MGHB12 Chapter 9, 10, 11 Compensation Questions and Correct Answers | Latest Update | A+

Total compensation Ans: Base pay Incentive/performance pay Indirect pay (benefits) Challenges to strategic compensation Ans: Firm policies and practices Available compensation options Equitable system: internal, external, perceived Appropriateness Establishing base pay rates Ans: Internal Equity 1. Determine the worth of each job: job evaluation 2. Group similar jobs into pay grades External Equity 3. Conduct a wage/salary survey 4. Price each pay grade: wage curves 5. Fine tune pay rates Point method (internal equity) Ans: 1. Determine clusters of jobs to be evaluated 2. Collect job information a. job descriptions b. job specifications 3. Select and define compensable factors 4. Define factor degrees 5. Determine factor weights 6. Assign points to factors and degrees Typical conpensable factors Ans: Skill Effort Responsibility Working conditions Summary of steps in point system Ans: Compensable factors Maximum number of points Weight each factor Divide factor into levels Associate pay with levels of each facto