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What kind of rewards do top performers prefer their

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What kind of rewards do top performers prefer? Their choices include a mix of short-term, immediate rewards, long-term rewards, non-monetary and intrinsic rewards. They also prefer that their compensation should be tailored to reflect their individual contribution. Interestingly, research has shown that when compensation is tailored to the preferences of top performers, this does not adversely affect the compensation for other employees. Managing compensation systems that are tailor made may be more difficult and time consuming. Total Returns Total compensation ( a) _________ (b) _____ Cash compensation This component comprises: Income protection Work/life balance (d) ____________ This component comprises: Base Merit/cost of living (c) ___________ Long-term incentive This component comprises: Recognition and Status Employment security Challenging work (e) ____________
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21 MNH306K/101 4 Suppose your organisation decided to implement an incentive pay system. What would be the requirements for this pay system to differentiate your company’s compensation system from that of its competitors? 1 It must be benchmarked against industry best practice. 2 It must fit the compensation programme and overall business strategy in a way that is difficult to copy. 3 It must be internally aligned and externally competitive. 4 it must provide a good return on the investment made in the compensation of top performers. 5 Which of the following statements describe the concept “incentives”? (a) pay increases are tied to cost of living (b) include pension fund, medical aid and leave (c) increasing salary on the basis of performance (d) do not increase the basic salary (base wage) (e) performance objectives are known ahead of time The correct alternative is: 1 a, c, and d 2 b, c, and d 3 c, d, and e 4 b, d, and e 6 Any initiative involving a reward immediately draws the attention and, in most cases also the commitment of management. The reasons for this are as follows: (a) Management usually understands the detrimental effect a negative change in compensation can have on staff. (b) It enables management to take appropriate and fair compensation decisions. (c) Rewards equal money – vast sums of it. (d) It allows management to take speedy decisions. (e) Changes in compensation also have an effect on managers. They are therefore also interested in any changes. The correct alternative is: 1 a, b, and d 2 b, c, and e 3 c, d, and e 4 a, c, and e 7 Internal alignment is _________________________. 1 being fair when making compensation decisions 2 comparing different jobs in a single organisation 3 comparing similar jobs in a single organisation 4 comparing similar jobs between different organisations 8 An important cornerstone of a compensation system is a compensation philosophy. The contributions of a compensation philosophy are to _________________________. (a) motivate employees (b) allow for speedy decision making by management (c) achieve employee commitment
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22 (d) serve as a departure point during negotiations (e) enable management to take appropriate and fair compensation decisions The correct alternative is: 1 b, d, and e 2 a, d, and e 3 b, c, and e 4 d, and e 9 “I don’t work for the money; I do this work because I enjoy it and find it interesting.”
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