Exam 10: Compensating Employees

Jeffrey has been a machine operator for about 12 years. He is fully qualified and functions well in his role. The pay range for his position is $11.00 to $17.00. Jeffrey is currently making $13.25. What may be a more appropriate pay rate for Jeffrey, given his experience and performance level?

Employees believing they are compensated at the right level for the work they are doing and in turn being motivated to work harder is the premise of the ________.

What are the three key pieces to administering an effective compensation program? Explain each in detail.

The purpose of a cost of living adjustment (COLA) is:

The ________ is used to determine the actual pay rate for an employee and they should not make less than the ________ or more than the ________.

Rather than developing an internal compensation structure, some organizations use ________ to look at external wage information first when making compensation decisions.

An organization following a differentiation strategy would most likely offer a compensation mix which was made up of:

The current federal minimum wage rate is ________ while the minimum wage in this state is ________. If the state minimum wage rate is higher than the federal rate the ________ rate must be used.

Identify and explain three examples of how organizational demands can impact compensation programs.

This method of job evaluation is developed by first identifying compensable factors which are needed for the job in order for the company to achieve its goals and then a score is determined for each job based on those factors.

________ in large companies is more difficult to do than in a small company due to the greater number of positions within a larger organization.

When determining where pay decisions are made, a global company should consider:

Your organization pays its Marketing Manager a considerably high annual salary compared to other marketing executives in your area. However when compared to marketing executives in your industry your Marketing Manager is paid about the industry average. Which of the following best describes this positions pay policy in the market as well as in the industry?

How can an organization ensure that its compensation system is internally aligned? Describe three methods.

Direct market pricing involves determining what an employees competencies are and then basing their pay grade on how well they meet those competencies in comparison to those in similar jobs in the market.

If labor supply is greater than labor demand an organization would most likely follow a "lead the market" strategy in regard to compensation.

Deciding to follow a "lagging the market" pay philosophy will enable an organization to attract top notch candidates for its entry level jobs.

The process of comparable worth ensures that the value a company places on a job is what determines the level of wages paid to an individual in that job, rather than the labor market determining the wages.

An organization which follows a cost leadership strategy would be most likely to select which of the following compensation methods?

Because the Marketing Department Secretary, the Administrative Assistant and the Medical Secretary all have similar tasks, duties and responsibilities they would most likely be part of the same ________.