In terms of employee compensation this is an example

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“I don’t work for the money; I do this work because I enjoy it and find it interesting.” In terms of employee compensation, this is an example of _____________________. 1 direct compensation 2 nonfinancial rewards 3 intrinsic rewards 4 indirect compensation 10 The first step in developing a total compensation strategy is: 1 implement strategy. 2 map a total compensation strategy 3 assess total compensation implications 4 determine business needs 11 In the current economic climate, unions are negotiating for, and organisations are offering, higher salary increases than in the previous two years. This can be ascribed to the steep rise in cost of living. In terms of competitive advantage , this is an example of the following: 1 Aligning the compensation strategy with economic and socio-economic conditions. 2 Differentiating compensation strategy from those of competitors. 3 A good return on the investment made in salaries and incentives. 4 Aligning the compensation strategy with the organisation’s business strategy. 12 The management of a pay system is about ensuring that _________________________. 1 the union agreement is implemented conscientiously 2 employees are productively engaged 3 the right people get the right pay for achieving the right objectives in the right way 4 compensation costs are kept to a minimum 13 A compensation strategy adds value when it _____________. (a) provides incentives for time spent at work (b) provides automatic yearly increases in benefits (c) attracts and retains talented staff with potential (d) ensures fair and ethical compensation for all staff (e) ensures yearly across-the-board increases for all staff The correct alternative is: 1 a, and d 2 a, and b 3 c, and d 4 c, and e
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23 MNH306K/101 14 Efficiency as a strategic compensation objective, aims to _______________. (a) improve employees’ performance (b) improve employees’ quality of life (c) control labour costs (d) emphasise business success The correct alternative is: 1 c 2 c, and d 3 a, c, and d 4 a, b, c, and d 15 If you are appointed as an advising engineer in your company, according to what theory would you work harder if salaries of consultant engineers in your company were increased? 1 equity theory 2 tournament theory 3 institutional model 4 marginal revenue product 16 Study the figure below and then answer question 16. Downward momentum, continuous difficulties Think of pay as a circle. The above figure describes a (a) _____________ circle, and occurs when organisation performance (b) ______________; performance-based pay plans do not pay off, and there are no bonuses, and the value of their stock declines – with potentially (c) _____________ effects on organisation performance. Declining organisation performance (d) _____________ the risks facing employees – risks of still smaller bonuses, demotions, and so forth. Unless the increased risks are offset by (e) _____________ returns, the risk-return imbalance will (f) ____________; declining employee attitudes and speed up the downward spiral.
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