RRHH 8&9UA

What is the main goal of a compensation plan?

• To increase labor costs

• To discourage organizational commitment

• To reduce work satisfaction

• To attract and retain competent employees

Which of the following is a criteria for designing a compensation plan?

• Exclusion

• Isolation

• Inequality

• Elitism

What is the purpose of base compensation in a compensation plan?

• Fixed, minimum pay on a regular basis

• Indirect compensation benefits

• Variable pay based on profits

• Legal costs for the organization

What are benefits considered as in a compensation plan?

• Indirect compensation

• Direct salary

• Legal costs

• Variable pay

What is a disadvantage of individual-based compensation?

• Lower employee satisfaction

• Higher chance of failure

• Less flexibility in salary structures

• Decreased employer reputation

Which of the following is a type of individual-based incentive plan?

• Collective bonus

• Team-based incentives

• Profit-sharing plan

• Stock-options (ESOPs)

What is the purpose of group-based incentive plans?

• Long-term individual incentives

• Profit-sharing plans

• Collective bonus

• Individual productivity bonus

What is the level of compensation that is determined by whether it is below-market or above-market?

• Level

• Structure

• Management

• Individualism

What is the advantage of individual-based compensation?

• Higher chance of failure

• Better alignment of employee's and company's goals

• Increased stress levels

• Decreased performance levels

What is the purpose of corporate-wide incentive plans?

• Individual productivity bonus

• Profit-sharing plans

• Long-term individual incentives

• Stock-options (ESOPs)