Week 4 Apply
The research and development business unit at Fresh Munchables is currently recruiting several more employees to develop a new line of superfood meal replacement smoothies. Among the new recruits, the unit will need employees who are registered nutritionists and can formulate smoothies that contain all the nutrients needed to serve as a full meal. In considering what type of rewards system to implement for the new employees, which of the following systems will best attract employees who have the skills needed to help the new product line succeed? -A capability-based pay system because it provides a greater incentive for employees with the specific qualifications needed by the research and development unit -A capacity-based pay system because it provides a greater incentive to those who are willing to work longer hours and produce a greater variety of products -An employee assistance program because it can provide a means for those who do not have a background in nutrition to gain knowledge on the job and progress beyond their current positions -An employee recognition system because it can provide motivation for employees to innovate and come up with creative new ideas to help the research and development unit succeed
A capability-based pay system because it provides a greater incentive for employees with the specific qualifications needed by the research and development unit
The manager of the engineering business unit at Fresh Munchables is working with HR to develop a variable pay program in the form of individual bonuses. The manager hopes that it will help employees focus on the goals of the unit to increase compliance with safety procedures and reduce the number of accidents in the workplace. How should the manager determine whether each employee should receive a bonus and how much the bonus should be in comparison with others? -Have employees rank one another on how well they complied with safety procedures and ask them to report any accidents to the manager. -Reward employees equally according to how well the entire team shows improvement in compliance with safety procedures. -Define the desired safety behaviors and deliver bonuses according to the extent to which each employee demonstrated those behaviors. -Assess each employee's relevant education and experience prior to working for Fresh Munchables and assign greater bonuses to those who are more qualified.
Define the desired safety behaviors and deliver bonuses according to the extent to which each employee demonstrated those behaviors.
After Fresh Munchables has finished creating a capability-based pay system, the compensation team must then implement it. While rolling out the new system, which of the following is advisable to ensure the success of the program? -The team should limit the amount of communication to ensure that competitors do not copy the organization's strategy. -The team should implement a pilot program to allow the organization to better understand the parameters. -The team should avoid including a sunset clause in order to allow the team to adapt the plan as needed after implementation. -The team should avoid implementing a pilot program because employees will feel excluded, which will lower morale.
The team should implement a pilot program to allow the organization to better understand the parameters.
Terri, an employee in the marketing department, comes into the HR office upset because she believes that she is not being paid fairly. Terri is a good employee, and you don't want her to leave the office feeling upset. As an HR representative, you fear that if you don't resolve her frustration, she might leave the company. During your conversation, it will be important for you to focus on ________. -Terri's compensation in relation to her peers, emphasizing distributive justice -the process that led to the decision regarding her pay, emphasizing procedural justice -to what degree Terri is treated with respect in the workplace, emphasizing interactional justice -to what degree Terri is paid equally to her peers, emphasizing commutative justice
the process that led to the decision regarding her pay, emphasizing procedural justice
The sales department of Fresh Munchables had a difficult time making sales in May and June. As a result, the sales manager decided to hold a contest in which salespeople were awarded points for each sale made to a retail customer in the month of July. The salesperson with the most points at the end of the month will receive his or her choice of a prize from the following options: a cash bonus, an extra week of paid vacation time, or a luxury watch. After the first-place salesperson chooses a prize, the salespeople who come in second and third will receive their choice of the remaining two prizes. In addition, all salespeople who improved their sales record from the past two months will receive a $25 gift certificate to a restaurant of their choice. At the end of July, sales had more than tripled since the beginning of May. The sales department had done exceptionally well that month, and the employees enjoyed the prizes that they had worked hard to earn. Which theory of motivation best explains why the contest effectively increased employee performance? -Expectancy theory, because the manager distributed rewards consistently and allowed employees to choose the reward they valued most -Tournament theory, because the work environment was highly competitive only during a short period of time -Intrinsic motivation theory, because the contest helped employees attribute their performance to their improved skills and abilities -Justice theory, because employees received the reward they deserved based on the level of effort they put in
Expectancy theory, because the manager distributed rewards consistently and allowed employees to choose the reward they valued most
Ena is a mechanical engineer with a history of good performance. He has worked at Fresh Munchables for six years and makes roughly $67,000 a year. Phillip is also a mechanical engineer, but has had poor performance in recent months. He has worked for Fresh Munchables for two years and makes roughly $76,000 a year. Ena recently became aware of the pay discrepancy, and he is upset by the injustice. He brings the issue to the attention of the HR department. What should HR do in this situation? -HR should immediately increase Ena's pay to $76,000 and decrease Phillip's pay to $67,000 in order to show that good performance should be rewarded and bad performance punished. -HR should evaluate the company's internal reward alignment and Ena's recent performance, then correct Ena's current pay level in order to ensure pay equity. -HR should forward the complaint to Phillip and Ena's manager and suggest that Phillip be fired for his poor performance in order to alleviate Ena's complaints about compensation. -HR should immediately decrease Phillip's pay to 10% less than Ena's pay and leave Ena's pay the same in order to show Phillip that he must work at the company longer in order to deserve a higher salary.
HR should evaluate the company's internal reward alignment and Ena's recent performance, then correct Ena's current pay level in order to ensure pay equity.
The HR department at Fresh Munchables is working hard to recruit and hire candidates for a systems engineer position. Systems engineers have the knowledge, skills, and abilities (KSAs) that are vital to the success of the organization. Unfortunately, the role of systems engineer is in high demand across the industry, making it more difficult to attract candidates to hire. What should the HR department do in order to fill this position in a labor-driven market? -HR should keep the compensation levels the same and hire a less-qualified candidate because it's often too costly to compete for KSAs. -HR should make the total compensation for the role relatively high in order to attract the desired candidates. -HR should use high-pressure tactics to get candidates to commit to employment. -HR should do a better job of selling the company's tangible rewards during the recruiting process.
HR should make the total compensation for the role relatively high in order to attract the desired candidates.
One of the ways that Fresh Munchables grows its revenue streams is by finding new retail locations to sell products. The company is currently seeking to grow its client base and has established a search team to seek out and acquire new retail locations. The search team is composed of self-motivated employees with a growth mindset toward development and goal achievement, and they are currently being paid a base salary. The compensation team is going to revise the current pay plan to motivate these employees even further. Which of the following forms of pay will help Fresh Munchables reward the desired behaviors? -Piece-rate pay, because it is the gold standard for customer relations employees and provides a foundation for performance appraisal -Performance-based pay, because it provides an incentive for the team members to produce the desired result of growing the company's client base -Hourly pay, because the more time the team members spend contacting potential clients, the more they will be paid -Capability-based pay, because some employees naturally have better social skills and are better at persuading new clients to partner with them
Performance-based pay, because it provides an incentive for the team members to produce the desired result of growing the company's client base
In an effort to help frontline employees feel more valued, Fresh Munchables would like to give managers the autonomy to reward employees in real time for "above and beyond" effort on a weekly basis. Which of the following approaches will best help the company reward frontline employees for outstanding effort and performance? -Allow managers to administer quick awards, because quick awards can be offered in real time and they focus on discretionary performance. -Permit managers to award individual bonuses, because individual bonuses do not require any contingencies for payout. -Permit managers to give out spot awards, because spot awards can be given immediately to reward employees. -Allow managers to administer merit pay, because merit pay targets desired performance.
Permit managers to give out spot awards, because spot awards can be given immediately to reward employees.
A typical job performance model for a food preparation worker at Fresh Munchables states that high performance includes the following: 1. Using proper cooking methods to prepare and package appealing and nutritious food 2. Checking food during preparation and using proper food handling procedures to ensure that quality and safety standards are met 3. Producing accurate quantities of each product with little to no waste How could a manager improve this job performance model? -Mention budget constraints to deter employees from wasting time or inventory -Specify the direct causes of high performance, such as knowledge, rewards, and employee characteristics, to show how employees can achieve high performance -Include more factors that are outside the employees' control in order to increase employee motivation -Provide less detailed objectives in order to allow for creativity on the job
Specify the direct causes of high performance, such as knowledge, rewards, and employee characteristics, to show how employees can achieve high performance
Allison recently graduated from college and was just offered a position as a food scientist at Fresh Munchables. The hiring director offered her a yearly salary of $48,000. However, Allison heard from a friend who graduated with her that he had been offered a yearly salary of $60,000 for a similar position at Tasty Tidbits, a competitor of Fresh Munchables in the snack industry. Allison then proposed a higher salary of $55,000 to the hiring director who refused and said that the typical compensation for an entry-level food scientist was actually $44,000. Allison turned down the job offer. Since then, Fresh Munchables has had a difficult time hiring and retaining food scientists due to higher salaries being offered at other companies. Which challenge is the company facing in terms of external reward positioning? -The job matching challenge, because the entry-level food scientist position has not been compared to entry-level positions in other industries -The bad data challenge, because the company does not have accurate data about the average level of compensation for similar jobs within the industry -The cost challenge, because the company did not align Allison's proposed salary with other food scientists within the company -The ethical challenge, because managers may have colluded to raise their own pay by preventing lower-level employees from earning a reasonable salary
The bad data challenge, because the company does not have accurate data about the average level of compensation for similar jobs within the industry
The HR department at Fresh Munchables has assigned a team to revise the company's compensation system to more accurately reflect the company's current strategic goals. The team has defined both the labor and service markets, and they are now ready to identify benchmark competitors. While selecting these benchmark competitors, what should the team keep in mind to provide an accurate standard for comparison? -The companies selected should have similar values to that of Fresh Munchables in order to maintain high ethical standards in the compensation plan. -The companies chosen should exemplify the products and service markets in which Fresh Munchables competes in order to provide a standard for the rewards system. -The companies chosen should have a similar compensation system to Fresh Munchables so that the same benefits can be compared to each other. -The companies should be selected at random from an exhaustive list of all competitors in the health food market in order to ensure statistical reliability.
The companies chosen should exemplify the products and service markets in which Fresh Munchables competes in order to provide a standard for the rewards system.
The compensation team at Fresh Munchables is weighing the option of implementing individual-based pay within the company's total rewards system. The individual-based pay would apply to select manufacturing employees. These employees would receive increased pay contingent on their competencies and experience. What is a potential disadvantage of using this approach? -The logistics; individual-based pay plans are overly complicated and cumbersome. -The cost; individual-based pay can become expensive as employee performance increases. -The impact it has on minorities; often, individual-based pay creates bias against minority employees. -The knowledge gained; these select employees now have greater knowledge and higher pay and will use that to leave to competitors for even more lucrative roles.
The cost; individual-based pay can become expensive as employee performance increases.