Chapter 8 Flashcards
1
Q
Three strategic approaches to compensation
A
- Paying an employee for his skill rather then job basis
- Rewarding excellence through pay for performance
- individualizing pay systems by providing flexibility and choice
2
Q
What are the basic consideration in determining pay rates?
A
- legal
- union
- compensation policies
- equity
3
Q
5 setps for ensuring external and internal equity?
A
- determine worth of each job within company
- group similar job pay grades
- conduct salary survey
- price each pay grade using wage curve
- fine tune pay rates
4
Q
Types of incentive plans
A
- variable pay linked to measure of performance
- anual bonus
- salary, commission
- merit pay
- profit sharing, employee stock ownership
