5 years. This growth has led to the creation of a new role within the organization “Senior Widget Inspector Role”. In order to The Georgia Widget Company has had tremendous growth over the past 5 years. This growth has led to the creation of a new role within the organization “Senior Widget Inspector Role”. In order to determine the value of this job in relation to other jobs in the organization, the HR department should conduct which of the following? of this job in relation to other jobs in the organization, the HR department should conduct which of the following?
|
1. Benchmark jobs 2. Job Evaluation 3. Broadbanding 4. Reclassification |
|
|
Robbie was just promoted to Director. As a Director in the company, he now takes part in a wage dividend plan. Which of the following best explains how this program works? |
1. Payout is based on the amount of dividends paid to stockholders. 2. Payout is based on a broad financial measure of the organization's profitability. 3. Payout is based on operational measures (productivity, quality, spending, service) 4. Payout is based on the number of stockholders that are eligible for dividends. |
