C12 - VARIABLE PAY MODULE 2 TYPES OF VARIABLE PAY (43%) EXAM QUESTIONS WITH CORRECT ANSWERS
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Course
Variable pay
Institution
Variable Pay
Three categories of variable pay - ANS - Incentives
- Bonuses
- Recognition
Incentives - ANS - Criteria determined in advance
- Payout varies with performance
- Monetary (cash or equity) or non-monetary (gift, travel)
- Self funded or budgeted
- Nondiscretionary
- Formulaic
Bonuses...
K
C
LO
C12 - VARIABLE PAY MODULE
YC
2 TYPES OF VARIABLE PAY
(43%) EXAM QUESTIONS
D
WITH CORRECT ANSWERS
U
ST
ALL VERIFIED BY AN EXPERT
A+ GRADED (LATEST UPDATE)
, Three categories of variable pay - ANS - Incentives
- Bonuses
- Recognition
Incentives - ANS - Criteria determined in advance
K
- Payout varies with performance
- Monetary (cash or equity) or non-monetary (gift, travel)
- Self funded or budgeted
C
- Nondiscretionary
- Formulaic
LO
Bonuses - ANS - Completion of specific task
- Amount determined in advance
- Monetary
- Budgeted
- Nondiscretionary
YC
Recognition - ANS - Criteria broadly defined and subjective
- Awarded spontaneously
- Decision made after the fact
- Focused on behaviors
- Monetary or nonmonetary
D
- Budgeted
- Discretionary
U
Short term incentive types - ANS - Profit Sharing
- Performance Sharing
- Individual Performance based
ST
Profit Sharing Plans characteristics - ANS Plans that distribute a portion of an organization's
profits to its employees. Foster employee identification with org success, creates common focus
but doesn't target specific behaviors
- Based on financial performance
- Typically entire org
- Payout in equal or graduated amounts (equal for all employees, vary by employee/employee
groups, individual performance
Profit Sharing Plan Approaches - ANS - first return plans: starts paying on first profits earned
- threshold plans: starts paying for performance in excess of fair return of investment
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