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Compensation Test 1

Compensation and Benefits Human resources

QuestionAnswer
What are internal alignment and external competitiveness and how do they differ •• Internal alignment refers to comparisons among jobs or skill levels inside an organization.• External competitiveness refers to pay comparisons with competitors and affect objectives in two ways.
What are incentive effects and sorting effects • incentive effect is the degree to which pay influences individual and aggregate motivation.• sorting effect is the effect that pay can have on the composition of the workforce.
What is total compensation and relational returns and what are examples of each • Total compensation are transactional returns and include pay received directly as cash and indirectly as benefits.• Relational returns are psychological and include:
Know about different strategies discussed such as the innovator, cost cutter, and customer-focused strategies • Innovator: A supporting compensation strategy for an innovator, places more emphasis on incentives encouraging innovations• Cost Cutter: Compensation in a cost cutter strategy encourages productivity increases and minimizing costs• Customer-focused stra
Created by: jfeldste
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