MGMT 6332 Compensation Final Exam

1. What are the behaviors that compensation ought to enforce?
The first behavior compensation ought to enforce is that it must be attractive in order to recruit and hire high quality employees. Another behavior compensation ought to enforce is to make sure it is used in order to retain those high quality employees they recruited. It should also help to develop employee knowledge and skills and help to motivate the employees to perform to their highest ability while on the job (Milkovich, 2014, pg. 208-213).
2. Explain how personality characteristics can influence an employee's preference for rewards.
Candidates are looking for jobs with reward systems that fit with their personalities. People that are more concerned with material things will be more concerned with the salary of a job, and people that have low self-esteem will most likely choose a larger organization that does not pay based on performance. On the other hand, those talented, outgoing, go-getter type personalities that like to take risks are more likely to choose an organization that pays for performance. Lastly, there are also people who are more individualists who would prefer to be in an organization where pay is based on individual performance rather than on group performance (Milkovich, 2014, pg. 317).
3. What are the four standards managers need to focus on when designing a pay-for performance system?
There are four standards managers need to focus on wen designing a pay-for-performance system. The first standard is objectives. The objectives need to be specific yet flexible and employees should be able to see that their behavior influences their ability to achieve objectives. The second standard is measures. The employees need to know what measures will be used to assess whether performance is good enough for them to earn a payout. The third