30 Questions
What is the single largest operating expenditure for Canadian employers?
Take home pay
What aspect is considered a key part of getting organization members to do what the organization wants?
The level of alignment of compensation system with firm’s strategy
What needs must employees perceive that accepting a job with an employer will help satisfy?
All the above
What is the purpose of the compensation system?
To align with firm’s strategy
What percentage of operating budgets typically compensates employees?
70-90%
What does the compensation system aim to help create among qualified persons?
Recognition and growth opportunities
What is the key aspect of a compensation strategy related to the total amount of compensation?
How much compensation should be paid
Which component of a compensation system is generally based on a unit of time worked?
Base pay
What is the blueprint for creating the reward system within an organization?
Reward Strategy
Which type of pay involves noncash items or services that cater to specific employee needs?
Indirect pay
When should interns be paid according to the text?
Interns should always be compensated
What must be developed before establishing the compensation system within an organization?
Reward Strategy
What are the two types of human needs mentioned in the text?
Primary and secondary needs
Which of the following is a characteristic of intrinsic rewards?
Received during performance of the behavior
What is the main difference between rewards and incentives according to the text?
Incentives are promised rewards for future behavior, while rewards are given after behavior
Which of the following is NOT an example of broader rewards mentioned in the text?
Base Pay
What do total rewards encompass according to the content?
The mix of extrinsic and intrinsic rewards along with compensation
In the context of reward systems, what does a compensation system primarily focus on?
Economic aspect of rewards only
What is the main purpose of a compensation system?
To help achieve organizational strategies and objectives
Why is an effective compensation system important for most organizations?
To attract, retain, and motivate employees
What distinguishes extrinsic rewards from intrinsic rewards?
Extrinsic rewards are tangible rewards, while intrinsic rewards are intangible rewards.
What distinguishes a reward system from a compensation system?
A reward system is broader and includes non-monetary recognition, while a compensation system is narrower and includes only monetary rewards.
Why must a compensation system be viewed in the context of the total reward system and the broader organizational environment?
To align compensation with organizational culture and values
What is one key criterion for evaluating the success of a compensation system?
The alignment with organizational goals
What is the primary goal of compensation systems?
Satisfy basic human needs
Which role focuses on determining the budget in designing a compensation system?
Manager of Compensation
In the context of reward systems, what do extrinsic rewards primarily address?
Basic human needs
What is the last component that should serve in designing an effective compensation system for a company?
Implementing and evaluating the system
Which aspect is NOT addressed by compensation systems according to the text?
Employee motivation techniques
What is the combination of intrinsic and extrinsic rewards called in an organization?
Reward system
Test your knowledge on the key purposes and importance of a compensation system, distinctions between extrinsic and intrinsic rewards, and the differences between a reward system and a compensation system. Explore the key aspects of a compensation system in organizations.
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