Exam 11: Total Rewards and Compensation

Which of the following employees will be qualified for the LARGEST pay raise according to a typical pay adjustment matrix? An employee with

A third-quartile approach is a compensation strategy

Justin is an hourly employee of Furnace Brick,a company that manufactures a special high-heat-resistant brick for industrial kilns.Justin is unhappy with the new compensation system introduced by the company's new plant manager and HR director.This system has eliminated the practice of annual raises,the Christmas bonus,and raises based on seniority for a new system that ties every employee's raise to how well Furnace Brick is performing in the market.Moreover,the plant manager has announced that twenty percent of the employees in the plant will receive no raise at all this year,regardless of the company's performance.Furnace Brick has moved from a/an ____ compensation philosophy,to a/an____ compensation philosophy.

Josephine has been a high performing employee for Clockman Publications for many years.She has a compa-ratio over 115.Clockman Publications uses the pay adjustment matrix method for calculating raises.Clockman has had a highly profitable year.Josephine should expect a significant pay increase this year..

All the following are likely outcomes when an organization's compensation is viewed by employees and outsiders as lacking external equity EXCEPT

Paul is a single parent.He received consistently high performance appraisals from his employer,until the company went bankrupt.Now,Paul is looking for a new job.As the recruiter at MilqueMaid Chocolate,you are very interested in Paul.But,your firm has a lag-the-market compensation strategy.You know that Paul has had an offer from a firm that has a meet-the-market strategy.You are not authorized to offer Paul a market-level salary.Your best way to lure Paul to MilqueMaid is to

Compensation practices are simplified as organizations shift to using work teams,because each team member receives identical pay.

An indication that the organization's compensation system is ineffective includes all of the following EXCEPT

Of the following methods of job evaluation,the ____ method is the most subjective.

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

Performance and talent management fits into the total rewards approach in all of the following ways EXCEPT

In the last decade the pressures of the U.S.economy have compelled most private-sector,for-profit organizations to eliminate the entitlement approach to compensation and to change to true pay-for-performance compensation systems.

All of the following are compensation objectives of the organization EXCEPT

Typical compensation appeals procedures require the employee to discuss the problem first with

In a job evaluation,every job in an organization is examined and wages are set according to

The CEO of your company wants to move to a pure market pricing approach to compensating all the employees.She argues that it is foolish to pay more for any resource (including human resources)than they are worth on the open market.She argues that a pure market pricing approach would be the most efficient use of organizational funds.It is her idea to review the market price for each job in the company annually,and revise the employees' pay up or down as indicated.She knows this is an unconventional idea,but she is convinced it would work.You make all the following arguments EXCEPT

A non-exempt,private sector employee must receive overtime pay under the FLSA.He/she cannot take compensating time off at one and half times the number of hours in lieu of overtime pay.

Lucy is a nurse at Mountaineer Assisted Living.She works three 12-hour days in a row and receives 40 hours pay for 36 hours of work.Lucy also receives 12 hours of time and a half overtime pay per week for the four hours over 8 she works on each of her three workdays.Which of the following statements is TRUE?

Larry has decided to go back to his hometown of Mellonburg and set up an architectural design business for "green" homes.Mellonburg is a depressed farming community of 1,351 residents.It is 20 miles from the nearest restaurant,70 miles from the nearest Starbucks coffee shop,and the local schools are the worst in the state.The winters are severe,the summers are oppressive.Few single people live there,and the social and cultural life is negligible.In order to attract good quality architects,Larry will probably

An organization can benefit from a properly designed and implemented competency-based pay system through