C12 - WORLD AT WORK VARIABLE PAY- IMPROVING PERFORMANCE WITH VARIABLE PAY EXAM QUESTIONS WITH CORRECT ANSWERS

Total rewards includes all the tools available to the employer that may be used to - ANS attract motivate engage retain employees Total rewards includes - ANS compensation benefits work-life effectiveness recognition performance management talent development Elements of Compensation - ANS fixed and variable pay Fixed pay is - ANS a non discretionary compensation that does not regularly vary according to performance or results achieved. Primary examples of Fixed pay are - ANS Base salary base hourly rate Variable Pay is - ANS compensation that is discretionary or contingent on performance or results achieved, and can be designed for any individual or combination of individuals Variable Pay is termed variable because - ANS the amount actually paid will vary based on whatever criteria the organization chooses. Fixed pay rewards are based on an employee's value - ANS Market-based Performance-based Skill-based Market-based rewards individuals for - ANS value relative to the labor market Performance-based rewards individuals for - ANS sustained performance over time Skill-based rewards individuals for - ANS acquisition of new skills and competencies Variable pay rewards for - ANS accomplishments and results The Goal of Variable Pay is - ANS improve organizational performance. Main Business Strategies are - ANS Operational excellence Product/service leadership Customer intimacy Operational excellence is primarily - ANS a price/cost-based strategy Product/service leadership is primarily - ANS an innovation-based strategy Customer intimacy is primarily - ANS a solutions-based strategy Business Strategy drives - ANS Business Objectives operational excellence examples are - ANS Product quality Operational efficiency improvement Process Improvement Cost reduction product/service leadership examples are - ANS Market share/market penetration Product development Time from innovation to market customer intimacy examples are - ANS Customer opinion of products Product quality Customer retention Customer satisfaction Business Life Cycle stages are - ANS Start Up Growth Maturity Decline Business Life Cycle - Start Up definition - ANS The organization is new with little or no formal policies or procedures. The organization's focus is on obtaining capital, marketing products or services, initial sales growth and cash conservation. Business Life Cycle - Growth definition - ANS the organization is highly focused on growing sales, increasing distribution capability and determining how to efficiently produce products or services to meet growing demand. It typically generates the need to begin standardizing procedures through policy creation. Business Life Cycle - Mature definition - ANS characterized by a focus on maintaining/increasing market share, improving productivity and otherwise reducing cost of sales. Improvements to products are more evolutionary than revolutionary. The organization typically has higher levels of bureaucracy and greater amounts of cash on hand than at other stages. Business Life Cycle - Decline definition - ANS the organization's revenues are declining. It must decide whether to reinvest in current products, create new products or maximize profits with current products as long as possible. Start Up position in life cycle Business Objectives examples - ANS Obtaining capital Cash conservation Develop brand awareness Develop marketing plan Growth position in life cycle Business Objectives examples - ANS Production capability Market share/market penetration Sales volume/revenue growth Mature position in life cycle Business Objectives examples - ANS Improve operational efficiency Stock price appreciation Maintain/increase market share