Which type of pay plan has the disadvantage of profits being influenced by factors outside of an employee's control?
A weakness of profit-sharing plans is that employees do not have total control over the profitability of the organization. Because profit-sharing plans often fail to pay off for several years in a row, they can have limited motivational value.
When employees receive a certain rate for each unit produced they are working under which incentive plan?
Under a piecework plan, an employee is paid a certain amount of money per unit produced. For example, Patty is paid $20 for each suit she completes. If she completes 10 suits in one day, she is paid $200 for the day. Sometimes employees are paid a base pay along with the piecework rate.
Which of the following is an external factor that can influence the wage rate?
External factors influencing wage rates include labour market conditions, area wage rates, cost of living, the outcomes of collective bargaining, and legal requirements.
How is a merit raise different from a merit bonus quizlet?
How does merit pay differ from a bonus? Merit pay becomes part of an employee's base pay, but a bonus does not. Restaurants R-Us is a large restaurant company that specializes in affordable yet high-quality foods.
What is the basis of the company in determining the compensation to be given to a certain position?
The level of a firm's compensation is determined by the firm's financial condition (or profitability), efficiency, and employee productivity, as well as the going rates paid by competitors.
What factors must you consider about your workforce to create compensation and benefits that appeal to a diverse workforce?
5 essential factors for determining compensationYears of experience and education level. It probably goes without saying, but the more experience and education a candidate has, the higher their expected compensation. ... Industry. ... Location. ... In-demand skill sets. ... Supply and demand.
Which of the following factors is an external factor influencing in wages and salary administration?
Factors Influenced Wage and Salary Administration – Top 7 Factors: Ability to Pay, State Regulation, Labour Unions, Demand and Supply of Labour, and a Few Others. Wages and Salaries represent a significant portion of the total costs in most of the organisations.
Which two among the external and organizational factors that influence pay structure are the most important?
A Pay structure can be described as the process of determining a pay for a given job within an organization. The process takes into account both internal and external factors to determine the remuneration level. Internal and external pay equity are the most important factors to consider in designing a pay structure.
What are some of the factors that can influence wage rates in a firm?
Reasons wages varyCredentials. ... Experience and skill. ... Industry or employer. ... Job tasks. ... Geographic location. ... Success and performance.
What is the difference between merit pay and a performance bonus?
One of the major differences between merit pay incentives and pay for performance is that merit pay incentives are based on individual performance while pay for performance may be based on individual, team or even organizational performance.
What is a merit pay plan?
Merit pay, also known as pay-for-performance, is defined as a raise in pay based on a set of criteria set by the employer. This usually involves the employer conducting a review meeting with the employee to discuss the employee's work performance during a certain time period.
How does merit pay differ from an annual performance bonus?
The difference between merit pay and a bonus is that merit pay is usually added to or incorporated into the employee's base salary while a bonus is a one-off payment.
What type of pay plan is being used when workers are paid a sum for each unit they produce?
The correct answer is D) piecework. In a piece-wage system, compensation is paid for each good produced.
Which one of the following terms refers to an incentive plan that ties a group's pay to the firm's profitability?
The correct option is C) pay-for-performance. Team incentive plans are effective in aligning work performance with employers' goals quickly and...
Which plan rewards a worker by a premium that equals the percentage by which his or her performance exceeds the standard per hour or per day?
The standard hour planAnswer: TRUE Explanation: The standard hour plan is a plan by which a worker is paid a basic hourly rate but is paid an extra percentage of his or her rate for production exceeding the standard per hour or per day. It is similar to piecework payment but based on a percent premium.
Which of the following is the most commonly used team incentive performance standard?
The two most commonly used team incentive performance standards are: Productivity and Quality. _____________ have (has) advantages of having minimal impact on the company's financial standards. The best variable pay plan for employees when company financial performance is poor is _______________.