C236 Compensation and Benefits

What is the longest a job description should be? 2 pages 4 pages 3 pages 1 page

1 Page

As a general rule, base pay strategies rarely lead the market by more than __%.

10%

Leading the Market

A Rewards Strategy in which the firm is trying to provide more of a given reward than its competitors for those employees.

Matching the Market

A Rewards Strategy of providing an amount of the reward equal to the market average.

Strategy Shift

A gradual shift towards being involved in businesses with a more value-driven purpose as organizations systematically define their activities in light of their values.

Scatterplot

A graphic tool used to display the relationship between two quantitative variables, using an X and Y axis.

Custom Questionnaires

A series of questions that job incumbents complete on their own.

Central tendency is: A group of numbers to represent one number A single number that best represents a group of numbers Both A and B None of the above

A single number that best represents a group of numbers

Job Structure

An organized listing of the business's jobs that functionally groups and hierarchically arranges the jobs for rewards purposes.

The performance management system refers to all of the following except: Providing feedback and coaching Analyzing trends in the market Creating performance plans Appraising performance Providing support and resources

Analyzing trends in the market

Salary Level Test

Any employee paid less than $35,568 per year (or $684 per week) is nonexempt and covered by the FLSA.

Salary Basis Test

Any employee whose pay is reduced based on the hours worked is non-exempt.

The relative level involves which of the following: Leading the market Lagging the market Matching the market Any of the above

Any of the above

SWOT Analysis

Assessing an organization's internal strengths and weaknesses and external opportunities and threats

How do you calculate the Compa-ratio?

By dividing the average pay for the pay grade by the midpoint of that range

Organizational Performance

Can include effectiveness at meeting customer needs, new product creation, and gains in market share, profits, and other measures of financial return on the firm's assets.

Critical Success Factors

Capabilities, activities, customer perceptions, and market positions that allow an organization to outcompete its rivals. Example: For the fast-food restaurant, these may be the franchiser's brand, proximity to travel routes, or sources of quality and low cost employees. For the upscale restaurant, on the other hand, its ability to compete might depend more upon elite reputation, exclusivity of dishes, and a downtown location.

Managers should remember that the process of __________ is important and also consider any legal ramifications of the historic pay disparity.

Change

Which of the following laws relates to total rewards? Civil rights laws Arbitrage law Litigation None of the Above

Civil rights laws

Transparency

Clear information on the who, what, when, and why of the reward system is available to all.

In a dynamic-role based job: Compensation plans need to be evaluated Compensation plans do not need to facilitate change Compensation plans are able to stay static Compensation plans need to facilitate change

Compensation plans do not need to facilitate change

Decentralized Approach

Decisions can be made by the employee's immediate supervisor or manager.

Differentiations in pay should only be made when they are clearly ___________ and worth the potential tradeoffs.

Defensible

Job Descriptions

Descriptions that detail the work done in the organization.

There are three different types of fairness perceptions that should be considered in developing a Total Rewards system:

Distributive, Procedural, and Interactional.

Networked Careers

Employees change jobs frequently, sometimes changing functions and industries to bring unique perspectives and competencies to their new roles.

Exempt Employees

Employees who are exempt from the overtime requirements of the Fair Labor Standards Act, such as outside salespeople and executives who have administrative or managerial responsibilities.

Red Circle Rates

Employees whose pay is above the range for their job. refers to employees whose pay is above the range for their job.

Hybrid Strategy

Employing a combination of cost-leadership, differentiation, and niche-focused business strategies

Choose the answer which does not complete the blank: internal reward alignment is how _______ the relative value of all jobs in an organization is. Clear Fair Enjoyable Coherent

Enjoyable

Broadbanding

Entails the use of a few broad bands (or grades) to organize work for pay purposes.

Data

Facts and statistics collected for reasoning or calculation.

Outcomes

Goals or the criteria by which a rewards system can be judged

Broad Input

Help, advice and thoughts from employees of all levels of the organization.

Portal to Portal Act

Helped to define some of the rules for the FLSA. Provides that employers are not required to pay for the time employees spend on activities occurring before or after ("preliminary or postliminary") they perform the principal activities for which they are employed.

Primary Duties Test

If an employee has significant discretion and exercises independent judgment, that employee is classified as exempt from FLSA provisions. The tests of duties are broken into exemption criteria for Executives, Learned Professionals, Creative Professionals, Administrative, Computer, Outside Sales, and High Compensated.

An employee's satisfaction with work is heavily influenced by their: Immediate supervisor Job description Coworkers Job skills

Immediate supervisor

Labor markets are where ____________ are the sellers and ____________ are the buyers. Governments, organizations Individuals, organizations Individuals, governments Organizations, governments

Individuals, organizations

One advantage of using subscription information from a third party is: Relative Price Accuracy Industry specific

Industry Specific

____________________________ are defined as all psychological, social, and contextual factors in organizations outside the traditional pay and employee benefits categories that are rewarding to employees.

Intangible Rewards

A __________ is a grouping of jobs that have similar functions or content.

Job Family

When jobs are static: Jobs don't change much over time Jobs are easier to get Jobs are quick to change over time Jobs move freely

Jobs don't change much over time

Benchmark Jobs

Jobs that are representative of the type, content, and level of jobs in the organization.

Hybrid Approach

Leading the market on certain forms of rewards while matching or lagging the market on other forms.

Name one disadvantage to a panel interview? Too Much Work Length of Time Not Needed Not Part of the Job

Length of Time

Which of the following is not a reason to use performance-based pay? Focus Control costs Motivation Risk & uncertainty Market trends

Market trends

What are some examples of intangible rewards?

Meaningful work Playing a key role in a company Rewarding relationships

Cash Compensation

Monetary pay that employees receive in exchange for their work

managers need to understand the importance of __________ because different views of motivation might be useful at different times. In some ways, these views are compatible.

Motivational Judgement

Outliers

Numbers that are far above or below most of the other numbers.

Product and Service Markets

Organizations compete to create value through the production of goods or the provision of services for customers in exchange for money and loyalty.

The mean can be heavily influenced by: Organizational cultures Market trends Median Outliers

Outliers

What is another term for "fringe benefits"?

Perks

External Rewards Positioning

PositioningRefers to how an organization's Rewards compare to the Rewards offered for comparable work in other organizations.

Employees can only be classified as exempt if they pass the: Primary Duties Test Non-Exempt Test Exempt Test Secondary Duties Test

Primary Duties Test

The _________ states that the size of pay ranges should be kept sufficiently small to enable an organization to control labor costs.

Principle of Control

The ___________ simply states that a pay range needs to be large enough to capture the pay range of all jobs in that grade or band.

Principle of Inclusiveness

__________________________are designed to distribute a portion of the firm's annual profits back to the firm's employees.

Profit Sharing Plans

It is better to have a _____________ approach in job analysis. Quantitative Qualitative Both A & B None of the above

Quantitative

Base Pay

Salary or hourly wages

Regular Workweek

Seven consecutive periods of 24-hour days

Business Strategy Support

Supporting a business' approach to adapting to changes in its environment in order to compete and win.

Niche Focused Strategy

Targeting business priorities toward addressing a specific section of the market. An organization chooses a small and segmented market and competes only in that small arena.

A _________________________ is based on some measure of team performance instead of individual performance.

Team Based Bonus

Business Strategy

The collection of decisions, approaches, and activities that allow an organization to compete and win

Technology

The equipment and knowledge used to produce goods and services. May vary greatly by industry.

Reward Strategy Line

The extent to which a company will pay above, at, or below the market average, shown in graphical form.

Design Strategy

The process used to design the rewards system.

Job analysis will be _____________ if management and employees do not buy-in to it. Useful Useless Understandable None of the above

Useless

Job Analysis

Yields a catalogue of Job Descriptions.

Rucker plans have a ___________ base on metrics.

broader

The assumption of the value of carrying and growing capacity lies at the heart of justifying a ______________________.

capability-based rewards system

The Compa-ratio is calculated by:

dividing the average pay for the pay grade by the midpoint of that range.

Procedural Justice

focuses on the process by which the reward distribution was determined.

An effective rewards system will require you to have a clear understanding of:

how your business competes in the market, meets customer needs, and remains profitable.

In _______ organizational cultures, more individuality is shown through the organization's rules being less strictly applied.

weak

The value-reward line can best be explained by the mathematical equation?

y=mx+b

Reward Level Strategy

'How much is being offered?' Answering this question is the goal of the Reward Level Strategy. In formulating Reward Level Strategy, organizations must define what Level of each reward will be offered.

Pilot Program

A small-scale preliminary experiment that allows the organization to better understand the design parameters, how the program is received, and the impact of the program on work outcomes.

Shadow Ranges

A system of smaller ranges within the pay ranges, applied to specific job families to provide guidance on appropriate compensation levels.

A sunset clause specifies a program's temporary nature in order to allow the organization to ____________ the program according to the results it produces.

Adapt

Which of the following is not an example of a job family? Accounting All are considered job families Engineering Biology

All are considered job families

Total Rewards

All forms of pay and compensation, tangible benefits, and other intangible rewards that an organization provides

Hours Worked

All hours that an employee is permitted to work, plus time when the employee is required to be on the employer's premises, on duty, or at a designated work station.

Which of the following are ways for organizations to gain salary data? Public data Government data Self-reported data All of the above

All of the above

What is an advantage to broadbanding?

Allows for greater flexibility

Fair Labor Standards Act (FLSA)

An Act that requires organizations to determine the "employee status" of each job.

Weighted Mean

An average that takes into account the proportional relevance of each component.

Absolute level refers to: Fair salary Base salary Competitive salary Experience salary

Base Salary

A selection of primary organizations that exemplify the labor and product/service markets in which the organization competes

Benchmark Competitors

To create a strategic total rewards plan, you need to understand all of the following except: Market Benefits Customers None of the above

Benefits

In the United States, the _________conducts a National Compensation Survey to measure broad reward practices and levels.

Bureau of Labor Statistics

In which approach would it appear that jobs are categorized by job descriptions? Job comparison approach Point factor approach Classification approach None of the above

Classification approach

Which of the following will not enhance procedural justice? Multiple sources Voice Explanation Device strategy Correcting mechanism

Device strategy

The most fundamental question of internal reward alignment relates to the number of ____________ in an organization. Distinct reward structures Distinct benefit plans Distinct business goals Distinct business strategy

Distinct reward structures

Organizational performance includes all but: Meeting customer needs Profits Employee satisfaction New market share

Employee satisfaction

Non Exempt Employees

Employees who are covered by the minimum wage and overtime pay provisions of the FLSA. Those who are generally paid on an hourly basis, such as blue-collar workers, maintenance workers, construction workers, technicians, laborers, and semiskilled workers.

Job-Specific Reward Level Strategy

Establishing different Reward Level Strategies for different job families or hierarchical levels.

How often should a job description be updated? Every 2 years Every 3 years As needed and appointed by the HR manager Every time a performance review is completed

Every Time a Performance Review is completed

Which item can job evaluation, job analysis, market surveys, and performance measurement assist with? Voice Multiple sources Correcting mechanism Explanation

Explanation

State, county, or city governments conduct some form of compensation survey. These sources would have great utility for smaller, local labor markets. This data is very specific and provides data on most benchmark jobs. True or False

False

There is not a degree of correspondence between pay grade size and range size. True or False

False =The Principle of Parity suggests that, in general, the more grades that are used the smaller the ranges will be.

Which of the following industries best demonstrates the cost leadership strategy? Fine dining Fast food Manufacturing Technology

Fast Food

Cost Leadership Strategy

Focusing business priorities on providing a lower-cost product or service. Example: While a fast-food restaurant can still make a profit selling a meal for two to five dollars, the fine dining establishment has to sell its meals at fifty dollars per plate to be profitable. Fast food, therefore, takes this strategy.

When jobs were grouped into________________, it was for the purpose of treating them the same for compensation purposes.

Grades and Bands

Scanlon plans focus on __________________.

Improvements in labor costs

The __________asks, "If I perform, will I receive the reward"? This perception focuses on the contingency between employee actions and the reward, and can be thought of as the odds of reward.

Instrumentality Perception

The advantage of the job comparison approach is that it is: Intuitive Holistic Intuitive and holistic

Intuitive and holistic

_______ is the process of systematically analyzing positions that result in completed work in organizations.

Job Analysis

_________ is a depiction that defines performance and outlines its causes.

Job Performance Model

In which approach would it appear that jobs are ordered based on rank and file? Job comparison approach Point factor approach Classification approach None of the above

Job comparison approach

Through what method do you understand how valuable a job is? Job creation Job devaluation Job analysis Job evaluation

Job evaluation

Within the cost leadership strategy, the customers will be charged ________________. More Less Nothing All of the above

Less

Having a scale that would rank abilities from Unable, Somewhat Able, Able, Very Able, Extremely Able, is an example of: Likert Scale Level definitions None of the above Likert Definitions

Level definitions

What industry is commonly known for using the piece rate system?

Manufacturing

___________occurs when new employees are paid more than those employees with substantial experience in the organization.

Pay Inversion

Cost leadership focuses more on: Price Leadership Cost Strategy

Price

Enviornments of risk and unncertainty create unforeseen or controllable circumstances, resulting in changes in: Variable pay Profitability Goals Results

Profitability

Variable Pay

Rewards that vary as performance varies.

Rewards strategies that work in the ______ term, while the firm is niche focused, may be forced to change in the _______ term. Long, short Long, long Short, short Short, long

Short, Long

Collaborative Environment

Teams of employees work in concert to be creative, solve problems, and produce results.

The Principle of Inclusiveness states: That a gap does not need to be large enough to capture the pay range of all jobs in that grade or band That a pay range needs to be large enough to capture the pay range of all jobs in that grade or band That a pay range does not need to be large enough to capture the pay range of all jobs in that grade or band That a gap needs to be large enough to capture the pay range of all jobs in that grade or band

That a pay range needs to be large enough to capture the pay range of all jobs in that grade or band

Regular Rate of Pay

The basic hourly rate of pay plus any non-discretionary bonuses, shift differentials, production bonuses, and commissions earned

Internal Reward Alignment

The extent to which an organization's Total Rewards System aligns each employee's rewards with those received by others in the organization.

Job Evaluation

The process by which the value of each job in an organization is established. Methods include the Classification Approach, the Job Comparison Approach, and the Point Factor Approach.

Dynamic Role Based

The work employees do changes on a regular basis.

Rating Scales

Tools used to measure compensable factors in step two of the Point Factor Approach. Rating scales include Graphic RatingScales, Anchored Rating Scales, and Variable Distance Scales.

Using pay grades is useful because it allows the organization to establish different pay strategies for different pay grades. True or False

True

Which of the following is not a primary concern when integrating data from multiple rewards surveys? Aging the data Matching benchmark jobs Pay forms Understanding government mandates

Understanding government mandates

Pay Form-Specific Reward Strategies

Varying pay-level strategies across reward types.

Understanding weaknesses can help ask the question: What can we do that our competitors can't? What can we not do? What societal flaws can hurt our organization? Where can we improve?

What can we not do?

Which is NOT discussed as a group of work relationships? Manager relationships Peer relationships Customer relationships Supervisory relationships

Workplace relationships include customer, supervisory, and peer relationships. Not Manager relationships

A networked career is:

where employees change jobs frequently, sometimes changing functions and industries

A collaborative environment is:

where teams of employees work in concert to be creative, solve problems, and produce results

An organizational citizenship behavior is:

A value-creating activity engaged in by employees not part of the job

discretionary employee benefit

Benefits that you do not need to provide by law. The typical list includes sick leave, health insurance, maternity leave, pension plans, vacation leave, prescription drug insurance, and life insurance.

True

Over the past two decades, organizations have tried to understand how many pay bands they should have.

The ________ suggests that, in general, the more grades that are used the smaller the ranges will be. Conversely, as fewer grades (or broadbanding) are used, the ranges will necessarily have to increase. Thus, there is a degree of correspondence between pay grade size and range size.

Principle of Parity

__________means that an employee's level of skill, competency, or experience can be assessed consistently across employees and raters.

Reliable Measurement

The bulk of the job description does not include: Duties Rewards Tasks Responsibilities

Rewards

Which of the following is not a readily available way of obtaining reward information: Popular press Government Competitors compensation plan Self-report

Competitors compensation plan

In the differentiation strategy, the costs of the organization will be passed on to the: Organization Government Customer Employees

Customer

When graphing the salaries in a value reward line, what type of graph would give the best picture of salaries?

Scatterplot

Green Circle Rates

Employees whose pay is below the range for their job. refer to employees whose pay is below the range for their job.

With the principle of overlap, it is impossible that an employee in pay grade three could be paid more than an employee in pay grade four. True or False

False = A high performing employee that has been with the organization for 10 years in grade three may be paid higher than an inexperienced employee just hired into grade four.

Fair Labor Standards Act (FLSA) of 1938

Federal law that requires employers to determine the "employee status" of each job so that certain protections (minimum wage, overtime pay, and child labor) can be provided to non-exempt employees.

This is a disadvantage to using generic questions in an interview: Financial cost Length of interview Amount of people in an interview Efficient in time

Financial cost This approach does create a financial cost to purchase the product and service for the questions.

The purpose of central tendency is to: Find one single number that best represents another single number Find a whole group of numbers to best represent one single number Find a whole group of numbers to best represent another group of numbers Find one single number that best represents a whole group of numbers

Find one single number that best represents a whole group of numbers

__________________________ is a system of establishing a baseline of unit-level results and sharing improvements above that baseline with employees in that unit.

Gain Sharing

A compensable factor is a: Statement of what the organization values Statement of what the organization has Statement of what the organization needs Statement of what the organization wants

Statement of what the organization values

Relative Level

States the rewards strategy as greater than, equal to, or less than some labor market reference point. This Leading, Lagging, or Matching portion of the rewards strategy is often expressed in terms of a percentage and is the most common way that an organization defines the Level of rewards that it offers.

_____________________ provide employees the right to purchase a set amount of shares of stock for a set price.

Stock Options

aligned

Strategic Human Resource Management ensures that HR practices are _____ with the business strategy in general and critical success factors in particular.

______________ means that the definition of criteria are all conceptually and empirically connected to employee, unit, and organizational outcomes.

Strategic Measurement

Pay Grades

The categories organizations put jobs into for rewards purposes. They are useful as they allow organizations to simplify reward systems because similar jobs can all be treated in the same way.

Transparent measurement means: The ability to conduct a 360 degree feedback survey The information employees need in order to understand management The criteria for establishing a reward system should be easily understood and the processes for implementing the system should also be well documented and followed None of the above

The criteria for establishing a reward system should be easily understood and the processes for implementing the system should also be well documented and followed

Individual Based Systems

Within _______________ value is assumed to derive from the characteristics of the person holding the job, and therefore pay should be driven by the knowledge, skills, experience, or competencies of that individual.

Individualistic environment

Where work is done independently by single employees reporting to a single supervisor, the many grades can capture the simplicity of that working arrangement.

Rewards Strategy Coherence

The extent to which the parts of the strategy fit together in a logical and clear way. Does the Total Rewards system make sense?

The regression analysis can also be called:

The line of best fit

Absolute Level

The reward can be defined. Paying an employee $50,000 salary per year, for example.

Reward Form Combinations Strategy

The reward forms offered (e.g., cash, benefits, etc.) and the way in which they relate to each other. Defines what Forms of Rewards (e.g., salary), Benefits (e.g., retirement contributions), and Intangibles (e.g., safe working conditions) will be provided.

Which is not a reason why organizational culture is important to a total rewards program? It is a major driver of how employees experience the organization A total rewards system measures the market conditions set through organizational culture The total rewards system can have a large impact on the culture of the organization All of the above are important factors in a total rewards program

A total rewards system measures the market conditions set through organizational culture

A reward survey is: A survey published by the AMA to employers to understand rewards offered A survey designed to understand employees' desire for rewards Aggregations of reward information gathered from other market organizations A survey published by the government to employers to understand rewards offered

Aggregations of reward information gathered from other market organizations

Reward Surveys

Aggregations of reward information gathered from other market organizations.

Reward surveys are: Aggregations of the lump sum of employees' yearly salaries Perks and other valuable factors Aggregations of reward information gathered from other market organizations Paid time off

Aggregations of reward information gathered from other market organizations.

Internal Reward Alignment is the extent to which the relative value of all jobs in the organization is ___________ the business strategy. Clear about Coherent with Fair to Supportive of All of the above

All of the Above

Job evaluation produces a job value structure through: Placing jobs in a system of classifications Comparing jobs directly to each other Assigning points based on the compensable factors All of the above

All of the Above

The purpose of a pilot program is to better understand: The design parameters How the program is received The impact of the program All of the above

All of the Above

An organization's total rewards strategy is composed of: Pay forms Plans Policies All of the above

All of the above

Which approach is not a way to establish internal reward alignment? Classification approach Job comparison approach Point factor approach All of the above

All of the above

The purpose of grades is to: Allow jobs creating a different amount of value for the organization to be treated in the same way. Allow jobs creating the same amount of value for the organization to be treated in the same way Allow jobs creating the same amount of value for the organization to be treated in a different way None of the above

Allow jobs creating the same amount of value for the organization to be treated in the same way

The employment relationship is:

An agreed-upon basis for organizations and people meeting each other's needs

In a job-based system, pay changes occur when: An employee changes jobs A new hire starts his/her first day Pay changes never occur An employer changes jobs

An employee changes jobs

Reliable measurement means: An employee's level of skill, competency, or experience can be measured consistently across employees and raters An employee's measurement to show in performance management An employee's ability to actively recruit based on the reliability of potential employees The ability to express your burden of proof

An employee's level of skill, competency, or experience can be measured consistently across employees and raters

A job structure is: The way a company decides to recruit, retain, and develop employees An organized listing of the business's jobs that functionally groups and hierarchically arranges the jobs for rewards purposes A value system for the list of jobs created A systematic approach to creating a job analysis for the purposes of understanding the compensation plan

An organized listing of the business's jobs that functionally groups and hierarchically arranges the jobs for rewards purposes.

Job Based Approach

Assumes that organizations provide rewards based upon the job that a person holds.

Individual Based Approach

Assumes that rewards should be based upon the characteristics of the person holding a job.

Performance Based Approach

Assumes that rewards should be based upon the performance or results produced by an employee.

Broadbanding allows employees to do all of the following except: Manage lateral changes in their career Join and exit multiple organizational teams Be promotable within a given time period Modify their role in the organization

Be promotable within a given time period

A downside to the comparison approach is it: Becomes inefficient as management grows Becomes inefficient as size of company grows Becomes inefficient as size of company shrinks Becomes inefficient as management shinks

Becomes inefficient as size of company grows

Through the use of __________________, an organization is going to create a link between its reward structures and the external markets.

Benchmark Jobs

For compensation levels a ___________________ needs to be established. Floor Ceiling Both A & B None of the above

Both A & B

Having a panel: Helps ensure consistency of standard across employees increases an employee's perception of the procedural justice of the system Both A & B None of the above

Both A & B

In a traditional interview, one advantage would be: Allowing for exploration Asking for clarification Both A & B None of the above

Both A & B

Self-reported information is important because: It provides an additional source of data that can help make your overall reward estimates more reliable Data sources often are the exact sources that employees use to define market rates and their own reward expectations Both A & B None of the above

Both A and B

Job analysis is designing a process to understand how to _______________________. create financial success create career growth create value create jobs

Create Value

Product and service markets are where organizations compete to ____________ through the production of products or the provision of services for customers in exchange for money and loyalty. Create industry rivalries Create a great culture Create organizational completeness Create value

Create value

Job analysis needs to be _____________ to achieve buy in. Incredible Respectable Understandable Credible

Credible

Green Circle Rates refer to: Employees whose pay is above the range for their job Employees whose pay is below the range and who get poor performance reviews Employees whose pay is below the range for their job Employees whose pay is above the range and who get positive performance reviews

Employees whose pay is below the range for their job

Job evaluation is a tool to help organizations create Internal Reward Alignments that are both ____________ and ___________ to effective employee performance. Conducive and available Equitable and conducive Equitable and creative Conducive and developed

Equitable and conducive

One way to define a job-specific reward level strategy could be: Establishing multiple reward level strategies that the market requires Establishing multiple reward level strategies that government agencies require the organization to implement Establishing different reward level strategies for different job families or hierarchical levels Establishing one reward level strategy and making it equal in all job families

Establishing different reward level strategies for different job families or hierarchical levels

Bad Data Challenge

Exists because the data a company obtains about market rates may not be an accurate representation of the market. It is often difficult to fully understand the quality of the data obtained from various sources, or how best to integrate this information, which adds error to any reward system based on that data.

The ____________ asks, "Can I perform at the level required for the reward?". This is the 'Can I?' question and grows out of employees' perceptions of the clarity of performance expectations and of their own abilities.

Expectancy Perception

According to _____________, motivation is a function not only of the perceived contingency of the rewards, but also of how much the employee values the reward, and whether or not they believe that they can perform at the required level.

Expectancy Theory

_________regulate how many skills or competencies a given employee can certify on during a specific time period.

Frequency policies

__________is a system of establishing a baseline of unit-level results and sharing improvements above that baseline with employees in that unit.

Gain Sharing

eligibility

Generally speaking, the eligibility should be restricted to ensure that the number of employees certifying (and therefore being paid at the higher rate) is in line with current and future needs for that capability.

In choosing benchmark jobs, organizations should be careful to ensure adequate representation for all of the following, except: Different job families Organizational levels Career points Government mandates

Government mandates

According to the reading, as recruited employees negotiate for higher salaries, they are more likely to receive such salaries if they have ______________________________.

Greater Work Experience

Merit Increase Grids

Guidelines provided by the HR department recommending appropriate pay increases for different performance levels.

A cost leadership strategy is:

Having a lower cost product or service at the highest priority throughout its processes.

In this course, you will learn that as a compensation manager, you will:

Improve compensation systems and better enable your organization to meet its goals

_______________________specify an exercise price that is above the current market price to take into account that the organization expects the employees to outperform expected market returns.

Incentive Stock Options

The rollout of capability-based pay systems, like all reward system changes, should be accompanied by: No communication Expensive communication Expressive communication Intensive communication

Intensive communication

___________, refers to perceptions of the extent to which the employee was treated with due respect.

Interactional Justice

Which of the folowing deals with customer relationships? Interactions aimed at meeting customer needs can also have a large impact on the employees' experiences at work Employees being accountable to supervisors or managers who oversee their work, assign tasks, and provide feedback Working with others is a necessity of the modern workplace

Interactions aimed at meeting customer needs can also have a large impact on the employees' experiences at work

_______ (also referred to as Self-determination Theory) stipulates that employees attribute their behavior to internal and external causes.

Intrinsic Motivation Theory

_____________(also referred to as Self-determination Theory) stipulates that employees attribute their behavior to internal and external causes.

Intrinsic Motivation Theory

Why is the list of benchmark competitors important? It creates the standard to which the company adds value to the community It creates the standard to which the rewards system is anchored It creates the standard to which the rewards system fluctuates according to the market It creates the standard to which the company adds value to the industry

It creates the standard to which the rewards system is anchored

What are the three broad approaches to Internal Reward Alignment?

Job Based Approach Individual Based Approach Performance Based Approach

In the _________(or ranking approach), jobs are placed in a relative hierarchy based upon how their value compares to the other jobs.

Job Comparison Approach

_______are written documents that serve as the primary source of information about jobs for many uses within the organization, and these descriptions play a key role in the design and implementation of total reward systems.

Job Descriptions

Individual characteristics should be categorized into two categories: Strategic utility, job frequency Job analyses, job frequency Strategic utility, employer frequency Job analyses, strategic utility

Job analyses, strategic utility

In which approach are jobs compared and "winning" or more "important" jobs get points? Job comparison approach Point factor approach Classification approach None of the above

Job comparison approach

The ___________________ explains how jobs are placed in a relative hierarchy based upon how their value compares to other jobs. Job comparison approach Classification approach Point factor approach None of the above

Job comparison approach

The primary product of the job analysis process is the: Development Employee trainings Compensation Job description

Job description

Compensable Factor

Job elements or criteria that identify what the organization values for purposes of job evaluation. Idenifying compensable factors is step one in the Point factor Approach.

Using job analysis, all work in business is organized into: Job classes Job approaches Job families Jobs

Jobs

Who should be involved in the job analysis? Lower level employees Human resources department Executive level management Key personnel

Key personnel

Weaknesses

Limitations a firm faces when seeking to deliver value to customers.

Within the cost leadership strategy, a business will have a ____________ cost structure. Higher Frugal Lower Expensive

Lower

In which industry is skill-based pay most often used? Bio-Pharmaceutical industry Manufacturing industry Automotive industry Education industry

Manufacturing industry

_________________ are one way to establish the price for any good or service. Markets Stock markets International trades Governments

Markets

Generally, an organization that follows the differentiation strategy will be able to pay their employees: A higher overall total compensation package Less More Higher benefits

More

The larger, overlapping ranges make it ______likely that employees can make such moves without having to dramatically raise or lower their pay.

More

Panel Interviews

Multiple job incumbents (and sometimes multiple job analysts) all meet together to analyze the job.

In a niche-focused strategy, an organization will have to compete with the following strategies: Cost leadership Differentiation strategy Hybrid None of the above

None of the above. In a niche-focused strategy, an organization chooses a small and segmented market and competes only in that small arena.

Motivating Preferences

Not all employees are motivated by the same rewards and systems should be designed with enough flexibility to allow for as much customization as possible. For example, one employee may be very interested in earning money to make a purchase. For that employee a cash bonus system may prove very effective. For another employee, however, they might find more value in having more time off. For that employee, the free time may actually prove more motivating.

Level

Organizations must define what level of each reward will be offered. The level of reward offered can be understood in two ways. First, the Absolute Level of a reward can be defined. Paying an employee $50,000 salary per year, for example, is a defining absolute level. Alternatively, organizations can define their strategy relative to the market.

Domestic Rewards Strategy

Organizations that operate in a single country can define a single Domestic Rewards Strategy.

It would be wise to establish a _____________ when developing the information sources.

Panel = Having a panel increases the reliability of the system as having multiple people viewing the performance creates a more accurate picture of the employee's behavior.

In order to recruit and hire employees, an organization is forced to pay increasingly higher salaries. The result can be _______--when new employees and long-tenured employees are paid very similar amounts.

Pay Compression

Job evaluation provides the basis for developing a network or configuration of ________ that make up a rewards structure. Pay rates Pay increases Pay differences Pay decreases

Pay Rates

The ___________principle states that the rewards employees receive from organizations have informational value in addition to their economic value.

Pay as Meaning

____________ is achieved in several ways, including recruiting and selecting employees based upon fit as well as technical skills, having a recruiting image that signals the values of the firm, socializing employees through training and rituals to understand the values of the firm, and aligning all elements of the rewards system to be consistent with the organizational values.

Person-organization Fit

A differentiation strategy is:

Placing a high priority on providing innovative, exceptional, and high-quality products and/or services to customers.

The ________________ to job evaluation allocates points to jobs based upon the job's value to the organization. That is, each job in the organization is given a quantitative rating of its overall value to the organization.

Point Factor Approach

The ____________________ allocates points to jobs based upon the job's value to the organization. Job comparison approach Classification approach Point factor approach None of the above

Point factor approach

The __________- says that there should be overlap in the pay ranges for successive pay grades or bands. Said another way, it is possible that an employee in pay grade three could be paid more than an employee in pay grade four. This is a likely scenario because there are employees of varying work experience and performance working in each pay grade (or band).

Principle of Overlap

Differentiation Strategy

Providing innovative, exceptional, and high-quality products and/or services to customers. Example: The upscale restaurant may provide, in addition to higher-quality food offerings, an elegant atmosphere with spacious seating, exquisite decor, and a well-trained wait-staff. Each of these offerings are designed to enrich the customers' experience, even though they also increase the cost structure.

Generic Questionnaires

Purchased from a third party, they use general questions to which incumbents respond using scaled ratings.

The _______ states that employees derive intangible rewards from an organization's value-consistent Purpose. That is, when the core purposes of a business align with the values of an employee, then that employee will perceive value in maintaining his or her relationship with the organization.

Purpose Principle

With the job evaluation system in place, the organization now has a ____________ indicator of the value that each job creates for the organization. Small Large Qualitative Quantitative

Quantitative

What is a generic questionnaire? Questions brought in by a third party Questions developed from previous interviews Questions developed from senior management Irrelevant

Questions brought in by a third party

A custom questionnaire is: Questions that only one incumbent will be asked Irrelevant Extra questions that the interviewer asks Questions that the job incumbent completes

Questions that the job incumbent creates

External Reward Positioning

Refers to how an organization's Rewards compare to the Rewards offered for comparable work in other organizations.

Motivation

Refers to the focus, effort and persistence that employees demonstrate.

What kind of analysis is best to use when finding out how much a job family should be paid? Regression analysis Suppression analysis Job performance analysis Point factor analysis

Regression Analysis

The _______ states that when positive consequences (rewards) follow a behavior, that behavior becomes more likely to be seen in the future. Conversely, when negative consequences (punishments) follow a behavior, then that behavior will be less likely to be observed.

Reinforcement Principle

Spot awards draw upon __________________in that they allow for very short gaps between the demonstrated performance and the reception of the reward.

Reinforcment Theory

Job descriptions often contain information about the _________ that are important for accomplishing the job. Understanding Relationships Strengths Monetary values

Relationships These relationships include supervisory or reporting relationships as well as peer relationship, team membership, and interfaces with customers.

Organizational Citizenship Behaviors (OCB)

Represent those value-creating activities in which employees engage but which are not part of their job. Employees who go beyond their defined responsibilities to help a colleague at work contribute significantly to an organization's success.

Job Value Structure

Represents the structure of jobs internally positioned according to their relative value.

The bulk of job descriptions do not include which of the following: Requirements Duties Responsibilities Tasks

Requirements. The bulk of the job description is a listing of the Tasks, Duties, and Responsibilities (TDRs) comprising a particular job.

Generally speaking, the eligibility should be ____________ to ensure that the number of employees certifying is in line with current and future needs for that capability.

Restricted

Job Matching Challenge

Results from difficulties in determining exactly which organizational jobs match up with each benchmark job in the wage surveys. By carefully choosing benchmark jobs and using sources with detailed descriptions, this challenge can be partially addressed.

Organizations provide value for employees through ____________________. jobs reward systems company perks employee development

Reward systems

Reward form combination strategy refers to: Rewards (cash, benefits, etc.) and how they compete with departments within the organization Rewards (cash, benefits, etc.) and how they differ from each other Rewards (cash, benefits, etc.) and how they compete in the market Rewards (cash, benefits, etc.) and how they relate to each other

Rewards (cash, benefits, etc.) and how they relate to each other

Define variable pay: Rewards that are dependent on a team Rewards earned independently Rewards that move in and out depending on market trends Rewards that grow based on government regulations

Rewards that are dependent on a team

Which of the following is not a function of Human Resources? Human Resource Information System Performance Management Risk Management Recruiting

Risk Management

Which of the following is not a primary concern when integrating data from multiple rewards systems? Market surveys often use different metrics for measuring reward types and compensation levels The matching of benchmark jobs in the survey to benchmark jobs within your organization Data aging Self-reported information and third-party websites can be fabricated

Self-reported information and third-party websites can be fabricated

______________________exist within the range of the broad band and are applied to specific job families to provide guidance on appropriate compensation levels.

Shadow Ranges = This can be done through a system of smaller ranges within the pay ranges.

Total Rewards Content Strategy

Specifies the type, level, and combination of rewards offered to employees. For example, a fast-food restaurant may pay a modest hourly wage, offer modest health coverage only after three months of employment, and recognize employees' speed of meal preparation. Conversely, the upscale restaurant may pay employees a salary, with comprehensive health coverage, and recognize customer commendations.

________ are very similar to individual bonuses but there is one key distinction. Whereas traditional individual bonuses are annual or quarterly in nature, spot awards are often given out based on weekly or daily behavior.

Spot Awards

__________________________ provide employees the right to purchase a set amount of shares of stock for a set price.

Stock Options

Centralized Approach

The Human Resources department makes all decisions relating to pay strategy, as well as specific reward decisions.

Data aging refers to: -The adjustment of market reward information to take into account how inflation has likely changed the market rates since the data were collected -The adjustment of market reward information from 10 years ago -The adjustment of market reward information to guess the rewards for 3 years from a certain starting point -None of the above

The adjustment of market reward information to take into account how inflation has likely changed the market rates since the data were collected

Tasks, Duties and Responsibilities (TDRs)

The building blocks of a job that represent the ways that an employee creates value for the organization. Statements of TDRs are usually limited to between 7-15 statements that begin with action verbs.

A business strategy is:

The collection of decisions, approaches, and activities that allow an organization to compete and win.

Global Rewards Strategy

The collection of decisions, guidelines, and policies that define how the total rewards will account for country differences

Total Rewards Strategy

The combination of pay forms, plans, policies, and practices that enable long-term organizational performance.

Total Rewards Process Strategies

The decisions, policies, and practices that define how Total Rewards are designed and implemented. So, it is not just what you pay, it is how you pay it!

Which of the following would not be part of a traditional job interview? Compensation Skills Needed Time Spent on Activities Preset Questions

Compensation

_________are configurations of knowledge, skills, and traits that enable employee performance.

Competencies

Rucker plans provides incentives for:

collaboration

Variable Pay can include:

performance-based rewards such as bonuses and commissions, as well as longer-term equity rewards such as stock options.

Organizational Cultural Fit is: The fit to make the human resources and finance departments agree upon the strategy for the organization The extent to which the rewards strategy fits make senior management happy The extent to which the rewards strategy aligns with and supports the ingrained practices, norms, and values of the organization The ability to keep employees happy with pay when an organizational change occurs

The extent to which rewards strategy aligns with and supports the engrained practices, norms, and values of the organization

Organizational Culture Fit

The extent to which the Rewards Strategy aligns with and supports the ingrained practices, norms, and values of the organization. The more a rewards system deviates from 'the way we do things around here,' the more likely it is to be rejected or even subverted in practice.

Rewards Strategy Coherence refers to: The basic idea of the rewards strategy, which is to place the company in an attractive view to potential employers and competitors The extent to which the parts of the strategy fit together in a logical and clear way An irrelevant topic and should be dismissed The ability for all members of an organization to completely understand the goals of the rewards strategy

The extent to which the parts of the strategy fit together in a logical and clear way

Face Validity

The extent to which the system produces relative job values that appear to be accurate and credible. This concept is applied during Step Four of the Point Factor Approach to job evaluation.

Strategic measurement means: The ability to provide goals and aspirations for your organization The definitions of criteria are not conceptually and empirically connected to employee, unit, and organizational outcomes The ability to provide specific goals for your employees The definitions of criteria are all conceptually and empirically connected to employee, unit, and organizational outcomes

The definitions of criteria are all conceptually and empirically connected to employee, unit, and organizational outcomes

Obtain Feedback and Revise Job Description

The fifth step of the general job analysis process is to use a survey or interview based process to have the subject matter experts review the job description to ensure that it adequately captures the job. For jobs involving numerous incumbents, a survey can often be used with this step. Finally, a mechanism for resolving conflicts and for keeping the description updated should also be established, this is commonly done during annual performance reviews.

Strengths

The firm's core competencies, abilities and capacities that provide an advantage when meeting the needs of target customers. (i.e., production costs, marketing skills, brand image, technology, design and financial resources).

Identify Job

The first step of the general job analysis process. This includes obtaining previous job descriptions if analyzing an existing job, descriptions of any jobs being consolidated into the new job, or labels provided to the job by those requesting the job analysis. At this point it is recognized that the exact job title and job identification information is subject to change.

Consolidate Information into Job Description Draft

The fourth step of the general job analysis process is to review the information gathered from the interviews to create the draft of the job description. This draft should note any points of uncertainty or disagreement among information sources.

Dispersion represents: The gap between industries The gap between two data points The gap between the highest and lowest data point The gap between lower and higher level employees

The gap between two data points

Traditional Interview

The job analyst asks the job incumbent preset questions about the content, skills needed, and time spent on activities in the job. (Job Analysis)

Median

The middle number of a group of numbers when they are arranged from lowest to highest.

The Principle of Parity suggests: The fewer grades that are used, the smaller the ranges will be The more grades that are used, the smaller the ranges will be The more grades that are used, the larger the ranges will be The fewer grades that are used, the larger the ranges will be

The more grades that are used the smaller the ranges will be

What is a communication strategy? The plan for communicating with employees about competitive salaries The plan for communicating with other HR professionals to understand market data The plan for sharing the compensation strategy with employees and receiving their ongoing feedback The plan for sharing coworkers' salary data

The plan for sharing the compensation strategy with employees and receiving their ongoing feedback

Role and Control Strategy

The policies and practices that allocate design, implementation, and discretionary control of the rewards system. It answers the question of 'who is in charge of the rewards?'

Human Resource Management

The policies, practices, and systems that manage the interface between the organization and its employees in order to enable long-term organizational performance

Critical Success Factors (CSFs)

The primary outcomes of the SWOT analysis and other strategic discussions should be a thorough understanding of the organization's ?

Strategy

The process by which an organization decides on which products or services to market and sell, which industries to enter, and how the organization is going to reach its desired goals in the marketplace. How an organization is going to compete.

Job evaluation is: The process by which the value of each employee in an organization is established The process by which the value of each job in an organization is established The process by which the value of each department in an organization is established The process by which the value of the compensation plan is established

The process by which the value of each job in an organization is established.

Factor Weighing

The process of deciding how important compensable factors are to the organization. It is Step Three in the Point Factor Approach to job evaluation.

Employee Performance represents:

The quality and quantity of the work that individual employees produce in the organization.

Value Reward Line

The resulting line when regression is used to estimate the line summarizing the relationship between Job Evaluation Points and a compensation metric.

What is base pay?

The salary or hourly wage in exchange for the employee's contribution to the organization

Observe and Interview Leadership

The second step of the general job analysis process is to observe the workplace and interview the organizational leadership connected to the new job. Attention should be placed on understanding how the job interfaces with other jobs in the workplace.

The Principle of Control states: The size of pay ranges should be kept fairly large to enable an organization to control labor costs The size of pay ranges should be kept sufficiently large to enable an organization to control fixed costs The size of pay ranges should be kept sufficiently small to enable an organization to control labor costs The size of pay ranges should be kept sufficiently small to enable an organization to control fixed costs

The size of pay ranges should be kept sufficiently small to enable an organization to control labor costs

The job value structure represents: The structure of jobs internally positioned according to their immediate value The structure of jobs internally positioned according to their natural value The structure of jobs internally positioned according to their relative value None of the above

The structure of jobs internally positioned according to their relative value

Observe and Interview Incumbents

The third step of the general job analysis process is to conduct more in-depth interviews with job incumbents to ascertain the tasks, duties, and responsibilities. Care should be taken to interview multiple incumbents of varying experience with a common set of structured questions.

What are the two key policies that need to be put in place to ensure clarity and cost control in the system?

The two key policies that need to be put in place to ensure clarity and cost control in the system are eligibility & frequency.

In a skill-based pay program: The wage rate or salary received by the employee depends upon the skills she possesses The wage rate or salary received by the employer does not depend on the skills she possesses Wage rates or salaries of are the same across all employees The wage rate or salary received by the employee does not depend on the skills she possesses

The wage rate or salary received by the employee depends upon the skills she possesses

A dynamic-based role would describe which of the following situations? The work employees do changes on a regular basis Employees aren't as expected to become more dynamic in the workplace Employees are expected to become more dynamic in the workplace The work employees do does not change on a regular basis

The work employees do changes on a regular basis

Motivation results in three specifics. These include all except: Valance Instrumentality Expectancy Theory

Theory

The Principle of Overlap states: There should be overlap in the pay ranges for successive pay grades or bands There should not be a gap between pay ranges for successive pay grades or bands There should not be an overlap in the pay ranges for successive pay grades or bands There should be a gap between pay ranges for successive pay grades or bands

There should be overlap in the pay ranges for successive pay grades or bands

Intensive Communication

There will be many questions initially, and if those questions are not answered clearly and quickly then the answers employees receive through informal channels may not be accurate. This is damaging both if the information is negative (poor participation) or positive (unrealistic expectations).

National Culture

These differences should be considered when rewards systems are designed because employees from diverse cultures may have very different definitions of what is rewarding.

law of unintended consequences

This principle states that not all of the consequences of a reward system change are foreseeable.

A drawback to designing your own survey is: Time Accuracy Price Industry specific

Time

The ___ specifies that the smaller the time gap between the behavior and the reward or punishment, the greater impact on behavior.

Timing Principle

Total compensation can be calculated as: Total Compensation = Salary + Benefits + Perks Total Compensation = Salary + Variable Total Compensation = Salary + Variable + Benefits Total Compensation = Salary + Benefits

Total Compensation = Salary + Variable + Benefits

___________ creates a sense of purpose in the minds of employees, motivating them to transcend self-interest in order to accomplish the goals of the organization.

Transformational Leadership

Job Specification

Translates the TDRs into Knowledge, Skills, Abilities, and Other (KSAOs) that an employee needs to perform the job at a satisfactory level.

_________ means that the criteria and system should be easily understood and the processes for implementing the system should also be well documented and followed.

Transparent Measurement

A regression analysis plots a line minimally distant for each point in the data. True or False

True

By using pay form-specific strategies, organizations can create more customized reward systems that are more likely to differentiate them from their competition in the labor market. True or False

True

It is wise to leave a buffer zone around the current pay rates to ensure that the range is adequate. True or False

True

When choosing strategies, organizations should use logic and evidence about how job value and pay forms meet business objectives. True or False

True

Stock options are often reserved for executive compensation plans. True or False

True = Because of the disconnect between most levels of employees and concerns about diluting voting shares of stock, stock options are often reserved for executive compensation plans.

What is the total rewards content strategy? Market-driven levels of rewards offered Type, Level, and Combination of rewards offered Experienced-based rewards offered A negotiation between management and the employee for total rewards offered

Type, Level and Combination of rewards offered.

As a compensation manager, you will

Understand the compensation plan Explain the compensation plan to others Manage company goals

Gain sharing plans typically are at the ___________that would include a significant number of the employees in a particular location.

Unit Level

Which of the following is not a historically used structured pay grade? Linear careers Individualistic environment Upward mobility Static

Upward Mobility

Broadbanding allows organizations to: Use a few broad bands to organize work for pay purposes Use many broad bands to organize work for pay purposes Both A and B None of the above

Use a few broad bands to organize work for pay purposes This new work environment has steered organizations away from complicated double-digit grade structures to more loosely organized "banded" structures.

Variable Distance Scale

Uses different point distances between each level in the scale which allows an organization to measure compensable factors in a way that takes into account the "natural breaks" in the factor being measured.

Anchored Rating Scale

Uses examples or definitions of typical behaviors to define each point along the scale.

The __________ asks, "Do I value the reward"? Employees use their personal value systems and circumstances to evaluate the extent to which the rewards being offered are rewarding to them.

Valence Perception

The _______points out that new behaviors are most quickly acquired when employees receive the reward every time a behavior is exhibited (low variability), but they are more likely to persist in an acquired behavior even after rewards have stopped when the behavior was not rewarded every time (high variability, also known as intermittent reinforcement).

Variability Principle

Pay form-specific reward strategies are: Varying pay level strategy across reward systems Single pay level strategy across reward systems Varying pay level strategy across reward types Single pay level strategy across reward types

Varying pay level strategy across reward types

A pay-form specific rewards strategy is: Varying pay level strategy within job families Varying pay level strategy among the organization Varying pay level strategy across reward types Varying pay level strategy within job functions

Varying pay level strategy across reward types For example, one organization may choose to lag the market by 5% on base pay, but lead the market by 10% on employee benefits.

What is the most obvious downside to a capability-based pay? Wages and salaries paid to employees will level off There are no downsides Wages and salaries paid to employees will rise Wages and salaries paid to employees will decrease

Wages and salaries paid to employees will rise

Understanding threats can help ask the question: What societal flaws can hurt the organization? What can we not do? What can we do that our competitors can't? Where can we improve?

What societal flaws can hurt the organization?

Capability Based Pay

When a reward system explicitly attempts to vary rewards based upon capabilities of the employees. Types include Skill-based pay, Competency-based pay, and Seniority-based pay.

Lagging the Market

When an organization provides a lesser amount of the reward than its competitors.

Labor Driven Market

When the demand for a particular set of KSAs (knowledge, skills and abilities) is high and the supply of these KSAs is low.

Understanding opportunities can help ask the question: What societal flaws can hurt the organization? What can we do that our competitors can't? What can our competitors do that we can't? Where can we improve?

Where can we improve?

A graphic rating scale is: Where raters rate the extent to which the job involves the un-compensable factor Where raters rate the extent to which the job involves the compensable factor Both A & B None of the above

Where raters rate the extent to which the job involves the compensable factor

Job-value structure does not answer the question of: How jobs are related How important are jobs What jobs are Whom to recruit for jobs

Whom to recruit for jobs

In an individualistic environment: Work is done independently by multiple employees reporting to a single supervisor Work is done dependently by multiple employees reporting to a single supervisor Work is done independently by single employees reporting to a single supervisor Work is done dependently by single employees reporting to a single supervisor

Work is done independently by single employees reporting to a single supervisor

Reinforcment and Expectancy

________________ and ___________ theory would both recommend that contingencies in pay be made very clear.

Sunset Clause

A law or regulation that ceases to have effect, after a specific date is reached.

A niche-focused strategy is:

When an organization chooses a small and segmented market and competes only in that small arena.

A job title is: A name by which the product an organization makes is known A name by which an employee is known throughout the company A name by which the job is known throughout the company A name by which a job family is known

A name by which the job is known throughout the company.

Communication Strategy

A plan for creating, sharing, and receiving information relating to its Total Rewards Systems. Between Employers and Employees and vice versa

A benchmark job is: A sample of jobs that is representative of the type, content, and level of jobs in the organization A sample of jobs within the organization that are to be addressed for compensation levels A sample of jobs provided by government to control wage decreases None of the above

A sample of jobs that is representative of the type, content, and level of jobs in the organization

Tournament Theory

A theory which states that people are highly motivated to receive extremely valuable rewards, even when the probability of receiving the reward is quite small. , which states that people are highly motivated to receive extremely valuable rewards, even when the probability of receiving the reward is quite small.

Organizations use pay grades and ranges to monitor how well pay rates are conforming to the pay plan. _____________ is frequently used to measure this conformity.

Compa-ratio

The _________is frequently used to measure this conformity. It is calculated by dividing the average pay for the pay grade by the midpoint of that range.

Compa-ratio

According to the text, what is one way that a compensation manager can effectively age data? Calculate the time value of money Calculate for inflation There is no effective way None of the above

Calculate for inflation

Ethical Challenge

Can also exist in establishing market rates. For example, if a manager has an informal conversation about pay rates with a colleague at another organization and then uses this information to keep pay rates artificially low, is this ethical? Said another way, where does a "market survey" end and where does "price fixing" begin? These ethical issues illustrate the importance of having clear and transparent systems for establishing market rates and job matches to minimize the opportunity for biases to enter into the system.

The ___________________ is creating a job structure using logical categories and descriptions to organize the jobs. Job comparison approach Classification approach Point factor approach None of the above

Classification approach

Red Circle Rates refer to: Employees whose pay is below the range for their job Employees whose pay is below the range and who get negative feedback on the performance review Employees whose pay is above the range and who get positive feedback on the performance review Employees whose pay is above the range for their job

Employees whose pay is above the range for their job

Which of the following is not a reason a corporation would want to incorporate individual-based pay into its Total Reward system? Demonstrates good faith in the employees Builds a more flexible workforce Creates a culture of learning Allows the organization to build its capacity

Demonstrates good faith in the employees

Reinforcement Theory

Derived by behavioral scientist B.F. Skinner and others, is built on the assumption that behavior is a function of its consequences.

Central Tendency

Describes what's typical for a set of data, usually measured by the arithmetic mean, median, or mode.

The Fair Labor Standards Act requires that organizations: Determine the "employee benefits" of each job Determine the "employee compensation" of each job Determine the "employee status" of each job. Determine the "employee job duties" of each job

Determine the "employee status" of each job.

Which of the following is not a step in creating a capability-based pay structure? Define competency sets Create training support structure Develop protocols Implementation

Develop protocols

The point factor approach does all except: Defines valuable elements of jobs Developes revolutionary ideas for job analysis Specifies the importance of each element of a job Measures the extent to which each job has that element

Developes revolutionary ideas for job analysis

Which of the following does organizational performance not include? Gains in market share Effectiveness at meeting customer needs New product creation Developing employees

Developing employees

Static

Didn't change much over time.

Similar to the piece rate, the ________________ is where an organization will pay $xx per unit and then pay more per unit after a certain number are produced.

Differential Piece Rate

_______ perceptions are based upon employees' views of the distribution of rewards in the organization. It is also known as Equity Theory Based on comparisons between the ratio of employees' inputs and rewards to the ratio of inputs and rewards of others. , and is based on comparisons between the ratio of employees' inputs and rewards to the ratio of inputs and rewards of others.

Distributive Justice

Reward Equivalence

Due to differences in tax laws, costs of living, exchange rates, and differential perceived costs and rewards of the overseas assignments, organizations have to consider how to motivate the employees to take the expatriate assignment while simultaneously maintaining a sense of equity for those host country employees with which the expatriate works. Anchoring the definition of equivalence to the employees home country, the host country, or some global metric are common approaches.

Which of the following measurements is more successful than the others? Strategic Measurement Each has its own unique strengths Reliable Measurement Transparent Management

Each has its own unique strengths

Overlapping grades allow for ___________ career management as employees are promoted up through their own function or take a lateral position in a different function.

Easier

This is a benefit to using generic questions in an interview: Efficient in time Length of interview Financial cost Number of interviewers

Efficient in time

When distributive justice is low, procedural justice receives a lot of_________________. Managerial attention Psychological attention Employee attention None of the above

Employee attention

The value in having policies that slow the process of topping out include all except: Allow for growth potential Organization can control costs Employee development Better understand the system implementation

Employee development

Linear careers are where:

Employees can expect to spend the duration of their careers with a single organization