BANK | COMPLETE QUESTIONS WITH EXPERT SOLUTIONS | 2026
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Direct financial compensation - (answer)compensation received in the form of salary, wages,
commissions, stock options or bonuses
indirect financial compensation - (answer)all the tangible and financially valued rewards that are
not included in direct compensation including free meals, vacation time and health insurance
nonfinancial compensation - (answer)rewards and incentives given to employees that aren't
financial in nature
base pay - (answer)reflects the size and scope of an employee's responsibilities
severance pay - (answer)give to employees upon termination of their employment
fixed pay - (answer)pays employees a set amount regardless of performance
,variable pay - (answer)bases some or all of an employee's compensation on employee, team, or
organizational
pay structure - (answer)the array of pay rates for different work or skills within a single
organization
pay mix - (answer)the relative emphasis give to different compensation components
pay leader - (answer)organization with a compensation policy of giving employees greater
rewards than competitors
pay follower - (answer)an organization that pays its front-line employees as little as possible
resource dependence theory - (answer)proposition that organizational decisions are influenced by
both internal and external agents who control critical resources
wage differentials - (answer)differences in wage between various workers, groups of workers, or
workers within a career field
,labor market - (answer)all of the potential employees located within a geographic area from
which the organization might be able to hire
cost of living allowances - (answer)clauses in union contacts that automatically increase wages
base on the U.S. Bureau of Labor Statistics' cost of living index
market pricing - (answer)uses external sources of information about how others are
compensating a certain position to assign value to a company's similar job
Compensation surveys - (answer)surveys of other organizations conducted to learn what they are
paying for specific jobs or job classes
benchmark jobs - (answer)jobs that tend to exist across departments and across diverse
organizations allowing them to be used as a basis for compensation comparisons
job evaluation - (answer)a systematic process that uses expert judgement to assess differences in
value between jobs
ranking methos - (answer)subjectively compares jobs to each other based on their overall worth
to the organization
, job classification method - (answer)subjectively classifies jobs into an exiting hierarchy of
grades and categories
point factor method - (answer)uses a set of compensable factors to determine a job's value. skill,
resp, effort, working cond.
compensable factor - (answer)any characteristic used to provide a basis for judging a job's value
skills, responsibilities, effort, working conditions - (answer)Four categories of compensable
factors
Hay Group Guide Chart - Profile Method - (answer)a point-factor system is used to produce both
a profile and a point score for each position.
know how
problem solving
accountability
working conditions