MNGT 463 UNL CH 1

total compensation

transactional in nature

Identify the examples of programs that help employees balance their work and personal responsibilities

Access to services to meet specific needs Time away from work Flexible work arrangements

Identify a similarity between merit increases and merit bonuses.

Both are based on a performance rating.

Identify the compensation objectives that pay systems should meet.

Compliance with laws and regulations Ethics Efficiency Fairness

Switching from a salary-only system to an individual incentive plan caused an increase in productivity. Approximately one-half of the increase in productivity was caused by less productive workers leaving and being replaced by more productive workers.

Edward Lazear conducted an informative study on incentive and sorting effects in which he measured individual worker productivity before and after a glass installation company switched one of its plants from a salary-only system to an individual incentive plan. What were the findings of his study? (Check all that apply.)

Which policy decision of the pay model emphasizes paying for performance?

Employee contributions

According to which of the following compensation objectives should an organization give importance to the way in which its results are achieved?

Ethics

True or false: A present-value perspective focuses on the value of a company's initial offers to job applicants.

False

They ascertain that the pay is enough to attract and retain employees. They control labor costs to maintain the competitiveness of an organization's prices of products or services in a global economy.

How do external competitiveness decisions affect compensation objectives?

Clawback provisions designed to allow companies to take back compensation from executives in some instances "Say on pay" that makes it obligatory for public companies to submit their executive compensation plan to a vote by shareholders

Identify the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Via a sorting effect Via an incentive effect

Identify the ways in which pay can influence employee motivation and behavior.

Identify a feature of base wage.

It indicates the value of the work or an employee's skills.

Identify the ways in which compensation affects the success of managers

It is a major factor determining employee attitudes and behaviors and thus, organization performance. It is a major expense that must be managed.

Fairness

It is influenced by employees' comparisons of their pay to the pay of other employees in an organization.

Efficiency

It is influenced by employees' motivation to choose increased training and more responsibility in dealing with customers

Compliance

It is influenced by the basis used while making internal comparisons among employees.

identifying the impact of a policy, technique, or decision

Managing compensation means _____.

Total Compensation

Pension and medical insurance

an organization's compliance to guidelines

The importance given to employee contributions is a significant policy decision because it directly affects _____.

Identify a true statement about merit increases.

They are based on an assessment of employees' performance in the recent past.

Identify the true statements about incentives.

They are often known as variable pay.

Which of the following is true of the income protection benefits provided by employers?

They help protect employees from the financial risks inherent in daily life.

True

True or false: Managers can use pay to influence employee behaviors and to better an organization's performance.

False

True or false: The nature of the legal framework governing pay highlights the fact that pay is not important to employees in the employment relationship.

It refers to how employees are being treated.

What is the meaning of compensation in today's China?

Ethics

Which compensation objective has a company failed to meet if it misuses the statistics used to measure competitors' pay rates?

Paying employees more than their competitors without corresponding advantages in productivity and quality

Which of the following caused companies like Chrysler and General Motors to go through bankruptcy?

Low turnover

Which of the following is likely if a company pays its employees based on performance?

It has much higher productivity than is usually seen in the steel industry.

Why has Nucor Steel done well despite paying its workers higher than companies inside and outside of the steel industry?

Their pay is calculated at an annual or monthly rate. They include managers and professionals.

dentify the true statements about the employees whose pay is referred to as salary in the United States

Base wage

is the cash compensation that an employer pays an employee for the work performed.

Internal Alignment

is the policy that refers to comparisons among jobs or skill levels inside a single organization.

Unlike merit increases, merit bonuses are _____.

paid in the form of a lump sum

Incentives link pay raises with _____.

performance

relational returns

psychological in nature

external competitiveness

refers to pay comparisons with competitors.

Recognition and status, employment security, challenging work, and opportunities to learn are examples of _____.

relational returns

Susan works in a small biochemical corporation. Although her base wage and other forms of cash compensation are not very high, she gets personal satisfaction from the work she does and enjoys working with talented and knowledgeable professionals from her field of interest. These positives are examples of _____.

relational returns from work

Which of the following are likely to be the focus of employees when they are given long-term incentives in the form of stock ownership?

return on investment return on net investments market share

In the United States, the pay for employees who are exempt from regulations of the Fair Labor Standards Act (FLSA) and hence do not receive overtime pay is referred to as

salary

A company that justifies comparatively low starting offers with assurances of large future pay increases is _____.

selling the present value of the future stream of earnings

Long-term incentives are usually in the form of _____.

stock ownership

Which of the following is likely if a company pays its employees based on performance?

low turnover

benefit

Allowances are a type of _____.

Which of the following can form the basis for a cost of living adjustment (COLA) to base wages?

Changes in living costs Changes in experience or skill Changes in what other employers are paying for the same work

Earning differentials between men and women

Identify an aspect of compensation that may be viewed as a measure of justice in society.

relational returns

Employment security and recognition

retirement programs medical insurance life insurance

Identify common examples of income protection benefits provided by employers

Executives

Stockholders are particularly interested in the compensation rates for

The sorting effect

The effect of differences in the types of pay strategies on the types of people who apply to and stay with an organization

The incentive effect

The extent to which pay influences individual and aggregate motivation among employees at a particular point in time

Attora Inc., an advertising company, provides its employees with benefits that include paid vacations, work from home facilities, and access to an onsite child care center. Identify a true statement about these benefits.

They help employees balance their work and personal lives.

Which of the following is true of allowances?

They often grow out of whatever is in limited supply.

Whether there are alternate explanations Whether the research separates correlation from causation

Which of the following features of research should be kept in mind while deciding the usefulness and relevance of a research study?

Management

Which of the following means ensuring that the right people get the right pay for achieving the right objectives in the right way?

Individuals and businesses in the United States spend about 18 percent of U.S. economic output on health care.

Which of the following statements about compensation may be seen as a reflection of equity or justice in society?

compensation

___ refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship.

Global and local competitive pressures

_____ force managers to consider the affordability of their compensation decisions.

True or false: Cost of living adjustments (COLAs) to base wages are becoming increasingly common nowadays.

false