Chapter 14

Question 1

The basic cash compensation that an
employer pays for the work performed. Tends to reflect
the value of the work itself and ignore differences in
individual contributions.

Answer 1

base salary

Question 2

gives a comprehensive view
on the true value of executive compensation. Add up
the value of base salary, annual incentives, long-term
incentives, benefits, and perks. Part of this process
includes estimating the current value of stock options
(using something called the Black–Scholes model),
stock appreciation rights, vested and unvested pensions,
and payouts upon termination.

Answer 2

tally sheet

Question 3

A theory of motivation that depicts
exchange relationships in terms of two parties: agents
and principals. According to this theory, both sides of
the exchange will seek the most favorable exchange
possible and will act opportunistically if given a
chance

Answer 3

agency theory

Question 4

Presence of two different ways
to progress in an organization, each reflecting different
types of contribution to the organization’s mission.

Answer 4

dual-career ladder

Question 5

A plot of the empirical relationship
between current pay and years since a professional has last
received a degree (YSLD), thus allowing organizations
to determine a competitive wage level for specific
professional employees with varying levels of experience.

Answer 5

maturity curves