HRM3705 LATEST EXAM PACK 2025
QUESTIONS AND ANSWERS
FOR ASSISTANCE CONTACT
Email:
, lOMoARcPSD|31863004
12/11/2009
COMPENSATION MANAGEMENT
CHAPTER 1 (Study unit 1)
THE PAY MODEL
1
Chapter Topics
• Compensation: Definition
• Forms of Pay
• A Pay Model
, lOMoARcPSD|31863004
12/11/2009
Learning Objectives
After studying Chapter 1, students should be able to:
• Explain how perceptions of compensation differ among society, stockholders,
managers and employees.
• Discuss the difference between cash compensation (direct compensation) and
benefits (indirect compensation) and define each of the direct and indirect forms of
compensation.
• Explain how the employment relationship combines both transactional and relational
returns to form an implicit contract between employers and employees.
• Identify and describe the three main components of a pay model.
• Understand how the pay model integrates objectives, policies, and techniques into a
compensation system.
• Distinguish empirical research from surveys and opinions.
3
Key Questions and Issues
• How differing perspectives affect our views of compensation
• Definition of compensation
– The meaning of compensation most appropriate from an employee's
view: return, reward, or entitlement
• Examining “network of returns” a college offers an instructor
, lOMoARcPSD|31863004
12/11/2009
Contrasting Perspectives of Compensation
Society’s Stockholders’
Views Views
Employees’ Managers’
Views Views
5
Compensation: Definition
• Society
– Pay as a measure of justice
– Benefits as a reflection of justice in society
– Job
Joblosses
losses(or
(orgains)
gains)attributed
attributedtotodifferences
differencesinincompensation
compensation
– Belief that pay increases lead to price increases
• Stockholders
QUESTIONS AND ANSWERS
FOR ASSISTANCE CONTACT
Email:
, lOMoARcPSD|31863004
12/11/2009
COMPENSATION MANAGEMENT
CHAPTER 1 (Study unit 1)
THE PAY MODEL
1
Chapter Topics
• Compensation: Definition
• Forms of Pay
• A Pay Model
, lOMoARcPSD|31863004
12/11/2009
Learning Objectives
After studying Chapter 1, students should be able to:
• Explain how perceptions of compensation differ among society, stockholders,
managers and employees.
• Discuss the difference between cash compensation (direct compensation) and
benefits (indirect compensation) and define each of the direct and indirect forms of
compensation.
• Explain how the employment relationship combines both transactional and relational
returns to form an implicit contract between employers and employees.
• Identify and describe the three main components of a pay model.
• Understand how the pay model integrates objectives, policies, and techniques into a
compensation system.
• Distinguish empirical research from surveys and opinions.
3
Key Questions and Issues
• How differing perspectives affect our views of compensation
• Definition of compensation
– The meaning of compensation most appropriate from an employee's
view: return, reward, or entitlement
• Examining “network of returns” a college offers an instructor
, lOMoARcPSD|31863004
12/11/2009
Contrasting Perspectives of Compensation
Society’s Stockholders’
Views Views
Employees’ Managers’
Views Views
5
Compensation: Definition
• Society
– Pay as a measure of justice
– Benefits as a reflection of justice in society
– Job
Joblosses
losses(or
(orgains)
gains)attributed
attributedtotodifferences
differencesinincompensation
compensation
– Belief that pay increases lead to price increases
• Stockholders
