Compensation

Question 1

2 types of compensation

Answer 1

direct

indirect

Question 2

Direct compensation

Answer 2

payment of money to employees- wages, salary, performance-based pay, commissions, bonuses

Question 3

Indirect compensation

Answer 3

non-monetary rewards- employee services, benefits, training, vacation, pension, worker’s compensation, life insurance

Question 4

Laws impacting pay

Answer 4

FLSA

discrimination laws

Question 5

process of comparing jobs by use of formal and systemic procedures to determining their relative worth within the organization

Answer 5

job evaluation

Question 6

Employee pay linked to employee and organizational performance

Answer 6

variable compensation

Question 7

Examples of variable compensation

Answer 7

profit sharing
bonuses
stock options
commission
incentive pay

Question 8

Pay that doesn’t vary according to performance

Answer 8

fixed pay

Question 9

Examples of fixed pay

Answer 9

base pay-salary, hourly wage

Question 10

specific type of performance- based pay system to encourage specific actions and motivate employees

Answer 10

incentive pay plans

Question 11

Examples of incentive pay plans

Answer 11

piecework
commission
stock options

Question 12

most common incentive pay plan- guaranteed standard pay rate per piece

Answer 12

piecework

Question 13

Group incentive plans

Answer 13

cash plans
gainsharing
wage-dividend plans

Question 14

profit-sharing payment of profit shares at regular intervals

Answer 14

cash plans

Question 15

profit-sharing leads to enhanced productivity and more profit shared by all

Answer 15

gainsharing

Question 16

percent of profits paid to employees based on dividends to stockholders

Answer 16

wage-dividend plan