MGT3045 WK 4 Project

Compensation Management

Compensation is another word for pay.  Compensation is directly related to performance assessment

in many organizations.

Organizations pay employees in various ways.

The �rst of these is cash.  This may be in the form of salaries, bonuses, and commission.

Noncash: Compensation in the form of perks (access to organizational assets such as a �tness center

or a healthcare clinic, or a free checking account in the case of a �nancial institution). Noncash

compensation also includes bene�ts that we will discuss in Week 5.

Incentive pay: Also called variable pay, this compensation is earned for speci�c performance and may

include a commission based on the quantity sold or piecework based on the quantity produced. In the

service sector, incentives are often paid for customer service or meeting quality standards. For example, banks often use shoppers who, while pretending to be customers, rate the bank's employees

on customer service. An organization may pay incentives based on the rating or it may pay incentives

based on the number of customers an employee services each month.

Organizations are turning to automated systems that track employees' time on the clock to better

manage the administration of wages.  To �nd out if this is worth the price, read the following.

 

Additional Materials

What’s Trending in: Total Rewards and Compensation

(media/week4/SUO_MGT3045_W4%20L1.pdf?

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Executive Bonuses and Incentives (media/week4/SUO_MGT3045_W4%20L1%20B.pdf?

_&d2lSessionVal=Npd2ZTVMmXiNwfIfAzevFsqUR&ou=92916)

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