MHA 702 CHAPTER 8 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED SOLUTIONS VERIFIED
Compensation
•A primary task for HR - to maintain compensation system
•HR should strive to remain current and competitive with compensation levels in the
healthcare industry and local labor market
•HR expected to recommend changes in compensation
•Recommendations usually reviewed by Board of Directors before being implemented
Recommendations
•Timing of changes and the rationale for increases
•Rational basis for the changes being proposed
•Often related to prevailing industry or area compensation practices
•ALL employees = COLA cost-of-living adjustments
•Selected persons = merit (performance) adjustments
Merit- based increases
pay increases are related to performance and the general level of performance required
for receiving increase
cost of living
increases provided through pay-scale changes
Strategic Planning
, •Organizations must make decisions about the nature and extent of the compensation
and benefits to be offered to employees
HR payment decisions
- will they pay the regional median
- decide to pay less then the prevailing wage (Saving more money HOWEVER
accepting a higher than normal turnover rate) -pay higher waging and gaining higher
skilled, reliable employees (reduced turnover rate)
flexible benefit plan (cafeteria benefits plans)
- contemporary organizations are making the decision to allow individuals to select
benefits from the menu of options
benefits
- to paid to provide incentives for individuals to choose one organization over another;
incentives to retain employees
-the ability to pay for benefits must be periodically reviewed as budgets are developed
- benefits are proportionate to wages
-mandatory benefits
Employees have a right to know..
- pay ranges for position, not the actual wage someone else receives
Pay inequities claims
- in small groups inequitiy is uncommon
- hiring at different level over the years (merit, probationary and annual pay increases)
Managers should know..
COMPLETE SOLUTIONS VERIFIED SOLUTIONS VERIFIED
Compensation
•A primary task for HR - to maintain compensation system
•HR should strive to remain current and competitive with compensation levels in the
healthcare industry and local labor market
•HR expected to recommend changes in compensation
•Recommendations usually reviewed by Board of Directors before being implemented
Recommendations
•Timing of changes and the rationale for increases
•Rational basis for the changes being proposed
•Often related to prevailing industry or area compensation practices
•ALL employees = COLA cost-of-living adjustments
•Selected persons = merit (performance) adjustments
Merit- based increases
pay increases are related to performance and the general level of performance required
for receiving increase
cost of living
increases provided through pay-scale changes
Strategic Planning
, •Organizations must make decisions about the nature and extent of the compensation
and benefits to be offered to employees
HR payment decisions
- will they pay the regional median
- decide to pay less then the prevailing wage (Saving more money HOWEVER
accepting a higher than normal turnover rate) -pay higher waging and gaining higher
skilled, reliable employees (reduced turnover rate)
flexible benefit plan (cafeteria benefits plans)
- contemporary organizations are making the decision to allow individuals to select
benefits from the menu of options
benefits
- to paid to provide incentives for individuals to choose one organization over another;
incentives to retain employees
-the ability to pay for benefits must be periodically reviewed as budgets are developed
- benefits are proportionate to wages
-mandatory benefits
Employees have a right to know..
- pay ranges for position, not the actual wage someone else receives
Pay inequities claims
- in small groups inequitiy is uncommon
- hiring at different level over the years (merit, probationary and annual pay increases)
Managers should know..
