MAN 4330/5331 Compensation Final Exam Questions With Correct Answers!!

Pay structures represent - Answer-- pay rate differences for jobs of unequal - the framework for recognizing differences in employee contributions Companies recognize pay differences by paying individuals according to their: (4 things) - Answer-- credentials - knowledge - geography - job performance Five Steps in Building a Pay Structure - Answer-1. decide how may pay structures to construct 2. determine a market pay line 3. define pay grades 4. calculate pay ranges 5. evaluate results Midpoint is largely based off _______. - Answer-the market Minimum = (formula) - Answer-Midpoint/1 + (Range spread/2) Maximum = (formula) - Answer-Minimum + (range spread x minimum) Midpoint = (formula) - Answer-[(Max - Min) / 2] + Min Pay Compression - Answer-When the pay spread between newly hired or less qualified individuals and more qualified job incumbents is small