Strategic Compensation – Midterm || Already Graded A+.

Eight goals of a reward/compensation system correct answers 1. Promote achievement of organization goals. 2. Fit with organization strategy and structure. 3. Attract and retain qualified individuals. 4. Promote desired employee behaviour. 5. Be seen as equitable. 6. Comply with the law. 7. Be within financial means. 8. Achieve above goals cost effectively. Intrinsic rewards correct answers Factors that satisfy basic needs for self-esteem, achievement, growth and development. (Job content) Extrinsic rewards correct answers Factors that satisfy basic needs for survival and security, as well as social and recognition needs. (Job context) job content correct answers what workers actually do on their jobs. Job context correct answers the conditions and demands of a workers job. compensation system correct answers the economic or monetary part of the reward system Components of a compensation system correct answers 1. Base pay 2. Performance pay 3. Indirect pay Base pay correct answers Basic compensation that an employee receives, usually as a wage or salary Performance pay correct answers Relates employee monetary rewards to some measure of individual, group, or organizational performance Indirect pay correct answers Non-cash items or services that satisfy employee needs, or lso known as "employee benefits" Purpose of a compensation system correct answers To help create a willingness among qualified persons to join the organization and to perform the tasks needed by the organization