Human resource managementLesson 2 of 4 in the course Human Resource Management

Performance-Based Compensation, Total Rewards, and Employee Motivation

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

Save course
Lesson progress
0 / 5

Your progress is kept in this browser only.Sign up to save it

Summary

This lesson introduces rewards systems and explains how pay-for-performance programs can influence employee effort and organizational results. It also considers what compensation practices communicate about an organization’s culture.

A rewards system is the framework an organization uses to connect employee performance with rewards. These rewards may be monetary, such as salary increases or bonuses, or other extrinsic rewards, such as benefits. A rewards program commonly includes compensation policies and programs, but may also include benefits and other rewards that meet employee needs.

All flashcards

What is a rewards system?
An organizational framework for connecting employee performance with compensation and other rewards.
What does pay for performance mean?
Some portion of employee compensation is linked to performance.
What are the six elements of total rewards?
Compensation, benefits, work-life effectiveness, recognition, performance management, and talent development.
Why does fairness matter in a rewards system?
Employees are more likely to trust a system when they perceive assessments and rewards as consistent and fair.
What is performance differentiation?
Providing different compensation outcomes to employees based on differences in their performance.

Quiz questions

  1. At the start of designing a pay-for-performance program, what should leaders establish and assess?Answer: A shared pay philosophy and the program’s financial impact.
  2. What should an organization address before tying compensation more closely to performance ratings?Answer: Unreliable or incomplete performance-assessment processes.
  3. Why might an organization benchmark its salary structure against market data?Answer: To assess whether pay is competitive for its intended market position.
  4. Which organizational lever primarily supports the drive to comprehend?Answer: Job design that offers meaningful opportunities to contribute.
  5. Which practices primarily support the drive to defend?Answer: Transparent, fair performance and resource-allocation processes.

Based on Principles of Management by David S. Bright, Anastasia H. Cortes, Eva Hartmann, K. Praveen Parboteeah, Jon L. Pierce, Monique Reece, Amit Shah, Siri Terjesen, Joseph Weiss, Margaret A. White, Donald G. Gardner, Jason Lambert et al. (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

More in Human resource management

All Human resource management lessons
Human resource managementStrategic Talent Acquisition and Leadership Hiring5 flashcards · 5 quiz questions · 4 gamesPlay free →Human resource managementEmployee Training Methods and International Assignment Support5 flashcards · 5 quiz questions · 4 gamesPlay free →Human resource managementHR Management, Job Analysis, and Workforce Planning5 flashcards · 5 quiz questions · 4 gamesPlay free →Human resource managementPerformance Management: Appraisal, Feedback, and Global HR Alignment5 flashcards · 5 quiz questions · 4 gamesPlay free →Human resource managementPerformance Standards, Appraisal Evidence, and Improvement Plans5 flashcards · 5 quiz questions · 4 gamesPlay free →Human resource managementWorkplace Feedback and Performance Appraisals5 flashcards · 5 quiz questions · 4 gamesPlay free →