WGU D351 v2 topic 9
Define the term "job evaluation." - ✔️✔️defined as the process of comparing jobs by
the use of formal and systemic procedures to determine their relative worth within the
organization
Variable compensation links an employees pay to what? - ✔️✔️organizational
performance
What are three examples of variable pay? - ✔️✔️profit sharing, bonuses, stock options
Define fixed pay. - ✔️✔️Base pay that is not determined by performance
What are the two most common forms of fixed pay? - ✔️✔️hourly wage or yearly salary
What are incentive pay plans? - ✔️✔️a specific type of performance-based pay system
which is used to encourage specific actions and motivate employees
List and describe the two types of compensation. - ✔️✔️direct compensation and
indirect compensation
What are three examples of direct compensation? - ✔️✔️wage, salary, performanced
based pay
What are three examples of indirect compensation? - ✔️✔️employee services,
benefits, trainings and/or any other indirect form of compensation or benefit.
Describe the term "gainsharing (or bonus based on achievement)." - ✔️✔️payment of
profit shares at regular intervals, typically monthly or yearly. The percentage of profits
distributed ranges from 8 to 75 percent (Profit sharing)
Describe the term "wage-dividend plan." - ✔️✔️a special type of cash plan, set the
percentage of profits paid to employees according to the amount of dividends paid to
stockholders.
Describe the term "piecework." - ✔️✔️Most common incentive plan, employees are
guaranteed a standard pay rate for each unit of output, also called a piece rate.
Describe the term "sales incentive (commission)." - ✔️✔️a commission from the sales
that someone may make.
Define the term "job evaluation." - ✔️✔️defined as the process of comparing jobs by
the use of formal and systemic procedures to determine their relative worth within the
organization
Variable compensation links an employees pay to what? - ✔️✔️organizational
performance
What are three examples of variable pay? - ✔️✔️profit sharing, bonuses, stock options
Define fixed pay. - ✔️✔️Base pay that is not determined by performance
What are the two most common forms of fixed pay? - ✔️✔️hourly wage or yearly salary
What are incentive pay plans? - ✔️✔️a specific type of performance-based pay system
which is used to encourage specific actions and motivate employees
List and describe the two types of compensation. - ✔️✔️direct compensation and
indirect compensation
What are three examples of direct compensation? - ✔️✔️wage, salary, performanced
based pay
What are three examples of indirect compensation? - ✔️✔️employee services,
benefits, trainings and/or any other indirect form of compensation or benefit.
Describe the term "gainsharing (or bonus based on achievement)." - ✔️✔️payment of
profit shares at regular intervals, typically monthly or yearly. The percentage of profits
distributed ranges from 8 to 75 percent (Profit sharing)
Describe the term "wage-dividend plan." - ✔️✔️a special type of cash plan, set the
percentage of profits paid to employees according to the amount of dividends paid to
stockholders.
Describe the term "piecework." - ✔️✔️Most common incentive plan, employees are
guaranteed a standard pay rate for each unit of output, also called a piece rate.
Describe the term "sales incentive (commission)." - ✔️✔️a commission from the sales
that someone may make.
