wage and salary administration

Question 1

it is a collection of practices and procedures used for planning and distributing company-wide compensation programs for employees.

Answer 1

wage and salary administration

Question 2

one of the most important functions of human resources is the _______

Answer 2

payment of the proper salaries and wages to all company employees.

Question 3

10 theories of wage

Answer 3

subsistence theory

wage fund theory

surplus -value theory

residual claimant theory

marginal productivity theory

demand and supply theory

bargaining theory

behavioral theory

just price theory

investment theory

Question 4

low wages lead to decreased labor due to death and multi nutrition, while wages increase their number due to better health, long life, and marriage.

Answer 4

subsistence theory

Question 5

Adam smith developed this theory

Answer 5

wage fund theory

Question 6

the focus is on the employer and his capacity to pay. The wage level is a function of surplus funds available to the employer: the higher the funds, the higher the wage.

Answer 6

Wage fund theory

Question 7

Karl Marx developed it.

Answer 7

Surplus Value Theory

Question 9

here labor is viewed as a commodity for trade.

Answer 9

surplus value theory

Question 10

labor adds value to the product. the employer did not pay the full amount so collected from the customer, and instead, only a part is paid to them as wage, retaining the remaining by the employer.

Answer 10

surplus-value theory

Question 11

Francis walker propounded this theory

Answer 11

residual claimant theory

Question 12

according to his theory, four factors add value to the manufacturer product. These are LAND, LABOR, CAPITAL, and ENTREPRENUERSHIP.

Answer 12

residual claimant theory

Question 13

Phillips Henry Wicksteed and John Bates developed this theory. here demand and supply of labor on the labor market determine wages.

Answer 13

marginal productivity theory

Question 14

accordingly, workers are paid what they are economically worth assessed by the employer.

Answer 14

marginal productivity theory

Question 15

the marginal concept says that the employers continues to employ labor as long as the value added by the marginal worker is more than his cost.

Answer 15

marginal productivity theory

Question 16

just as the price of a commodity is determined by the interaction of the forces of demand and supply, the rate of wages can also be determined in the same way with the help of demand and supply are equal.

Answer 16

demand and supply

Question 17

the labor supply depends upon factors such as the population`s size, labor mobility, and social structure. the wages will be determined when demand and supply are equal.

Answer 17

demand and supply theory

Question 18

John Davison developed this theory. Here wage level is determined by the bargaining power if employers and their association vs. employees and their trade unions.

Answer 18

bargaining theory

Question 19

norms, traditions, customs, goodwill, and social pressure influence the wage structure. Wages are the best motivators for workers.

Answer 19

Behavioral theory

Question 20

the wage must satisfy many needs identified by Maslow, Herberg, and others. Examples of needs are physiological, security, food and shelter, etc.

Answer 20

behavioral theory

Question 21

this theory, developed by Plato and Aristotle, suggested that each person born into the world be foreordinated to occupy the same status and enjoy the same creative comforts as his/her parents.

Answer 21

just price theory

Question 22

H.M. Gitelman developed this theory. The individual worker`s investment consists of education, training, and experience that a worker has invested in a lifetime of work.

Answer 22

investment theory

Question 23

Gitelman assumes that workers compensation is fixed by the rate of return on that workers investment. Workers can control the level of their compensation

Answer 23

investment theory

Question 24

3 methods of wage payment

Answer 24

time rate plan

piece rate system

balance or debt method

Question 25

the oldest and the most common method of fixing wages. Workers are paid according to the work done during a certain period of time.

Answer 25

time rate plan

Question 26

workers are paid according to the amount of work done or the number of units completed, the rate of each until being settled in advance, irrespective of the time taken to do the task.

Answer 26

piece rate system

Question 27

a combination or time and piece rates. The worker is guaranteed an hourly or a day-rate with an alternative piece rate.

Answer 27

Balance or Debt method

Question 28

3 other information related to wages

Answer 28

blue collar

white collar

pink collar

Question 29

manual labor

Answer 29

blue collar

Question 30

officer workers

Answer 30

white collar

Question 32

job associated with women like nursing, secretarial, etc.

Answer 32

pink collar

Question 33

it is a systematic way to examine how well an employee is performing in his or her job

Answer 33

performance evaluation system

Question 34

4 criterial in the development of a measuring instrument

Answer 34

validity

reliability

acceptability

specificity

Question 35

is the extent to which the performance measure assesses all the relevant aspects of the performance. Often it is referred to as content validity. It refers to the accuracy of the ratings in differentiating each employee in a group in terms of actual job performance.

Answer 35

validity

Question 36

rating may be considered reliable if they are consistent.

Answer 36

reliability

Question 37

refers to whether the people who use the performance measure accept it.

Answer 37

acceptabillity

Question 38

Is the extent to which the performance measure gives specific guidelines to employees about what is expected of them and how they can meet these expectations.

Answer 38

specificity

Question 39

14 types of performance appraisal

Answer 39

1. 720-degree feedback
2. The assessment center method
3. Behavioral anchored rating scale (bars)
4. Checklist method
5. Critical incidents methods
6. Customer/client reviews
7. Field review method
8. Forced choice method
9. General performance appraisal
10. Human resource accounting method
11. Management by objectives (MBO)
12. Performance tests and observations
13. Project evaluation review
14. Rating scales

Question 40

4 types of performance management review

Answer 40

1. The 360-degree appraisal
2. Negotiated appraisal –
3. Peer assessment –
4. Self-assessment –

Question 41

the manager gathers information on the employee`s performance, typically by questionnaire, from supervisors, co-workers, group members, and self-assessment.

Answer 41

The 360-degree appraisal

Question 42

This type of appraisal uses a mediator to help evaluate the employees performance, with a greater emphasis on the better parts of the employees performance.

Answer 42

negotiated appraisal

Question 43

the team members, workgroup, and co-workers are responsible for rating the employee`s performance.

Answer 43

Peer assessment

Question 44

the employees rate themselves in categories such as work behavior, attitude, and job performance.

Answer 44

Self-assessment

Question 45

collects information not only from within the organization but also from the outside, from customers, investors, suppliers, and other financial-related groups.

Answer 45

720-degree feedback

Question 46

this method consists exercises conducted at the company`s designated assessment center, including computer simulations, decisions, role-playing, and other methods.

Answer 46

The assessment center method

Question 47

measures the employee`s performance by comparing it with specific established behavior.

Answer 47

Behavioral anchored rating scale (bars)

Question 48

this simple method consists of a checklist with a series of questions that have yes/no answers for different traits.

Answer 48

Checklist method

Question 49

it could be good or bad. In either case, the supervisor takes the employee`s critical behavior into account.

Answer 49

Critical incidents methods

Question 50

this methods fits best for employees who offer goods and services to customers. The manager asks client and customers for feedback, especially how they perceive the employee and, by extension, the business.

Answer 50

Customer/client reviews

Question 51

an HR department or corporate office representative conducts the employee`s performance evaluation.

Answer 51

Field review method

Question 52

this method is usually a series of prepared true/false questions.

Answer 52

Forced choice method

Question 53

this method involves continuous interaction between the manager and the employee, including setting goals and seeing how they are met.

Answer 53

General performance appraisal

Question 54

alternately called the “accounting method” or “cost accounting method”, this method looks at the monetary value the employee brings to the company. It also includes the company`s cost to retain the employee.

Answer 54

Human resource accounting method

Question 55

this process involves the employee and manager working as a team to identify goals for the former to work on. This process concludes with the manager evaluating whether the employee achieved the goal.

Answer 55

Management by objectives (MBO)

Question 56

this method consists of an oral test that measures employees` skills and knowledge in their respective fields. Sometimes, the tester poses a challenge to the employee and has them demonstrated their skills in solving problem.

Answer 56

Performance tests and observations

Question 57

this method involves appraising team members at the end of every project, not the end of the business year.

Answer 57

Project evaluation review

Question 58

these ratings measure dependability, initiative, attitude, etc. ranging from excellent to poor or some similar scale. These results are used to calculate the employee`s overall performance.

Answer 58

Rating scales