Week 10

Question 1

Managing pay

Answer 1

• a powerful tool for meeting the organisation’s goals and a major cost
• has a large impact on employee attitude and behaviours
• influences the kind of people who are attracted to the company

Question 2

Designing a pay structure

Answer 2

1) Conduct a job evaluation
2) Draw a pay policy line
3) Obtain salary survey data
4) Formulate pay grade
5) Decide a pay range for each job

Question 3

Effect incentive pay plans meet requirements such as:

Answer 3

• performance measures are linked to the organisation’s goals
• employees believe they can meet the performance standards
• organisation gives employees the resources they need to meet their goals
• employees believe the reward system is fair
• employees value the rewards given

Question 4

Pay for performance

Answer 4

• Merit pay
• Performance Bonus
• Sales commission
• Employee stock ownership program

Question 5

Total compensation

Answer 5

1) Base compensation (the fixed pay received on a regular basis)
2) Pay incentives / pay for performance
3) Indirect compensation / benefits

Question 6

4 major types of benefits

Answer 6

1) Health & Wellness benefit
2) Financial & Retirement benefits
3) Paid leave benefits
4) Work-life balance