Organization and Management Lesson 5 Compensation or Wages by Mary Krystle Dawn D. Sulleza

2. -all forms of pay given by
employees to their
employees for the
performance of their jobs

3. a process undertaken by the
organization, usually done
once a year, designed to
measure employees work
performance

5. includes workers’ salaries,
incentive pays, bonuses and
commissions

6. includes benefits given by
employers other than financial
remunerations; for example:
travel educational and health
benefits, and others

7. includes recognition programs,
being assigned to do rewarding
jobs, or enjoying management
support, ideal work
environment, and convenient
work hours

9. is among the important consideration
in preparing compensation package.
It is based on the idea that an
employees pay must be
commensurate to his or her effort.

10. NOTE: The daily minimum wage rate
differs in relation to factors such as
geographic area and industry or sector.
The National Wages and Productivity
Commission is the government agency
concerned with minimum wage
determination in the country

12. represents a reward that an
employee receives for good
performance that contribute to
the company’s success

14. related to fairness; the Equity Theory
is a motivation theory focusing on
employees response to the pay that
they receive and the feeling that
they receive less or more than they
deserve.

15. predicts that employees are
motivated to work well because
of the attractiveness of the
rewards or benefits that they
may possibly receive from a job
assignment.

17. when pay is computed
according to the number
of units produces

18. when pay is computed
according to the number
of work hours rendered

19. when pay is computed
according to the number
of work days renders

20. when pay is computed
according to the number
of work weeks rendered.

21. when pay is computed
according to the number
of work months rendered

22. NOTE:
Compensation rates are
influenced by internal and
external factors.

23. are the organizations compensation
policies, the importance of the job,
the employee’s qualifications in
meeting the job requirements, and
the employer’s financial stability.

24. include local and global market
conditions, labor supply, area/
regional wages, cost of living,
collective bargaining, and national
and international laws.