A conduct pay surveys b generate a pay structure c

Info icon This preview shows pages 15–17. Sign up to view the full content.

View Full Document Right Arrow Icon
(a) conduct pay surveys (b) generate a pay structure (c) ensure internal alignment (d) make pay policy decisions (e) define relevant labour markets The correct alternative is: 1 a, b, c 2 c, d, e 3 a, b, c, d 4 b, c, d, e 5 a, b, d, e Read the following and then answer questions 6 to 10 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 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. 6 If your organisation decided to implement incentive pay, what would be the requirements for this policy to differentiate your company’s compensation system from that of competitors? 1 It must be benchmarked against industry best practices. 2 It must be internally aligned and externally competitive. 3 It must be aligned with business strategy and internal human resource systems. 4 It must provide a good return on the investment made in the compensation of top performers. 5 It must fit the compensation programme and the overall business strategy in a way that is difficult to copy.
Image of page 15

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
16 7 According to the information provided, which of the following forms of compensation are important to top performing employees? (a) Vacation leave (b) Stock options (c) Reserved parking (d) Job freedom (e) Bonuses The correct alternative is: 1 a, b, c, 2 b, c, e 3 a, b, c, d 4 b, c, d, e 5 a, b, c, d, e 8 In addition to base salary, how should you structure the rest of the compensation package for top performers to ensure that it provides sustained competitive advantage? 1 Merit bonuses, standard benefits, overtime and stock options. 2 Commission, standard benefits, a large office and reserved parking. 3 Standard benefits, generous overtime, stock options and profit sharing.
Image of page 16
Image of page 17
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern