Exam 9: Managing Compensation

Which system of job evaluation are raters using when they take cards that list the duties and responsibilities of the job and arrange them in order of the importance of the jobs?

According to the compensation scorecard, functions with a compa ratio below __________ are considered to be paying their employees below the company norm.

Which job evaluation system serves to direct compensation dollars to the type of work pivotal to organizational goals?

Which of the following is NOT an internal factor affecting the pay mix?

Because management positions are more difficult to evaluate and involve certain demands not found in jobs at the lower levels, some organizations do not attempt to include them in their job evaluation programs for hourly employees.

Internal factors that influence wage rates include the worth of a job and the employer's ability to pay.

A number of employees in the production department at LennoCorp have approached their supervisors to request raises. They have said that colleagues who work in other departments at LennoCorp, but with the similar job titles and job descriptions, receive a higher wage. How can LennoCorp ascertain the truth of this anecdotal evidence?

Point manuals contain job descriptions and the number of points assigned to each job type.

The most common cost-of-living adjustments are __________ percent per hour for each .3-point or .4-point change in the consumer price index (CPI).

Which of the following is NOT a form of pay equity?

The employees at LennoCorp are meeting or exceeding their goals, and consistently get positive reviews. However, competition has forced down prices on the goods LennoCorp produces, thereby reducing the firm's income. In this situation, pay levels may be limited by

Astrid is a clerk at LennoCorp, an entry level position. She consistently gets positive evaluations for her work. She loves her job, and has no desire to be promoted into another position within the company. In this situation, her pay level may be limited by

All of the jobs at LennoCorp are grouped according to predetermined grades based on the level of skill, breadth of knowledge, and amount of responsibility each job requires. When a new position needs to be created, its specifications can be compared to the descriptions of each grade to determine the appropriate wage. LennoCorp uses a job ranking system.

Which is the simplest and oldest method of job evaluation?

__________ encompasses employee wages and salaries, incentives, bonuses, and commissions.

The __________ collects and displays the results for all the measures that a company uses to monitor and compare compensation among internal departments or units.

Employees at LennoCorp are motivated to work hard because they know that their performance will lead to monetary rewards that are worth the extra effort. According to the Expectancy theory, this compensation package has instrumentality.

Which of the following is an external factor that can influence the rates at which employees are paid?

Because pay rate compression is an external pay equity issue, employees who face it are more likely to seek advancement within the firm.

Job ranking is a simple method that provides a precise measure of each job's worth.