Intrinsic Compensation And Discretionary Benefits Essay

1200 words - 5 pages

Compensation and Benefit Systems
Intrinsic Compensation and Discretionary Benefits
Intrinsic compensation refers to ability of workers to gain pleasure from their accomplishments of their daily activities. This pleasure acts as their reward or compensation of what they have individually done. This has the effect of making the workers enjoy their tasks. On the other hand, workers sometimes receive rewards on top of their salary or wages. These rewards are not mandatory for one to receive. These kinds of additional rewards are referred to as Discretionary benefits.
Strategic Analysis
This refers to the act of identifying the strong points of a given business venture position, and comprehending the outward factors that have a direct effect on the position. This process entails identifying the strengths, weaknesses, opportunities and threats that the business could be facing.
Power Distance and Executive Order
Power distance refers to the mode in which power is disseminated in systems of individuals of different ranks. This gives a clear indication of the cultural attitude with reference to human difference in social rankings.
Executive order is normally issued by the head of state, it demands for the enforcement of law. This order is always issued with reference to the code of inheritance of power that exits in a given state. The order is normally passed directly to the branch executives of various firms, organizations, or institutions.

Longevity Pay, And Pay-For-Knowledge
Longevity pay refers to the compensation that is given to the highest ranked employee. This employee has reached the highest level of rank and there are no more ranks remaining for him to progress further. Firms do motivate their employees to search for more knowledge. In this, they encourage their employees to seek for extra training or further their studies. This they do so by giving the employees an incentive as a compensation for their skills gained or the quality of education they have referred to as pay-for-knowledge.
Profit Sharing Plans
Profit sharing plans provides the employers with various flexibilities and freedom in decision making in matters of contributions. The three profit sharing plans include: traditional profit sharing plans, age-weighted and new comparability profits sharing plans, and 401(k) plans.
Traditional profit sharing is based on the salary proportions method. It helps assigning the employer contributions to all parties that took part on equal basis method. Age-weighted profit sharing plan, assign contributions with reference to age and the salary or wages of qualified employees. The older parties get a larger proportion in comparison to the younger members. On the other hand, new comparability helps employer to classify the workers on the matter of assigning contributions. 401 (k) plans is a profit sharing plan that gives the employees room for postponing various compensations with the aim of evading present taxes on their...

Find Another Essay On Intrinsic Compensation and Discretionary Benefits

Compensation and Benefits Plan Executive Summary

881 words - 4 pages Executive SummarySMC Company, in an effort to be competitive in the local labor market, needs to establish and bring to the forefront an aggressive compensation and benefits package for its current and future employees. It is imperative that SMC be able to provide a wide variety of compensation and benefits to stabilize its work force and provide for long term relationships between employer and employee. The benefit of having a comprehensive

Compensation and Benefits Plan Executive Summary: SMC Company

1077 words - 4 pages This executive summary will describe the proposed compensation and benefits plan for SMC Company. Due to the ever-changing labor market, SMC Company should provide a comprehensive and progressive compensation package to retain its employees. The competitors are currently offering a better compensation package than SMC Company. The benefits offered at other companies may entice some SMC employees to consider employment

Compensation and Benefits Plan for the Joint Automotive Corporation

672 words - 3 pages IntroductionDue to shortage of qualified employees in the local labor market and increasing turnover within the Joint Automotive Corporation (JAC), the top managers of JAC will propose a comprehensive and progressive compensation and benefits plan to the Chairman, in order to increase retention in the Company. Traditionally JAC-POWER group was one of the most attractive companies to work at, and the salaries level was above the market, but due

Intrinsic versus Extrinsic Motivation

1572 words - 6 pages control of individual. Benefits of Intrinsic Motivation Intrinsic motivation is those rewards that can be termed psychological motivations. Examples of this type of intangible motivation are opportunity to use one’s ability, a sense of challenge and achievement, receiving appreciation, positive recognition, and being treated in a caring and considerate manner. In essence, active task participation is its own reward for the employee or individual

Benefit and compensation system of Google

1720 words - 7 pages competitive advantage among their competitors by attracting, retaining, and motivating highly talented employees.Google's compensation system has all the benefits you would expect from a Fortune 500 organization such as health insurance programs and retirement plans. Google sets itself apart from the competition by offering services and discretionary benefits that are not standard. These services include perks such as employees are allowed to bring their

Performance Based Compensation

1539 words - 6 pages compensation program. This can be where a non-monetary compensation is included to benefit an employee together with a direct performance compensation. Non monetary compensations are benefits an employee receives that does not involve a tangible value.3.1) Integration of Non Monetary Compensation and Performance Pay From the article " Creative Compensation" written by Sarah L Fogleman in Kansas State University, some forms of non monetary

Components of Compensation paid to Employees

2605 words - 10 pages , other factors can be just as rewarding. Employee benefits are one type of non-monetary compensation and are intended to improve the quality of work life of an organisations labour force (Sherman and Bohlander, 1992). These benefits make up a significant portion of the wage bill. Although benefits were initially introduced as a bonus to employees, they have since come to be expected in the workplace (ibid). Employee input is integral in determining

system rewards

2326 words - 10 pages compensation and benefits to employees commensurate with their employing a workforce that has been poured. The importance of rewards and benefit are indeed undeniable. If employees are not satified with the compensation and benefits provided, then can build many problem in organization for example employee absance, job rotation rate employing high, decrease productivity and others. The importance rewards and benefits can be based on the following

intrinsic reward

1752 words - 8 pages these benefits, however, a number of managers underestimate the importance of intrinsic rewards, and continue to treat financial rewards as the key factor in motivating others. My opinion as a student, I would like to eliminate such as grading scheme. Give student more intrinsic reward like, formative assessment or genuine feedback to keep all the student more focusing on the study not to chase grade. Nowadays student more chasing grade, because

Performance-based Compensation - Pay for Performance

2532 words - 10 pages pay for performance dynamics: Compensation & Benefits Review 30, Number 3: (May/June 1998): 67-72 Kalbaugh, G. Edward. "Opportunity Compensation." Rough Notes 141, Number 7 (July 1998): 71-72 Marino, Sal F. "Pay your rank and file fairly." Industry Week 248, Number 3 (February 1999): 18 Morrison, Arnold. "Performance Management and Pay Programs." [http://www/]. April 1997. "Bonus and Incentive Pay Plans – FAQ." []. January 1999. "Guidelines for Administration of Merit Pay Plan." []. September 1998.

Analysis of Discretionary Fiscal Policy

776 words - 3 pages During discretionary fiscal policy the government spends and taxes to change the economy during a particular problem. Both Congress and the president have to take action when they agree that the economy is in need. When they do this they are trying to simulate the economy during a time of recession. Economists thought discretionary fiscal policy would eliminate the instability of the recession, however most had given up on the idea by 1980

Similar Essays

Compensation And Benefits Essay

3522 words - 14 pages Compensation takes many forms. Total compensation is comprised of three components. These are base compensation, pay incentives and benefits. The first two components comprise of direct compensation, which is the largest component and is an important motivator. However, money is not the only motivator. Indirect compensation is the other component and it takes two forms. These are benefits and employee services. These can also play and important

Compensation And Benefits Essay

1858 words - 7 pages Course Project 1Walmart Compensation and Benefits IssuesLuis A. RubillosDeVry UniversityHRM 430 Compensation and BenefitsApril 18, 2014IntroductionArguably considered as one of the most successful retail companies around the world, Walmart employs over 2.2 million associates in over 11,000 stores located in 27 countries worldwide. The company implements an effective business strategy, focused on innovative thinking, customer service, and a

Compensation And Benefits Management Essay

1002 words - 5 pages enjoy the profits together. In addition, Islam also stressed and emphasized that salary, bonus, cash or other consideration must be given as much as possible so that the distribution happened fairly and everyone has satisfied. According to Milkovich & Newman (1993), they state that compensation is one form of compensation for the employee to as the bonding conditions of employment. It also function for reward to those whose service, whether it is

Analysis Of Compensation And Benefits

657 words - 3 pages denied, and the legal battle began between the New York Company and the former employee. The end result and ruling of the highest court in New York decided that the employee was ineligible to claim unemployment benefits in the state of New York because the employee was not physically in the state of New York when she was working for her employer. It was also stated by the court that the writers of the unemployment and compensation rules did