Ch 13: ORELA Business Education: HRM - Compensation Systems

About This Chapter

Let us help you review compensation, benefits and incentive systems. The video lessons and self-assessment quizzes cover material you can expect to be tested on when taking the Oregon Educator Licensure Assessments (ORELA) Business Education exam.

ORELA Business Education: HRM - Compensation Systems - Chapter Summary

The lessons in this chapter are designed to help you develop a deeper understanding of human resource management responsibilities concerning compensation strategies and programs. You will go over types of compensation packages and the definitions of relevant terms. With full comprehension of these, you should demonstrate the following abilities and possess the knowledge needed to answer specific questions found on the ORELA Business Education exam:

  • Explaining the three general forms of compensation
  • Providing examples of the categories of compensation
  • Defining compensation equity
  • Identifying the types of mandatory and voluntary benefits
  • Detailing the types of retirement plans offered by employers
  • Summarizing the types of incentive pay provided to employees
  • Discussing compensation strategies tied to company performance

Video lessons are engaging and easy to follow, using examples of fictitious business scenarios to illustrate definitions of terms and phrases. Self-assessment quizzes allow you to check what you have learned using the same multiple-choice format utilized by the ORELA Business Education exam.

8 Lessons in Chapter 13: ORELA Business Education: HRM - Compensation Systems
Test your knowledge with a 30-question chapter practice test
Understanding Employee Compensation

1. Understanding Employee Compensation

Compensation is pay for services during the course of employment. This can be direct (or monetary) compensation and indirect (or non-monetary) compensation in the form of benefits provided to the employee.

Direct, Indirect & Non-Financial Compensation Strategies

2. Direct, Indirect & Non-Financial Compensation Strategies

Most organizations can't get people to work for free. In this lesson, you'll learn how businesses and other organizations can use direct, indirect and non-financial compensation strategies to acquire and keep talent. A short quiz follows.

Common Compensation Systems: Salary, Hourly, Contractor, Pay-For-Performance

3. Common Compensation Systems: Salary, Hourly, Contractor, Pay-For-Performance

One of the core functions of human resource management is the development of a compensation system. In this lesson, you'll learn about the different methods organizations use to compensate their employees. A short quiz follows.

Compensation Equity: Definition & Importance

4. Compensation Equity: Definition & Importance

Employees want to be treated fairly by employers. This is especially true in the area of compensation. In this lesson, you'll learn about the concept of compensation equity, including internal equity, external equity and why compensation equity is important.

Mandatory vs. Voluntary Benefits: Definition & Examples

5. Mandatory vs. Voluntary Benefits: Definition & Examples

A key component of any organization's compensation system is the benefits provided to employees. In this lesson, you'll learn about the difference between mandatory benefits and voluntary benefits. A short quiz follows the lesson.

Retirement Compensation Systems: 401(k) and Pensions

6. Retirement Compensation Systems: 401(k) and Pensions

One of the most valuable benefits an employer may offer to employees are employer-sponsored retirement plans. In this lesson, you'll learn about two common retirement benefits: 401(k) plans and traditional pensions. A short quiz follows.

Incentive Compensation Plans: Merit Pay, Piece Rates, Commissions, Bonuses & Skills-Based

7. Incentive Compensation Plans: Merit Pay, Piece Rates, Commissions, Bonuses & Skills-Based

An important role of human resource management is to develop a compensation system to encourage productivity. In this lesson, you'll learn about merit pay, piece rate pay, commissions, bonuses and skills-based pay and how they help achieve this goal.

Organizational Incentive Programs: Profit Sharing, Gain Sharing, and Employee Stock Ownership

8. Organizational Incentive Programs: Profit Sharing, Gain Sharing, and Employee Stock Ownership

One way to tie a company's success to employee success is to utilize incentive programs where employees profit when the company does. In this lesson, you'll learn about profit sharing, gain sharing and employee stock ownership.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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Other Chapters

Other chapters within the ORELA Business Education: Practice & Study Guide course

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