Exam 8: Building Pay Structures that Recognize Individual Contributions

In which situation is a commission-only plan best suited?

What types of companies are most likely to utilize two-tier wage systems?

This type of pay rate applies to an employee who is demoted but is paid more than the maximum rate for the pay grade he is now in.

With which type of sales commission plan does an employee earn a higher rate of commission for all sales made in a given period if the sales level exceeds a predetermined level?

These represent the horizontal dimension of pay structures.

What represents the relationship between a company's valuation of jobs based on job evaluation and the valuation of jobs within the external market,as assessed by compensation surveys?

If the company adopts a market lead policy,how will that company's pay range midpoint compare to the market average?

When these are used to develop pay grade widths,the grades are based on a set number of job evaluation points for each grade that increases as an employee moves up the pay structure.

________ makes sure that employees have at least a minimally acceptable level of skill proficiency upon completion of a training unit.

Jasmine Black believes that the company should share part of the risk for her sales position.Which sales compensation plan should she pursue?

What is broadbanding? What are its limitations?

Which term is used to describe the situation where the pay spread between newly hired employees and more qualified job incumbents is small?

A company adopting a commissions-oriented sales compensation plan would most likely be pursing which type of competitive strategy?

Midpoint,minimum,and maximum are values used to define which of the following?

This term describes a set of skills necessary to perform a specific job or a group of similar jobs.

________ describe the allocation of monetary resources to fund pay structures.

________ rates pay wages higher than the maximum listed in order to help retain valued employees fielding big job offers elsewhere.

John is just hired by a software company as a programmer.He is also a part-time student at the local college and needs just a few credits to graduate from this college.A college degree is required in order to work as a programmer in this software company.Therefore,John receives below-minimum pay rate until he graduates from college.What type of pay rate does John receive?

The HR manager of a company thinks that they have too many narrow pay grades within the organization.By getting the support from upper management,they decided to consolidate existing pay grades and ranges into fewer pay grades and broader pay ranges in order to create a flatter organization in terms of compensation.This is an example of which pay structure variation?

________,or lump sum bonuses,lend themselves well to cost containment,since these bonuses are not permanent percentage increases on worker base pay levels.