Exam 9: Managing Compensation

XYZ Company wants to pay its employees based on their skills that are valued by the company. Which of the following would it most likely use?

ABC Corporation is a furniture firm based in Ontario that supplies its products to the federal government. What laws would apply to ABC Corporation?

Scenario 9.1 Denton and Denton Inc. (D&D Inc.) is a small graphic design firm that designs tray liners for various small food chains across Canada and a major chain in the United States. D&D currently has 20 employees who are paid hourly rates for time worked, not projects completed. These workers consider themselves valuable, knowledge-based workers, and now that the company is expanding its client base they are not happy with the current pay structure. Management claims that this pay structure, ranging from $20 to $65 per hour, is based on collapsing the pay ranges for four job bands. -Refer to Scenario 9.1. Which of the following is NOT a benefit of competency-based pay system?

Granting wage increases solely on the basis of the CPI helps compress pay rates within a pay structure, thereby ensuring equity among those who receive the wage increase.

Which of the following is an example of nonfinancial compensation?

To help achieve internal equity, factors such as skills, effort, responsibilities, and working conditions may be used to assess jobs. What do we call these factors?

What do we call jobs that are selected to be included in salary surveys?

Which of the following is the simplest job evaluation system?

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

Scenario 9.2 Calendars "R" Us Ltd. is a small firm that manufactures yearly calendars with a specific focus on middle and high schools in Alberta. They started operations back in 2006 with just 12 employees, two machines, and a small warehouse that served as an office and production and storage facilities. Today, Calendars "R" Us has roughly 60 employees and supplies its calendars to most middle and high schools in Alberta. When employees join they are paid based on their relationship with the owners. Given the rapid growth in its staff complement, and the arbitrary way in which it normally compensates employees, payroll has proven to be quite a challenge for the company as management looks to expand into other provinces. -Refer to Scenario 9.2. Setting pay levels at Calendars "R" Us can be limited by all of the following factors EXCEPT which one?

Wage survey data can be obtained from government sources, trade associations, or professional groups, or organizations can conduct their own surveys.

The expectancy theory of motivation predicts that one's level of motivation depends on the attractiveness of the rewards sought by employees and the probability of obtaining those rewards.

Which of the following terms is also used to describe competency-based pay?

Using the point manual, how is the relative worth of a job determined?

What types of jobs are usually evaluated using the Hay profile method?

Scenario 9.2 Calendars "R" Us Ltd. is a small firm that manufactures yearly calendars with a specific focus on middle and high schools in Alberta. They started operations back in 2006 with just 12 employees, two machines, and a small warehouse that served as an office and production and storage facilities. Today, Calendars "R" Us has roughly 60 employees and supplies its calendars to most middle and high schools in Alberta. When employees join they are paid based on their relationship with the owners. Given the rapid growth in its staff complement, and the arbitrary way in which it normally compensates employees, payroll has proven to be quite a challenge for the company as management looks to expand into other provinces. -Refer to Scenario 9.2. Calendars "R" Us jobs range from management to administrative, to clerical to production to packing to delivering. Which of the following would be key to evaluating the worth of each job category?

Wage compression may create problems related to which of the following?

Which of the following clauses are found in some labour agreements that periodically adjust compensation rates to reflect increases in cost of living?

What type of jobs do companies normally use to collect wage survey data?

What is the key purpose of pay equity legislation?