Distinguish between monetary and in-kind payments. Describe the relationship between compensation and non-compensation subsystems of the reward system. Describe whether monetary and in-kind payments are sources of motivation? If they are not, defend your answer.
The response addresses the queries posted in 825 words with references.
//Before writing about the differences between monetary and in-kind payments, it is essential to have knowledge about their definition. One should know about the main aspects of monetary and in-kind payments in order to bring out the central differences between these two terms//
Monetary payments are wage benefits provided to the employees. Monetary payments mainly include salary and augmented pay. Augmented pay involves overtime, one-time stuff and extra pay. In-kind payments are fringe benefits provided by the employers to their employees as a part of compensation strategy.
Difference between monetary and in-kind payments
Monetary and in-kind payments are the part of compensation, but there are some significant differences between these two terms. These are as follow:
Wage structure: Wage structure of both these payments is different. Monetary payments are wage payments. On the other hand, in-kind payments are non-wage payments (Bratton & Gold, 2001).
Payment type: Payment type of these components of compensation is also different. Monetary payments are cash incentives, while in-kind payments are non-cash payments. Monetary payments are in the form of paper money, coins or checks. Monetary payments have value in use and they abridge swap transactions (Marino & Zabojnik, 2003). On the other hand, in-kind payments are services or ...
This solution discusses the difference between monetary and in-kind payments, the relationship between compensation and non-compensation subsystems of the reward system, and sources of motivation. The response addresses the queries posted in 825 words with three APA references.