Strategic Compensation in Canada|
Quality Question and Answers| Grade A+
-1 correlation coefficient
Right Answer - Negative or inverse relationship between job evaluation
points and pay rates.
+1 correlation coefficient
Right Answer - Positive relationship between job evaluation points and pay
rates.
360-degree feedback
Right Answer - Feedback from multiple sources, including peers.
Adjust compensation
Right Answer - Modifying pay structures to ensure equity between male
and female job classes.
Administrative reasons
Right Answer - Identifying underperformers for potential dismissal.
Advantages of Base Pay
Right Answer - Easy to measure, easy to price in terms of its value to the
employer, easy to attribute to individual employees, controllable by the
individual employee, relatively stable.
,Advantages of Gain Sharing
Right Answer - This can stimulate higher productivity and create positive
group norms.
Advantages of Goal-Sharing
Right Answer - More flexible than gain sharing and can be adjusted as
circumstances require.
Advantages of Indirect Pay
Right Answer - Competitive pressure, matches unionized firms, favorable
tax treatment, economies of scale in purchasing, protect financial security,
and peace of mind.
Advantages of Job Evaluation
Right Answer - Includes centralized control of compensation costs,
signaling the importance of different jobs, promoting internal equity,
facilitating market calibration, encouraging job description development,
providing a systematic way to determine pay for new jobs, and availability
of packaged plans from consultants.
Advantages of Merit Bonuses
Right Answer - Includes flexibility, potential use in conjunction with merit
raises, relation to the firm's financial conditions, and visibility through lump
sum payments.
Advantages of Merit Raises
,Right Answer - Includes focus on overall performance, feedback provision,
advancement through pay range, retention of outstanding employees, and
fostering perceptions of equity.
Advantages of Performance Pay
Right Answer - Signal key behavior and motivate employees, can reduce
the need for other types of compensation, and support specific managerial
strategies.
Advantages of Piece Rates
Right Answer - Includes high motivation for task behavior, reduced need
for external control, linking compensation to output, and providing specific
information about expected output levels.
Advantages of Profit-Sharing Plans
Right Answer - Employees may be more motivated to improve
performance when interests are aligned.
Advantages of Promotions
Right Answer - Includes recognition, pay raises, intrinsic motivation
elements, and acknowledgment of employee contributions.
Advantages of Sales Commissions
Right Answer - Includes ease of setting and measuring, reduced
interdependence among sales employees, less job security concern,
reduced need for control mechanisms, feedback provision, reduced
employer risk, and potential for increased sales.
, Advantages of Skill-Based Pay (SBP)
Right Answer - Includes incentives to learn a variety of skills, avoidance of
disincentives to movement, no need for job descriptions, broader intrinsic
rewards, self-management for individuals and teams, support for high-
involvement firm behaviors, and promotion of change to high-involvement
practices.
Advantages of Special-Purpose Incentives
Right Answer - Focuses attention on key employee behaviors.
Affective commitment
Right Answer - Attachment to an organization based on positive feelings
toward the organization
Agency theory
Right Answer - Pursuing self-interests unless monitored or aligned with
employer interests
Aging the data
Right Answer - Updating compensation data for current relevance.
Analyzer Strategy
Right Answer - Balances new opportunities with traditional products.
Attribution theory
Right Answer - Attributing motives for behavior post-action
Quality Question and Answers| Grade A+
-1 correlation coefficient
Right Answer - Negative or inverse relationship between job evaluation
points and pay rates.
+1 correlation coefficient
Right Answer - Positive relationship between job evaluation points and pay
rates.
360-degree feedback
Right Answer - Feedback from multiple sources, including peers.
Adjust compensation
Right Answer - Modifying pay structures to ensure equity between male
and female job classes.
Administrative reasons
Right Answer - Identifying underperformers for potential dismissal.
Advantages of Base Pay
Right Answer - Easy to measure, easy to price in terms of its value to the
employer, easy to attribute to individual employees, controllable by the
individual employee, relatively stable.
,Advantages of Gain Sharing
Right Answer - This can stimulate higher productivity and create positive
group norms.
Advantages of Goal-Sharing
Right Answer - More flexible than gain sharing and can be adjusted as
circumstances require.
Advantages of Indirect Pay
Right Answer - Competitive pressure, matches unionized firms, favorable
tax treatment, economies of scale in purchasing, protect financial security,
and peace of mind.
Advantages of Job Evaluation
Right Answer - Includes centralized control of compensation costs,
signaling the importance of different jobs, promoting internal equity,
facilitating market calibration, encouraging job description development,
providing a systematic way to determine pay for new jobs, and availability
of packaged plans from consultants.
Advantages of Merit Bonuses
Right Answer - Includes flexibility, potential use in conjunction with merit
raises, relation to the firm's financial conditions, and visibility through lump
sum payments.
Advantages of Merit Raises
,Right Answer - Includes focus on overall performance, feedback provision,
advancement through pay range, retention of outstanding employees, and
fostering perceptions of equity.
Advantages of Performance Pay
Right Answer - Signal key behavior and motivate employees, can reduce
the need for other types of compensation, and support specific managerial
strategies.
Advantages of Piece Rates
Right Answer - Includes high motivation for task behavior, reduced need
for external control, linking compensation to output, and providing specific
information about expected output levels.
Advantages of Profit-Sharing Plans
Right Answer - Employees may be more motivated to improve
performance when interests are aligned.
Advantages of Promotions
Right Answer - Includes recognition, pay raises, intrinsic motivation
elements, and acknowledgment of employee contributions.
Advantages of Sales Commissions
Right Answer - Includes ease of setting and measuring, reduced
interdependence among sales employees, less job security concern,
reduced need for control mechanisms, feedback provision, reduced
employer risk, and potential for increased sales.
, Advantages of Skill-Based Pay (SBP)
Right Answer - Includes incentives to learn a variety of skills, avoidance of
disincentives to movement, no need for job descriptions, broader intrinsic
rewards, self-management for individuals and teams, support for high-
involvement firm behaviors, and promotion of change to high-involvement
practices.
Advantages of Special-Purpose Incentives
Right Answer - Focuses attention on key employee behaviors.
Affective commitment
Right Answer - Attachment to an organization based on positive feelings
toward the organization
Agency theory
Right Answer - Pursuing self-interests unless monitored or aligned with
employer interests
Aging the data
Right Answer - Updating compensation data for current relevance.
Analyzer Strategy
Right Answer - Balances new opportunities with traditional products.
Attribution theory
Right Answer - Attributing motives for behavior post-action
