Exam 1: A Road Map to Effective Compensation

Which of the following statements is supported by evidence in the textbook?

Three of the key criteria for evaluating a compensation system are whether it promotes achievement of organizational goals, whether it is seen as equitable, and whether it promotes the full spectrum of task behaviour.

After graduation, you have been offered a position as a job analyst with a local bank. Which of the following would best describe your new job?

Evidence provided in the textbook appears to indicate a relationship between the level of stock options provided to executives and the risk those executives are prepared to undertake.

Your company is experiencing high turnover and poor work quality. Exit interviews indicate that a large percentage of employees indicate boredom as the primary cause for quitting your company. Almost 100 percent were satisfied with their compensation packages. Which of the following actions may reduce your high turnover rate?

Which statement best describes current compensation practices and expectations related to the key criteria for evaluating the success of a compensation system?

Why would a large organization require approval by senior management and/or the board of directors for initiating strategic changes to an organization's compensation strategy?

You are a newly hired director of human resources for a new software company. Your CEO has asked you to provide the board of directors with recommendations relating to the company's yet-to-be-established reward system. What should you tell the board?

Identify the steps in developing an effective compensation strategy.

An owner of an enterprise asks you to describe the major components of a compensation system. Which of the following would you exclude in your description?

Which of the following would be an example of an extrinsic reward?

Which of the following best explains intrinsic rewards?

You have been given the responsibility to develop an effective compensation system for your company. Which of the following should serve as your first focus?

Explain the difference between a "reward strategy" and a "compensation strategy."

A compensation system must be viewed in the context of the total reward system because it is the total pattern of financial and non-financial rewards that motivates employee behaviour.

There is often one so-called best compensation system that applies to a broad spectrum of organizations.

Which of the following statements most accurately describes the optimal reward system?

Which statement best describes the difference between the terms "rewards" and "incentives"?

According to the textbook, what is the primary reason for the increased usage of compensation consultants by organizations?

Under a total rewards philosophy, companies should first develop an appropriate compensation strategy.