Pay Structure

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User Generated

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Management

School

Saudi electronic university

Type

Homework

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ghpxrearnffn00

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Pay Structure

Student Name

Institution

Course

Date

Pay Structure

Rewards are the positive outcomes that employees get for their performance. Rewards

can be classified in several ways, such as intrinsic and extrinsic. Intrinsic rewards are usually

intangible and bring about a sense of achievement or satisfaction from within. On the other

hand, extrinsic rewards are tangible or physical awards, including pay, bonuses, and benefits.

Team Fun has extrinsic rewards, such as salaries, and intrinsic rewards, such as the retreat for

their employees. Financial rewards may be direct such as salaries, wages, bonuses and

commissions or indirect rewards, such as medical insurance, paid leave days, pension and

purchase discounts. Team Fun has direct financial rewards for their employees, like salaries.

Performance-based rewards are based on the ability of an employee to perform a job. In

contrast, membership-based rewards are given to all employees based on their employment

with the company. Performance-based rewards include pay, bonuses, special projects, business

travel, promotions, seminars and courses. Membership based rewards include annual bonuses

at the end of the year, office renovations, and company retreats. Team Fun's Canadian retreat,

which includes all their employees, is an example of a membership-based reward. If only high

performers had been invited to the retreat, it would be a performance-based reward.

A compensation system must generally meet specific goals for it to be effective. These

include comparing the pay compensation to what the competitors are giving at similar levels,

classifying key and non-key jobs, conducting job evaluations, and allocating pay grades

(Hollenbeck et al., 2019, p. Chapter 11). Team Fun does not have a system to determine

compensation; however, their methods mirror activities such as grouping employees into

different pay grades where pros and non-key employees are paid differently. They also emulate

survey systems by comparing what competitors pay at certain job levels. Conducting a job

evaluation to determine the internal equity within the company is another way by which Team

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1 Pay Structure Student Name Institution Course Date 2 Pay Structure Rewards are the positive outcomes that employees get for their performance. Rewards can be classified in several ways, such as intrinsic and extrinsic. Intrinsic rewards are usually intangible and bring about a sense of achievement or satisfaction from within. On the other hand, extrinsic rewards are tangible or physical awards, including pay, bonuses, and benefits. Team Fun has extrinsic rewards, such as salaries, and intrinsic rewards, such as the retreat for their employees. Financial rewards may be direct such as salaries, wages, bonuses and commissions or indirect rewards, such as medical insurance, paid leave days, pension and purchase discounts. Team Fun has direct financial rewards for their employees, like salaries. Performance-based rewards are based on the ability of an employee to perform a job. In contrast, membership-based rewards are given to all employees based on their employment with the company. Performance-based rewards include pay, bonuses, special projects, business travel, promotions, seminars and courses. Membership based rewards include annual bonuses at the end of the year, office re ...
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Tags: human resource Pay Structure positive outcomes