Exam 10: Compensation Strategies and Practices

Which of these goals is behind comparing the job of a file clerk with that of a labourer to determine if a wage gap exists?

In one pay-setting practice, fewer pay grades are used than in traditional compensation systems, and the grades have much wider ranges. Which of the following is the name of the practice?

Which type of compensation is linked directly to individual, team, or organizational performance?

Which of the following is NOT a typical component of expatriate compensation?

In many non-union systems, employee performance does not have to be satisfactory in order for the employees to receive automatic pay increases based on seniority.

Job evaluation committees should include representation from many different groups. Which of these areas does NOT need to be specifically addressed?

Celeste, the vice president of compensation, is preparing a report for the executive committee. She is recommending that the company move from using a traditional job evaluation system to a system using market pricing. Which argument is she LEAST likely to include in her presentation on market pricing?

A company structures its compensation system so that half of its competitors pay employees more than it does and half of its competitors pay less than it does. Which strategy is it using?

There is a measurement derived from the pay survey and used to develop pay range minimums and maximums. Which of these descriptions best applies to it?

Josephine has been a high-performing employee for Clock Tower Publications for many years. She is at the top of her pay grade and has a high compa-ratio. Clock Tower Publications uses the Pay Adjustment Matrix for calculating raises. Josephine should expect a tiny pay increase, if any, this year.

Payroll processing is one of the first HR responsibilities to be outsourced.

Terri is a manager at Chicken Delight Poultry Processors. She often works more than 40 hours a week and is not paid overtime. Which of the following statements provides an accurate assessment of Terri's legal position?

Mark, the vice president of compensation for a large national retailer, is satisfied with the overall design and operation of the compensation system. Nevertheless, Mark wants to reduce the administrative cost of the compensation system without affecting any of the organization's main compensation objectives. Which of the following options is Mark most likely to seriously consider?

Traditional job evaluation programs have been criticized as being gender-biased against women. Which of the following arguments do employers typically make in their defence?

What is meant by equity? Is equity an important consideration in compensation?

Which of the following identifies what is achieved when an employee's current pay level is divided by the midpoint of the pay range?

Gillian is angry that she received a large raise from her boss because she is "cute as a button." Although her income increased considerably, Gillian is upset because of a failure of procedural justice.

In terms of procedural justice, how must all the processes of determining base pay, allocating pay increases, and measuring performance be seen?

Organizations have the option to ignore payment for overtime to wage employees under certain circumstances.

YellowCraft Boat Construction Company has an entitlement approach to compensation that is consistent with its paternalistic approach to managing employees. As the average level of employee seniority rises, YellowCraft's pay scales also rise.