Compensation & Benefits

One way that employees receive returns from their work inputs is in the form of compensation. This activity is important because managers must understand how to effectively influence behavior using compensation.

The goal of this activity is to challenge your understanding of the three components of compensation.

Match each person to the form of compensation that his or her description best represents.

$1$

Benefits

$2$

Base pay

$3$

Incentives

Match each of the options above to the items below.

Pria gets a large paycheck compared to her colleagues because of the dangers associated with her particular job:

Julian works really hard and is a top salesman in his firm. Julian enjoys his regular paycheck every other week, but really looks forward to the healthy commission checks he gets that are based on his sales.

Sam has worked for many years for her company. A few more years and she can look forward to collecting her monthly pension check.