Exam 9: Managing Compensation

Which of the following is an example of nonfinancial compensation?

Steps within a rate range allow pay increases based on merit or seniority or a combination of the two.

Compensable factors include skills, effort, responsibilities, and working conditions.

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.

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

Which of the following is NOT a method of comparison used in job evaluation?

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 USA. 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 competence-based pay system?

When an employer operates in more than one province, it has to apply only the employment requirements of one province of its choosing.

Which term refers to paying wages that are relatively equal to the value of the work being performed?

What is job classification often used to help determine pay for?

Briefly discuss the provisions of the employment standards acts pertaining to employee compensation.

Real wages represent the difference between wage increases and cost-of-living increases.

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

Woolite Fabrics is located in Vancouver, British Columbia. Which laws regulate its compensation?

In the development of a factor comparison scale, key jobs are NOT normally ranked against which of the following factors?

Equal pay for work of equal value involves providing equal pay to women when they perform work historically performed by men.

The use of job evaluation is widespread in the private sector but is rarely used in the public sector.

Assume Microsoft wants to link its overall organizational strategy to its wage and benefit policies in the strategic plan. How can the company best do this?

Crystal Ball Inc. is a large information technology firm with many levels of management. The company would like to compensate its managers on factors such as knowledge and accountability. Which system would you recommend?

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 USA. 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. Given that these employees are skilled-based/knowledge workers, which of the following is a more effective way to compensate them?