C12 Variable Pay 1 – 2 Exam Study Guide Solutions

C12 Variable Pay 1 – 2 Exam Study Guide Solutions Fixed Pay - ANSWER-Nondiscretionary compensation that does not vary according to performance or results Variable Pay - ANSWER-Discretionary compensation that is contingent on performance or results achieved Fixed Pay Based on EE Value - ANSWER-Value related to labor market. Value related to performance. Value related to skills and competencies. Variable Pay Based on Results - ANSWER-Organizational, group or individual. Performance based differentiation. Flexible and adaptable to the circumstances. Variable Pay Goal - ANSWER-Improve organizational performance. Must know business strategy and objectives in order to develop a plan. 3 Primary Business Strategies - ANSWER-Operational Excellence, Product/Service Leadership and Customer Intimacy. Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/8 Operational Excellence - ANSWER-Price/cost based strategy. Strive to minimize waste and reward efficiency. Product/Service Leadership - ANSWER-Innovation/Product development based strategy. Encourages imagination and ability to commercialize fast. Customer Intimacy - ANSWER-Relationship based strategy. Build bonds and meet or exceed needs which builds loyalty. Operational Excellence Business Objectives - ANSWER-Product quality, operational efficiency improvement, process improvement and cost reduction. Product/Service Leadership Business Objectives - ANSWER-Market share product development, time to market Customer Intimacy Business Objectives - ANSWER-Opinion of products, quality, retention and satisfaction Business Life Cycle - ANSWER-Start up, growth, mature and decline Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/8 Start Up Objectives - ANSWER-Obtain capital, conserve cash, develop brand awareness and marketing plan Growth Objectives - ANSWER-Production capability market penetration and revenue growth Mature Objectives - ANSWER-Improve efficiency, stock price appreciation, and increase market share Decline Objective - ANSWER-Maximize profits, extend product demand and develop new products Variable Pay Provides: - ANSWER-Focus on important tasks by establishing measures and objectives. Align employees with business goals by balancing success between individual and organization. Motivates by providing feedback which facilitates change. Reinforces desir