MANA - 3320- FINAL EXAM
QUESTIONS AND ANSWERS
compensation - ANSWER-the total of an employee's pay and benefits
-costs are frequently 65%-7-% of total production costs in today's firms
-affects process of attracting and retaining employees
Compensation components - ANSWER-all monetary rewards such as wages,
salaries, incentives, commissions, and bonuses
Non compensation components - ANSWER-all rewards other than monetary rewards
(e.g., company cafeterias and gyms)
types of compensation - ANSWER--base pay: wages are paid on an hourly basis.
salary is based on a time period
-wage and salary adds on: includes overtime pay, shift differential, premium pay for
working weekends and holidays
-incentive pay "variable pay": pay for performance. commonly includes piece of work
in production and commission sales
-benefits: indirect compensation that provides something of value to employee
base pay pros - ANSWER-motivates org membership
-recruiting & retention
benefits pros - ANSWER-motivates commitment and retention
-time off, health, retirement, perqs
incentive pros - ANSWER-motivates performance
-piece rates, bonuses, merit raises, stock options
direct compensation - ANSWER-Base pay, salary add-ons, and incentive pay - all of
which appear in a pay check.
indirect compensation - ANSWER-Provides something of value to employee (i.e.,
benefits), such as sickness and accident protection, retirement pay contributions,
cafeteria services, company physicals.
expectancy theory - ANSWER-Developed by Victor Vroom at Yale. He argued that
employees will be motivated when they believe they can accomplish a task and the
rewards are worth the effort.
equity theory - ANSWER-J. Stacy Adams developed that employees are motivated
when ratio of their perceived outcomes to inputs is at least roughly equal to other
referent individuals
, wage compression - ANSWER-occurs when new employees require higher starting
pay than the historical norm, causing narrowing of the pay gap between experienced
and new employees
FLSA (Fair Labor Standards Act) - ANSWER-Federal law that establishes a
minimum wage and requirements for overtime pay and child labor
Pay Philosophy - ANSWER-Formal statement documenting a company's position
about employee compensation; it explains "why" employees are paid the way they
are, creating consistency across pay.
Pay structure - ANSWER-is a hierarchy of jobs and their rates of pay within the
organization. Made up of job structures and pay levels.
Pay levels - ANSWER-provide minimum to maximum pay for a group or subset of
jobs in organization.
Pay lines - ANSWER-
job evaluation - ANSWER-the process of determining the relative worth of the
various jobs within a firm
broadbanding - ANSWER-combining multiple pay levels into one
delayering - ANSWER-Reducing the number of levels in the organization's job
structure
merit pay - ANSWER-a system of linking pay increases to ratings on performance
appraisals
Comparable worth - ANSWER-When jobs are distinctly different but entail similar
levels of ability, responsibility, skills, and working conditions, they are of equal value
and should have same pay scale
Incentive Options for Individuals - ANSWER-bonus- lump sum payment given to
employees at end of a period
commission- payment for selling an item, usually calculated as a percentage of items
price
merit pay (the best)- rewards top performers with increases in annual wage that
carry over years. most effective when employees understand benefits of incentive
piecework plans- more work employees get done, more they are paid
standard hour plans- each task is assigned a standard amount of work time for
completion
recognition and other non monetary incentives- most effective motivational tools.
includes extra time off, ability to choose tasks and jobs
QUESTIONS AND ANSWERS
compensation - ANSWER-the total of an employee's pay and benefits
-costs are frequently 65%-7-% of total production costs in today's firms
-affects process of attracting and retaining employees
Compensation components - ANSWER-all monetary rewards such as wages,
salaries, incentives, commissions, and bonuses
Non compensation components - ANSWER-all rewards other than monetary rewards
(e.g., company cafeterias and gyms)
types of compensation - ANSWER--base pay: wages are paid on an hourly basis.
salary is based on a time period
-wage and salary adds on: includes overtime pay, shift differential, premium pay for
working weekends and holidays
-incentive pay "variable pay": pay for performance. commonly includes piece of work
in production and commission sales
-benefits: indirect compensation that provides something of value to employee
base pay pros - ANSWER-motivates org membership
-recruiting & retention
benefits pros - ANSWER-motivates commitment and retention
-time off, health, retirement, perqs
incentive pros - ANSWER-motivates performance
-piece rates, bonuses, merit raises, stock options
direct compensation - ANSWER-Base pay, salary add-ons, and incentive pay - all of
which appear in a pay check.
indirect compensation - ANSWER-Provides something of value to employee (i.e.,
benefits), such as sickness and accident protection, retirement pay contributions,
cafeteria services, company physicals.
expectancy theory - ANSWER-Developed by Victor Vroom at Yale. He argued that
employees will be motivated when they believe they can accomplish a task and the
rewards are worth the effort.
equity theory - ANSWER-J. Stacy Adams developed that employees are motivated
when ratio of their perceived outcomes to inputs is at least roughly equal to other
referent individuals
, wage compression - ANSWER-occurs when new employees require higher starting
pay than the historical norm, causing narrowing of the pay gap between experienced
and new employees
FLSA (Fair Labor Standards Act) - ANSWER-Federal law that establishes a
minimum wage and requirements for overtime pay and child labor
Pay Philosophy - ANSWER-Formal statement documenting a company's position
about employee compensation; it explains "why" employees are paid the way they
are, creating consistency across pay.
Pay structure - ANSWER-is a hierarchy of jobs and their rates of pay within the
organization. Made up of job structures and pay levels.
Pay levels - ANSWER-provide minimum to maximum pay for a group or subset of
jobs in organization.
Pay lines - ANSWER-
job evaluation - ANSWER-the process of determining the relative worth of the
various jobs within a firm
broadbanding - ANSWER-combining multiple pay levels into one
delayering - ANSWER-Reducing the number of levels in the organization's job
structure
merit pay - ANSWER-a system of linking pay increases to ratings on performance
appraisals
Comparable worth - ANSWER-When jobs are distinctly different but entail similar
levels of ability, responsibility, skills, and working conditions, they are of equal value
and should have same pay scale
Incentive Options for Individuals - ANSWER-bonus- lump sum payment given to
employees at end of a period
commission- payment for selling an item, usually calculated as a percentage of items
price
merit pay (the best)- rewards top performers with increases in annual wage that
carry over years. most effective when employees understand benefits of incentive
piecework plans- more work employees get done, more they are paid
standard hour plans- each task is assigned a standard amount of work time for
completion
recognition and other non monetary incentives- most effective motivational tools.
includes extra time off, ability to choose tasks and jobs
