This question contains two parts; be sure to answer both. First, explain at least four of the six types of compensation plans, giving an example of each. Next, imagine that you manage a medium-sized office that is trying to increase its profitability by cutting its expenses, such as office supplies, electricity, rent, and telephone bill. Which type of compensation plan would be most motivating to you in this situation? Why?
What will be an ideal response?
The six types are:
Pay for performance: pay is based on results
Bonuses: cash awards given for achieving specific performance objectives
Profit sharing: giving employees a percentage of the business's profits
Gainsharing: distribution of parts of savings or gains to groups of employees who reduced costs and increased measurable productivity
Stock options: giving employees the right to buy stock at a future date for a discounted price
Pay for knowledge: ties employee pay to job-relevant skills or academic degrees
The students's responses as to which compensation plan would work in this situation.
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Which of the following statements is true about the revised Federal Sentencing Guidelines for Organizations?
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Workplace ______ focuses on design of jobs and workspaces to limit the repetitive stresses in daily work.
A. spillover B. vesting C. ergonomics D. compensation
Lance has a contract with Smith to resurface a driveway at the Smith residence. Lance by mistake stops at the Jones residence and resurfaces Jones' driveway. Jones lives next door to Smith and knows that Lance is at the wrong residence. Jones, however,
says nothing and watches while Lance resurfaces his driveway. Is Jones under any contractual obligation to pay Lance for resurfacing his driveway? Explain your answer.