Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

compensation & benefits > 7. performance-linked pay > Flashcards

7. performance-linked pay Flashcards

1
Q

what will maslow’s hierarchy of needs and herberg’s hygiene factors and motivators show about pay for performance?

A

base pay must be higher enough before talking about performance-linked (variable) pay and base pay alone will not motivate extra performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

how does expectancy affect performance-linked pay?

A

performance-linked pay must be large enough to be effective in motivating performance and line of sight (controlled by employees) is most important. employee must be able to influence results

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what should equity be for performance-linked pay?

A

perceived eward must be equal to perceived effort and fairness, consistency and relatively are important

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is reinforcement in performance-linked pay?

A

payment must be timely

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is “fairness” and “return” for performance-linked pay?

A

there is a risk attached to performance-linked pay and to be fair to employees for accepting the risk, there should be a corresponding upside if the employee delivers on performance.
higher the risk, higher the upside

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is important for a materialistic person?

A

care most or maybe even only about the company’s pay policy, not about work culture, content and other non-monetary intangibles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what do low self-esteem person want as pay?

A

fixed with little or no variable pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is a risk-taker’s pay?

A

more variable pay with higher upside

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is the go-getter’s type of pay?

A

wants variable pay, but based on individual performance, not group performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is the critical success factors?

A

simplicity, linage strength, fairness and justice, and communication

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is simplicity?

A

criteria must be easily understood

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is the linkage strength?

A

effort-to-result linkage must be strong enough

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what does fairness and justice refers to?

A

plan structure must be fair

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

communication is?

A

explain & review

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is the step design performance metric system?

A
  1. determine the number and type KPIs and it weightage
  2. determine the number of ratings for each KPIs
  3. define the level of performance for each rating
  4. suggest corresponding performance-linked pay
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are the types of key performance index (KPIs)?

A
  1. Production Cycle Time
  2. Sales Revenue
  3. Market Share
  4. Customer Satisfaction score
  5. Customer Retention rate
17
Q

what are the type of performance-linked pay?

A

merit increment, merit bonus, spot award, commission, piece rate pay, time rate pay, gain sharing plans and stock plans

18
Q

what is merit increment?

A

a variable/performance increment that will increase in monthly base salary that is linked to performance

19
Q

what is merit bonus?

A

a variable/performance bonus receive by employees in a lump sum payment linked to performance and doesnt go into monthly base salary

20
Q

what is spot award?

A

a special one-off award given for some special effort

21
Q

what is commission?

A

pay is linked to the completion of a task or delivery of an outcome

22
Q

what is piece rate pay?

A

a straight piece rate is single rate for each piece of work delivered, regardless of what productivity is achieved

23
Q

what is merrick piece-rate plan?

A

rates based on whether performance exceeds/equals/below a set of productivity standards

24
Q

what is time rate pay?

A

a straight time-rate is single rate for each piece of work delivered, regardless of what productivity is achieved

25
Q

what is the rowan time-rate pay?

A

bonus is included when the performance exceeds a set productivity standard

26
Q

what do gain sharing plan focuses on?

A

the input factors

27
Q

what are the components in stock plans?

A

stock purchase, grant and option plan

28
Q

what is stock purchase?

A

company offers the employees the chance to purchase company shares

29
Q

what is stock grant?

A

company makes a grant of stock to the employee

30
Q

what is stock option?

A

company makes an offer of stock option to employees

compensation & benefits (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions