which of the following is not characteristic of time-based compensation systems? course hero

What is the most important goal in designing a compensation system?

The most important goal in designing a compensation system is supporting the strategic objectives of the organization and ensuring the system that fit in with the organization structure and strategy.

What is the purpose of compensation program in a global economy?

According to Richard Henderson, To develop a competitive advantage in a global economy, the compensation program of the organization must support totally the strategic plans and actions of the organization.

How does fair compensation work?

The fair compensation system will help in the following ways: (i) An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and to achieve the fixed standards, (ii) It will enhance the process of job evaluation.

Why is it important to reward employees for their past performance?

It is, therefore, necessary that a company’s compensation system rewards performance, loyalty, experience, and other organizationally desirable behaviours. This will reinforce desired behaviour and will also act as an incentive for that behaviour to continue in the future.

Why do companies need premium wages?

Premium wages are sometimes needed to attract employees who are already working for others . If fresh MBAs and brilliant engineers, for example, flock around Wipro, Infosys, Reliance, and ANZ Grindlays, it is mainly because these companies offer attrac­tive remuneration packages.

Why is rational compensation important?

A rational compensation system always finds favour with employees and their unions. This helps in smoothly conducting collective bargaining and negations between the management and unions. It reduces grievances arising out of wage inequities.

What is compensation review committee?

A compensation review committee could help identifying current issues with compensation, job clarification or salary administration. It could contribute ideas and feedback provides valuable advice. 3.