Hannah Martin- Homework Assign. 1

MG 411 - Compensation Attendance/Quiz 1 10 points NAME: ____Hannah Martin _________ 1. In the WorldAtWork (ACA) categorization of organizational rewards, benefits are an important non-financial reward. Yes _____ No _X__ (if you choose no, explain why) Benefits are a part of the financial portion of the extrinsic rewards. More specifically, benefits are indirect but are financially fungible. For example, an employee who receives a medical insurance plan through their organization will generally have a portion of that premium that is paid by the organization. This is technically an indirect form of financial compensation. 2. When an organization uses a formal structure/pay grades, we must determine one pay rate for all persons performing a given job. Yes _____ No _X__ (if you choose no, explain why) Job description only outlines the minimum requirements to successfully complete the job. Job specifications can increase the amount of compensation due to the fact that while the employee is performing the same job, they have the ability/qualification to perform the job at a higher level than an employee who does not possess the same qualifications. 3. The goals that most organizations have for the compensation system support each other and are easily achieved. Yes _____ No _X_ (if you choose no, explain why) These goals can sometimes compete with one another and cause the compensation system to not support the other goals due to the competition between themselves. We can achieve these goals by using the three forms of equity, however, they are not necessarily easily achieved, either. 4. Merit and incentives have a similar organizational end in that they should be viewed by employees as a REWARD for work. However, there are differences between the two concepts. Explain the differences.
Merit is an increase in pay given in the form of increments to base pay and is given based on job performance. Incentives are tied to objective goals, sales quotas, and meeting other organizational goals, and are not given as an increase to base pay. This can be viewed as merits being considered as raises and incentives are considered like bonuses.
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