CompensationMGMT Exam 1

What are the steps in designing a point plan?

The first step in designing a point plan is to conduct a job analysis. Next, determine compensable factors. Scale the factors is the third step. Then you must weight the factors according to importance. The fifth step is select criterion pay structures. Next, communicate the plan and train users. Then apply to nonbenchmark jobs. Finally, the last step is develop online software support.

The alignment test:

helps ensure passing the differentiation test.

Incentives do not permanently increase labor costs because:

they are one-time payments.

Research shows that ________ factor(s) account(s) for 98 to 99 percent of the variance in job evaluation plans.

three

TreeWind, Inc. is a bookstore that uses skill and responsibility as its compensable factors. It assigns 20 percent weight to responsibility and 80 percent weight to skill. If the responsibility factor gets a score of 60 after multiplying the subfactors with their corresponding weights and if the skill factor has two subfactors that are rated as 4 and 5, what is the total weightage given to the job?

420

Nina is a high-performing individual who works best alone. Which of the following companies is the most appropriate for her?

A company that uses a hierarchical pay structure to pay its employees based on performance

Lisa is a manager at Trell, Inc. When she hires her employees, she focuses on finding the right job for the right person. Which of the following pay plans is her employer most likely using?

A job-based pay plan

How do skill-based plans motivate employees?

By encouraging employees to take charge of their own development. Skill-based plans give employees more control of their work lives. This plan motivates employees to increase their skills.

Who among the following is most likely to be working for a company that uses a competency-based pay plan?

Carlos, who focuses on obtaining certifications in her field to get a pay increase

Who among the following is examining the validity of a job evaluation?

Keira, who is measuring the degree to which the job evaluation plan matches an agreed-upon pay structure for benchmark jobs

Which of the following companies is taking efforts to improve the work/life balance of its employees?

MH Corp., which increases the number of paid holidays given to its senior employees

GreenRain Corp. faces an increase in its employee turnover rate. The CEO calls for a board meeting with the senior executives to discuss the issue. Who among the following suggests increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?

Tom, who suggests increasing the decision-making authorities given to the employees to make work more challenging Correct

MXB, Inc. is a carwash service provider. It orders the jobs in the company on the basis of the least important job to the most important job. In this case, MXB is most likely using the:

alternation-ranking method.

Jacob works at PrimeClean Corp., a car wash company. He is asked to follow a set of instructions in a predetermined order to wash a car. All the details including the amount of washing liquid to use for each type of car are clearly specified. In this case, Jacob's company is most likely to use a:

closely tailored pay structure.

Mich Inc., a hardware store, has a rating system in place that rates employees on their friendliness, usefulness, and product knowledge. Based on the ratings an employee receives, he or she gets an incentive. The compensation strategy followed by Mich is most closely described as a(n):

customer-focused strategy.

A difference between incentives and merit increases is that incentives:

do not increase the base wage, whereas merit increases increase the base wage.

Joshua believes that treating employees equally will improve their job satisfaction, which in turn will increase their work productivity and performance. In accordance with his beliefs, he wants to reduce the number of job levels and the pay differentials between the levels. In this case, he is most likely to use a(n):

egalitarian pay structure.

Robert, the CEO of GameTrack Corp., wants to restructure its pay plan without increasing labor costs in the long run. He is most likely to achieve this, while retaining his top employees, by:

increasing incentive pay and decreasing base pay.

You are an HR manager, and your boss has told you to find the best way to raise job performance. After some research, you find that ________ have the greatest instrumental value.

monetary incentives

KayDen Corp., a small organization with 15 employees, conducts job evaluation using the least expensive method for the first time. In this case, KayDen is most likely to have used the

ranking method.