Essay Flashcards
Define variable pay program.
bases portion of employee’s pay on individual and/or organizational measure of performance
What are the 7 types of variable-pay programs?
- piece-rate pay
- merit-based pay
- bonus
- skilled-based pay
- profit-sharing pay
- gainsharing
- employee stock ownership plan
define piece-rate pay.
workers paid fix sum for each unit of production completed
define merit-based pay.
based on performance appraisal ratings
define bonus.
rewards employees for recent performance over historical performance
define skill-based pay.
sets levels on basis of how many skills employees have or how many jobs they can do
define profit-sharing pay.
organization-wide program distributing compensation based on some established formula designed around company’s profitability.
define gainsharing.
formula-based group incentive plan
define employee stock ownership plan.
company-established benefits plan in which employees acquire stock, often at below-market prices, as part of benefits
