Q12. Describe the impact of legislation on the field of compensation management.
Minimum wage and overtime laws restrict the minimum amount employers can offer to workers; anti-discrimination legislation mandates that employees are compensated without regards to their racial, ethnic, gender, or disabled status.
Q13. Identify the impact of incentives such as bonuses to a compensation program.
For some professions, such as sales and investment banking, bonuses derive the bulk of the individual's expected salary. Bonuses can also be a means of distinguishing social status between employees. Bonuses can also simply be used to encourage higher levels of performance, based upon short-term outcomes.
Q14. Explain how the global market affects U.S.-based companies' compensation.
In a global marketplace, high-quality employees are more 'portable,' but because of the ability to outsource labor, employees may also find their salaries kept artificially low through the availability of lower-cost foreign workers.
Q15. Describe salary/market surveys.
Salary market surveys, much like a market survey for how much consumers are willing to pay for a good or service, give prospective employees an idea of the average salary in a specific area in the nation for employees fulfilling a specific job, with certain specified qualifications and experience.
Q 1. Why is it necessary for an organization to appraise performance formally?
Without formal appraisals, subjective factors would likely be too influential in determining employee compensation.
Q2. Identify and describe the different reasons for implementing a short-term bonus.
Short-term bonuses can boost morale, ease change resistance regarding long-term changes in the company, and also provide an incentive for workers to work hard through a difficult or busy period at the company.
Q3. Define the differences between skill, knowledge and competencies.
Skill, such as the ability to cut hair, is a basic requirement of many jobs -- a hair dresser must know how to give a competent cut, an administrative professional must be fluent in MS Word. Knowledge is harder to define, like a teacher's knowledge of American history, although...
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