Compensation and Benefits -
C236
1. Business Strategy: The collection of decisions, approaches, and activities that allow an organization to compete and
win
2. Cost Leadership Strategy: Focusing business priorities on providing a low- er-cost product or service
- Having a lower-cost product or service at the highest priority throughout its processes
- focused on price
3. Differentiation Strategy: Providing innovative, exceptional, and high-quality products and/or services to
customers
- Placing a high priority on providing innovative, exceptional, and high-quality prod- ucts and/or services to customers
4. Niche-Focused Strategy: Targeting business priorities toward addressing a spe- cific section of the market
- When an organization chooses a small and segmented market and competes only in that small arena
5. Hybrid Strategy: Employing a combination of cost-leadership, differentiation, and niche-focused business
strategies
6. SWOT Analysis: Assessing an organization's trengths, weaknesses, opportuni- ties, and threats
7. Strengths: The firm's core competencies, abilities and capacities that provide an advantage when meeting the needs
of target customers. (i.e., production costs, marketing skills, brand image, technology, design and financial resources)
8. Weaknesses: Limitations a firm faces when seeking to deliver value to customers
9. Critical Success Factors (CSFs): The crucial steps companies take to perform to achieve their goals and objectives
and implement strategies
- capabilities, activities, customer perceptions and market positions that allow an organization to outcompete their
rivals
10.Human Resources Management: The policies, practices, and systems that manage the interface between the
organization and its employees in order to enable long-term organizational performance
11.Which of the following is not a function of Human Resources?: Risk man- agement
- HR functions include workforce planning, recruiting, selection, training, rewards,
, Compensation and Benefits -
C236
performance management, and career management as well as the human resource information systems and strategic
functions that integrate across those areas
12.Strategic Human Resource Management ensures that HR practices are aligned with the in general
and critical success factors in particular: - Business strategy
13.Total rewards plays a role in the business strategy: vital
14.Total Rewards Strategy: The combination of pay forms, plans, policies, and practices that enable long-term
organizational performance
15.Total Rewards Content Strategy: Specifies the type, level, and combination of rewards offered to employees
16.Reward Form Combination Strategy: The reward forms (e.g., cash, benefits, etc.) and the way in which they
relate to each other
17.Reward Level Strategy: Answering this question 'How much is being offered?'
- organizations must define what level of each reward will be offered
18.Absolute Level: The reward can be defined
eg. paying an employee $50,000 salary per year, for example, is a defining absolute level
19.Relative Level: States the rewards strategy as greater than, equal to, or less than some labor market reference
point
- This Leading, Lagging, or Matching portion of the rewards strategy is often ex- pressed in terms of a percentage and is
the most common way that an organization defines the Level of rewards that it offers
20.Leading the Market: A Rewards Strategy in which the firm is trying to provide more of a given reward than its
competitors for those employees
21.Lagging the Market: When an organization provides a lesser amount of the reward than its competitors
22.Matching the Market: A Rewards Strategy of providing an amount of the reward equal to the market average
23.Hybrid Approach: Leading the market on certain forms of rewards while match- ing or lagging the market on other
forms
24.Total Rewards Process Strategies: The decisions, policies, and practices that define how Total Rewards are
designed and implemented
25.Design Strategy: The process used to design the rewards system
26.Principles of Transparency: Clear information on the who, what, when, and why of the reward system is
available to all
27.Data: External metrics and pay surveys justify choices
, Compensation and Benefits -
C236
28.Broad Input: Help, advice, and thoughts from employees of all levels of the organization.
29.Communication Strategy: A plan for creating, sharing, and receiving informa- tion relating to its Total Rewards
Systems
- The plan for sharing the compensation strategy with employees and receiving their feedback
30.Role and Control Strategy: The policies and practices that allocate design, implementation, and discretionary
control of the rewards system
31.Centralized Approach: The Human Resources department makes all decisions relating to pay strategy, as well as
specific reward decisions
32.Decentralized Approach: Decisions can be made by the employee's immediate supervisor or manager
33.Domestic Rewards Strategy: Organizations that operate in a single country
34.Global Rewards Strategy: The collection of decisions, guidelines, and policies that define how the total rewards
will account for country differences
- in creating this strategy, organizations face the three primary challenges:
Centralization Reward
Equivalence National Culture
35.Centralized Global Rewards Strategy: Organizations attempt to have a single set of policies that are determined
by the organization and utilized at all locations
36.Decentralized Global Rewards Strategy: Rewards policies are established and monitored at the country level
with each location having the discretion to adapt to its unique situations and contexts
37.Reward Equivalence: Due to differences in tax laws, costs of living, exchange rates, and differential perceived
costs and rewards of overseas assignments, or- ganizations have to consider how to motivate employees to take the
expatriate assignment while simultaneously maintaining a sense of equity for those host country employees with which
the expatriate works. Anchoring the definition of equivalence to the employee's home country, the host country, or some
global metric is a common approach
38.Reward form combination strategy refers to: Rewards (cash, benefits, etc.) and how they relate to each other
39.Absolute level refers to: Base salary
40.The effectiveness of your system depends on its answers to the following questions:: - Is your Rewards System
augmenting or inhibiting employee, team,
C236
1. Business Strategy: The collection of decisions, approaches, and activities that allow an organization to compete and
win
2. Cost Leadership Strategy: Focusing business priorities on providing a low- er-cost product or service
- Having a lower-cost product or service at the highest priority throughout its processes
- focused on price
3. Differentiation Strategy: Providing innovative, exceptional, and high-quality products and/or services to
customers
- Placing a high priority on providing innovative, exceptional, and high-quality prod- ucts and/or services to customers
4. Niche-Focused Strategy: Targeting business priorities toward addressing a spe- cific section of the market
- When an organization chooses a small and segmented market and competes only in that small arena
5. Hybrid Strategy: Employing a combination of cost-leadership, differentiation, and niche-focused business
strategies
6. SWOT Analysis: Assessing an organization's trengths, weaknesses, opportuni- ties, and threats
7. Strengths: The firm's core competencies, abilities and capacities that provide an advantage when meeting the needs
of target customers. (i.e., production costs, marketing skills, brand image, technology, design and financial resources)
8. Weaknesses: Limitations a firm faces when seeking to deliver value to customers
9. Critical Success Factors (CSFs): The crucial steps companies take to perform to achieve their goals and objectives
and implement strategies
- capabilities, activities, customer perceptions and market positions that allow an organization to outcompete their
rivals
10.Human Resources Management: The policies, practices, and systems that manage the interface between the
organization and its employees in order to enable long-term organizational performance
11.Which of the following is not a function of Human Resources?: Risk man- agement
- HR functions include workforce planning, recruiting, selection, training, rewards,
, Compensation and Benefits -
C236
performance management, and career management as well as the human resource information systems and strategic
functions that integrate across those areas
12.Strategic Human Resource Management ensures that HR practices are aligned with the in general
and critical success factors in particular: - Business strategy
13.Total rewards plays a role in the business strategy: vital
14.Total Rewards Strategy: The combination of pay forms, plans, policies, and practices that enable long-term
organizational performance
15.Total Rewards Content Strategy: Specifies the type, level, and combination of rewards offered to employees
16.Reward Form Combination Strategy: The reward forms (e.g., cash, benefits, etc.) and the way in which they
relate to each other
17.Reward Level Strategy: Answering this question 'How much is being offered?'
- organizations must define what level of each reward will be offered
18.Absolute Level: The reward can be defined
eg. paying an employee $50,000 salary per year, for example, is a defining absolute level
19.Relative Level: States the rewards strategy as greater than, equal to, or less than some labor market reference
point
- This Leading, Lagging, or Matching portion of the rewards strategy is often ex- pressed in terms of a percentage and is
the most common way that an organization defines the Level of rewards that it offers
20.Leading the Market: A Rewards Strategy in which the firm is trying to provide more of a given reward than its
competitors for those employees
21.Lagging the Market: When an organization provides a lesser amount of the reward than its competitors
22.Matching the Market: A Rewards Strategy of providing an amount of the reward equal to the market average
23.Hybrid Approach: Leading the market on certain forms of rewards while match- ing or lagging the market on other
forms
24.Total Rewards Process Strategies: The decisions, policies, and practices that define how Total Rewards are
designed and implemented
25.Design Strategy: The process used to design the rewards system
26.Principles of Transparency: Clear information on the who, what, when, and why of the reward system is
available to all
27.Data: External metrics and pay surveys justify choices
, Compensation and Benefits -
C236
28.Broad Input: Help, advice, and thoughts from employees of all levels of the organization.
29.Communication Strategy: A plan for creating, sharing, and receiving informa- tion relating to its Total Rewards
Systems
- The plan for sharing the compensation strategy with employees and receiving their feedback
30.Role and Control Strategy: The policies and practices that allocate design, implementation, and discretionary
control of the rewards system
31.Centralized Approach: The Human Resources department makes all decisions relating to pay strategy, as well as
specific reward decisions
32.Decentralized Approach: Decisions can be made by the employee's immediate supervisor or manager
33.Domestic Rewards Strategy: Organizations that operate in a single country
34.Global Rewards Strategy: The collection of decisions, guidelines, and policies that define how the total rewards
will account for country differences
- in creating this strategy, organizations face the three primary challenges:
Centralization Reward
Equivalence National Culture
35.Centralized Global Rewards Strategy: Organizations attempt to have a single set of policies that are determined
by the organization and utilized at all locations
36.Decentralized Global Rewards Strategy: Rewards policies are established and monitored at the country level
with each location having the discretion to adapt to its unique situations and contexts
37.Reward Equivalence: Due to differences in tax laws, costs of living, exchange rates, and differential perceived
costs and rewards of overseas assignments, or- ganizations have to consider how to motivate employees to take the
expatriate assignment while simultaneously maintaining a sense of equity for those host country employees with which
the expatriate works. Anchoring the definition of equivalence to the employee's home country, the host country, or some
global metric is a common approach
38.Reward form combination strategy refers to: Rewards (cash, benefits, etc.) and how they relate to each other
39.Absolute level refers to: Base salary
40.The effectiveness of your system depends on its answers to the following questions:: - Is your Rewards System
augmenting or inhibiting employee, team,
