Final Exam Flashcards
(130 cards)
A compensation maxim for paying people fairly states that employees should be compensated for the requirements of the job they perform and…
How well they perform their job.
Which compensation objective is least compatible with the objective of providing an adequate income?
Compensation should be cost-benefit effective
The total labor force can be divided into three major labor markets:
Blue collar/non-supervisory white collar
Professional
Supervisors/Executives
Which segment of the labor market has the widest range of pay between the classifications of an occupation?
Supervisors/Executives
The pay ratio for lower-paid blu-collar workers versus highly-paid blue-collar workers is about
1:3
What are the three major decisions that must be made in designing a compensation system?
Wage Level, Wage Structure, Individual
Pay levels for professionals are determined mainly by
Educational training and certifications
Secret pay systems are better than open pay systems when
there are large, unexplained wage differentials.
Jobs in which labor market typically require the most education after high school?
Professional.
What are the strategic objectives of compensation?
Legal, adequate, motivating, equitable, secure, and cost-benefit effective
The “Hay” Guide Chart-Profile method uses which three compensable factors?
Know-how, Problem Solving, and Accountability
The GS system used by the Federal Government is an example of
a classification system.
The MOST significant impact of inflation on compensation is that it
requires timely wage adjustments.
In the point method, the weighting of the factors should be based on
their contribution to the overall worth of the job.
In the point method, “key job” refer to
equitably paid jobs that are fairly well-defined.
A “red-circle” rate is a wage that is
paid to a specific employee at a rate higher than that established for the job.
The most important tool to help a job evaluation committee reach a consensus decision when assigning points or comparing factors is
Job descriptions
The relationship between productivity and wages indicates that
Real compensation is closely related to productivity.
In a two-tier wage system…
Newly hired employees are paid on a lower wage scale than current employees.
Job evaluation is
A systematic approach to determine the value of each job.
The Scanlon Plan is a program which combines profit sharing with
a suggestion system.
According to Maslow, the desire to be creative and challenged and to develop one’s full potential is created by
self-actualization needs.
According to Herzberg’s Hygiene/Motivator Theory, what is the relationship between money and motivation?
Money is a factor associate with the context of the job (hygiene factor) and does not motivate.
Under a Halsey Premium Plan, workers would receive a bonus if
they completed a job faster than the standard time.