Exam 11: Establishing Strategic Pay Plans

The market-based approach to setting rates involves conducting formal or informal salary surveys to determine what others in the relevant labor markets are paying for particular jobs.

Phil, the owner of Eastline Electronics, recently learned that the current rate being paid for the position of engineering assistant at his firm falls significantly below the wage line. Which of the following steps should Phil most likely take to correct this problem?

Which of the following is the LEAST likely way that an employer would address a cost-of-living differential?

Which of the following issues would LEAST likely be negotiated by unions?

John is a sales representative in a jewelry store. He typically works 40 hours per week and his pay is completely based on his sales. He earns a 5% commission for every sale he makes. Which of the following terms best describes John's situation?

Which of the following is NOT a type of direct financial payment?

A ________ is comprised of jobs of approximately equal difficulty or importance as established by job evaluation.

Central basic factors that establish how several jobs compare to one another and that determine the pay for each job are called ________.

What are the key differences between competency-based pay and traditional job-based pay? Which method would you prefer if you were an employee? Why?

Which of the following best describes the point method of job evaluation?

Which law makes it illegal to discriminate against any individual with respect to compensation because of race, color, religion, sex, or national origin?

According to the Davis-Bacon Act, when employees work more than 40 hours per week, employers must pay overtime at a rate of at least one-and-a-half times the normal pay for any hours worked over 40 in a workweek.

Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the past few years, the company's market share has dropped significantly, and employee turnover has increased. Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around. Historically, the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers. Which of the following, if true, best supports the decision by Homelife executives to implement competency-based pay?

What are your compensation options if you are an employer who needs to transfer an employee from a low cost-of-living area to a high cost-of-living area?

Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the past few years, the company's market share has dropped significantly, and employee turnover has increased. Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around. Historically, the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers. Which of the following, if true, best supports the argument that Homelife executives should primarily address internal equity issues when developing a new compensation plan?

Most organizations use a market-pricing approach when determining compensation for professional employees such as engineers and scientists.

A company using competency-based pay compensates employees for all of the following EXCEPT ________.

Salary surveys are used by firms to collect data on employee benefits as well as wage rates for the purpose of pricing jobs.

Due to federal legislation, greater opportunities for higher learning, and more women in the workforce, women in the U.S. earn approximately 90% as much as men.

Which of the following laws has the LEAST amount of influence on compensation decisions?