What is a reward system of an organization
Course:- HR Management
Reference No.:- EM13881484

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1. What is a reward system of an organization? Why should managers be concerned about developing a reward system?

2. I )What is meant by compensation? Distinguish between monetary and in-kind payments.
II ) Describe the relationship between the compensation and non compensation subsystems of the reward system.

3. Why is it necessary to perform a job analysis?

4. Describe some of the ways in which a organization can utilize a job description.

5. What are some of the strengths and limitations in the use of ranking for job evaluation purposes?


1. Describe an orderly and systematic procedure for developing a job analysis program.

2. Analyze benefits from the point of view of (1) employee security and health (2) time not worked, and (3) employer provided services. Describe some of the major items within each of these components.

3. Describe what you believe to be some of the more important employee benefits offered by an employer. Why?

4. Case Study:

Tropical Storm Charley

In August 2004, tropical storm Charley hit North Carolina and the Optima Air Filter Company. Many employees' homes were devastated and the firm found that it had to hire almost 3 completely new crews, one for each of its shifts. The problem was that the "Old-timers" had known their jobs so well that no one had ever bothered to draw up job descriptions for them. When about 30 new employees began taking their places, there was general confusion about what they should do and how they should do it.

The storm quickly became old news to the firm's out-of state customers- who wanted filters, not excuses. Phil Mann, the firm's President, was at his wits end. He had about 30 new employees, 10 old-timers, and his original factory supervisor, Maybelline. He decided to meet with Linda Lowe, a consultant from the local universities business school. She immediately had the old- timers fill out a job questionnaire that listed all their tasks, duties & responsibilities. Arguments ensued almost at once- Both Phil & Maybelline thought the old-timers were exaggerating to make themselves look more important, and the old-timers instead that the list faithfully reflected their duties. Meanwhile, the customers clamoured for their filters.


1. Should Phil & Linda ignore that old-timers' protests and write up the job descriptions as they see fit? Why? Why not?

2. How would you go about resolving the differences?


1. Salary is Return for the efforts you put in the organization in
a. Non monetary term
b. monetary term
c. physical term
d. both monetary and non monetary

2. ______ is the only minimum compensation for work.
a. Salary
b. Fringe Benefit
c. Allowance
d. Wage

d. None

4. FAIR wage is that which workers can maintain the health and decency, a measure of comfort and some insurance against the more important misfortune of lie.

a. True
b. False

5. The term ‘wages' has emerged from a French Word ‘' meaning to pledge or promise
a. Waiger
b. gaiger
c. both of above
d. paiger

5. The important objective of fringe benefits is to:
a. To create and improve sound industrial relations
b. To demotivate employees
c. To settle employee greviances
d. All of above

6. ________ allows allow employees to pick benefits that most their needs.
a. Fringe benefits
b. Wages
c. Flexible benefits
d. Allowances

7. Other Benefits like Supply of special aids is provided under
a. Gratuity Act
b. Workmen Compensation Act
c. Industries Act
d. ESI Act

8. Employees' Provident Fund Scheme takes care of :
a. Retirement
b. Medical Care
c. Education of Children
d. All of above

9. ________ is a reward for long and meritorious service.
a. Gratuity
b. Fringe Benefits
c. Retirement benefits
d. Provident Fund

10. Which of the following is the right formula for calculating Gratuity of an employee:

a. Gratuity Payable = 15 days wages x No of completed years of service
b. Gratuity Payable= 7 days wages x No of seasons for which employed.
c. Gratuity Payable= 3 days wages x No of seasons for which employed.
d. Both a and b

11. The determination of the essential characteristics of a job in order to produce a job specification
e. Job Evaluation
f. Job Specification
g. Job Description
h. All

12. Related or similar duties should be combined and written as one statement in
e. ESI Act
f. Job Evaluation
g. Job Description
h. Job Content

13. ____________ refers to various methodologies for analyzing the requirements of a job.
e. Job Evaluation
f. Job Performance
g. Job Analysis
h. Job Specifications

14. Interview is a technique of
c. Job Evaluation
d. Job Performance
e. Job Analysis
f. Job Specifications

15. What introduces more rigor by comparing jobs in pairs, but really it's a more structured way of building a basic rank order?

a. Job Ranking
b. Pair Comparison
c. Benchmarking
d. Job Matching

16. Organizations use ___________ to help provide a basis for pay-for-performance
e. job evaluation
f. job description
g. job specification
h. competency mapping

17. Ranking, Clarification and factor comparison are the three basic methods of .......................
a. Job Evaluation
b. Job Performance
c. Job Analysis
d. Job Specifications

18. Which of the following is the most acceptable method of Job Evaluation?

a. Ranking
b. Classification
c. Factor Comparison
d. Point Method

19. The Job Analysis may be conducted by a member of the employer's _______

a. Operations Department
b. HR Department
c. Finance Department
d. Marketing Department

20. A _________ is the main product of a job analysis

a. Job specification
b. Job Performance
c. Both a and b
d. job description

21. Wages are paid in this system in accordance with the output of production.
i. Striaght Piece Work Method
j. Halsey Plan
k. Pay Per Performance
l. All Wage Plans

22. ________ represents by far the most important and contentious element in the employment relationship
i. Motivation
j. Incentives
k. Increments
l. Pay

23. If a worker produces 200 pieces per day and he is paid at the rate of Rs.0.20 per piece, the daily wage is?
i. 65
j. 60
k. 40
l. 20

24. where the performance earnings fall employees are _______ inclined to accept reductions in their guaranteed pay
g. less
h. more
i. normal

25. Individual training is imparted to increase

a. Job education
b. Job commitment
c. Job specification
d. Job description

26. Which type of pay per performance explains pay increases in the form of increments?
i. Incentive Payments
j. Productivity Gain Sharing
k. Merit Pay
l. ESOPs

27. Sometimes bonuses are paid to individuals based on their own performance appraisal ratings in the form of shares of the company.
e. Profit Sharing
g. Gain Sharing
h. All of them

28. Skill-based pay is a person-based and not a job-based

a. Job education
b. Skill based pay
c. Induction
d. Pay Per Performance

29. ___________ helps to bring in achievement orientation amongst employees

a. Motivation
b. Pay per Performance
c. Rewards and Recognition
d. Incentives

30. A _________ helps in skills development.

a. Job education
b. Skill based pay
c. Induction
d. Pay Per Performance

A, c, a, a, a,

31. ________ is a systematic investigation of the tasks,duties and responsibilities necessary to do a job.

a. Job Evaluation
b. Job Analysis
c. Job Responsibility
d. None

32. __________ methods includes structured interviews; unstructured interviews; open-ended questionnaires

a. Job Analysis
b. Job Evaluation
c. Interview
d. All

33. Job evaluation helps in setting wages?

a. True
b. False

34. A wage is a basic compensation for labour and for Labour per period of time referred to as the wage rate.

a. Wage
b. Salary
c. Both
d. None

35. An __________is any factor (financial or non-financial) that enables or motivates a particular course of action, or counts as a reason for preferring one choice to the alternatives.

a. Incentive
b. Wage
c. Salary

36. The important objective of fringe benefits is to:
a. To create and improve sound industrial relations
b. To demotivate employees
c. To settle employee greviances
d. All of above

37. ________ is a reward for long and meritorious service.
a. Gratuity
b. Fringe Benefits
c. Retirement benefits
d. Provident Fund

38. Employees' Provident Fund Scheme takes care of following needs of the employees with reference to retirement
a. Retirement Scheme
b. Provident Fund Scheme
c. Fringe Benefits
d. All of above

39. If a worker produces 200 pieces per day and he is paid at the rate of Rs.0.20 per piece, the daily wage is?
a. 65
b. 60
c. 40
d. 20

40. Skill-based pay is a person-based and not a job-based

a. Job education
b. Skill based pay
c. Induction
d. Pay Per Performance


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Top administration of “software development organizations” explains programs to improve and measure productivity. This notice is linked to the requirement to check whether the outcomes of teams are associated with companies’ strategic targets and if they are attaining the point of efficiency expected, for instance, the point set for product quality level, consumer satisfaction and finance etc. Rewards can be defined in intangible or tangible form. Administrators need to recognize results of assessment and not merely think that they identify exactly what their employee want, or to characteristic their own desires or requirements to other workers. When properly set up, the reward systems have confirmed to be a significant tool for attaining organizational targets. It is vital to keep the strategies easy in terms of managing, understanding, measuring and following them so as to enlarge the presentation required.

Managers concerned about developing a reward system:
• Enhance Productivity: Employers who identify and reward employees for their hard work give them “an incentive” to do well again and be more creative.
• Develop Attendance: Office reward systems come in a diversity of forms. Though, many plans are based on performance, few rewards for work value/ morale, attendance or tenure.

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