COMPEN

Question 1

some people see pay as a measure of justice.

Answer 1

SOCIETY

Question 2

are also interested in how employees are paid.

Answer 2

STOCKHOLDERS

Question 3

compensation influences their success in two ways.

Answer 3

MANAGERS

Question 4

the pay individuals receive in return for the work they perform is usually the major source of their financial security.

Answer 4

EMPLOYEES

Question 5

Compensation means something that counterbalances, offsets, or makes up for something else.

Answer 5

ENGLISH

Question 6

the traditional characters for the word “compensation” are based on the symbols for logs and water; compensation provides the necessities in life.

Answer 6

CHINA

Question 7

is kyuyo which is made up of two separate characters (kyu and yo), both meaning “giving something.”

Answer 7

JAPANESE

Question 9

–refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship.

Answer 9

COMPENSATION

Question 11

are psychological

Answer 11

RELATIONAL RETURNS

Question 12

are more transactional

Answer 12

TOTAL COMPENSATION RETURNS

Question 13

referring to pay for employees who are exempt from regulations of the Fair Labor Standards Act.

Answer 13

SALARY

Question 14

is the cash compensation that an employer pays for the work performed.

Answer 14

BASE WAGE

Question 15

are given as increments to the base pay in recognition of past work behaviour.

Answer 15

MERIT INCREASES

Question 16

Periodic adjustments to base wages may be made on the basis of changes in what other employers are paying for the same work, changes in the overall cost of living, or changes in experience or skill.

Answer 16

MERITS PAY/COST OF LIVING ADJUSTMENTS

Question 17

pay increase directly to performance.

Answer 17

incentives

Question 18

It contains three basic building blocks:

Answer 18

POLICIES
TECHNIQUES
OBJECTIVES

Question 19

can be stated more specifically: Improving performance, increasing quality, delighting customers and stockholders

Answer 19

EFFICIENCY

Question 20

The fairness objective calls for fair treatment for all employees by recognizing both employee contributions (e.g. higher pay for greater performance, experience, or training) and employee’s needs ( e.g. a fair wage as well as fair procedures)

Answer 20

FAIRNESS

Question 21

as a pay objective means conforming to federal and state compensation law and regulations.

Answer 21

COMPLIANCE

Question 22

Four Policy Choices

Answer 22

Internal alignment
External Competitiveness
Employee Contributions
Management – A policy regarding management of the pay system is the last building block in our model.

Question 23

refers to comparisons among jobs or skill level inside a single organization.

Answer 23

Internal alignment

Question 25

refers to pay comparisons with competitors.

Answer 25

External Competitiveness

Question 26

the emphasis to place on employee’s contributions (or nature of place mix) is an important policy decision since it directly affect employees’ attitudes and work behaviors.

Answer 26

Employee Contributions

Question 27

A policy regarding management of the pay system is the last building block in our model.

Answer 27

Management

Question 28

s a popular internet search engine company.

Answer 28

GOOGLE

Question 29

is a pioneer in implantable medical devices such as pacemakers and stents.

Answer 29

MEDTRONIC

Question 30

now part of Bank of America, a financial service organization that has had an eventful few years, advises companies and clients worldwide.

Answer 30

MERRIL LYNCH