4BE3 Strategic Compensation: Chapter 1-5 || with Error-free Solutions.

Compensation correct answers all forms of financial returns and tangible services and benefits that employees receive as part of an employment relationship Views on compensation correct answers society, stockholder, manager, or employee Societal view on compensation correct answers some people view pay as a measure of justice (e.g., gender wage gap) economists have identified a number of contributing factors to wage determination, including human capital, demographic characteristics, and job characteristics Stockholder view on compensation correct answers some believe that using stock to pay employees creates a sense of ownership; others argue that granting employees too much ownership dilutes stockholder wealth also have an interest in executive compensation Manager view of compensation correct answers see as a compensation as a major expense, but one that can be used to influence employee behaviours and to improve organizational performance Employee view of compensation correct answers compensation is usually a major source of financial security many people view compensation as the return in an exchange between their employer and themselves, as an entitlement for being an employee, or as a reward for performing well Total rewards correct answers all rewards received by employees, including cash compensation, benefits, and relational returns Relational returns correct answers psychological returns employees believe they receive in the workplace (learning opportunities, recognition and status, challenging work, etc.) Cash compensation correct answers includes base page, merit/COLA, and short-term and long-term incentives Base pay (wage or salary) correct answers the case compensation an employee receives for the work performed; tends to reflect the value of the work or skills Distinction between wage and salary correct answers salary = managers and professionals wage = hourly workers who can be covered by overtime Merit increases correct answers increments to base pay in recognition of past work behaviour (size of the increase varies according to performance)