Chapter 5

Person-Focused Pay Plans

A system of rewards for employees for specifically learning new curricula.

​________ is one of the key features of​ person-focused pay that makes it costly for employers. A. Higher training costs B. Larger pay raises C. Reduced work hours D. Generous allowances for time off E. Greater need for staffing

A. Higher training costs

​Pay-for-knowledge, skill-based​ pay, and​ competency-based pay are forms of​ ________. A. person-focused pay plans B. merit pay C. ​job-based pay D. cost-of-living adjustments E. incentive pay

A. person-focused pay plans

​Person-focused pay programs are innovative because they​ ________. A. treat compensation as a reward rather than an entitlement B. make supervisors more accountable on the job C. reward employees very well for lack of absenteeism D. reward employees on the basis of loyalty E. reward employees for taking high levels of risk on the job

A. treat compensation as a reward rather than an entitlement

Anna is a new graduate with a B.S. degree in Business Management and is entering the workforce. Which type of competencies will a future employer expect Anna to​ demonstrate? A. Industry-related competencies B. Foundational competencies C. Workplace competencies D. Industry-sector technical competencies E. Occupation-related competencies

B. Foundational Competencies

What term refers to a job design approach that creates a more intrinsically motivating and interesting work​ environment? A. Empowerment B. Job enrichment C. Job security D. Job analysis E. Skill variety

B. Job enrichment

​Marketing-for-All relies on its employees developing certain skills that address the key concerns of the​ company, like customer relations skills. The company rewards its employees by assigning points to skills such as customer​ relations, communication​ skills, and creativity. Which type of​ person-focused pay program is​ Marketing-for-All more than likely​ following? A. Stair-step model B. Skill-block model C. Job-point accrual model D. Horizontal skill model E. Cross-departmental model

C. Job-point accrual model

Job-Based Pay

Compensates employees for jobs they currently perform.

Which statement about​ job-based pay and​ person-focused pay is​ TRUE? A. A​ person-focused pay system is easier to administer than a​ job-based pay system. B. Job-based pay considers key​ skills, but​ person-focused pay considers the market value of the job itself. C. In a​ job-based pay​ system, an​ employee's pay is determined by the market value of their skills. D. In a​ person-focused pay​ system, employees tend to have more job variety and job enrichment than in a​ job-based system. E. Job-based pay promotes workers based on their past​ proficiency, but​ person-focused pay promotes based on seniority.

D. In a​ person-focused pay​ system, employees tend to have more job variety and job enrichment than in a​ job-based system.

Which type of jobs would be best suited for​ person-focused pay​ programs? A. Jobs in the retail industry B. Jobs in the finance industry C. Jobs in telemarketing D. Jobs in manufacturing E. Jobs in the fast-food industry

D. Jobs in manufacturing

The​ ________ model is a​ person-focused pay plan that encourages employees to develop skills and learn to perform jobs from different job families. A. competency B. incentive-pay C. stair-step D. job-point accrual E. skill blocks

D. job-point accrual

There is evidence that​ well-designed person-focused programs lead to greater employee​ commitment, motivation, and satisfaction. What is the main reason why employees feel the way they do in​ person-focused pay​ programs? A. Employees feel less threatened in this system. B. Employees can take more personal time off in this system. C. Employees feel supervisors communicate better in this system. D. Employees feel less pressure to develop themselves in this system. E. Employees can attain more skills and autonomy in this system.

E. Employees can attain more skills and autonomy in this system.

Job-Point Accrual Model

Pay for knowledge program, provides employees opportunities to develop skills and learn to perform jobs from different job families.

Stairstep Model

Pay-for-Knowledge program that resembles a flight of stairs, the higher the more complex and skills needed

Skill Blocks Model

Pay-for-knowledge program, applies to jobs from within the same job family. Employees progress to increasingly complex jobs; however, skills do not necessarily build on each other

Cross-Department Models

Pay-for-knowledge program, promotes staffing flexibility by training employees in one department with some of the critical skills they would need to perform effectively in other departments.

Horizontal Skills

Refer to similar skills learned to increase current tasks

Compentency

Refers to an individual's capability to orchestrate and apply combinations of knowledge and skills consistently over time to perform work successfully in the required work situations.

Depth of Skills

Refers to the level of specialization, baes on skills, an employee brings to a particular job.

Pay-For-Knowledge

Rewarding Managerial, service, or professional workers for successfully learning specific curricula.

Vertical Skills

Skills traditionally considered supervisory skills.

Skill-Based Pay

Used mostly for employees who do physical work, increases these workers' pay as they master new skills.