SHRM Ch10 (Compensating employees)

_______ includes the monetary and nonmonetary rewards employees receive in exchange for the work they do for an organization.

• equity

• compensation

• pay

• benefits

Health care insurance, paid vacations, lunches, and/or company-paid training programs are examples of ______.

• hidden benefits

• indirect compensation

• hidden compensation

• indirect benefits

______ refers to the sum of all the aspects of a compensation package (base pay, incentives, benefits, perks, and so forth) that signal to current and future employees that they are receiving more than just base pay in exchange for their work.

• Total rewards

• Equity

• Pay

• Benefits

A ______ communicates information to employees about what is valued within an organization, enhances the likelihood of consistency in pay across the organizational units, and helps attract, motivate, and retain employees.

• job description

• statement of purpose

• compensation philosophy

• benefits summary

The key to a successful compensation plan is a compensation philosophy that supports the goals of the ______.

• candidate

• employee

• organization

• community

______ is the theory that employees compare their input (work effort) and outcome (wages) levels with those of other people in similar situations to determine if they are being treated the same in terms of pay and other outcomes.

• Compensation theory

• Pay theory

• Comparable worth theory

• Equity theory

If employees know or even just believe they are not receiving an appropriate level of compensation for their work (outcome), they will experience _______.

• imbalance

• compensation fatigue

• disequilibrium

• misalignment

Which of the following is an example of how employees might respond to feeling negative inequity?

• Arriving early or staying late to get more work done

• Asking for a raise

• Taking longer breaks

• Lowering their output

________ occurs when each job in a company is valued appropriately relative to every other job in terms of its ability to help the firm achieve its goals.

• Compensation alignment

• Internal alignment

• External alignment

• Internal equity

The systematic process of establishing the relative worth of the jobs within the company is called a(n) _______.

• compensation evaluation

• alignment evaluation

• pay evaluation

• job evaluation