What strategy describes the use of benefit and compensation packages?
What strategy describes the use of benefit and compensation packages in order to support both HR and competitive strategies Differentiation strategy A company using this competitive strategy seeks to offer a product or service that is completely unique from other competitors in their market.
What should be the focus of an employee compensation plan?
It should focus on both effective and ineffective performance. value of an employee's contributions to the organization. a. Fixed incentive plans b. Merit-pay plans d. Stock-purchase plans
What is the most general form of the merit pay plan?
The most general form of the merit-pay plan is to reward the individual performance of employees on a realtime basis. b. Performance appraisal has the most meaning to employees if it is subsequently connected with a reward such as a salary increase. c. Incentive compensation systems are among the most recent forms of performance-based rewards. d.
What is a total compensation strategy?
Total Compensation strategies What strategy describes the use of benefit and compensation packages in order to support both HR and competitive strategies Differentiation strategy A company using this competitive strategy seeks to offer a product or service that is completely unique from other competitors in their market.
What is the main objective of the Scanlon plans?
The Scanlon plan is a gainsharing program which combines leadership, total workforce education, and widespread employee participation with a reward system linked to organization performance. It has been used by a variety of public and private companies with varying amounts of success.
Which of the following is true of the stock options offered to executives?
Which of the following is true of the stock options offered to executives? They provide executives with an inherent incentive to aim for long-term achievements.
Which of the following is true about the level of risk involved with incentive pay quizlet?
Which of the following is true about the level of risk involved with incentive pay? It depends on the extent to which employees control the attainment of a desired goal.
Which statement best describes an employee stock option plan?
Which statement best describes an employee stock option plan? Employees receive options to purchase company stock at a future time at a fixed price.
What is stock option compensation?
Stock options are a form of compensation. Companies can grant them to employees, contractors, consultants and investors. These options, which are contracts, give an employee the right to buy, or exercise, a set number of shares of the company stock at a preset price, also known as the grant price.
How does stock compensation work?
Stock compensation is a way corporations use stock or stock options to reward employees in lieu of cash. Stock compensation is often subject to a vesting period before it can be collected and sold by an employee.
Which plan can serve as an incentive to employees because they directly contribute to the company's profits?
For many organizations, profit-sharing plans can serve as a powerful incentive for employees and owners alike. The goal of these plans is to reward all eligible employees for their contribution to the business' success and align their financial well-being with that of the company.
Which of the following is an advantage of individual incentive plans?
Employees are individually motivated for a higher level of performance in the organization. Organizational ability will increase due to individual's satisfaction at work. Individual incentives will result in greater job satisfaction and organizational productivity.
What are the main levels of incentive pay?
There are six main types of incentive pay plans: One-time bonuses, profit-sharing, shares of stock, retention, non-financial recognition and career development.
What are employee stock plans?
An employee stock purchase plan (ESPP) is a company-run program in which participating employees can purchase company stock at a discounted price. Employees contribute to the plan through payroll deductions which build up between the offering date and the purchase date.
What is an employee stock ownership plan quizlet?
Employee Stock Ownership Plan. (ESOP) A plan whereby employees gain significant stock ownership in the organization for which they work. Advantages of ESOP. Favorable tax treatment for ESOP earnings. Employees motivated by their ownership stake in the firm.
What are the benefits of ESOP?
Advantages of ESOPsFlexibility: Shareholders have the option of withdrawing funds slowly over time or only selling a portion of their shares. ... Confidentiality: ESOPs don't share employee information. ... Simplicity: ESOPs offer ease in transfer, which makes them a great option for retirement planning.More items...•
Which of the following choices is a characteristic of stock options quizlet?
Which of the following choices is a characteristic of stock options? Employees may exercise their options by paying the strike price to the employer anytime between the vesting and expiration dates.
Can employee stock options be sold?
Typically, ESOs are issued by the company and cannot be sold, unlike standard listed or exchange-traded options. When a stock's price rises above the call option exercise price, call options are exercised and the holder obtains the company's stock at a discount.
Are stock options?
What Is a Stock Option? A stock option gives an investor the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date. There are two types of options: puts, which is a bet that a stock will fall, or calls, which is a bet that a stock will rise.
Which of the following is a likely advantages of employee share purchase plans for employers?
Which of the following is a likely advantages of employee share purchase plans for employers? Increased employee loyalty to the company. Enhanced earning per share for the purchase year.