Exam 9: Managing Compensation

Some organizations can choose a strategy to pay higher than market wages and salaries. Which of the following will this NOT help them do?

Organizations may dodge the comparable worth issue by using one job evaluation system for clerical jobs frequently held by women, and another system for other jobs.

Pay equity is achieved when employees' compensation is equal to the value of the work they perform.

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

Scenario 9.2 Calendar "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, Calendar "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. Calendar "R" Us wants to develop a set of compensation policies that are internally fair. Which of the following is helpful in making this decision?

Which of the following pay systems would an organization wishing to establish greater job-staffing flexibility most likely use?

Which of the following is a quantitative job evaluation procedure that determines a job's relative value on the basis of quantitative assessments of specific job elements?

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

In a unionized environment, how is pay for employees in the bargaining unit normally determined?

According to the text, what is the predominant approach to employee compensation?

Explain competence-based pay, including its advantages and disadvantages. Include in your discussion the practice of broadbanding.

Desirée is a female receptionist employed by York University in Toronto. John is a male janitor with the same employer. Both jobs are evaluated as having 500 points, yet Desiree is paid less than John. She has decided to legally challenge the employer. Which of the following is relevant in this case?

What is a key implication of expectancy theory when applied to pay systems?

How can organizations dodge comparable worth issues?

Labour market conditions have little impact on wage rates paid to employees.

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

The job classification system is commonly used by smaller employers.

Competence-based pay systems compensate employees for the different skills or knowledge they possess rather than for the job they hold in a designated job category.

Which legislation is concerned with minimum wage rates and overtime payments?

Broadbanding refers to collapsing many traditional salary grades into a few wide salary bands.