Strategic Compensation Final Exam
1. What business should we be in?: Corporate objectives, strategic plans,
visions and values
2. How do we gain the competitive advantage in the businesses: Business
unit Strategies
3. How should Hr give us the competitive advantage: HR Strategies
4. How should total compensation help us win: social, competitive and
regulatory environment
5. Overtime pay: covered, non-exempt employees must one and one half times
the regular rate of pay for for all hours worked over forty in a work week
6. Regular Rate:
Step 1: Total straight time earning / total hours worked = rr
Step 2: RR*.5= half time premium rate
Step 3: half time premium * overtime hours = total overtime premium due
7. white collar exemptions: most common FLSA minimum wage and overtime
exemptions "541" or "white collar"
executives, administration, professional, outside sales, computer
8. Three test for exemptions: salary level salary basis job duties
9. Executive duties: management of the enterprise or of customarily recognized
departments or subdivisons
directs the work of two or more employees authority
to hire and fire
10. Administrative Duties: performs office or nonmanual work directly related to
the management or general business operations.
Exercise of discretion and independent judgement with respect to matters of
significance.
11. Professional duties: performance of work requiring knowledge of advanced
type in a field of science of learning.
Performance of work requiring invention, imagination, originality or talent in a
recognized field of artistic or creative endeavor.
12. Job analysis: process of systematically collecting, analyzing and
documenting the important factors of a job
13. Who provides the information in regards to job analysis: job holders and
supervisors
14. What information should be collected in a job analysis: "essential
elements" and the American's with disabilities Act
15. Job evaluation: process of systematically determining the relative worth of a
job to create a job based pay structure
Job content , skills required, value to an organization
1/5
, Strategic Compensation Final Exam
16. Benchmark jobs: a job not unique to one employer well known and stable
overtime, proportion of the work force.
17. Lead Pay Level: maximizes the ability to attract and retain quality employees
and minimizes employee dissatisfaction with pay May offset less attractive
features of work if only used to hire new employees may lead to dissatisfaction
of current employees may mask negative job attributes that contributes to high
turnover later on.
18. Lag Pay level policy: pay below the market rates may hinder a firm's ability to
attract potential employees. they can promise later return which can increase
employee commitment
foster team work increase
productivity.
19. Gather pay data from relevant market competitors (relevant labor market
includes): same occupation or skills
same geographic area
same product and services
20. Market pay line: links a company's benchmark job on the horizontal axis and
market rates paid by competitors on the vertical access summarizes the
distribution of going rates paid by competitors
21. why use pay grades and ranges: offers flexibility to deal with pressures from
external markets and differences among firms. differences in quality among
individuals applying for work differences in the productivity or value differences
in the mix of pay forms
22. violations of the sherman anti trust act of 1890: exchange of information on
pricing and competition
23. Antitrust safety zone: have a third part manage the process (association or
vendor) make data available (beyond the association) stick to the past (3 or
more months older) Aggregate data only (5 different competitors) avoid
unregulated discussions of survey results
24. Benefits: are statutory or optional, generally provided income replacement or
paid leave
25. Statutory benefits: social security
workers comp
FMLA
unemployment insurance
healthcare
26. Defined Benefits plan: benefits amount is based on a formula. Employers
fund the plan and bears the risk
2/5
1. What business should we be in?: Corporate objectives, strategic plans,
visions and values
2. How do we gain the competitive advantage in the businesses: Business
unit Strategies
3. How should Hr give us the competitive advantage: HR Strategies
4. How should total compensation help us win: social, competitive and
regulatory environment
5. Overtime pay: covered, non-exempt employees must one and one half times
the regular rate of pay for for all hours worked over forty in a work week
6. Regular Rate:
Step 1: Total straight time earning / total hours worked = rr
Step 2: RR*.5= half time premium rate
Step 3: half time premium * overtime hours = total overtime premium due
7. white collar exemptions: most common FLSA minimum wage and overtime
exemptions "541" or "white collar"
executives, administration, professional, outside sales, computer
8. Three test for exemptions: salary level salary basis job duties
9. Executive duties: management of the enterprise or of customarily recognized
departments or subdivisons
directs the work of two or more employees authority
to hire and fire
10. Administrative Duties: performs office or nonmanual work directly related to
the management or general business operations.
Exercise of discretion and independent judgement with respect to matters of
significance.
11. Professional duties: performance of work requiring knowledge of advanced
type in a field of science of learning.
Performance of work requiring invention, imagination, originality or talent in a
recognized field of artistic or creative endeavor.
12. Job analysis: process of systematically collecting, analyzing and
documenting the important factors of a job
13. Who provides the information in regards to job analysis: job holders and
supervisors
14. What information should be collected in a job analysis: "essential
elements" and the American's with disabilities Act
15. Job evaluation: process of systematically determining the relative worth of a
job to create a job based pay structure
Job content , skills required, value to an organization
1/5
, Strategic Compensation Final Exam
16. Benchmark jobs: a job not unique to one employer well known and stable
overtime, proportion of the work force.
17. Lead Pay Level: maximizes the ability to attract and retain quality employees
and minimizes employee dissatisfaction with pay May offset less attractive
features of work if only used to hire new employees may lead to dissatisfaction
of current employees may mask negative job attributes that contributes to high
turnover later on.
18. Lag Pay level policy: pay below the market rates may hinder a firm's ability to
attract potential employees. they can promise later return which can increase
employee commitment
foster team work increase
productivity.
19. Gather pay data from relevant market competitors (relevant labor market
includes): same occupation or skills
same geographic area
same product and services
20. Market pay line: links a company's benchmark job on the horizontal axis and
market rates paid by competitors on the vertical access summarizes the
distribution of going rates paid by competitors
21. why use pay grades and ranges: offers flexibility to deal with pressures from
external markets and differences among firms. differences in quality among
individuals applying for work differences in the productivity or value differences
in the mix of pay forms
22. violations of the sherman anti trust act of 1890: exchange of information on
pricing and competition
23. Antitrust safety zone: have a third part manage the process (association or
vendor) make data available (beyond the association) stick to the past (3 or
more months older) Aggregate data only (5 different competitors) avoid
unregulated discussions of survey results
24. Benefits: are statutory or optional, generally provided income replacement or
paid leave
25. Statutory benefits: social security
workers comp
FMLA
unemployment insurance
healthcare
26. Defined Benefits plan: benefits amount is based on a formula. Employers
fund the plan and bears the risk
2/5
