Mana 3320 Exam 3 Questions And
Answers
/.wage mix - Answer-✅Internal Factors- Compensation strategy of organization, Worth
of Job, Employee's relative worth, Employer's ability to pay
External Factors- Conditions of the labor market (unemployment) , area wage rates,
cost of living, collective bargaining, legal requirements.
/.total compensation - Answer-✅Direct- Wages/salaries
Incentives
bonus/comission
gainsharing/stock
Indirect-
Time not worked
Insurance plans
Security plans
Employee services
/.Relationship of compensation to other HR processes - Answer-✅Recruitment- Aid or
impair recruitment, Supply of applicants affects wage rates
Selection- Pay rates affect selectivity, Selection standards affect level of pay required
Training and Development- Pay can motivate training, Increased knowledge leads to
higher pay
Labor Relations-Low pay encourages unionization, Pay rates determined through
negotiation
/.Common strategic compensation goals - Answer-✅-Reward employees' past
performance
-Remain competitive in the labor market
-Maintain salary equity among employees
-Mesh employees' future performance with organizational goals
-Control compensation budget
-control labor costs
-Attract new employees
-Reduce unnecessary turnover
/.Job evaluations systems - Answer-✅Formal systematic process that determines the
relative worth of jobs
, which jobs should get paid more?
/.Job ranking - Answer-✅Oldest system of job evaluation by which jobs are arrayed on
the basis of their relative worth.
Disadvantages
-Does not provide a precise measure of each job's worth.
-Final job rankings indicate the relative importance of jobs, not the extent of differences
between jobs.
-Method can used to consider only a reasonably small number of jobs.
/.Point Method - Answer-✅A job evaluation technique that uses compensable factors
scaled according to the degree present in the job
/.Paired comparisons - Answer-✅...
/.Factor systems - Answer-✅Puts a value on what the job position does for the
company.
/.Hay profile method - Answer-✅A job evaluation technique using three factors-
knowledge, mental activities, and accountability- to evaluate executive and managerial
positions.
/.Skill based pay systems - Answer-✅Pay based on an employee's skill level, variety of
skills, or increased job knowledge.
Skill breadth - learning all the different positions in a team
Skill depth - increasing expertise as in an apprenticeship ladder
Vertical skills - management skills and knowledge of the business
Common Applications
-Base-pay systems
-Non-exempt employees
-Manufacturing sector
-Enhances employee involvement (such as self-managed teams)
/.Market pricing - Answer-✅The process of analyzing external salary survey data to
establish the worth of jobs as represented by the data.
Problems include
-They are not always compatible
with the user's jobs
-The user cannot specify what
specific data to collect.
Sources include
Answers
/.wage mix - Answer-✅Internal Factors- Compensation strategy of organization, Worth
of Job, Employee's relative worth, Employer's ability to pay
External Factors- Conditions of the labor market (unemployment) , area wage rates,
cost of living, collective bargaining, legal requirements.
/.total compensation - Answer-✅Direct- Wages/salaries
Incentives
bonus/comission
gainsharing/stock
Indirect-
Time not worked
Insurance plans
Security plans
Employee services
/.Relationship of compensation to other HR processes - Answer-✅Recruitment- Aid or
impair recruitment, Supply of applicants affects wage rates
Selection- Pay rates affect selectivity, Selection standards affect level of pay required
Training and Development- Pay can motivate training, Increased knowledge leads to
higher pay
Labor Relations-Low pay encourages unionization, Pay rates determined through
negotiation
/.Common strategic compensation goals - Answer-✅-Reward employees' past
performance
-Remain competitive in the labor market
-Maintain salary equity among employees
-Mesh employees' future performance with organizational goals
-Control compensation budget
-control labor costs
-Attract new employees
-Reduce unnecessary turnover
/.Job evaluations systems - Answer-✅Formal systematic process that determines the
relative worth of jobs
, which jobs should get paid more?
/.Job ranking - Answer-✅Oldest system of job evaluation by which jobs are arrayed on
the basis of their relative worth.
Disadvantages
-Does not provide a precise measure of each job's worth.
-Final job rankings indicate the relative importance of jobs, not the extent of differences
between jobs.
-Method can used to consider only a reasonably small number of jobs.
/.Point Method - Answer-✅A job evaluation technique that uses compensable factors
scaled according to the degree present in the job
/.Paired comparisons - Answer-✅...
/.Factor systems - Answer-✅Puts a value on what the job position does for the
company.
/.Hay profile method - Answer-✅A job evaluation technique using three factors-
knowledge, mental activities, and accountability- to evaluate executive and managerial
positions.
/.Skill based pay systems - Answer-✅Pay based on an employee's skill level, variety of
skills, or increased job knowledge.
Skill breadth - learning all the different positions in a team
Skill depth - increasing expertise as in an apprenticeship ladder
Vertical skills - management skills and knowledge of the business
Common Applications
-Base-pay systems
-Non-exempt employees
-Manufacturing sector
-Enhances employee involvement (such as self-managed teams)
/.Market pricing - Answer-✅The process of analyzing external salary survey data to
establish the worth of jobs as represented by the data.
Problems include
-They are not always compatible
with the user's jobs
-The user cannot specify what
specific data to collect.
Sources include
