Exam 11: Establishing Strategic Pay Plans

Wage rate has been the main issue negotiated by unions in collective bargaining.

Which form of equity refers to how a job's pay rate in one company compares to the job's pay rate in other companies?

Which of the following terms refers to all forms of pay or rewards going to employees and arising from their employment?

External equity refers to ________.

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 questions is LEAST relevant to Homelife's decision to develop an aligned reward strategy?

What are the primary factors involved in determining compensation for a firm's CEO? What reasons best explain compensation reductions for top executives in recent years?

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?

Audrey is a lawyer in a mid-size firm in Chicago.She recently learned that another lawyer who joined the firm at the same time earns a lower salary than she does.Which form of equity is most relevant to Audrey's situation?

The point method of job evaluation is the most frequently used job evaluation method,but it is also associated with lawsuits involving comparable worth.In a brief essay,explain the point method of job evaluation and why it is problematic for firms in regards to comparable worth.

In the broadest sense,comparable worth may mean comparing jobs that are very dissimilar such as nursing to fire fighting.

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?

Which of the following was enacted in 1931 for the purpose of setting wage rates for laborers and mechanics employed by contractors working for the federal government?

Joseph worked 6 hours of overtime this week but has decided to take time off instead of overtime pay.How many hours will Joseph receive in time off from work?

External equity refers to how fair the job's pay rate is,when compared to other jobs within the same company.

Beth,a small business owner,wants to ensure external equity when establishing pay rates.Beth should most likely ________.

Which of the following is LEAST likely a benefit of using competency based pay?

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.

In a brief essay,discuss the purpose of job evaluations.Discuss the similarities and differences between job evaluations conducted for managerial positions and lower level positions at a firm.

Which of the following job evaluation methods is associated with almost every comparable worth lawsuit?

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