MHR 749 Study Guide - Midterm Guide: Competitive Advantage, Redone, Trade Union
8 Sep 2016
School
Department
Course
Professor
Document Summary
Compensation refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship. This course focuses on total compensation big umbrella that covers cash compensation and benefits. 3 most arguably important forms of compensation: base pay, some form of benefits, being able to advance. Society views: view pay as a measure of justice. Employee"s views: entitlement, ie i work here therefore i deserve these forms of compensation. Because you"ve invested a lot of time in school, you expect a certain amount of pay. Employees" also view it as a reward for good performance. Managers" views: seen as a very costly thing. secondly, can be used to influence employee behaviour. Stockholders view: using stock to pay employees creates a sense of ownership and makes employees feel that what they do will improve stock performance. Also, using this as compensation for execs ensures that the company performs better so their stock price performs better.
