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Related Flashcards
Cards In This Set
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What is the definition of employee compensation?
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Includes all forms of pay going to employees and arising from their employment
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What are the two main components of employee compensation?
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Direct and indirect financial payments
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What are 5 examples of direct financial payments?
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Wages Salaries IncentivesCommissions Bonuses
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What are 2 examples of indirect financial payments?
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Insurance paid for by employers vacations
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What are the two basic ways to make direct financial payments to employees?
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Based on increments of time or based on performance
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Several factors determine the design of any pay plan. What are they?
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The compensation plan should first advance the firm's ________ _______- management should produce an _________ _________ _________
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Strategic aims aligned reward strategy
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What is an aligned reward strategy?
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Creating total pay package that produces the employee behaviors the firm needs to support and achieve its competitve strategy
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Explain what a total rewards strategy is.
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Encompass the traditional pay, incentives, and benefits, but also things such as more challenging jobs, career development, and recognition.
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______ ______ ___ _____ postulates that people are strongly motivated to maintain a balance between what they perceive as their contributions and their rewards.
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Equity theory of motivation
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What does the equity theory state?
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That if a person perceives an inequity, a tension will develop in the person's mind, motivation the person to reduce the tension and perceived inequality.
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What are the four forms of equity?
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External, internal, individual, and procedural
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What is external equity?
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Refers to how a jobs pay rate in one company compares to the job's pay rate in other companies
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______ _____ refers to how fair a particular job's pay rate is when compared to other jobs within the same company
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Internal equity
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_______ ________ refers to the fairness of an individuals pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on performance.
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Individual equity
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