chapter one hr strategic compensation

Question 1

Compensation

Answer 1

represents the reward employees receive for performing their jobs.
2 types of rewards :
intrinsic and extrinsic

Question 2

Intrinsic compensation

Answer 2

employees’ critical psychological states that result

Question 3

extrinsic compensation

Answer 3

includes both monetary and nonmonetary rewards

Question 4

strategic compensation

Answer 4

refers to the design and implementation of compensation to reinforce the objectives of both HR strategies and competitive business strategies. Strategically design  implement  complete objectives of both HR and business strategy

Question 5

competitive business strategy

Answer 5

the planned use of company resources: financial capital, equipment capital, human capital.

Question 5

human resource strategy

Answer 5

the use of multiple HR practices to reinforce competitive business strategy.

Question 6

capital

Answer 6

refers to the factors that enable companies to generate income, higher stock prices, economic value, reputation

Question 7

human capital

Answer 7

refers to sets of collective skills, knowledge, and abilities that employees can apply to create value for their employees

Question 8

say yes to three questions

Answer 8

-Does compensation strategy fit well with the objectives
of company competitive business and HR strategies?
– Does the choice and design of compensation practices
fit well to support compensation strategy?
– Does the implementation of compensation practices
effectively direct employee behavior to enhance job
performance that supports the choice of compensation
practices?

Question 9

lowest cost strategy

Answer 9

focus on being the lowest cost producer/seller of goods or services

Question 10

differentiation strategy

Answer 10

focus on offering unique good or services to the public

Question 11

Base pay

Answer 11

hourly wage/annual salary Compensable factors
– An employee’s skill level
– An employee’s effort
– An employee’s level of responsibility
– The severity of the working conditions

Question 12

base pay adjustments

Answer 12

• cola
  *senority pay
  *merit pay
  *incentive pay
  *pay-for-knowledge plans
  *skilled-based pay

Question 13

COLA

Answer 13

cost of living adjustment periodic base pay increases

Question 14

seniority pay

Answer 14

seniority pay systems rewards employees with periodic additions to base pay according to employees length of service in performing their job

Question 15

merit pay

Answer 15

Merit pay: merit pay programs assume that employees’
compensation over time should be determined, at least in
part, by differences in job performance. employees get paid based on how well they do their jobs.

Question 16

incentive pay

Answer 16

incentive pay or variable pay rewards employees for partially or completely attaining a predetermined work objective

Question 17

pay for knowledge plans

Answer 17

pay-for-knowledge plans
reward managerial, service, or professional workers, for
successfully learning specific curricular

Question 18

skill based pay

Answer 18

is used mostly for employees who perform physical work and increases these workers pay as they master new skills

Question 19

Discretionary benefits

Answer 19

• protection programs
• paid time off
  services (tuition reimbursement and day care assistance

Question 20

legally required benefits

Answer 20

• social secuirty act
  -workers compensation
  -family and medical leave act
  -affordable care act