Compensation and Benefit Systems: 20 short answer questions

Compensation and Benefit Systems Presented by Name Presented to Lecturer Institution Topic Date Compensation and Benefit Systems Intrinsic Compensation and Discretionary Benefits Intrinsic compensation refers to ability of workers to gain pleasure from their accomplishments of their daily activities. This pleasure acts as their reward or compensation of what they have individually done. This has the effect of making the workers enjoy their tasks. On the other hand, workers sometimes receive rewards on top of their salary or wages. These rewards are not mandatory for one to receive. These kinds of additional rewards are referred to as Discretionary benefits. Strategic Analysis This refers to the act of identifying the strong points of a given business venture position, and comprehending the outward factors that have a direct effect on the position. This process entails identifying the strengths, weaknesses, opportunities and threats that the business could be facing. Power Distance and Executive Order Power distance refers to the mode in which power is disseminated in systems of individuals of different ranks. This gives a clear indication of the cultural attitude with reference to human difference in social rankings. Executive order is normally issued by the head of state, it demands for the enforcement of law. This order is always issued with reference to the code of inheritance of power that exits in a given state. The order is normally passed directly to the branch executives of various firms, organizations, or institutions. Longevity Pay, And Pay-For-Knowledge Longevity pay refers to the compensation that is given to the highest ranked employee. This employee has reached the highest level of rank and there are no more ranks remaining for him to progress further. Firms do motivate their employees to search for more knowledge. In this, they encourage their employees to seek for extra training or further their studies. This they do so by giving the employees an incentive as a compensation for their skills gained or the quality of education they have referred to as pay-for-knowledge. Profit Sharing Plans Profit sharing plans provides the employers with various flexibilities and freedom in decision making in matters of contributions. The three profit sharing plans include: traditional profit sharing plans, age-weighted and new comparability profits sharing plans, and 401(k) plans. Traditional profit sharing is based on the salary proportions method. It helps assigning the employer contributions to all parties that took part on equal basis method. Age-weighted profit sharing plan, assign contributions with reference to age and the salary or wages of qualified employees. The older parties get a larger proportion in comparison to the younger members. On the other hand, new comparability helps employer to classify the workers on the matter of assigning contributions. 401 (k) plans is a profit sharing plan that gives the employees room for postponing various compensations with the aim of evading present taxes on their incomes. Management by Objective This refers to an action whereby, the employees and the employer commonly participate in goal identification as well as setting the desired goals, identification of stand...