Exam 6: Formulating the Reward and Compensation Strategy

All Canadian jurisdictions have passed human rights legislation prohibiting employment discrimination based on specific employee factors. Which of the following is NOT covered under these broad human rights legislation?

Briefly describe the five main steps in the formulation of compensation strategy.

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

Which of the following should be your first step when starting an organization's compensation formulation process?

To keep work interesting and provide higher compensation opportunities for your design engineers, you have created a compensation system that allows them to move from an entry level to an expert specialist level. What term is used to describe this system?

What are the four special employee groups discussed in the text, and what are some the implications for compensation?

In which of the following circumstances does the compensation system need to be relied on less heavily to motivate behaviour?

Classical organizations typically provide organizational level performance pay only to senior management, based on the rationale that senior management are the only employees able to influence organizational success

In developing a compensation strategy, the two key questions that must be addressed are: "How much is to be paid?" and "When should it be paid?"

A hybrid compensation-level strategy is one that varies across which of the following?

A particular organization wants to explore the potential for converting many of their employees into contractors. Which of the following characteristics would potentially lead the Canada Revenue Agency to reject this change in classification?

You are attempting to define the role compensation will play in your reward strategy. What is the first thing that needs to be examined?

Which pair of job characteristics is likely associated with a high-involvement managerial strategy?

As the owner of a medium-sized engineering consulting firm, you decide to implement a compensation level policy that compensates your employees based on market rates. Which type of compensation policy have you adopted?

This term refers to the boundaries within which the compensation system must be designed.

Your organization is facing significant competition, putting pressure on your margins. Labour costs account for a significant percentage of your cost structure, and you are concerned with your profitability, moving forward. Furthermore, you are finding that it is extremely difficult to find production workers willing to work for minimum wage in Canada. As a result, you decide to move operations to Vietnam so you can take advantage of lower labour costs. Which type of key constraint has caused you to make this decision?

What does utility analysis help managers determine?

The process of formulating a compensation strategy includes five distinct yet interrelated steps.

Which type of legislation covers issues such as overtime pay rates, paid time off, and minimum wage levels?

Lag strategies are cost-effective for which type of firms?