Chapter 8

Question 1

Direct compensation

Answer 1

-wages, salaries, bonus payments, and commissions

Question 2

Indirect compensation

Answer 2

-extended health care, dental plans, life insurance

Question 3

Anything of value earned through the investment of something of value

Answer 3

Equity

Question 4

Hourly vs piecework

Answer 4

-number of hours worked
-# of units produced

Question 5

Formal compensations goals

Answer 5

-rewarding employee’s past performance
-maintaining salary equity
-attracting, and motivating staff

Question 6

A systematic process of determining the relative worth of jobs in an organization

Answer 6

• Job evaluation

Question 7

Managers tire direct compensation to employee or organizational outcomes & performance

Answer 7

pay-for-performance

Question 8

key jobs are evaluated against 6 compensable factors

Answer 8

-skill, mental effort, physical effort, responsibility, working conditions

Question 9

salary surveys

Answer 9

-wages paid to employees in other organizations

Question 10

broad banding

Answer 10

-encourages employees to change jobs, develop their own career and seek different roles in the organization

Question 11

pay based on how much knowledge or how many capabilities employees have or how many jobs they can perform

Answer 11

competency-based pay

Question 12

chief objectives of most benefit programs are to

Answer 12

-improve employee work satisfaction
-Meet employee health, and security
-attract and motivate employees.