Exam 8: Building Pay Structures That Recognize Individual Contributions

Which of the following would NOT be considered as an advantage of broadbanding?

With which sales compensation plan does the level of pay not vary when sales volume does?

If the company adopts a market lead policy,how will that company's pay range midpoint compare to the market average?

This term describes a set of skills necessary to perform a specific job or a group of similar jobs.

If the company adopts a market lag policy,how will that company's pay range midpoint compare to the market average?

This federal Act requires contractors with federal contracts worth over $2,000 to pay wages at least equal to those prevailing in the area where the work is being done.

For the purpose of applying pay policies,this term refers to the groupings of jobs based on compensable factors.

This type of sales incentive compensation plan offers the sales person a salary and further compensation if they meet a specific,exceptional sales goal.

________ makes sure that employees have at least a minimally acceptable level of skill proficiency upon completion of a training unit.

________ describe the allocation of monetary resources to fund pay structures.

What is pay compression and how can companies minimize the occurrence of it?

A recently opened car dealer uses an incentive compensation plan for its sales people.The dealer provides money to its salespeople to cover basic living expenses and then shares a fixed percentage of the selling price of each car that a salesperson sells.However,the salesperson should repay the subsistence pay component within a year;otherwise he/she cannot continue in the employment of this dealer.What type of sales compensation plan does this dealer adopt?

________ represent the vertical dimension of pay structures.

________,or lump sum bonuses,lend themselves well to cost containment since these bonuses are not permanent percentage increases on worker base pay levels.

________ assign different pay rates for jobs of unequal worth and provide the basic framework for recognizing differences in individual's contributions.

Which of the following theories suggests that an employee must regard his own ratio of merit increase pay to performance as similar to the ratio for other comparably performing people in the company?

In establishing pay grades,which pay rate is established first?

Which scenario would be appropriate for using a salary-only plan?

What are the three considerations used in determining fixed pay and the compensation mix in sales compensation plans?

Richard's job has a compa-ratio of 0.85.What does this ratio tell about Richard's pay rate?