Question 1

There are two main constraints on compensation strategy formulation,legislated constraints and labour market constraints.

Accepted Answer

A) True 
 B)False  False

Question 2

What are the four special employee groups discussed in the text,and what are some the implications for compensation?

Accepted Answer

The four groups are contingent employees,new employees,executives,and international employees.A key issue for contingent employees is whether to compensate them differently from regular employees performing the same work.A key issue for new employees is whether to compensate them differently from long-term employees doing the same work.A key issue for executives is how create a compensation system that motivates desired behaviour,but is not excessively costly.A key issue for expatriate and foreign employees is the extent to which they are compensated consistent with home country standards.

Question 3

Which of the following behavioural objectives is appropriate for companies using a high-involvement strategy?

Accepted Answer

A)   Attract applicants to staff initial needs
B)   Attract top-quality applicants well in excess of needs
C)   Attract job applicants able to perform basic tasks
D)   Attract applicants to replace turnover B

Question 4

This method involves using a "what if" scenario to determine which compensation-level strategy is most efficient for your organization.

Accepted Answer

A)   Cost-benefit analysis
B)   Market share analysis
C)   Trial analysis
D)   Utility analysis

Question 5

What key constraint has probably forced you as a new owner to relocate your fast-growing labour intensive shoe manufacturing business from Toronto to a small town in Nova Scotia?

Accepted Answer

A)   Labour market
B)   Financial
C)   Legislated
D)   Service market

Question 6

Briefly summarize the legislative framework that compensation must comply with.

Accepted Answer

The answer of Briefly summarize the legislative framework that compensation...

Question 7

Which of the following steps is not considered part of the compensation strategy formulation process?

Accepted Answer

A)   Determine required behaviour
B)   Determine role of compensation
C)   Evaluate the proposed strategy
D)   Conduct performance appraisals

Question 8

The compensation system needs to be relied on more heavily to motivate behaviour in which of the following circumstances?

Accepted Answer

A)   Pet rescue center animal attendants
B)   Food processing plant production workers
C)   Food bank packagers
D)   Hospital nursing staff

Question 9

The CEO of a food distribution firm is attempting to decide what the compensation strategy will be for the coming year. What is the first step in the process she needs to consider?

Accepted Answer

A)   The role of compensation
B)   The compensation mix
C)   The required behaviour
D)   The compensation level

Question 10

As the owner of a medium-sized engineering consulting firm,you choose to have different pay-level policies for your engineers,managers,and support staff. Which type of compensation policy have you adopted?

Accepted Answer

A)   Lead
B)   Match
C)   Hybrid
D)   Lag

Question 11

You are attempting to define the role compensation will play in your reward strategy.What is the first thing that needs to be examined?

Accepted Answer

A)   The nature of intrinsic and other extrinsic rewards offered
B)   The compensation level strategy
C)   The indicators of goal achievement
D)   The compensation system behavioural objectives

Question 12

The nature of the compensation mix affects the amount that an organization can afford to pay.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not considered to be a constraint on the compensation strategy?

Accepted Answer

A)   Legislated
B)   Labour market
C)   Product/service market
D)   Demographics

Question 14

Which of the following workers are not covered under minimum wage legislation in some jurisdictions?

Accepted Answer

A)   Students
B)   Employees working from home
C)   Domestic servants
D)   Commissioned salespeople

Question 15

Lag strategies are cost-effective for which type of firms?

Accepted Answer

A)   Firms that are labour-intensive
B)   Firms needing to attract top-quality applicants
C)   Firms that value employee stability
D)   Firms that invest heavy in training and development

Question 16

By paying employees 5% below the base pay market,you are using what type of compensation policy?

Accepted Answer

A)   Lag
B)   Lead
C)   Match
D)   Low cost

Question 17

In developing a compensation strategy,the two key questions that must be addressed are: "How much is to be paid?" and "When should it be paid?"

Accepted Answer

A) True 
 B)False

Question 18

This term refers to the boundaries within which the compensation system must be designed.

Accepted Answer

A)   Liabilities
B)   Constraints
C)   Demographics
D)   Opportunities

Question 19

To keep work interesting and provide higher compensation opportunities for your design engineers,you have created a compensation system that allows them to move from an entry to expert specialist level. What term is used to describe this system?

Accepted Answer

A)   Management pathing
B)   Technical ladder
C)   Competency based
D)   Leader development

Question 20

Briefly describe the five main steps in the formulation of compensation strategy.

Accepted Answer

The answer of Briefly describe the five main steps in...

Exam 6: Formulating the Reward and Compensation Strategy

There are two main constraints on compensation strategy formulation,legislated constraints and labour market constraints.

What are the four special employee groups discussed in the text,and what are some the implications for compensation?

Which of the following behavioural objectives is appropriate for companies using a high-involvement strategy?

This method involves using a "what if" scenario to determine which compensation-level strategy is most efficient for your organization.

What key constraint has probably forced you as a new owner to relocate your fast-growing labour intensive shoe manufacturing business from Toronto to a small town in Nova Scotia?

Briefly summarize the legislative framework that compensation must comply with.

Which of the following steps is not considered part of the compensation strategy formulation process?

The compensation system needs to be relied on more heavily to motivate behaviour in which of the following circumstances?

The CEO of a food distribution firm is attempting to decide what the compensation strategy will be for the coming year. What is the first step in the process she needs to consider?

As the owner of a medium-sized engineering consulting firm,you choose to have different pay-level policies for your engineers,managers,and support staff. Which type of compensation policy have you adopted?

You are attempting to define the role compensation will play in your reward strategy.What is the first thing that needs to be examined?

The nature of the compensation mix affects the amount that an organization can afford to pay.

Which of the following is not considered to be a constraint on the compensation strategy?

Which of the following workers are not covered under minimum wage legislation in some jurisdictions?

Lag strategies are cost-effective for which type of firms?

By paying employees 5% below the base pay market,you are using what type of compensation policy?

In developing a compensation strategy,the two key questions that must be addressed are: "How much is to be paid?" and "When should it be paid?"

This term refers to the boundaries within which the compensation system must be designed.

To keep work interesting and provide higher compensation opportunities for your design engineers,you have created a compensation system that allows them to move from an entry to expert specialist level. What term is used to describe this system?

Briefly describe the five main steps in the formulation of compensation strategy.