MGMT 434 - Compensation Exam 2 Review

T/F Transactional (going to work) work is typically paid more than tacit (paid for knowledge) work

False

T/F While competencies hone in on information about specific tasks, skill-and job-based systems take the opposite approach

False

T/F Skills-based plans become increasingly economical as the majority of employees become certified at the highest pay levels

False, they become increasingly costly

The roots of job-based pay structures are based on:

Frederick L.

The most widely used point evaluation

Hay plan

External Competitiveness

Refers to the pay relationships among organizations; the organization's pay relative to its competitors

T/F Be encouraging employees to take charge of their own development, skills-based plans may give them more control over their work lives

True

T/F Compared to an on-demand review of certifications, scheduling fixed review points make it easier to budget and control payroll increases

True

T/F Pay level is directly proportional to the labor costs

True

T/F Person-based plans have the potential to clarify new standards and behavioral expectations

True

Quoted price market allows sellers to sell for a ______ price

fixed

define job evaluation

process of systematically determining the relative worth of jobs to create a job structure for the org

Pay Level

refers to the average of the array of rates paid by an employer

Pay Mix

refers to the various types of payments that make up total compensation