A relational returns b learning objectives c short

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(a) relational returns, (b) learning objectives, (c) short-term incentives, (d) benefits, and (e) allowances 4 (a) relational returns, (b) benefits, (c) short-term incentives, (d) allowances, and (e) learning The correct answer is 4. See chapter 1, “Forms of pay” in the prescribed book. Based on exhibit 1.4 on page 9, options 1, 2 and 3 are incorrect. Read the following and then answer questions 4 and 5. Incentives and top performers Companies that recognise and reward top performers are financially more successful than companies who do not. Focusing on the reward of top performers can be a means of achieving desired business results. The question is: How can top performers be recognised and rewarded for their contribution to organisational success? The answer seems to be incentive pay policies. Incentive pay is discretionary and can be more quickly and easily adjusted to organisational needs. It has a greater influence on employee behaviour than do 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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4 MNH306K/201 base salary and benefits and can be used to differentiate the compensation system. Incentive programmes are a universally accepted, standard form of recognition. 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. 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 itscomp 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. The correct answer is 2. See chapter 2, “Differentiate” in the prescribed book. Pay strategies that are simple to copy do not provide a competitive advantage. The strategy should be different from everyone else’s. The pay strategy should be woven into the company’s overall HR strategy (ie it should be aligned). An aligned strategy supports differentiation, but does not ensure it. It may be easy to copy any individual action of a competitor, but it is the way in which the programmes fit together and tie in with the overall organisation that is difficult to copy.
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