Exam 9: Managing Compensation

LennoCorp has introduced a new recognition program in which employees are publicly recognized for outstanding efforts or contributions to the firm. This is a form of nonfinancial compensation.

The relationship between the relative worth of jobs and their wage rates can be represented by means of a

The job evaluation system that seeks to measure a job's worth through its value to the organization is known as the

The point system of job evaluation permits jobs to be evaluated quantitatively based on compensable factors.

One potential disadvantage to the cost of living increases often negotiated by unions is that

The elements of a job such as fiscal accountability, leadership, and product accountability are referred to as

Clauses in labor agreements that provide for quarterly cost-of-living adjustments in wages, basing the adjustments on changes in the consumer price index are known as

The description "G2 jobs include those classes of positions for which the duties are to be performed with minimal supervision and little latitude for the exercise of independent judgment" is typical of that found in what type of job evaluation system?

There is reason to believe that pay secrecy can do all of the following EXCEPT

Raising selection standards and hiring better-qualified employees can reduce training costs.

The relative worth of a job evaluated using the point manual is determined by

The Hay profile method uses which three factors for evaluating jobs?

Sandra is a clerk in a mid-size office. She has two friends who have similar jobs in other offices. All three friends have been in their jobs for about the same length of time, and their wages are almost identical. Sandra has pay equity.

A company that is facing the challenge of pay rate compression might want to increase the size of pay increases for merit-worthy employees and redesign its pay structure to increase the spread between hourly and supervisory employees.

One of the major criticisms of job-based compensation systems is that they often fail to reward employees for their skills or the knowledge they possess.

Changes in technology have required LennoCorp to create several new jobs in the company. Because LennoCorp uses a job classification system, the specifications of each new position can be compared to the descriptions of each grade to determine the appropriate wage.

Aida is an exempt employee. Her regular pay is $1000 a week, which works out to about $25 an hour. It was very busy at work this week, and she worked 46 hours. She earned $225 over her regular pay, so that her gross pay for the week will be $1225.

A point manual can be used to determine the external equity of a job.

A major criticism of competence-based pay systems is that after achieving the top wage, employees may be reluctant to continue their educational training.

Which system of job evaluation is being used when jobs are grouped according to a series of predetermined wage grades?