Exam 9: Direct Financial Compensation Core Compensation:

Factors that must be taken into account when building compensation systems include the labor market,labor unions,interindustry wage differentials,the economy,and legislation.

Which Act was the first national law to deal with minimum wages?

An escalator clause in a labor agreement that automatically increases wages as the U.S.Bureau of Labor Statistics' Consumer Price Index rises is known as a ________.

Which term refers to a one-time annual financial award based on productivity?

Nicole,an HR professional,needs to develop a job evaluation for a data analyst position at her firm.Nicole's manager wants a quantitative job evaluation that will be useful for a long time.Which method would be most appropriate?

What is a technique that collapses many pay grades into a few wide bands to improve organizational effectiveness?

The following describes the possible effect of wages in union settings on wages in nonunion settings.

How many universal job factors are there with the factor comparison job evaluation method?

merit pay,which is similar to an annual bonus,is highly successful in motivating employee performance and improving compensation satisfaction.

Claudia works as a seamstress at a clothing company.She receives $10 for each pair of pants she sews.What type of pay plan is Claudia's employer most likely using?

Pay grades and pay ranges are frequently used in the job-pricing process.

In which job evaluation method do evaluators make decisions based on five universal elements?

In general gainsharing plans are intended to link employees to organizational productivity by focusing on cost-efficiency.

The objective of ________ is to improve productivity by rewarding those who best assist in achieving this goal.

PetFair,a national chain of pet supply stores,employs nearly 1,000 workers.In the past two years,the firm's market share has dropped and employee turnover has increased.The vice president of human resources at PetFair suggests implementing a new compensation policy to improve the firm's performance and retain quality workers.Currently,PetFair employees receive compensation primarily based on years with the firm and job level. -Which of the following,if true,best supports the idea of offering a Scanlon plan to employees at PetFair?

The average or typical pay that most employers provide for a similar job in a particular area or industry is known as the ________ rate.

What is a limitation of profit sharing plans?

The market lag policy is one of three pay mix policy choices.

How can the General Schedule best be described?

PetFair,a national chain of pet supply stores,employs nearly 1,000 workers.In the past two years,the firm's market share has dropped and employee turnover has increased.The vice president of human resources at PetFair suggests implementing a new compensation policy to improve the firm's performance and retain quality workers.Currently,PetFair employees receive compensation primarily based on years with the firm and job level. -Which of the following,if true,best supports the argument that PetFair should implement a competency-based pay system?