Exam 7: Recognizing and Rewarding Employees

Gainsharing is a plan in which both employees and the organization share the financial gains according to a predetermined formula that is focused on improvements in productivity.

Scenario 7.1 All Season Fitness Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000. -Please refer to Scenario 7.1.Which of the following is a voluntary benefit,not required by law,provided at All Season Fitness?

Employees are likely to accept a promotion if succeeding rate ranges are larger in size.

The Canada and Quebec pension plans require the employer to match the amount of contributions made by the employee.

Wage compression can be avoided by granting wage increases solely on the basis of the CPI.

What is considered to be a common goal of compensation policies?

Under what circumstances will employees deem that compensation is equitable?

A major benefit of job-based compensation systems is that they encourage employees to learn new skills and capabilities.

What is the proper term for the process of determining the relative worth of jobs in order to determine pay rates?

Which step is unnecessary when creating a factor comparison system?

Scenario 7.1 All Season Fitness Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000. -Please refer to Scenario 7.1.Which of the following would be an internal factor that would influence the setting of pay levels at All Season Fitness?

Which statement includes "other required benefits" that legislation requires employers to provide?

The consumer price index tracks the change in price over time of a market-based "basket of goods and services".

Which system of job evaluation is being used when jobs are classified according to a series of predetermined pay grades?

What would an employer wishing to raise the "real wages" of employees have to do?

What are organizations with formal job systems more likely to rely on to determine wage rates?

Which of the following is an external factor that can influence the rates of wages required to recruit or retain competent employees?

HR professionals establish predetermined wage grades as a basis for evaluating jobs in the job classification system of job evaluation.

When wage rates rise above existing area levels,an employer's labour costs may become excessive;therefore,it is important to use wage surveys.

Salaried employees are those whose compensation is computed on the basis of weekly,biweekly,or monthly pay periods.