Chapter 11: Strategic Pay Plans

Question 1

Define Employee Compensation

Answer 1

An integrated package of all rewards (monetary and non-monetary, extrinsic and intrinsic) gained by employees arising from their employment.

Question 2

5 Components of Total Rewards

Answer 2

1. compensation
2. benefits
3. work-life programs
4. performance and recognition
5. development and career opportunities

Question 3

What are the 3 stages to establishing pay rates?

Answer 3

Stage 1: Job Evaluation
Stage 2: Conduct a wage/salary survey
Stage 3: Combine job evaluation and salary survey info to determine pay for jobs

Question 4

Define job evaluation

Answer 4

Systematic comparison to determine relative worth of jobs within a firm

Question 5

Define benchmark job

Answer 5

Job that is critical to the firm’s operations or commonly found in other organizations .

Question 6

list some compensable factors of a job

Answer 6

• skill
• effort
• responsibility
• Know-how
• Problem solving
• Accountability
• Working conditions

Question 7

Job evaluation Methods

Answer 7

• Classification/ grading method

- Point method

Question 8

Define wage/salary survey

Answer 8

A survey aimed at determining prevailing wage rates. Provides specific wage rates for comparable jobs. Formal written questionnaires are the most comprehensive.

Question 9

list the ways to determine the pay for jobs when job evaluation is combined with salary survey

Answer 9

• wage curve
• Pay ranges
• Broadbanding
• Red circle pay rate