Exam 11: Compensation Management

Correct Answer

verified

Show Answer

A) Base pay
B) Benefits
C) Wage compression
D) Skill-based pay
E) Broadbanding

Correct Answer

verified

Show Answer

A) Paycheck Fairness Act
B) Fair Pay Act
C) Comparable Worth Act
D) Back to Basics Act
E) Equal Pay Act

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

Correct Answer

verified

False

Correct Answer

verified

Show Answer

A) Point factor
B) Factor evaluation
C) Job classification
D) Factor comparison
E) Ranking

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

A) added to
B) divided by
C) subtracted from
D) kept separate from

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

Correct Answer

Answered by ExamLex AI

A compensation system is a structured approach to providing monetary value to employees in exchange for work performed. It is designed to attract, retain, and motivate employees. The components of a compensation system typically include: 1. **Base Salary**: This is the fundamental component of a compensation system, representing the fixed pay an employee receives on a regular basis, typically as an annual salary or hourly wage. 2. **Bonuses**: These are typically cash awards given for exceptional performance or for achieving certain goals or milestones within the organization. Bonuses can be one-time payments or recurring incentives. 3. **Commissions**: Often used in sales positions, commissions are payments based on the amount of business an employee generates or the value of contracts secured. 4. **Overtime Pay**: For hourly employees, overtime pay is the additional compensation they receive for hours worked beyond their standard work schedule, as dictated by labor laws. 5. **Merit Increases**: These are pay increases awarded to employees based on their performance evaluations. They are intended to reward high-performing individuals. 6. **Profit Sharing**: This is a plan that gives employees a share in the company's profits. The distribution can be based on a formula that takes into account the company's profitability and the employee's base salary. 7. **Stock Options**: Some companies offer employees the option to buy company stock at a discounted rate. This can be a way to align the interests of the employees with those of the company and its shareholders. 8. **Benefits**: This component includes health insurance, dental and vision coverage, life insurance, retirement plans (such as 401(k) plans), paid time off, and other perks that contribute to an employee's total compensation package. 9. **Pay for Knowledge and Skills**: Some compensation systems reward employees for acquiring new skills or certifications that are valuable to the organization. 10. **Cost of Living Adjustments (COLA)**: In some cases, salaries are adjusted to account for changes in the cost of living, ensuring that employees maintain their purchasing power. 11. **Long-term Incentives**: These are rewards that are designed to retain employees over a longer period, such as deferred compensation plans, pension plans, or long-term performance plans. 12. **Non-monetary Compensation**: This includes any form of non-cash reward, such as flexible working conditions, opportunities for personal growth, recognition programs, and workplace amenities. 13. **Legal and Regulatory Considerations**: A compensation system must comply with all relevant laws and regulations, such as minimum wage laws, overtime rules, and equal pay legislation. 14. **Pay Equity and Fairness**: Ensuring that the compensation system is fair and equitable across the organization, taking into account factors such as job role, experience, education, and market rates. 15. **Market Competitiveness**: Compensation systems should be designed to be competitive with what other employers are offering for similar roles in the same industry and geographic area. A well-designed compensation system is critical for attracting and retaining talent, motivating employees, and ensuring that the organization can achieve its strategic objectives while maintaining compliance with legal requirements and market standards.

A) It is declining in popularity.
B) It is rising in popularity.
C) It is rising in manufacturing but falling in services companies.
D) It is staying about the same in popularity.
E) It is uncertain about its status.

Correct Answer

verified

Show Answer

A) Twelve
B) Fourteen
C) Sixteen
D) Seventeen
E) Eighteen

Correct Answer

verified

Show Answer

A) are paid at the midpoint for a particular class of jobs.
B) are paid above a particular class of jobs.
C) are paid below a particular class of jobs.
D) are not counted in the pay structure.
E) are benchmark jobs in the overall pay structure.

Correct Answer

verified

Show Answer

A) They want an older workforce because older workers can mentor the younger employees
B) Older workers are nearly always much more productive than younger workers
C) Customers may have strong relationships with employees that they have dealt with for most of their lives.
D) People with greater organizational tenure know,and could tell others about,all of the skeletons in the corporate closet
E) Younger workers are just not as dedicated as workers with longer tenure in the company.

Correct Answer

verified

C

Correct Answer

verified

According to the theory,motivation is a ...

View Answer

Show Answer

A) Social Security Act
B) Equal Employment Opportunity Act
C) Fair Labor Standards Act
D) Maximum Hour and Wage Act
E) Federal Minimum Wage Act

Correct Answer

verified

Show Answer