Essay about Intrinsic Compensation and Discretionary Benefits

Compensation and Benefit Systems Intrinsic Compensation and Discretionary Benefits Intrinsic compensation refers to ability of workers to gain pleasure from their accomplishments of their daily activities. This pleasure acts as their reward or compensation of what they have individually done. This has the effect of making the workers enjoy their tasks. On the other hand, workers sometimes receive rewards on top of their salary or wages. These rewards are not mandatory for one to receive. These kinds of additional rewards are referred to as Discretionary benefits. Strategic Analysis This refers to the act of identifying the strong points of a given business venture position, and comprehending the outward factors that have a direct†¦show more content†¦This they do so by giving the employees an incentive as a compensation for their skills gained or the quality of education they have referred to as pay-for-knowledge. Profit Sharing Plans Profit sharing plans provides the employers with various flexibilities and freedom in decision making in matters of contributions. The three profit sharing plans include: traditional profit sharing plans, age-weighted and new comparability profits sharing plans, and 401(k) plans. Traditional profit sharing is based on the salary proportions method. It helps assigning the employer contributions to all parties that took part on equal basis method. Age-weighted profit sharing plan, assign contributions with reference to age and the salary or wages of qualified employees. The older parties get a larger proportion in comparison to the younger members. On the other hand, new comparability helps employer to classify the workers on the matter of assigning contributions. 401 (k) plans is a profit sharing plan that gives the employees room for postponing various compensations with the aim of evading present taxes on their incomes. Management by Objective This refers to an action whereby, the employees and the employer commonly participate in goal identification as well as setting the desired goals, identification of standards to be used in evaluating performance, and the expected contributions. Benchmarking a job calls for identification of the job and creation of theShow MoreRelatedHr Comp Benefits684 Words   |  3 PagesGovernment? | | A. Civil Rights Act of 1991 | | | B. Equal Pay Act of 1938 | | | C. Fair Labor Standards Act of 1938 | | | D. Davis-Bacon Act of 1931 | | Answer Key: D | | | Question 2 of 15 | 10.0/ 10.0 Points | Which type of compensation program is based, in part, on the human capital theory? | | A. merit pay | | | B. seniority pay | | | C. incentive pay | | | D. skill-based pay | | Answer Key: B | | | Question 3 of 15 | 10.0/ 10.0 Points | What type of pay shouldRead MoreBenefits And Benefits Of Employee Benefits1726 Words   |  7 Pagesemployee benefits can help motivate individuals to labor more productively. Improving employee workplace behavior is a challenging task that most companies face when attempting to create a positive work environment, which will increase performance and positive behavior within the organization. By integrating employee benefits, employers will receives increased levels of motivation and drive from staff to achieve business objectives. Employee benefits are nonmonetary rewards known as discretionary benefitsRead MoreEmployee Motivation For An Organization1646 Words   |  7 Pagesorganisations and employers wish to maximise employees’ effort on its work and therefore enhance organisational performance. According to Armstrong (2012:50), high-performance is accomplished by well-motivated people who are prepared to exercise discretionary effort. Therefore, it is critical for the organisation to find a pathway to motivate its employees. Some scholars state that employee motivation can be encouraged by offering appropriate rewards and establish systematic reward systems (AmstrongRead MorePlan Management1335 Words   |  6 Pagesorganization structure that leads to an employment deal for competencies, demographics, and values. With that employment deal it leads to a total reward strategy with pay, benefit, learning and development, and a good work environment. The basic salaries of the project team members wi ll not be changed. However, special compensation will be given for their overtime and travels related to the project. After the project is completed, all team members will be evaluated and those who will receive satisfactoryRead MoreManaging Editor, By Distributing Human Resources, Process Of Planning, Recruiting, Selecting, And Training7066 Words   |  29 Pagesinformal discussions and recommendations during the initial assessment. From there, the candidates’ substantive assessments included job knowledge tests, performance appraisals, and promotability ratings. Then, the finalists received job offers after discretionary assessments. The external selection process started with applicants, who passed onto the next stage, becoming candidates, after the initial assessments evaluated which applicants met the minimum qualifications and predicted the best performersRead MoreAnalysis Of George Elton Mayo And His Work Essay5478 Words   |  22 Pagessatisfaction includes energy, enthusiasm and positive affect (Penna, 2007; Macey and Schneider, 2008). However, job satisfaction differs from engagement in that job satisfaction is a response to the overall employment exchange (including compensation and benefits) and does not reflect a long term affect (Fernandez, 2007). Satisfaction is considered a lower threshold than engagement as employees can be satisfied with a job due to different reasons (pay, logistics, etc.) but that does not guaranteeRead MoreArticle Review - Achieving Organisational Prosperity Through Employee Motivation and Retention: a Comparative Study of Strategic Hrm Practices in Malaysian Institutions26 94 Words   |  11 Pagesthe role behaviours of employees. The fifth part touches on discussion of the research findings before the conclusion in the final part. All subjects were compared on six core HR practices, namely recruitment and selection, salary and compensation, fringe benefits, training and development, performance appraisal and promotion and career advancement. Both the American and European MNCs were very careful in recruiting new employee. Their HR managers work closely with line department managers in settingRead More Incentive Pay, Employee Performance and Employee Productivity3079 Words   |  13 Pagesflexible incentive pay programs. Careful design of incentive pays program and rules of administration are crucial to the effective management of an organization. Incentive Pay and Purpose of Incentive Pay System Incentive pay is a form of direct compensation where employers pay for performance beyond the normal expectations to motivate employees to perform at higher levels. (www.uslegal.com, 2001-2014). Employers are practicing the incentive pay systems to promote employees particular behavior andRead MoreEmployee Engagement1948 Words   |  8 Pagescustomer satisfaction and employee loyalty. These employees will record reduced sick days and absenteeism and have increased operational performances leading to the organization’s higher profit growth. When employees care and are engaged, they use discretionary effort. An example is when an IT technician will stay in late without being asked or an accountant filling in for front office personnel when they step out. Engagement is often headed by top rank leaders. An organization with aggressive leadersRead MoreCompensating Sales Force6663 Words   |  27 PagesCOMPENSATING SALES FORCE Sales is one of the few jobs where you earn your money – every day. COMPENSATION IS MORE THAN MONEY Any type of sales organization can reward sales performance in three fundamental and interrelated ways: 1. Direct financial rewards. 2. Career advancement and personal development opportunities. 3. Nonfinancial compensation. Why is it important? †¢ Sales activities are the life blood of most business †¢ Most misunderstood aspects of running a business †¢ Tricky