World At Work Variable Pay C12 / GR6: Q’s And A’s
Total rewards includes all the tools available to the employer that may be used to -
ANSWER attract
motivate
engage
retain employees
Total rewards includes - ANSWER compensation
benefits
work-life effectiveness
recognition
performance management
talent development
Elements of Compensation - ANSWER fixed and variable pay
Fixed pay is - ANSWER a non discretionary compensation that does not regularly vary
according to performance or results achieved.
Primary examples of Fixed pay are - ANSWER Base salary
base hourly rate
Variable Pay is - ANSWER compensation that is discretionary or contingent on
performance or results achieved, and can be designed for any individual or combination
of individuals
Variable Pay is termed variable because - ANSWER the amount actually paid will vary
based on whatever criteria the organization chooses.
Fixed pay rewards are based on an employee's value - ANSWER Market-based
Performance-based
Skill-based
Market-based rewards individuals for - ANSWER value relative to the labor market
Performance-based rewards individuals for - ANSWER sustained performance over
time
Skill-based rewards individuals for - ANSWER acquisition of new skills and
competencies
Variable pay rewards for - ANSWER accomplishments and results
,The Goal of Variable Pay is - ANSWER improve organizational performance.
Main Business Strategies are - ANSWER Operational excellence
Product/service leadership
Customer intimacy
Operational excellence is primarily - ANSWER a price/cost-based strategy
Product/service leadership is primarily - ANSWER an innovation-based strategy
Customer intimacy is primarily - ANSWER a solutions-based strategy
Business Strategy drives - ANSWER Business Objectives
operational excellence examples are - ANSWER Product quality
Operational efficiency improvement
Process Improvement
Cost reduction
product/service leadership examples are - ANSWER Market share/market penetration
Product development
Time from innovation to market
customer intimacy examples are - ANSWER Customer opinion of products
Product quality
Customer retention
Customer satisfaction
Business Life Cycle stages are - ANSWER Start Up
Growth
Maturity
Decline
Business Life Cycle - Start Up definition - ANSWER The organization is new with little or
no formal policies or procedures. The organization's focus is on obtaining capital,
marketing products or services, initial sales growth and cash conservation.
Business Life Cycle - Growth definition - ANSWER the organization is highly focused on
growing sales, increasing distribution capability and determining how to efficiently
produce products or services to meet growing demand. It typically generates the need
to begin standardizing procedures through policy creation.
Business Life Cycle - Mature definition - ANSWER characterized by a focus on
maintaining/increasing market share, improving productivity and otherwise reducing
cost of sales. Improvements to products are more evolutionary than revolutionary. The
, organization typically has higher levels of bureaucracy and greater amounts of cash on
hand than at other
stages.
Business Life Cycle - Decline definition - ANSWER the organization's revenues are
declining. It must decide whether to reinvest in current products, create new products or
maximize profits with current products as long as possible.
Start Up position in life cycle Business Objectives examples - ANSWER Obtaining
capital
Cash conservation
Develop brand awareness
Develop marketing plan
Growth position in life cycle Business Objectives examples - ANSWER Production
capability
Market share/market penetration
Sales volume/revenue growth
Mature position in life cycle Business Objectives examples - ANSWER Improve
operational efficiency
Stock price appreciation
Maintain/increase market share
Decline position in life cycle Business Objectives examples - ANSWER Maximize profits
Extend product demand
New product development
Variable pay influences organizational performance by providing - - ANSWER Focus
Alignment
Motivation
Reinforcement
Focus - ANSWER Clarifies the important tasks employees must perform in order to
contribute to organization wide performance
Alignment - ANSWER Goals cascade from the organization to the business unit to the
individual
Emphasizes the balance between organizational success and individual performance
Motivation - ANSWER Fosters engagement and functions as feedback, enabling
employees to see how they make a difference
Facilitates change by using the pay/reward lever
Total rewards includes all the tools available to the employer that may be used to -
ANSWER attract
motivate
engage
retain employees
Total rewards includes - ANSWER compensation
benefits
work-life effectiveness
recognition
performance management
talent development
Elements of Compensation - ANSWER fixed and variable pay
Fixed pay is - ANSWER a non discretionary compensation that does not regularly vary
according to performance or results achieved.
Primary examples of Fixed pay are - ANSWER Base salary
base hourly rate
Variable Pay is - ANSWER compensation that is discretionary or contingent on
performance or results achieved, and can be designed for any individual or combination
of individuals
Variable Pay is termed variable because - ANSWER the amount actually paid will vary
based on whatever criteria the organization chooses.
Fixed pay rewards are based on an employee's value - ANSWER Market-based
Performance-based
Skill-based
Market-based rewards individuals for - ANSWER value relative to the labor market
Performance-based rewards individuals for - ANSWER sustained performance over
time
Skill-based rewards individuals for - ANSWER acquisition of new skills and
competencies
Variable pay rewards for - ANSWER accomplishments and results
,The Goal of Variable Pay is - ANSWER improve organizational performance.
Main Business Strategies are - ANSWER Operational excellence
Product/service leadership
Customer intimacy
Operational excellence is primarily - ANSWER a price/cost-based strategy
Product/service leadership is primarily - ANSWER an innovation-based strategy
Customer intimacy is primarily - ANSWER a solutions-based strategy
Business Strategy drives - ANSWER Business Objectives
operational excellence examples are - ANSWER Product quality
Operational efficiency improvement
Process Improvement
Cost reduction
product/service leadership examples are - ANSWER Market share/market penetration
Product development
Time from innovation to market
customer intimacy examples are - ANSWER Customer opinion of products
Product quality
Customer retention
Customer satisfaction
Business Life Cycle stages are - ANSWER Start Up
Growth
Maturity
Decline
Business Life Cycle - Start Up definition - ANSWER The organization is new with little or
no formal policies or procedures. The organization's focus is on obtaining capital,
marketing products or services, initial sales growth and cash conservation.
Business Life Cycle - Growth definition - ANSWER the organization is highly focused on
growing sales, increasing distribution capability and determining how to efficiently
produce products or services to meet growing demand. It typically generates the need
to begin standardizing procedures through policy creation.
Business Life Cycle - Mature definition - ANSWER characterized by a focus on
maintaining/increasing market share, improving productivity and otherwise reducing
cost of sales. Improvements to products are more evolutionary than revolutionary. The
, organization typically has higher levels of bureaucracy and greater amounts of cash on
hand than at other
stages.
Business Life Cycle - Decline definition - ANSWER the organization's revenues are
declining. It must decide whether to reinvest in current products, create new products or
maximize profits with current products as long as possible.
Start Up position in life cycle Business Objectives examples - ANSWER Obtaining
capital
Cash conservation
Develop brand awareness
Develop marketing plan
Growth position in life cycle Business Objectives examples - ANSWER Production
capability
Market share/market penetration
Sales volume/revenue growth
Mature position in life cycle Business Objectives examples - ANSWER Improve
operational efficiency
Stock price appreciation
Maintain/increase market share
Decline position in life cycle Business Objectives examples - ANSWER Maximize profits
Extend product demand
New product development
Variable pay influences organizational performance by providing - - ANSWER Focus
Alignment
Motivation
Reinforcement
Focus - ANSWER Clarifies the important tasks employees must perform in order to
contribute to organization wide performance
Alignment - ANSWER Goals cascade from the organization to the business unit to the
individual
Emphasizes the balance between organizational success and individual performance
Motivation - ANSWER Fosters engagement and functions as feedback, enabling
employees to see how they make a difference
Facilitates change by using the pay/reward lever
