Glossary Flashcards
variable pay
Tying pay to some measure of individual, group, or organizational performance
straight piecework
An incentive plan under which employees receive a certain rate for each unit produced
differential piece rate
A compensation rate under which employees whose production exceeds the standard amount of output receive a higher rate for all of their work than the rate paid to those who do not exceed the standard amount
standard hour plan
An incentive plan that sets rates based on the completion of a job in a predetermined standard time
bonus
An incentive payment that is supplemental to the base wage
spot bonus
An unplanned bonus given for employee effort unrelated to an established performance measure
merit guidelines
Guidelines for awarding merit raises that are tied to performance objectives
lump-sum merit program
Program under which employees receive a year-end merit payment, which is not added to their base pay
straight salary plan
A compensation plan that permits salespeople to be paid for performing various duties that are not reflected immediately in their sales volume
straight commission plan
A compensation plan based on a percentage of sales
A draw is a cash advance that must be paid back as commissions are earned.
combined salary and
commission plan
A compensation plan that includes a straight salary and a commission
salary plus bonus plans
the payout can be paid on a monthly, quarterly, or yearly schedule contingent upon the salesperson achieving targeted sales goals
prerquisites
Special nonmonetary benefits given to executives; often referred to as perks.
Corporate executives may simply consider
perks a “badge of merit.” they are viewed as wasteful spending and overly lavish
team incentive plans
A compensation plan in which all team members receive an incentive bonus payment when production or service standards are met or exceeded
gainsharing plans
Programs under which both employees and the organization share financial gains according to a predetermined formula that reflects improved productivity and profitability
profit sharing
Any procedure by which an employer pays, or makes available to all regular employees, in addition to base pay, special current or deferred sums based on the profits of the enterprise
