HRCI PHR Module 4 - Total Rewards (Definitions)fully solved 2023/2024

HRCI PHR Module 4 - Total Rewards (Definitions)Total Rewards - correct answer Refers to the whole package of compensation and benefits that organizations give to their employees. Organizational Justice, Organizational - correct answer A term that means an employees' perception of workplace fairness. It's important to HR because it can affect employee retention, behavior, and performance There are three areas of this: distributive, procedural, and interactional. Distributive Justice, Distributive - correct answer An area of Organizational Justice that relates to pay and benefits and how they are awarded. Procedural Justice, Procedural - correct answer An area of Organizational Justice that refers to the processes that lead to these allocations. Interactional Justice, Interactional - correct answer An area of Organizational Justice that relates to how employees are treated within processes. Abraham Maslow's Hierarchy of Needs, Maslow's, Maslow's Hierarchy of Needs - correct answer A theory developed in the 1940's by a psychologist named Abraham Maslow about human motivation. This theory proposed that before people can reach their full potential, they must fulfill a series of increasingly complex needs. Physiological, Physiological Needs - correct answer The first level and the base of Maslow's Hierarchy of Needs which focuses on basic physical survival: food, clothing, shelter, etc. Example in the workplace: Paycheck Safety, Safety Needs - correct answer The second level of Maslow's Hierarchy of Needs which focuses on security. Example in the workplace: Steady Employment Social, Social Needs - correct answer The third level of Maslow's Hierarchy of Needs focuses on the first aspect of psychological needs. Most specifically, it relates to a sense of belonging. This is one of two levels where total rewards can be most valuable. Example in the workplace: Engagement Events Esteem, Esteem Needs - correct answer The fourth level of Maslow's Hierarchy of Needs focuses on the second aspect of psychological needs. Most specifically, it relates to self-worth. This is the second of two levels where total rewards can be most valuable. Example in the workplace: Employee Recognition Programs Self-Actualization, Self-Actualization Needs - correct answer The fifth and final level of Maslow's Hierarchy of Needs focuses on the realization or fulfillment of one's talents and potential. Example: Optimal job satisfaction displayed through low negative attrition metrics Pay - correct answer This is an element of total rewards, also known as part of a comprehensive compensation and benefits package. This component consists of base pay, variable pay (tied to performance or results), and premium pay (for special skills or working non-traditional hours). Examples: Hourly wage or salary, commission, bonuses, stock options, shift differentials, company car or cell phone. Benefits - correct answer This is an element of total rewards, also known as part of a comprehensive compensation and benefits package. This component consists of discretionary or non-discretionary benefits (mandated by federal or state law). Discretionary benefits include health and welfare benefits, retirement plans, and paid time off. Examples: Social security taxes, worker's compensation insurance, medical + dental + vision insurance, long- or short-term disability insurance, paid vacation and sick days. Work/Life, Work/Life Balance Benefits, Work/Life Balance, Work & Life - correct answer This is an element of total rewards, also known as part of a comprehensive compensation and benefits package. This component consists of programs to help employees balance work, family, and personal needs. These may be low- or no-cost options. Examples: Employee assistance program (EAP), gym membership, on-site child care, and flexible schedule/telecommuting. Rewards/Awards, Rewards, Awards - correct answer This is an element of total rewards, also known as part of a comprehensive compensation and benefits package. This component consists of employee recognition programs that aim to boost morale and engagement. They may be simple or elaborate and may or may not include monetary rewards. Examples: Special parking spots, annual awards dinner, gift cards, and anniversary gifts. Learning - correct answer This is an element of total rewards, also known as part of a comprehensive compensation and benefits package. This component consists of professional development that is beneficial to both the employee and the organization. Some industries also require continuing education for certification. Examples: Internal or external training, seminars, mentoring, tuition assistance, career coaching, and professional memberships. Internal Equity vs Market Rate - correct answer A compensation philosophy where organizations can set wages based on industry standards or by creating an internal job hierarchy. Both approaches within this philosophy have challenges. With hierarchy, it's vital to understand which positions are similar so they're priced similarly. It can also be difficult to determine which external jobs most closely match your own. Job pricing might include a combination of both of these approaches. Entitlement vs Performance Pay - correct answer A compensation philosophy that considers how to determine pay increases. Part of this philosophy rewards loyalty with automatic increases, such as cost-