ch 10 flashcards

bonus

An incentive payment that is supplemental to the base wage

combined salary and commission plan

A compensation plan that includes a straight salary and a commission

differential piece rate

A compensation rate under which employees whose production exceeds the standard amount of output receive a higher rate for all their work than the rate paid to those who do not exceed the standard amount

employee stock ownership plans (ESOPs)

Stock plans in which an organization contributes shares of its stock to an established trust for the purpose of stock purchases by employees

gainsharing plans

Programs under which both employees and the organization share financial gains according to a predetermined formula that reflects improved productivity and profitability

lump-sum merit program

Program under which employees receive a year-end merit payment, which is not added to their base pay

merit guidelines

Guidelines for awarding merit raises that are tied to performance objectives

perquisites

Special non-monetary benefits given to executives; often referred to as perks

profit sharing

Any procedure by which an employer pays, or makes available to all regular employees, in addition to base pay, special current or deferred sums based on the profits of the enterprise

salary plus bonus plan

A compensation plan that pays a salary plus a bonus achieved by reaching targeted sales goals

spot bonus

An unplanned bonus given for employee effort unrelated to an established performance measure

standard hour plan

An incentive plan that sets rates based on the completion of a job in a predetermined standard time

straight commission plan

A compensation plan based on a percentage of sales

straight piecework

An incentive plan under which employees receive a certain rate for each unit produced

straight salary plan

A compensation plan that permits salespeople to be paid for performing various duties that are not reflected immediately in their sales volume

team incentive plan

A compensation plan in which all team members receive an incentive bonus payment when production or service standards are met or exceeded

variable pay

Tying pay to some measure of individual, group, or organizational performance