Exam 4: Components of Compensation Strategy

As an employer, you believe it is always a good idea to pay people for their contributions to organizational results. Which of the following plans would likely be the key component of the compensation plan?

Free

(Multiple Choice)

4.8/5

(32)

Question 1

Correct Answer:

Verified

Which of the following is a reason why employees may prefer base pay over performance pay?

Free

(Multiple Choice)

4.8/5

(37)

Question 2

Correct Answer:

Verified

Briefly explain the three methods for establishing base pay.

Free

(Essay)

4.8/5

(35)

Question 3

Correct Answer:

Verified

The three main methods for establishing base pay are market pricing, job evaluation, and pay for knowledge systems. Market pricing establishes base pay by determining the minimum amount of pay necessary to attract qualified individuals from the labour market. Job evaluation establishes base pay by ranking all jobs in the firm according to their value to that firm. Pay for knowledge systems establish base pay according to the total value of the skills and competencies an employee has acquired.

The two key questions that must be addressed in designing any compensation system are: a) What role should each of the three compensation components play in the compensation mix? and b) What total level of compensation should be provided?

(True/False)

4.8/5

(33)

Question 4

An advantage of base pay is that it directly links pay with output or performance.

(True/False)

4.8/5

(21)

Question 5

Which of the following base pay methods best supports behaviours needed by high-involvement firms?

(Multiple Choice)

4.9/5

(36)

Question 6

Which of the following refers to job evaluation?

(Multiple Choice)

4.8/5

(30)

Question 7

Which of the following variables offers the most likely explanation for the decrease in popularity of "defined benefit plans" by employers in Canada?

(Multiple Choice)

4.9/5

(45)

Question 8

As a consultant, you have been asked by an organization to provide a menu of indirect benefits that the employer does not have to provide by law. Which of the following would you NOT include in your menu?

(Multiple Choice)

4.9/5

(25)

Question 9

As a general rule, organizations using a high-involvement managerial strategy use indirect pay as a way to encourage which of the following relationships?

(Multiple Choice)

5.0/5

(41)

Question 10

As the new owner of a car dealership, you have become concerned with some behaviour being displayed by most of your sales force. You have decided to change the compensation systems. Yet, you are very concerned with your ability to meet payroll if sales decrease. Which of the following pay plans should you consider using?

(Multiple Choice)

4.8/5

(38)

Question 11

Competency-based systems have been proven valid, given the wide body of research associated with this compensation system.

(True/False)

5.0/5

(32)

Question 12

Which of the following steps is NOT considered part of formulating the compensation strategy?

(Multiple Choice)

4.9/5

(36)

Question 13

A particular organization wants to include in their compensation system some element of organizational performance linkage, while at the same time it wants to encourage employee commitment. In addition to base pay, which of the following would most likely be included in this compensation mix?

(Multiple Choice)

4.8/5

(40)

Question 14

As the owner of a large hotel, you expect your employees to be flexible, learn a variety of skills, and shift around from one job to another as needed. Which of the following plans will best fit your needs?

(Multiple Choice)

5.0/5

(29)

Question 15

The main types of individual performance pay are piece rates, commissions, merit pay, and goal-sharing plans.

(True/False)

4.9/5

(48)

Question 16

Which of the following statements relating to the notion of pay for knowledge is true?

(Multiple Choice)

4.9/5

(38)

Question 17

Your organization has come to realize that roles occupied by women seem to be concentrated in the lower-wage areas of your organization. Which of the base pay methods is your organization most likely using?

(Multiple Choice)

4.8/5

(40)

Question 18

Briefly discuss the advantages and disadvantages of using indirect pay.

(Essay)

4.7/5

(34)

Question 19

Which of the following is an example of mandatory indirect pay?

(Multiple Choice)

4.9/5

(39)

Question 20

Showing 1 - 20 of 46

As an employer, you believe it is always a good idea to pay people for their contributions to organizational results. Which of the following plans would likely be the key component of the compensation plan?

Which of the following is a reason why employees may prefer base pay over performance pay?

Briefly explain the three methods for establishing base pay.

The two key questions that must be addressed in designing any compensation system are: a) What role should each of the three compensation components play in the compensation mix? and b) What total level of compensation should be provided?

An advantage of base pay is that it directly links pay with output or performance.

Which of the following base pay methods best supports behaviours needed by high-involvement firms?

Which of the following refers to job evaluation?

Which of the following variables offers the most likely explanation for the decrease in popularity of "defined benefit plans" by employers in Canada?

As a consultant, you have been asked by an organization to provide a menu of indirect benefits that the employer does not have to provide by law. Which of the following would you NOT include in your menu?

As a general rule, organizations using a high-involvement managerial strategy use indirect pay as a way to encourage which of the following relationships?

Competency-based systems have been proven valid, given the wide body of research associated with this compensation system.

Which of the following steps is NOT considered part of formulating the compensation strategy?

A particular organization wants to include in their compensation system some element of organizational performance linkage, while at the same time it wants to encourage employee commitment. In addition to base pay, which of the following would most likely be included in this compensation mix?

As the owner of a large hotel, you expect your employees to be flexible, learn a variety of skills, and shift around from one job to another as needed. Which of the following plans will best fit your needs?

The main types of individual performance pay are piece rates, commissions, merit pay, and goal-sharing plans.

Which of the following statements relating to the notion of pay for knowledge is true?

Your organization has come to realize that roles occupied by women seem to be concentrated in the lower-wage areas of your organization. Which of the base pay methods is your organization most likely using?

Briefly discuss the advantages and disadvantages of using indirect pay.

Which of the following is an example of mandatory indirect pay?

A Road Map to Effective Compensation

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: The Job Evaluation Process

Evaluating Jobs: The Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters