Strategic compensation ch1-5 midterm Exam Questions and Answers 100% Pass

Strategic compensation ch1-5 midterm
Exam Questions and Answers 100% Pass


what are the two primary ways that pay affects employees behavior? -

CORRECT ANSWER: Incentive and sorting effects




QUESTION: Incentive effect -

CORRECT ANSWER: Degree to which pay influences individual and

aggregate motivation




QUESTION: sorting effect -

CORRECT ANSWER: effect that pay can have on the composition of

the workforce




QUESTION: Total Cash Compensation -

CORRECT ANSWER: Wages + Bonuses

, QUESTION: Total Compensation -

CORRECT ANSWER: Sum of all direct compensation (such as salary,

bonus, commission) and indirect benefits (such as insurance, paid time

off, retirement plans) that an employee receives from an employer.

Tangible returns




QUESTION: Relational Returns -

CORRECT ANSWER: recognition and status, employment security,

challenging work, learning opportunities




QUESTION: 3 basic building blocks of a pay model -

CORRECT ANSWER: -Compensation objectives serve as a guide

-Policies that form the foundation of the compensation system

-Techniques that make up the compensation system




QUESTION: Four Policy Choices -