Question 1

Explain competence-based pay, including its advantages and disadvantages. Include in your discussion the practice of broadbanding.

Accepted Answer

Competence-based pay, also known as know

Question 2

An advantage of competence-based pay from the employee's perspective is that there is no limit to what they can earn by learning new skills.

Accepted Answer

A) True 
 B)False

Question 3

Pay equity is achieved when employees' compensation is equal to the value of the work they perform.

Accepted Answer

A) True 
 B)False

Question 4

Executives, administrators, and professional employees are exempt from overtime payments identified in Employment Standards Acts.

Accepted Answer

A) True 
 B)False

Question 5

Job evaluation helps to address issues dealing with which of the following?

Accepted Answer

A)  employees' need for pay that reflects cost of living increases 
B)  employees' perceptions of equity 
C)  employers' need to match the market pay 
D)  employers' perceptions of unfair jobs 
A)  employees' need for pay that reflects cost of living increases 
B)  employees' perceptions of equity 
C)  employers' need to match the market pay 
D)  employers' perceptions of unfair jobs

Question 6

A common way wage-rate compression occurs is when organizations grant pay adjustments to lower-rated jobs, but do not extend the adjustments up the hierarchy

Accepted Answer

A) True 
 B)False

Question 7

Job ranking is a simple method that provides a precise measure of each job's worth.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is the most likely outcome of collapsing many salary grades into a few wide salary bands through broadbanding?

Accepted Answer

A)  It reduces pay levels. 
B)  It encourages lateral skill building. 
C)  It reduces the number of employees needed. 
D)  It leads to a collapse of broadbands. 
A)  It reduces pay levels. 
B)  It encourages lateral skill building. 
C)  It reduces the number of employees needed. 
D)  It leads to a collapse of broadbands.

Question 9

When an employers operate in more than one province, they only have to be apply the employment requirements of one province of their choosing.

Accepted Answer

A) True 
 B)False

Question 10

As the year 2000 approached, many organizations hired "young" and "inexperienced" information technology (IT) specialists to help address the Y2K problem. Many of these new hires were paid high compensation that brought them very close to the compensation earned by experienced IT specialists working with these companies. Which of the following can such a practice lead to?

Accepted Answer

A)  wage inversion 
B)  pay equity 
C)  wage-rate compression 
D)  high turnover across the board 
A)  wage inversion 
B)  pay equity 
C)  wage-rate compression 
D)  high turnover across the board

Question 11

In a unionized environment, how is pay for employees in the bargaining unit normally determined?

Accepted Answer

A)  through escalator clauses 
B)  through collective bargaining 
C)  through pay equity 
D)  through market evaluations with other all unions 
A)  through escalator clauses 
B)  through collective bargaining 
C)  through pay equity 
D)  through market evaluations with other all unions

Question 12

Assume Microsoft wants to link its overall organizational strategy to its wage and benefit policies in the strategic plan. How can the company best do this?

Accepted Answer

A)  through the development of better performance standards 
B)  through following federal strategic planning legislation 
C)  through adhering to Harvard University's Professor Porter model 
D)  through formalized compensation goals 
A)  through the development of better performance standards 
B)  through following federal strategic planning legislation 
C)  through adhering to Harvard University's Professor Porter model 
D)  through formalized compensation goals

Question 13

For real wages to increase, which of the following is necessary?

Accepted Answer

A)  An employee's wage increase must be greater than the increase in the CPI. 
B)  An employee must receive a lump-sum wage increase equal to the increase in the CPI. 
C)  An employee's wage must simply increase. 
D)  The CPI must increase at least as much as the employee's wage. 
A)  An employee's wage increase must be greater than the increase in the CPI. 
B)  An employee must receive a lump-sum wage increase equal to the increase in the CPI. 
C)  An employee's wage must simply increase. 
D)  The CPI must increase at least as much as the employee's wage.

Question 14

Which of the following is a key implication of expectancy theory when applied to pay systems?

Accepted Answer

A)  Employees must get pay raises to cover increased living costs. 
B)  Employees expect their managers to be competent. 
C)  Employers expect their employees to be competent. 
D)  Rewards must be valuable for motivation to occur. 
A)  Employees must get pay raises to cover increased living costs. 
B)  Employees expect their managers to be competent. 
C)  Employers expect their employees to be competent. 
D)  Rewards must be valuable for motivation to occur.

Question 15

The Employment Standards Acts set minimum requirements with respect to wages, hours of work, and overtime.

Accepted Answer

A) True 
 B)False

Question 16

Wage-rate compression refers to the situation where employees perceive that there is too large a difference between their compensation and that of colleagues in higher-rated jobs.

Accepted Answer

A) True 
 B)False

Question 17

HR professionals establish predetermined wage grades as a basis for evaluating jobs in the job classification system of job evaluation.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an external factor that can influence the rates at which employees are paid?

Accepted Answer

A)  the worth of the job 
B)  the employees' relative worth 
C)  the employer's ability to pay 
D)  the cost of living 
A)  the worth of the job 
B)  the employees' relative worth 
C)  the employer's ability to pay 
D)  the cost of living

Question 19

Which of the following is the measure of the average change in prices over time in a fixed "market basket" of goods and services?

Accepted Answer

A)  a cost of living allowance 
B)  a cost of living adjustment 
C)  the consumer price index 
D)  the inflation index 
A)  a cost of living allowance 
B)  a cost of living adjustment 
C)  the consumer price index 
D)  the inflation index

Question 20

A potential difficulty with pay-for-performance programs is how to measure employee performance.

Accepted Answer

A) True 
 B)False

Explain competence-based pay, including its advantages and disadvantages. Include in your discussion the practice of broadbanding.

An advantage of competence-based pay from the employee's perspective is that there is no limit to what they can earn by learning new skills.

Pay equity is achieved when employees' compensation is equal to the value of the work they perform.

Executives, administrators, and professional employees are exempt from overtime payments identified in Employment Standards Acts.

Job evaluation helps to address issues dealing with which of the following?

A common way wage-rate compression occurs is when organizations grant pay adjustments to lower-rated jobs, but do not extend the adjustments up the hierarchy

Job ranking is a simple method that provides a precise measure of each job's worth.

Which of the following is the most likely outcome of collapsing many salary grades into a few wide salary bands through broadbanding?

When an employers operate in more than one province, they only have to be apply the employment requirements of one province of their choosing.

In a unionized environment, how is pay for employees in the bargaining unit normally determined?

Assume Microsoft wants to link its overall organizational strategy to its wage and benefit policies in the strategic plan. How can the company best do this?

For real wages to increase, which of the following is necessary?

Which of the following is a key implication of expectancy theory when applied to pay systems?

The Employment Standards Acts set minimum requirements with respect to wages, hours of work, and overtime.

Wage-rate compression refers to the situation where employees perceive that there is too large a difference between their compensation and that of colleagues in higher-rated jobs.

HR professionals establish predetermined wage grades as a basis for evaluating jobs in the job classification system of job evaluation.

Which of the following is an external factor that can influence the rates at which employees are paid?

Which of the following is the measure of the average change in prices over time in a fixed "market basket" of goods and services?

A potential difficulty with pay-for-performance programs is how to measure employee performance.

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis, Employee Involvement, and Flexible Work Schedules

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Appraising and Improving Performance

Pay For Performance: Incentive Rewards

Employee Benefits

Safety and Health

Employee Rights and Discipline

The Dynamics of Labour Relations

International Human Resources Management

Creating High Performance Work Systems

Filters

Exam 9: Managing Compensation

Explain competence-based pay, including its advantages and disadvantages. Include in your discussion the practice of broadbanding.

An advantage of competence-based pay from the employee's perspective is that there is no limit to what they can earn by learning new skills.

Pay equity is achieved when employees' compensation is equal to the value of the work they perform.

Executives, administrators, and professional employees are exempt from overtime payments identified in Employment Standards Acts.

Job evaluation helps to address issues dealing with which of the following?

A common way wage-rate compression occurs is when organizations grant pay adjustments to lower-rated jobs, but do not extend the adjustments up the hierarchy

Job ranking is a simple method that provides a precise measure of each job's worth.

Which of the following is the most likely outcome of collapsing many salary grades into a few wide salary bands through broadbanding?

When an employers operate in more than one province, they only have to be apply the employment requirements of one province of their choosing.

In a unionized environment, how is pay for employees in the bargaining unit normally determined?

Assume Microsoft wants to link its overall organizational strategy to its wage and benefit policies in the strategic plan. How can the company best do this?

For real wages to increase, which of the following is necessary?

Which of the following is a key implication of expectancy theory when applied to pay systems?

The Employment Standards Acts set minimum requirements with respect to wages, hours of work, and overtime.

Wage-rate compression refers to the situation where employees perceive that there is too large a difference between their compensation and that of colleagues in higher-rated jobs.

HR professionals establish predetermined wage grades as a basis for evaluating jobs in the job classification system of job evaluation.

Which of the following is an external factor that can influence the rates at which employees are paid?

Which of the following is the measure of the average change in prices over time in a fixed "market basket" of goods and services?

A potential difficulty with pay-for-performance programs is how to measure employee performance.

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis, Employee Involvement, and Flexible Work Schedules

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Appraising and Improving Performance

Pay For Performance: Incentive Rewards

Employee Benefits

Safety and Health

Employee Rights and Discipline

The Dynamics of Labour Relations

International Human Resources Management

Creating High Performance Work Systems

Filters