Chapter 10

• What is a major factor in retaining skilled workers?

  Compensation package system
• What does compensation refer to in an organization?


  An organized system providing monetary compensation
• What do benefits refer to in compensation?


  Compensation paid over regular salary
• What are key parts of any compensation system?

  Wages, salaries, incentives, and benefits
• What must a company consider when setting wage and salary levels?

  How competitors compensate their employees
• Why is compensation a top concern for a company?

  To avoid losing valuable personnel
• How can explaining salary determination affect the workforce?

  It can create a productive workforce
• What may influence the pay of two employees doing the same job?

  Experience level of the employees
• What does an incentive program aim to do?


  Motivate and recognize employee performance
• When did the use of incentive programs increase?

  In the 1980s
• What is a typical example of an incentive?

  Sales bonuses
• What happens to employees who do not reach sales goals in an incentive program?

  They earn no bonus
• What is gain-sharing in incentive plans?


  Bonuses based on reduced costs from efficiency
• What does Palliser Furniture Ltd. reward employees for?

  Increasing production
• How are profits shared in profit-sharing plans?


  Based on the company's profitability level
• What does stock ownership by employees incentivize?

  Lower costs and increase productivity
• What is comparable worth?


  Equal compensation for similar jobs
• What do benefits programs comprise in a firm's compensation system?


  Compensation other than wages and salaries
• What percentage of a firm's total compensation budget can benefits comprise?

  Over half
• What are companies legally required to provide as benefits?

  Worker's compensation, holiday pay, insurance
• What does the Philippine Labor Law assure for workers?

  Protection, full employment, equal opportunities
• What does the Labor Code of the Philippines regulate?

  Relations between workers and employees
• What is the Minimum Wage Law known as in the Philippines?

  Republic Act 602
• Who does the Minimum Wage Law apply to?

  Employees in private enterprises
• What is one objective of the Minimum Wage Law?

  To maintain workers' health and efficiency
• What is the normal work hour limit for employees?

  Not exceed eight hours a day
• What is a worker entitled to regarding meal periods?

  At least one hour for regular meals
• What is the night shift differential pay percentage?

  At least 10% of regular wage
• What is the additional compensation for overtime work?

  Regular wage plus at least 25%
• What is the premium pay for working on a rest day?

  Not less than 30% of regular wage
• What happens if an employee works on a regular holiday?

  Paid at least 20% of regular daily wage
• What is the right to service incentive leave?


  A right to additional leave benefits
• What is the right to a meal period under Philippine Labor Law?


  The right to at least one hour off
• What is the right to night shift differential pay under Philippine Labor Law?

  Paid at least 10% for night work
• What is the right to overtime pay for covered employees?

  Regular wage plus at least 25%
• What is the right to additional compensation for rest day work?

  Not less than 30% of regular wage
• What is the right to holiday pay for regular holidays?

  Paid at least 20% of regular daily wage
• What is the right to a weekly rest day under Philippine Labor Law?

  The right not to work on a rest day
• What is the right to additional compensation for holiday work?

  Paid at least 20% of regular daily wage
• What is the right to a service incentive leave under Philippine Labor Law?


  A right to additional leave benefits