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Introduction to Human Resource Management - Employee Journey (& HR processes) - Compensation & Rewards

25 important questions on Introduction to Human Resource Management - Employee Journey (& HR processes) - Compensation & Rewards

What may compensation packages include?

  • Salary
  • Bonuses
  • Health- care benefits
  • other benefits such as 401 (k) plans

What are 4 certifications in the area of compensation?

  • Certified Compensation Professional (CCP)
  • Certified Benefits Professional (CBP)
  • Certified Sales Compensation Professional (CSCP)
  • Certified Executive Compensation Professional (CECP)

Why is a compensation package of importance?

Because much of the company budget is for employee compensation
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What is the goal of a compensation package?

To attract potential employees, to retain employees already working in the organization, and motivate employees to improve.

What is the ultimate objective for the company to compensate employees sufficiently?

Employees who are fairly compensated tend to provide better customer service and can result in result in organizational growth and development.

How can we define Job Evaluation?

The process of determining the relative worth of jobs to determine pay structure.

What is Paired compensation?

Table where individual jobs are compared with every other job, based on a Ranking System.

What is a job classification system?

In this system, every job is classified and grouped based on the knowledge and skills required for the job, years of experience, and amount of authority for that job.

US Military is best known for this system.

What is a point-factor system?

The value of a job by calculating the total points assigned to it. The points given to a specific job are called compensable factors.

Name some examples of Compensable Factors and what is it?

The points given to a specific job are called compensable factors.
  • Knowledge
  • Autonomy
  • Supervision
  • Psychological demands
  • Interpersonal skills
  • Internal and External contacts

What is the Hay Profile Method?

This proprietary job evaluation method focuses on three factors called know-how, problem-solving, and accountability.

What are 4 types of Job Evaluation systems?

  1. Paired Compensation
  2. Job Classification system
  3. Point- factor system
  4. Hay Profile Method

What is Pay grading?

the process of setting the pay scale for specific jobs or types of jobs.

What is the Management Fit Module?

Module where each manager makes a decision about who should be paid what when that person is hired.
Disadvantage is that it may be or feel discriminating, halo effects, and resentment within the organization. It may also creat moral issues.

What is a Skill based Pay?

Method where salary levels are based on an employee’s skills, as opposed to job title.

What is a Variable pay system?

provides employees with a pay basis but then links the attainment of certain goals or achievements directly to their pay. For example, a salesperson may receive a certain base pay but earn more if he or she meets the sales target.

What are the three Motivational theory's in regards to Pay?

  • equity theory
    • the relational satisfaction employees get from pay and inputs they provide to the organisation
  • expectancy theory
    • Theory believes that employees will put in as much work as they expect to receive
  • reinforcement theory
    • if high performance is followed by a reward, that high performance will likely occur in the future. If not, it probably won't occur again.

What are types of pay?

  • Salary
  • Commition
  • Bonuses
  • Health benefits
  • 401 (k) plan / retirement plan

What are desirable traits for incentive plans?

  • Clearly communicated
  • Attainable but challenging
  • Easily understandable
  • Tied to company goals

Name examples of incentive plans.

  • Commission plan
  • Bonus Plan
  • Profit-Sharing Plan
  • Stock Options

Name examples of other types of compensation.

  • Fringe benefits
  • Health benefits
  • 401 (s) plan - retirement plan

What do we mean with comparable worth?

People should earn a similar amount if they preform the same job.

What does the Equal Pay Act restrict companies from doing?

To discriminate people on the workfloor by paying people with the same position differently. Such as men vs. Woman doing the same job.

What Laws are there to pertaining to pay?

  • EEOC ensures that pay is fair for all and does not discriminate.
  • FLSA - Fair Labor Standard Act- sets a minimum wage and establishes standards for child labor.
  • FUTA - Federal Unemployment Tax Act- requires employers to pay unemployment taxes on employees.
  • FECA - Federal Employee Compensation Act- ensures that federal employees receive certain benefits.

What is the difference between benefits and Incentives?

Everyone gets benefits, on the other hand, an incentive is based on someone's specific performance.

The question on the page originate from the summary of the following study material:

Introduction to Human Resource Management

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