Exam 6: Formulating the Reward and Compensation Strategy

The text points out four key understandings in the process of developing a compensation strategy: understanding your organizational context;understanding your people;understanding your compensation options;understanding your compensation constraints.

If compensation is to serve as a strategic tool,it must take into account the managerial strategy of the firm.

In defining the role of compensation,trade offs are possible between compensation and other rewards.

All employees expected to perform similar behaviours must be paid in a similar manner.

Which of the following factors does not justify the differences of pay among employees with similar job duties?

The key reason that executives earn so much more than other employees is because their base pay is so much higher.

Which of the following issues is not covered by employment standards legislation?

Which is not one of the key understandings needed to formulate compensation strategy?

Which of the following best explains the legal difference between an employee and a contractor?

What causes some firms to end up leading the market unintentionally?

Utility Analysis is used to determine which benefits will be included in the compensation system.

What does utility analysis help managers determine?

Equal pay legislation prohibits discrimination based on which of the following factors?

Over time pay rates,paid time off,and minimum wage levels are issues covered by what type of legislation?

Which of the following pay types is currently being used to make up an increasing portion of CEO's compensation?

According to studies what is the least important reason for using contingent workers?

When we discuss labour market constraints what are we specifically referring to?

Briefly discuss the four key understandings necessary for successful formulation of compensation strategy.

Before adopting a compensation strategy,it must be able to pass through three screens: affordability,legality,and employee attraction.

What are a firm's choices for compensation level strategy,and how can it decide between them?