Outcome # 2

Question 1

wage mix

Answer 1

Internal and external factors can influence directly or indirectly the rates at which employers are paid

Question 2

INTERNAL FACTORS

Answer 2

1. employer’s compensation strategy
2. worth of a job
3. employer’s ability to pay.

Question 3

Employer’s Compensation Strategy

Answer 3

1. the internal wage relationship among jobs and skill levels
2. the external competition or an employer’s pay position relative to what competitors are paying
3. policy of rewarding employee performance
4. administrative decisions
   concerning elements of the pay system

Question 4

Worth a job

Answer 4

job evaluation
clerical, technical, and various blue-collar groups
managerial and top executive positions

Question 5

Employee relative worth

Answer 5

effective performance appraisal system that differentiates between employees who deserve the raises and those who do not

Question 6

Employer’s Ability to Pay

Answer 6

an organization’s ability to pay is determined in part by the productivity of its employee

Question 7

EXTERNAL FACTORS

Answer 7

Labor market conditions
area wage rates
Cost of living
Collective bargains (if unionized)

Question 8

labour market conditions

Answer 8

The labour market reflects the forces of supply and demand for qualified labour within an area

Question 9

area wage rates

Answer 9

Wage survey data also may be obtained from a variety of sources

Question 10

Cost of living

Answer 10

because inflation compensation rate has to be adjusted

Question 11

consumer price index

Answer 11

A measure of the average change in
prices over time in a fixed “market
basket” of goods and services

Question 12

escalator clauses

Answer 12

Clauses in collective agreements that provide for quarterly cost-of-living adjustments in wages, basing the adjustments on changes in the consumer price index

Question 13

Collective bargain

Answer 13

Union bargain in compensation