HR Study Guide CH12

Compensation linked to individual, group/team, and/or organizational performance.

Per system in which wages are determined by multiplying the number of units produced by the piece rate for one unit.

One-time payment that does not become part of the employee's base pay.

System of sharing with employees greater-than-expected gains in profits and/or productivity.

System to distribute a portion of the profits of an organization to employees.

Plan that gives employees the right to purchase a fixed number of shares of company stock at a specified price for a limited period of time.

Plan designed to give employees significant stock ownership in their employers.

Compensation computed as a percentage of sales in units or dollars.

Amount advanced against and repaid from, future commissions earned by the employee.

Special benefits-usually noncash items-for executives.

Subgroup of the board of directors that is composed of directors who are not officers of the firm.