Chapter 1: Strategic Compensation || A Verified A+ Pass.

Competitive Advantage correct answers Competitive advantage describes a company's success when the company acquires or develops capabilities that facilitate outperforming the competition. Compensation correct answers Compensation budgets are blueprints that describe the allocation of monetary resources to fund pay structures. Intrinsic Compensation correct answers reflects employees' psychological mind-sets that result from performing their jobs, for example, experiencing a great feeling from the belief that one's work matters in the lives of others. Extrinsic Compensation correct answers includes both monetary and nonmonetary rewards. Core Compensation correct answers describes the monetary rewards employees receive. There are seven types of core compensation: two forms of base pay hourly pay (or wage) and salary, seniority pay, merit pay, incentive pay, cost-of-living adjustments (COLAs), and pay-for-knowledge and skill-based pay. Employee Benefits correct answers include any variety of programs that provide paid time off (e.g., vacation), employee services (e.g., transportation services), and protection programs (e.g., life insurance). Competitive Business Strategy correct answers refers to the planned use of company resources—financial capital, equipment capital, and human capital—to promote and sustain competitive advantage. The time horizon for strategic decisions may span multiple years. Human Resource Strategies correct answers specify the use of multiple HR practices to reinforce competitive business strategy. These statements are consistent with a company's competitive strategy. Strategic Compensation correct answers refers to the design and implementation of compensation systems to reinforce the objectives of both HR strategies and competitive business strategies. Compensation and benefits executives work with the lead HR executive and the company's chief financial officer (CFO) to prepare total compensation strategies. Capital correct answers refers to the factors that enable companies to generate income, higher company stock prices, economic value, strong positive brand identity, and reputation. There is a variety of capital that companies use to create value, including financial capital (cash) and capital equipment (state-of-the-art robotics used in manufacturing). Employees represent a specific type of capital called human capital. Human Capital correct answers as defined by economists, refers to sets of collective knowledge, skills, and abilities (KSAs) that employees can apply to