Human Resource Management Chapter 11
47 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is an example of direct financial payments?

  • Company car
  • Employer-paid insurance
  • Vacations
  • Commissions (correct)

    • The Equity Theory of Motivation suggests that perceived inequity leads to a feeling of tension.

    True

    What is an aligned reward strategy in the context of employee compensation?

    A compensation package designed to produce behaviors that support the firm's competitive strategy.

    The _________________ Act of 1931 requires payment of prevailing wages on public works projects.

    <p>Davis-Bacon</p> Signup and view all the answers

    Match the following types of equity with their definitions:

    <p>External = Comparison to market rates Internal = Comparison among employees within the organization Individual = Comparison based on unique employee contributions Procedural = Fairness in the process of pay determination</p> Signup and view all the answers

    Which type of pay plan focuses on skills and competencies rather than just job title?

    <p>Competency-based pay plan</p> Signup and view all the answers

    Indirect financial payments include cash bonuses and overtime pay.

    <p>False</p> Signup and view all the answers

    Name one legal consideration related to employee compensation.

    <p>Title VII of the 1964 Civil Rights Act</p> Signup and view all the answers

    What is the primary purpose of developing a market-competitive pay plan?

    <p>To attract and retain talent</p> Signup and view all the answers

    Competency-based pay compensates employees based on their job title rather than their skills and knowledge.

    <p>False</p> Signup and view all the answers

    What are the four components typically included in executive pay?

    <p>Base Pay, Short-term Incentives, Long-term Incentives, Executive Benefits and Perks</p> Signup and view all the answers

    Competency-based pay focuses on an employee's range, depth, and types of __________.

    <p>skills and knowledge</p> Signup and view all the answers

    Match the following compensation terms with their descriptions:

    <p>Base Pay = Fixed salary amount Short-term Incentives = Bonuses for immediate performance Long-term Incentives = Compensation linked to future performance Executive Benefits = Additional perks for executives</p> Signup and view all the answers

    What is a key component of job evaluation?

    <p>Relative work and salary structure</p> Signup and view all the answers

    Which of the following is NOT a step in creating a market-competitive pay plan?

    <p>Implement a Fixed Pay Structure</p> Signup and view all the answers

    The Fair Labor Standards Act is irrelevant when determining executive pay.

    <p>False</p> Signup and view all the answers

    Compensable factors include only skill and responsibility.

    <p>False</p> Signup and view all the answers

    What is the purpose of the market-based approach in job evaluation?

    <p>To determine how much others in the relevant labor markets are paying for particular jobs.</p> Signup and view all the answers

    What does broadbanding in compensation refer to?

    <p>Creating wider pay ranges for jobs of varying levels</p> Signup and view all the answers

    The job evaluation process often starts by identifying the ______.

    <p>need</p> Signup and view all the answers

    Match the job titles with their assigned final pay:

    <p>Office manager = $44,000 Chief nurse = $42,750 Bookkeeper = $35,000 Nurse = $32,750</p> Signup and view all the answers

    Which step is NOT part of the ranking method in job evaluation?

    <p>Benchmark jobs</p> Signup and view all the answers

    The final pay assigned after job ranking is often lower than what others pay in the market.

    <p>False</p> Signup and view all the answers

    What are compensable factors?

    <p>Fundamental elements of a job used to compare jobs, such as skill, effort, responsibility, and working conditions.</p> Signup and view all the answers

    What act established the minimum wage in the United States?

    <p>Fair Labor Standards Act</p> Signup and view all the answers

    The Equal Pay Act of 1963 requires equal pay for men and women for the same job.

    <p>True</p> Signup and view all the answers

    Name one right that the National Labor Relations Act of 1935 provides to employees.

    <p>The right to unionize</p> Signup and view all the answers

    The _____ Act aims to protect employees from discrimination based on age.

    <p>Age Discrimination in Employment</p> Signup and view all the answers

    Match the following legislation to their respective focus areas:

    <p>Social Security Act = Retirement benefits Family and Medical Leave Act = Leave for family and medical reasons Americans with Disabilities Act = Disability rights Worker’s Compensation Laws = Injury compensation</p> Signup and view all the answers

    Which of the following is a requirement under the Employee Retirement Income Security Act regarding employee benefits?

    <p>Companies must adhere to fiduciary standards</p> Signup and view all the answers

    The Worker’s Compensation Laws are designed to provide financial support to employees injured at work.

    <p>True</p> Signup and view all the answers

    What is the primary objective of the point method in job evaluation?

    <p>To identify compensable factors and their degree</p> Signup and view all the answers

    What does the term ‘nonexempt’ refer to in the context of employment law?

    <p>Employees entitled to minimum wage and overtime pay</p> Signup and view all the answers

    The first step in creating a market-competitive pay plan is to evaluate the jobs.

    <p>False</p> Signup and view all the answers

    What does GS-7 refer to in the context of job classification?

    <p>A grade indicating a level of responsibility and nature of assignment.</p> Signup and view all the answers

    The method that involves assigning weights to various compensable factors is called the ______ method.

    <p>point</p> Signup and view all the answers

    Match the following steps to their corresponding actions in creating a market-competitive pay plan:

    <p>Choose Benchmark Jobs = Assess job importance against market standards Select Compensable Factors = Identify elements contributing to job value Assign Weights to Compensable Factors = Determine the significance of each factor Evaluate the Jobs = Assess how each job fits within the pay structure</p> Signup and view all the answers

    Computerized job evaluations are a traditional method of job classification.

    <p>False</p> Signup and view all the answers

    What is one objective of evaluating jobs in the context of job pay plans?

    <p>To ensure fair and competitive compensation.</p> Signup and view all the answers

    Which of the following acts regulates executive pay?

    <p>The Sarbanes-Oxley Act</p> Signup and view all the answers

    Comparable worth requires men and women to be paid differently for dissimilar jobs.

    <p>False</p> Signup and view all the answers

    What requirement does the principle of comparable worth establish?

    <p>Equal wages for men and women for jobs of comparable value.</p> Signup and view all the answers

    The _________ is the governing body that enforces regulations regarding executive pay.

    <p>Securities and Exchange Commission (SEC)</p> Signup and view all the answers

    Match the following concepts with their descriptions:

    <p>Broadbanding = A pay structure that consolidates multiple pay grades into fewer broad categories Total Rewards = All aspects of an employee's compensation and benefits package Employee Engagement = The emotional commitment an employee has to the organization Shareholder Activism = Shareholders attempting to influence company behavior regarding pay and policies</p> Signup and view all the answers

    Which act is associated with promoting transparency in executive compensation?

    <p>The Dodd-Frank Law</p> Signup and view all the answers

    Recognition rewards are a component of total reward programs.

    <p>True</p> Signup and view all the answers

    Total reward programs aim to improve ________ among employees.

    <p>engagement</p> Signup and view all the answers

    Study Notes

    Human Resource Management Chapter 11: Establishing Strategic Pay Plans

    • Chapter focuses on establishing strategic pay plans within human resource management.
    • Learning objectives cover various aspects of compensation, including basic factors determining pay rates, job evaluation methods, pricing managerial/professional jobs, competency-based vs traditional plans, total rewards, and legal considerations.
    • Basic Factors in Determining Pay Rates: Compensation is comprised of direct (wages, salaries, incentives, commissions, bonuses) and indirect (employer-paid insurance, vacations) financial payments.
    • Job Evaluation: A method used to create salary structures or hierarchies by evaluating job responsibilities, skills, and working conditions.
    • Market-Based Approach: Formal or informal salary surveys help organizations determine similar pay in relevant labor markets for specific jobs.
    • Market-Competitive Pay Plan: Plans emphasizing internal and external pay equity to attract and retain employees.
    • Pricing Managerial and Professional Jobs: Factors impacting executive pay include base pay, short-term incentives, long-term incentives, and executive benefits/perks.
    • Legal Considerations: Important legislation influencing compensation policies, including Davis-Bacon Act, Walsh-Healey Public Contract Act, Title VII of the Civil Rights Act, Fair Labor Standards Act, Equal Pay Act, Employee Retirement Income Security Act, and other relevant legislation.
    • Job Evaluation Methods: Ranking and Classification are used to evaluate jobs, including a point method where job factors are assigned weights and points.
    • Preparing for Job Evaluation: Steps include identifying the need, getting employee cooperation, selecting an evaluation committee, and performing the evaluation, including benchmarking jobs.
    • Job Evaluation Methods: Ranking: Specific steps for ranking jobs entail obtaining job information, selecting and grouping jobs, selecting compensable factors, ranking jobs combining ratings, comparing current pay with market practices, and assigning a new pay scale.
    • Job Evaluation Methods: Classification: Example of a grade definition and level of responsibility are illustrated to demonstrate job evaluation classification methods.
    • The Point Method & Computerized Job Evaluations: The point method is a structured approach assigning points to quantified compensable job factors.
    • How to Create a Market-Competitive Pay Plan: This process includes choosing benchmark jobs, selecting compensable factors, assigning weights, converting percentages to points, defining factor degrees, determining points for degrees, reviewing job descriptions/specifications, evaluating jobs, creating current and external wage curves, comparing and adjusting rates, developing pay grades and rate ranges, and correcting out-of-line pay.
    • Competency-Based Pay: This pay method focuses on employee skills, knowledge, and behaviors rather than job titles.
    • Broadbanding: A compensation structure that consolidates several traditional grades into a smaller number of bands, encompassing a wider range of jobs.
    • Comparable Worth: The requirement for equal pay for work of a similar value, irrespective of gender.
    • Board Oversight of Executive Pay: Government regulation and legislation, like the SEC, Dodd-Frank Law, and Sarbanes-Oxley Act, as well as shareholder activism, all influence executive pay.
    • Importance of Total Rewards for Employee Engagement: Total rewards go beyond base pay to include benefits and recognition for improved employee engagement.
    • Employee Engagement Guide for Managers: Total reward programs and statements are part of total compensation plans, enhancing employee engagement.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Human Resource Management Chapter 11 PDF

    Description

    This chapter delves into the intricacies of establishing strategic pay plans in Human Resource Management. It covers vital components such as compensation structures, job evaluation methods, and market-based approaches, aiming to equip learners with the knowledge necessary to design effective pay plans. Dive into concepts like total rewards and legal considerations in compensation.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser