Extrinsic rewards: Rewards one gets from the employer, usually money, a promotion or benefits.

Intrinsic rewards: Rewards that one gets from the job itself and that are usually self-initiated (having pride in one's own work, having a sense of achievement, being part of a team etc)

Team incentive plan: Compensation plan where all team members receive an incentive bonus payment when production or service standards are met or exceeded.

Perquisites: Special benefits given to executives, often referred to as perks.

Gainsharing: The sharing with employees of greater - than expected gains in profits and/ or productivity.

Profit sharing: A scheme wherein employees agree to pay a particular portion of net profits to eligible employees.

Co-partnership: In this system, the employee gets his usual wages, a share in the profits of the company and a share in the management of the company as well.

Fringe benefits: Extra benefits provided to employees in addition to the normal compensation paid in the form of wage or salary.

Employee stock option plan: It provides a mechanism through which certain eligible employees may purchase the stock of the company at a reduced rate.

Incentive wages: Incentive wages are the extra payments for superior performance.

Benefit: An indirect reward given to an employee or group or employees as a part of organizational membership.

Compensation administration: Deciding about how much an employee should be paid observing internal as well as external equity.

Pay grades: Group of jobs within a particular class that are paid the same rate.

Pay equity: An employee's perception that compensation received is equal to the value of work performed.

Wage curve: Curve in a scatter diagram representing the relationship between relative worth of jobs and wage rates.