Exam 8: Building Pay Structures That Recognize Individual Contributions

Which of the following is a major challenge in setting up skill-based pay programs?

________ is a form of compensation based upon a percentage of the selling price of a product or service.

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

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.Which type of pay rate does John receive?

A recently opened car dealership uses an incentive compensation plan for its sales people.The dealer provides money to its salespeople to cover basic living expenses and then shares a fixed percentage of the selling price of each car sold.However,the salesperson should repay the subsistence pay component within a year;otherwise he/she cannot continue in the employment of this dealer.Which type of sales compensation plan does this dealer adopt?

Typically,what is the number of skill blocks used in skill-based pay programs?

________ represent the vertical dimension of pay structures.

Which of the following 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?

Richard's job has a compa-ratio of 0.85.What does this ratio tell about Richard's pay rate?

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

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

What is broadbanding? What are its limitations?

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

Money that covers the basic living expenses of sales professionals is better known as a ________.

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

This type of sales incentive compensation plan offers the sales person a salary and further compensation for achievement of specific,exceptional sales goals

Alejandro Martinez is responsible for setting up the pay structure for his company.He believes that newly hired employees should not be paid as much as established employees.Which type of pay structure should Mr.Martinez use?

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,the manager 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?

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

Which of the following would be considered as an advantage of broadbanding?