Question 1

This term is used to describe your base pay when it is calculated on an hourly basis.

Accepted Answer

A)   Commission
B)   Wage
C)   Piece rate
D)   Salary B

Question 2

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

Accepted Answer

Performance pay may be geared to the performance of the individual employee,the work group or team,or the organization as a whole.Individual performance pay plans include piece rates,commissions,merit pay,and special incentives.Group performance pay plans include gain sharing plans,goal sharing plans,and other group plans.Organizational performance pay plans include profit sharing plans,employee stock plans,and other organization performance pay plans.

Question 3

Competency-based pay,in contrast to skill-based pay,is a practice that has been shown to be highly beneficial over the years.

Accepted Answer

A) True 
 B)False  False

Question 4

Which statement best describes the difference between pay for knowledge systems (PKS)and job-based pay systems?

Accepted Answer

A)   Pay for knowledge systems involve basing pay on the capabilities of individuals, and job-based pay is based on the characteristics of the job.
B)   Pay for knowledge systems are applied to managerial employees and job-based pay is applied to operational-level employees.
C)   Pay for knowledge systems are more widely used by Canadian firms than job-based pay systems.
D)   Pay for knowledge systems involve low training costs and are easier to administer than job-based pay systems.

Question 5

Briefly discuss the advantages and disadvantages of using indirect pay.

Accepted Answer

The answer of Briefly discuss the advantages and disadvantages of...

Question 6

You company offers you pay for time not worked,disability benefits,supplemental medical coverage,and a full range of free employee services.These items refer to which component of the compensation mix?

Accepted Answer

A)   Direct pay
B)   Base pay
C)   Indirect pay
D)   Performance pay

Question 7

An advantage of base pay is that it demonstrates commitment to employees by the employer.

Accepted Answer

A) True 
 B)False

Question 8

What compensation option do unions continue to bargain strongly for at the negotiation table?

Accepted Answer

A)   Comprehensive benefits
B)   Performance pay
C)   Mandatory benefits
D)   Union dues

Question 9

Indirect pay is widely used by classical firms since it provides task motivation.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is the most important potential disadvantage of performance pay?

Accepted Answer

A)   It increases the need for layoffs in poor economic conditions.
B)   It does not fit well with high-involvement management.
C)   It is mainly effective in small companies.
D)   It does not pay off for some employers.

Question 11

Performance pay plans are difficult to administer and have a high discontinuation rate.

Accepted Answer

A) True 
 B)False

Question 12

An advantage of performance pay is that workers are paid less this way.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following methods is more likely to create a "not my job" attitude,inhibiting change,flexibility and skill development?

Accepted Answer

A)   Market pricing
B)   Job evaluation
C)   Competency-based pay
D)   Skill-based pay

Question 14

You need to attract competent employees and are more concerned with external competitiveness than internal alignment.Which is the best method for you to use to determine base pay?

Accepted Answer

A)   Job evaluation
B)   Person-based pay
C)   Competency-based pay
D)   Market pricing

Question 15

Which of the following terms is used to describe the basic component of a skill-based pay system?

Accepted Answer

A)   Skill block
B)   Skill certification
C)   Key competencies
D)   Broad-banding

Question 16

Which of the following refers to job evaluation?

Accepted Answer

A)   Determining how well a job is performed.
B)   Surveying the market.
C)   Ranking all jobs according to their value to the firm.
D)   Establishing the skill level of each employee.

Question 17

Which of the following is a reason why employees may prefer base pay over performance pay?

Accepted Answer

A)   Performance pay is not flexible enough.
B)   Base pay is directly related to their performance level.
C)   They dislike uncertainty about their compensation.
D)   Market conditions are always changing.

Question 18

Why would an employer prefer to use base pay over output-related pay?

Accepted Answer

A)   It allows the employer some flexibility in the allocation of tasks.
B)   It guarantees employee performance.
C)   The need for task behaviour is high.
D)   It provides the employer flexibility of labour costs.

Question 19

Which of the following is an objective of variable pay?

Accepted Answer

A)   To help retain long service employees.
B)   To reinforce desirable behaviour.
C)   To eensure that performance appraisals will be taken seriously.
D)   To act as a replacement for base pay.

Question 20

Identify and briefly describe the issues in developing a skill-based pay system.

Accepted Answer

The answer of Identify and briefly describe the issues in...

Exam 4: Components of Compensation Strategy

This term is used to describe your base pay when it is calculated on an hourly basis.

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

Competency-based pay,in contrast to skill-based pay,is a practice that has been shown to be highly beneficial over the years.

Which statement best describes the difference between pay for knowledge systems (PKS) and job-based pay systems?

Briefly discuss the advantages and disadvantages of using indirect pay.

You company offers you pay for time not worked,disability benefits,supplemental medical coverage,and a full range of free employee services.These items refer to which component of the compensation mix?

An advantage of base pay is that it demonstrates commitment to employees by the employer.

What compensation option do unions continue to bargain strongly for at the negotiation table?

Indirect pay is widely used by classical firms since it provides task motivation.

Which of the following is the most important potential disadvantage of performance pay?

Performance pay plans are difficult to administer and have a high discontinuation rate.

An advantage of performance pay is that workers are paid less this way.

Which of the following methods is more likely to create a "not my job" attitude,inhibiting change,flexibility and skill development?

You need to attract competent employees and are more concerned with external competitiveness than internal alignment.Which is the best method for you to use to determine base pay?

Which of the following terms is used to describe the basic component of a skill-based pay system?

Which of the following refers to job evaluation?

Which of the following is a reason why employees may prefer base pay over performance pay?

Why would an employer prefer to use base pay over output-related pay?

Which of the following is an objective of variable pay?

Identify and briefly describe the issues in developing a skill-based pay system.