Components of compensation and reward system


Question 1: What are the fundamental components of a compensation and reward system? What innovations have organizations introduced in each of such components because of an increasingly competitive business environment?

Question 2: What do you mean by incentive pay? Differentiate between individual incentives team based incentives and organizational incentives?

Question 3: Under what circumstances is it appropriate to link individual payment to team performance?
What are the merits and demerits of team based rewards?

Question 4: ‘Recognition is the most reliable of all rewards’. Critically examine the statement. Identify two or three ways organizations generally use to recognize and reward employees via non financial means.

Question 5: Compare performance related pay, skill based pay and competency based pay. What steps should be followed in designing a competency based pay system? What steps must be followed in designing a competency based pay system?

Question 6: Do you think that compensation and reward strategy of a high technology firm will be different from that of an emerging fast growth firm? Why? Elaborate your answer giving examples from organizations you are familiar with.

Question 7: What do you mean by the term merit-pay? How is it distinct from Variable-pay? What are the major advantages and disadvantages of the given two forms of pay-for performance?

a) One-off bonus payment and

b) Salary increments linked to high performance?

Which of the two, in your opinion has a higher motivational value for an employee? Describe your answer with appropriate examples.

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HR Management: Components of compensation and reward system
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