Exam 1: A Road Map to Effective Compensation

Compensation means different things to different stakeholders.For shareholders,what is an important consideration?

Which of the following would be the best choice for a compensation system?

Which statement best describes the key aspect of Maslow's theory of needs?

The main similarity between extrinsic rewards and intrinsic rewards is that they both satisfy so-called higher order needs such as survival and security.

You have been given the responsibility to develop an effective compensation system for your company.Which of the following should serve as your first focus?

Compensation strategy includes the "how" and "how much" in terms of compensation to be paid.

In small organizations,who is typically responsible for compensation strategy?

Explain the ways in which "direct" and "indirect" pay are similar and different to each other.

The optimal compensation system is one that adds the most value to the organization,after considering all its costs.

According to the textbook,what is a key argument about compensation systems in Canada?

Why would a large organization require approval by senior management and/or the board of directors for initiating strategic changes to an organization's compensation strategy?

Joe,a service manager,loves his job.He particularly appreciates the level of autonomy his job provides.From a rewards perspective,which kind of reward appears to be motivating Joe?

According to the textbook,what is the primary reason for the increased usage of compensation consultants by organizations?

You have offered to your sales associate an all-expenses-paid trip for two to Australia if she doubles her annual sales volume from last year.What type of inducement are you offering?

A group of unionized employees negotiating a new contract is holding out for a better indirect pay plan.What should management offer the group in order to reach an agreement?

What are the goals of an organization's reward and compensation system?

According to the "Road Map to Effective Compensation," the first step is formulating your reward and compensation strategy.

Explain the difference between a "reward strategy" and a "compensation strategy."

As head of the human resources department for a new company,you have been asked to formulate a compensation strategy.What do you need to determine first?

A compensation system has two components: base pay and performance pay.