2020 Chapter 5 - Person Focused Pay
Many of the companies known to be using person-focused pay systems generally employ no fewer than ________ employees.
150
Studies have shown that the majority of firms that use person-focused pay programs are in the manufacturing industry. Typically, these firms employ between ________. A. 200 and 300 people and have been around for 20 years B. 5,000 and 6,000 people and have been around for 5 years C. 100 and 200 people and have been around for 3 years D. 150 and 2,000 people and have been around for 10 years E. 3,000 and 6,000 people and have been around for 50 years or more
150 and 2,000 people and have been around for 10 years
In most cases, ________ employees work at companies that use person-focused pay systems.
150-2000
Which statement about the stair-step model is FALSE? A. In a stair-step model, the steps represent jobs from a particular job family. B. A company can only have one stair-step model. C. Jobs on higher steps call for more skills than jobs on lower steps. D. Jobs that necessitate more skills are more complex than jobs that require fewer skills. E. The stair-step model resembles a series of achievements.
A company can only have one stair-step model.
In the job-point accrual method, why do companies limit the number of jobs that an employee is allowed to learn? A. Learning many jobs makes the employee an expert in all areas, which makes it harder to be placed in a specific job. B. The employer has to pay higher wages if an employee learns most of the jobs. C. There is a chance that an employee will be hired by a competitor. D. The employer wants to maintain the job structure and classification at all cost. E. An employee becomes a "jack of all jobs and master of none."
An employee becomes a "jack of all jobs and master of none."
Which of the following is a reason many European and Pacific Rim employees are better skilled and able to work more productively than American workers? A) Both European and Pacific Rim economies provide a higher quality of academic preparation and workplace learning for the non-college portions of their work forces. B) Partnerships between public educators and employers are much stronger in the United States. C) Learning is accorded a higher standing in the operations of the U.S. economy than in the European and Pacific Rim economies. D) Americans do not have equal access to educational opportunities.
Both European and Pacific Rim economies provide a higher quality of academic preparation and workplace learning for the non-college portions of their work forces.
How does the job-point accrual method create organizational flexibility and promote company goals? A. By assigning variable points to those skills that are important for the company B. By emphasizing those skills that are important to both labor and management C. By assigning more points to those skills that are important to the company D. By not linking points based on skills to compensable factors E. By giving greater weight to those skills that are in common demand in the industry
By assigning more points to those skills that are important to the company
A ________ model specifies and defines all the knowledge and skills necessary for success in a group of jobs that are set within an industry context.
Competency
A(n) ________ refers to an individual's capability to orchestrate and apply combinations of knowledge and skills consistently over time to perform work successfully in required work situations.
Competency
Which compensation approach refers to three types of person-focused pay programs?
Competency based
Manufacturing companies that use assembly lines where one employee's job depends on the work of at least one other employee can be described as which of the following settings?
Continuous process
James, who is a clerical employee of a university, has been trained to perform several kinds of record-keeping tasks. He maintains employee attendance records, schedules salespeople's work shifts, and monitors the use of office supplies for reordering. Which type of knowledge is necessary to perform all three of these tasks?
Depth
________ of skills is the level of expertise or specialization an employee brings to a job.
Depth
This term refers to the level of specialization or expertise an employee possesses in a particular job.
Depth of skills
Why do employees who participate in person-focused pay systems exhibit greater productivity? A. Employees know for which compensable factors they are being paid. B. Employees can rely on a number of other employees, since staffing levels are high. C. Employees are focused on goal attainment. D. Employees are focused on getting a good performance appraisal in the current cycle. E. Employees know entire production processes, which can be valuable.
Employees know entire production processes, which can be valuable.
What implication does person-focused pay have for employees? A. Employees should view compensation as inequitable. B. Employees should view pay raises as their right. C. Employees should stop considering pay an entitlement. D. Employees should consider job-relevant knowledge and skills as optional. E. Employees should allow managers to direct their skills development.
Employees should stop considering pay an entitlement.
Why are employers able to have leaner staffing in a person-focused pay system? A. Employers using person-focused pay systems develop multiskilled employees, which means a leaner staff. B. Employers using person-focused pay systems do not need staff to cover in emergencies and therefore can get away with leaner staffs in this system. C. Employers using person-focused pay systems offer less training and therefore need less staff to cover for each other in this system. D. Employers have trained workers on goal achievements and therefore need fewer people. E. Employers have staff who are concerned with getting good performance appraisals and therefore employers need fewer workers.
Employers using person-focused pay systems develop multiskilled employees, which means a leaner staff.
In a person-focused pay system, which of the following would most likely NOT be rewarded? A. Exhibiting successful job performance B. Gaining job-related knowledge C. Acquiring work-related competencies D. Acquiring job-related experience
Exhibiting successful job performance
Person-focused pay programs that emphasize vertical skills work well at manufacturing companies that organize work flow around which type of organization?
High performance work teams
When a filing clerk is trained to maintain employee attendance records, it is an example of acquiring which type of skills?
Horizontal
________ skills refer to similar skills or knowledge.
Horizontal
________ pay is based on the attainment of goals that have been communicated in advance.
Incentive
Which of the following is a characteristic of job-based pay? A) It compensates employees for the number of jobs in which they possess the skills to perform. B) It rewards employees on their promise to make positive contributions to the work place. C) It compensates employees for the jobs they currently perform. D) A reward is based on the successful acquisition of work-related skills or knowledge.
It compensates employees for the jobs they currently perform.
Why has the term competency become increasingly important in the world of HR? A. It is a current buzzword in the world of HR. B. It is due to new work-related legislation from the government. C. It is because of the changing nature of jobs. D. It is needed for rapid pay increases. E. It is being demanded by top executives.
It is because of the changing nature of jobs.
Which pay plan generally rewards employees for meeting work objectives?
Job based
This type of pay program rewards employees for successfully learning specific curricula.
Pay for knowledge
This type of pay system rewards employees for successfully acquiring new job-related knowledge.
Person focused pay
Which is a true statement regarding person-focused pay programs? A. Person-focused pay programs generally work like seniority pay programs. B. Person-focused pay programs at most places replace merit pay programs. C. Person-focused pay programs apply in a more limited context than do job-focused pay programs. D. Person-focused pay programs do not encourage acquisition of new skills. E. Person-focused pay programs are applied organization-wide.
Person-focused pay programs apply in a more limited context than do job-focused pay programs.
Of the following phrases, which would apply best to person-focused pay? A. Market basis for evaluating the job an employee performs B. Employees' performance based on how long the employee has remained with the company C. Pay raises based on current performance of an employee D. Potential job performance of an employee to make positive job contributions E. Job performance of an employee as determined by a job description
Potential job performance of an employee to make positive job contributions
In this team, members learn scheduling, coordinating, training, leadership. Which of the following describes this type of work team?
Self regulating
Sheila's employer offers a person-focused pay program, which has led Sheila to acquire multiple skills and be flexible in the types of jobs she can handle. Presently, Sheila's company is facing slow sales. What can Sheila more than likely expect? A. Sheila should expect her employer to offer outplacement services. B. Sheila should expect to receive a pay raise because of her seniority. C. Sheila should expect a permanent pay cut. D. Sheila should expect to be laid off due to the declining valuation of her job. E. Sheila should expect to keep her job because of her flexibility.
Sheila should expect to keep her job because of her flexibility.
Both unions and contractors, who employ carpenters, use ________ pay plans.
Skill based
Which of the following pay systems is used by unions and contractors to reward their carpenters for increasing carpentry abilities?
Skill based pay
Which of the following refers to pay received mostly by those who do physical work?
Skill-based pay
Of the following organizations, which one would be most likely to utilize a person-focused pay program? A. TV manufacturer B. Landscaping company C. Collection agency D. Architectural design firm
TV manufacturer
What is the key advantage to an employee who works for an employer that awards job-based pay as opposed to person-focused pay? A. The employee is rewarded for job performance. B. The employee acquires new knowledge and skills C. The employee is rewarded for taking additional classes. D. The employee is rewarded on the proficiency of past work. E. The employee can look forward to automatic pay raises.
The employee is rewarded for job performance.
Which statement regarding person-focused pay systems is FALSE? A. Person-focused pay systems offer reward for the potential of future job performance. B. Person-focused pay systems are found in companies that employ between 150 and 2,000 employees. C. There is ample published evidence regarding the effectiveness of person-focused pay systems. D. Person-focused pay systems offer rewards for knowledge, skills, and abilities. E. Person-focused pay systems are mainly found in the manufacturing industry.
There is ample published evidence regarding the effectiveness of person-focused pay systems.
As jobs become more automated, what are many employers doing as far as workers are concerned? A. They are combining jobs and giving broader responsibilities to workers. B. They are hiring more workers. C. They are absorbing additional costs for employee education. D. They are offering more employee benefits. E. They are giving more frequent pay raises.
They are combining jobs and giving broader responsibilities to workers.
One of the reasons why employees prefer person-focused pay systems is because such systems provide job security. How does this occur? A. The person-focused system creates workers who can perform a variety of jobs. B. The person-focused system lets workers know that as long as they stay with the firm, they will be given pay raises. C. The person-focused system lets the workers know the compensable factors of a job. D. The person-focused system makes the employee focus more on achieving the stated goals of a job. E. The person-focused pay system emphasizes the market basis for valuing jobs.
The person-focused system creates workers who can perform a variety of jobs.
This is considered "at the heart" of person-focused pay programs.
Training
Employees would need to learn these types of skills in order to develop self-managed work teams.
Vertical
________ skills are those skills typically considered supervisory.
Vertical
Generally, Western European cultures are considered much better than the American culture in providing the workforce with ________.
applied vocational education
A company that designs, manufactures, and sells only Halloween costumes would probably benefit most from this model.
cross departmental
This model is geared to promoting staffing flexibility in a company by training employees in one area of the company with some of the critical skills that are needed to perform effectively in another area of the company.
cross departmental
This type of person-focused pay plan can result in lending an employee from one area in the company to other areas.
cross departmental
Limited case studies on pay systems suggest that ________. A. employers dislike person-focused pay systems B. employees and employers enjoy the benefits of person-focused pay systems C. employers and employees both prefer job-focused pay systems more than person-focused pay systems D. employees are unhappy with person-focused pay systems E. employers prefer person-focused pay systems, and employees prefer job-focused pay systems
employees and employers enjoy the benefits of person-focused pay systems
According to the U.S. Department of Labor Competency Model, academic competencies are considered ________ competencies.
foundational
Employees who take advantage of person-focused pay program opportunities may experience which of the following? A) difficulty in finding employment elsewhere because person-focused pay programs are always firm specific B) higher likelihood of being laid off during periods of business slowdown C) higher likelihood of remaining employed during periods of business slowdown D) feelings of inequity
higher likelihood of remaining employed during periods of business slowdown
What is the most likely goal of firms that increase their use of robotics? A. Improving worker productivity B. Replacing as many workers as possible C. Employing workers to maintain the robots D. Reducing the number of necessary employee skills E. Making workers as similar to machines as possible
improving worker productivity
Evidence suggests that person-focused pay programs lead to which of the following? A) diminished employee commitment B) no significant change in employee satisfaction C) increased employee commitment D) higher competitive advantage
increased employee commitment
Technological innovation has been an important force behind person-focused pay. Employers today, as a result, not only expect technical skills, but also ________ from work teams.
interpersonal skills
The chief advantage to an employer who uses a job-based pay system is that ________. A. an employer does not have to reward a person on a goal achieved rather than the value of an employee's skill level B. it emphasizes skills and knowledge acquisition for employees, which makes it beneficial for the employer C. it is an easy pay system to administer D. an employer can arbitrarily determine the value of a skill rather than using the market as a basis for skill valuation E. an employer can have work scheduling flexibility
it is an easy pay system to administer
Which type of pay program applies to an organization-wide context because employees earn base pay rates for the jobs they perform?
job based
________ pay compensates employees for the work they currently perform.
job based
This term reflects an approach to job design that results in the development of more intrinsically motivating and interesting work.
job enrichment
________ refers to a job design approach that creates more intrinsically motivating and interesting work environments.
job enrichment
The stair-step model is a type of person-focused pay. What do the steps represent in the stair-step model?
job levels
A ________ plan encourages employees to develop skills and learn to perform jobs from different job families.
job point accrual
Which pay model promotes learning and skills development for a wide variety of jobs from different job families?
job point accrual
A majority of the firms using person-focused pay systems operate in which type of industry?
manufacturing
Greater use of technology means that workers ________. A. need to be autonomous and work in a team-based environment B. need to be dependent on others C. must be ready to work in isolation D. no longer require superior time management skills E. now have little to no use for communication skills
need to be autonomous and work in a team-based environment
A manufacturing company emphasizes that vertical skills be used in a high-functioning team-based approach. Workers are expected to learn how to perform functional tasks and managerial tasks. Which type of pay system would be most effective?
person focused pay
The type of pay plan that rewards employees for acquiring job-related competencies, knowledge, or skills rather than demonstrating successful job performance is known as ________.
person focused pay
Which of the following costs is NOT associated with the use of person-focused pay programs? A) payroll B) overhead C) training D) recruitment
recruitment
Wei is the HR manager of a manufacturing facility that has used the cross-departmental system and has noticed that absenteeism rates have been significantly lower since implementing this system. As a result, Wei may tell the managers that the company is able to do which of the following? A) award pay increases to those whose absenteeism is low B) increase the size of the workforce C) increase the size of the training budget D) reduce the size of the workforce
reduce the size of the workforce
One of the key advantages of person-focused pay for employers is that employers can ________. A. almost guarantee the work performance of employees B. be assured of little to no absenteeism C. rely on leaner staffing D. reduce the workforce during slow cycles E. reduce employee training costs
rely on leaner staffing
Which person-focused model links pay levels to increased knowledge and skills within the same general job category?
skill blocks
In the garment factory of the XYZ Co., line workers are trained to work at different manufacturing steps such as grading, cutting, sewing and assembling, pressing, etc. XYZ Co.'s strategy of training is an example of which of the following?
skill variety
In a skill blocks model of a person-focused pay program, ________. A. a person will have to go through each step sequentially to achieve better rewards B. skills do not necessarily build on each other C. skills build on each other D. a person does not depend on curricula, as with the stair-step model, to acquire new skills E. acquiring knowledge is emphasized
skills do not necessarily build on each other
Which type of courses would a company offer in-house as opposed to asking employees to take at an educational institution? A. Financial courses B. Mathematical courses C. Language courses D. Specialized courses E. Management courses
specialized courses
Jamie earned a raise in pay when he finished the training for the Technician 2 position. He will receive another raise when he finishes the training for the Technician 3 position. The company is probably using which type of model?
stair step
Which of the following are the two main reasons given for adopting person-focused programs? A) smaller labor markets and strategic outlines B) market monopolies and lower labor costs C) technological innovations and increased global competition D) market monopolies and company turnover
technological innovations and increased global competition
Which one of the following would be correct regarding person-focused pay programs? A) the skill blocks model only emphasizes horizontal skills B) the stair-step model addresses depth, while the skill blocks model emphasizes both horizontal and vertical skills C) employees do not progress to more complex jobs in the stair-step model D) competency models do not apply to jobs within the same family
the stair-step model addresses depth, while the skill blocks model emphasizes both horizontal and vertical skills
Person-focused pay programs depend, in large part, on well-designed ________ programs.
training
Person-focused pay systems ________. A. use seniority as a basis for job promotion B. use market basis for skill valuation C. apply in a general context throughout the organization D. would be appropriate for those jobs that require basic skills E. use compensable factors of a job to determine base pay
use market basis for skill valuation
