Exam 8: Building Pay Structures That Recognize Individual Contributions

What represents the relationship between a company's valuation of jobs based on job evaluation and the valuation of jobs within the external market as assessed by compensation surveys?

The HR manager of a company thinks that they have too many narrow pay grades within the organization.By getting the support from upper management,they decided to consolidate existing pay grades and ranges into fewer pay grades and broader pay ranges in order to create a flatter organization in terms of compensation.This is an example of which pay structure variation?

Jasmine Black believes that the company should share part of the risk for her sales position.Which sales compensation plan should she pursue?

A company adopting a commissions-oriented sales compensation plan would most likely be pursing which type of competitive strategy?

What is broadbanding? What are its limitations?

A ________ is the difference between the maximum and minimum pay rates of a given pay grade.

Which of the following represents the horizontal dimension of pay structures?

What types of companies are most likely to utilize two-tier wage systems?

What are the differences between pay grades and pay ranges?

Which of the following is a loan from the company to the employee that is carried forward indefinitely until the employee sells enough to repay it?

Alejandro Martinez is responsible for setting up the pay structure for his company.He believes that newly hired employees should not be paid as much as established employees.Accordingly,what type of pay structure should Mr.Martinez use?

Midpoint,minimum,and maximum are values used to define which of the following?

John is just hired by a software company as a programmer.He is also a part-time student at the local college and needs just a few credits to graduate from this college.A college degree is required in order to work as a programmer in this software company.Therefore,John receives below-minimum pay rate until he graduates from college.What type of pay rate does John receive?

This type of pay rate applies to an employee who is demoted but is paid more than the maximum rate for the pay grade he is now in.

Money that covers the basic living expenses of sales professionals is better known as a ________.

________ rates pay wages higher than the maximum listed in order to help retain valued employees fielding big job offers elsewhere.

This type of commission draw acts as a salary because employees are not obligated to repay the loans if they do not sell enough to cover the amount.

How are compa-ratios calculated?

When these spreads are used to develop pay grade widths,the grades are based on a set number of job evaluation points for each grade that increases as an employee moves up the pay structure.

Which term is used to describe the situation where the pay spread between newly hired employees and more qualified job incumbents is small?