CH 1

Question 1

Compensation strategy (BPI) plan

Answer 1

the mix and total amount of base pay, performance pay, indirect pay

Question 2

Compensation system ($)

Answer 2

The monetary part of the reward system.

• shapes employee behaviour
• influences company performance

Question 3

Step 1 - Understand your organization and your people

Answer 3

contextual factors

• corporate strategy
• technology
• size
• people

rewards & human behaviour

• Membership
• Task
• Citizenship

Question 4

Types of behaviour

Answer 4

• Membership
• Task
• Citizenship

Question 5

Step 2 - Formulate your reward and compensation strategy

Answer 5

determine the mix of compensation components
base pay
performance pay
indirect pay.

Question 6

Goals of the reward and compensation system.

Answer 6

1. Promote achievement of the organization’s goals.
2. Fit with and support the organization’s strategy and structure.
3. Attract and retain qualified individuals.
4. Promote desired employee behaviour.
5. Be equitable.
6. Be compliant.
7. Be within budget
8. Be cost-effective

Question 7

What is an optimal reward system?

Answer 7

The reward system that adds the most value to the organization, after considering all its costs.

Question 8

Describe the key aspects of a compensation strategy.

Answer 8

The compensation strategy is one part of the reward strategy

Strategy =plan

The compensation system has three main components: (1) base pay, (2) performance pay, and (3) indirect pay.

Question 9

What is a reward strategy?

Answer 9

reward strategy

The plan for the mix of rewards to be provided to members, along with the means through which they will be provided.

Question 10

Define total rewards

Answer 10

compensation philosophy considers
career advancement 
 intrinsic characteristics of the job
work/life balance
employee recognition programs, positive workplace culture
compensation

Question 11

Distinguish between a reward system and a compensation system.

Answer 11

rewards

intrinsic and extrinsic rewards

compensation system

The monetary part of the reward system.

Question 12

What is a reward

Answer 12

satisfies an employee need.

Question 13

Distinguish between extrinsic and intrinsic rewards.

Answer 13

extrinsic rewards/external

survival and security, social needs and recognition.

intrinsic /internal

self-esteem, achievement, growth, and development.