Exam 4: Components of Compensation Strategy

Which of the following is an example of mandatory indirect pay?

Your company offers you pay for time not worked,disability benefits,supplemental medical coverage,and a full range of free employee services.Which component of the compensation mix includes these items?

Briefly describe the three main categories of performance pay,and provide examples for each category.

Competitive pressure may force some firms to provide indirect pay.

As the owner of a large hotel,you expect your employees to be flexible,learn a variety of skills,and shift around from one job to another as needed.Which plan will best fit your needs?

An advantage of base pay is that it directly links pay with output or performance.

Which base pay method best supports behaviours needed by high-involvement firms?

Which statement best describes the notion of pay for knowledge systems?

Peter,a manager at a local manufacturing firm,is perplexed that employees tend to respond to management's request by evoking the dreaded "That is not on my job description," or "That is above my pay grade." From a compensating perspective,which base pay method is normally associated with the aforementioned responses?

Johnny is compensated based on a rate of $25.00 per hour worked.Which term best describes the manner in which Johnny is compensated?

As the CEO of a small start-up firm,you would like to reward employees based,in part,on organizational performance.However,cash flow is low.Which pay plan should you consider using?

Which of the following is NOT a method used to determine employee base pay?

Generally,research supports the notion that employees prefer compensation strategies that have performance pay as the key compensation mechanism.

As an employer,you believe it is always a good idea to pay people for their contributions to organizational results.Which plan would likely be the key component of the compensation plan?

Briefly explain the three methods for establishing base pay.

Which methods are used to establish base pay?

Which pay type usually makes up a small proportion of total compensation,and may not be used at all by some employers?

The main types of individual performance pay are piece rates,commissions,merit pay,and goal-sharing plans.

Explain why organizations pursuing a high-involvement management strategy may find the notion of offering indirect pay to employees somewhat problematic and at odds with the principles of high involvement?

As a consultant,you have been asked by an organization to provide a menu of indirect benefits that the employer doesn't have to provide by law.Which of the following would you NOT include in your menu?