mos 3342 final exam UPDATED ACTUAL Questions and
CORRECT Answers
What is the purpose of compensation Attract, Retain and Motivate
what is compensation anything a organization gives to an employee for doing work that needs to be
done
extrinsic rewards safety, basic needs for survival and security
intrinsic rewards satisfy higher level needs for self-esteem, achievement, growth and
development
, total rewards = relational returns + total compensation
relational returns challenging work, learning opportunities, recognition and status
total compensation = benefits + cash compensation
benefits life, health, disability insurance, pension, work/life program, allowances
who deals with compensation for small organizations Owner or CEO
who deals with compensation for large organizations HR department
who deals with compensation for very large Compensation specialists
organizations
The Pay Model 1. Compensation objectives
2. Policies that form the foundation of the compensation system
3. Techniques that make up the compensation system
3 compensation objectives Efficiency, Fairness and Compliance
The efficiency compensation objective refers to improving performance and quality to delight customers and stakeholders
ensure paying enough to motivate performance but not too much that become
inefficent
Fairness compensation objective refers to ensure employees are treated fairly
compensated fairly with the other employees in the organization as well as
other employees in similar roles outside the organization
Compliance compensation objective refers to conforms to laws and regulations
4 Policies apart of Pay model 1. internal alignment
2. external competitiveness
3. employee contribution
4. management
Internal alignment (policies apart of pay model) Comparisons between jobs or skill levels inside a single organization ensure
fairness, efficiency and compliance. Jobs are paid differently because of the
differences that come with the job.
External Competitiveness (policies apart of pay model) ensuring pay rates for jobs in a company are appropriately aligned relative to
pay rates for similar jobs in the company's external labor market
Employee Contributions (policies apart of pay model) Relative emphasis placed on employee performance. comparisons among
individuals doing the same job for the same organization
or if one person is much better at a job trhey may get paid more despite being
the same job so that others are motivated to do better.
Management (policies apart of pay model) policies related to managing the pay system
CORRECT Answers
What is the purpose of compensation Attract, Retain and Motivate
what is compensation anything a organization gives to an employee for doing work that needs to be
done
extrinsic rewards safety, basic needs for survival and security
intrinsic rewards satisfy higher level needs for self-esteem, achievement, growth and
development
, total rewards = relational returns + total compensation
relational returns challenging work, learning opportunities, recognition and status
total compensation = benefits + cash compensation
benefits life, health, disability insurance, pension, work/life program, allowances
who deals with compensation for small organizations Owner or CEO
who deals with compensation for large organizations HR department
who deals with compensation for very large Compensation specialists
organizations
The Pay Model 1. Compensation objectives
2. Policies that form the foundation of the compensation system
3. Techniques that make up the compensation system
3 compensation objectives Efficiency, Fairness and Compliance
The efficiency compensation objective refers to improving performance and quality to delight customers and stakeholders
ensure paying enough to motivate performance but not too much that become
inefficent
Fairness compensation objective refers to ensure employees are treated fairly
compensated fairly with the other employees in the organization as well as
other employees in similar roles outside the organization
Compliance compensation objective refers to conforms to laws and regulations
4 Policies apart of Pay model 1. internal alignment
2. external competitiveness
3. employee contribution
4. management
Internal alignment (policies apart of pay model) Comparisons between jobs or skill levels inside a single organization ensure
fairness, efficiency and compliance. Jobs are paid differently because of the
differences that come with the job.
External Competitiveness (policies apart of pay model) ensuring pay rates for jobs in a company are appropriately aligned relative to
pay rates for similar jobs in the company's external labor market
Employee Contributions (policies apart of pay model) Relative emphasis placed on employee performance. comparisons among
individuals doing the same job for the same organization
or if one person is much better at a job trhey may get paid more despite being
the same job so that others are motivated to do better.
Management (policies apart of pay model) policies related to managing the pay system
