Chapter 6—Compensation and Benefits
MULTIPLE CHOICE
1.____ refers to all of the pay and benefits provided to employees for the completion of work.
a.Salary
b.Pay substructure
c.Total compensation
d.Fair labor standards
e.Incentives
ANS:CPTS:1 REF:p. 198OBJ:LO: 9.1
NAT:BUSPROG: AnalyticSTA:DISC: HRMKEY:Bloom's: Comprehension
2.Which of the following employee behavioral outcomes is MOST likely under conditions of perceived
internal inequity as compared to external inequity?
a. Lower morale
b.Higher conflict
c.Lower satisfaction
d.Lower motivation
e.All of these
ANS:EPTS:1REF:p. 199OBJ:LO: 9.1
NAT:BUSPROG: AnalyticSTA:DISC: HRMKEY:Bloom's: Knowledge
3. Jorge, a supervisor for a large luxury hotel, compared his salary to other supervisors in the same
organization. He found that his base pay was about 25 percent less than other individuals in similar
supervisory jobs. Jorge is experiencing
a.internal inequity.
b.lateral inequity.
c.position inequity.
d.external inequity.
e.compensation inequity.
ANS:APTS:1REF:p. 199OBJ:LO: 9.1
NAT:BUSPROG: AnalyticSTA:DISC: HRMKEY:Bloom's: Knowledge
4.Information used to assess external equity is likely collected with
a.pay surveys.
b.benefits administrators.
c.compensation calculators.
d.random telephone interviews.
e.none of these.
ANS:APTS:1REF:p. 199OBJ:LO: 9.1
NAT:BUSPROG: Analytic STA:DISC: HRMKEY:Bloom's: Comprehension
5.____ occurs when a company indicates to employees the importance of certain behaviors by paying for
such behaviors.
a.Supporting
b.Suggesting
c.Spiraling
d.Benchmarking
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A set of compensable factors are identified as determining the worth of jobs.
Typically the compensable factors include the major categories of:
- Skill
- Responsibilities
- Effort
- Working Conditions
These factors can then be further defined.
- Skill
- Experience
- Education
- Ability
- Responsibilities
- Fiscal
- Supervisory
- Effort
- Mental
- Physical
- Working Conditions
- Location
- Hazards
- Extremes in Environment
The point method is an extension of the factor comparison method.
Each factor is then divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job.
Jobs are then grouped by total point score and assigned to wage/salary grades so that similarly rated jobs would be placed in the same wage/salary grade.
Advantages | Disadvantages |
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Tips
- Factors Use well defined factors.
- Biases Examine the Factor points for inherent biases against females and minorities.
Grouping
After ranking, the jobs should be grouped to determine the appropriate salary levels.
Software
InteractivePoint-Method Program
[//hr-software.net/cgi/JobEvaluation.cgi]
Free web-based job evaluation point-method software.