Chapter 7

Question 1

What is reward?

Answer 1

Tangible and intangible rewards received by employees from an employer in exchange for his/her work

Question 2

Reward mechanism

Answer 2

A portion of organization revenue given to workers and staff for monetary and in - kind claims

Question 3

Types of claims

Answer 3

Monetary claims
In-Kind claims

Question 4

Objectives of a compensation system

Answer 4

Compensation and rewards linked to individual behavior and motivation
Motivation improved by rewarding good performance and offering incentives

Question 5

Direct compensation

Answer 5

Base pay - salary and wages
Merit Pay - Awards, performance bonus
Incentive pay - bonus, commission

Question 6

Indirect compensation

Answer 6

Benefit schemes - medical aid
Fringe benefits- Work leaves, sick and family leave, salary advance

Question 7

Job evaluation

Answer 7

Systemic process of determining value of jobs in organizations

Question 8

Job based compensation plan route

Answer 8

Identify compensable factors
Develop job hierarchy
Construct job grades
Carry out compensation survey
Establish final pay policy

Question 9

What are Pay systems

Answer 9

Pay for knowledge and skills
Pay for competencies
Performance based pay
Incentive pay system

Question 10

Type of benefits

Answer 10

Mandatory by law
Voluntary