HRIR 2440 FINAL EXAM QUESTIONS
AND ANSWERS
Incentives: Individual vs team based - Answer-Individual: piecework, production
bonuses, commissions, executive incentives
Team based: team results, production incentives, profit sharing plans, Employee stock
ownership plans (ESOPs), cost reduction plans, non monetary, pay secrecy
Pay Secrecy + advantages vs disadvantages - Answer-= management policy not to
discuss individual salaries
Advantages:
- Employees prefer
- Managers greater freedom
- Covers up inequities
Disadvantages:
- Distrust in pay system
- Perceived no relationship between pay & performance
Red Circled rate - Answer-a rate of pay higher than contractual, or formerly established,
rate of the job
Compa-ratio - Answer-=avg salaries paid / midpoint of pay grade
index that indicates how individual or group salary relates to midpoint of their relevant
pay grades
Piecework - Answer-type of incentive system that compensates workers for each unit of
output - ex: certain amount per tree planted
Scanlon Plan - Answer-incentive plan to reduce labour costs through increased
efficiency and sharing of resultant savings among workers
New approaches to pay (5) - Answer-1. Skill or knowledge based pay
2. Variable pay: performance
3. Broad-banking: consolidation many pay grades into a few
4. Tailor-made perks: employees choice rewards
5. International Pay - global trends
Autonomous work groups - Answer-any of a variety of arrangements that allow
employees to decide democratically how they will meet their groups work objectives
Total reward model - Answer-inclusion of everything employees value in an employment
relationship
Pay and organizational Strategy (7) - Answer-1. Motivating performance: money
,2. Identifying valued rewards: money leads to status and prestige
3. Relating rewards to performance: connection between pay and performance
4. Setting goals: goals must be reachable for system to work
5. Motivation & punishment: if consequences are too bad, individual may not attempt to
succeed
6. Motivation skill and knowledge department: right mix of skills for business objectives
7. Attraction & retention: pay and reward system has major impact on both
Compensation: Direct vs Indirect - Answer-Direct: Pay - based on critical job
factors/performance
Indirect: benefits and services extended as condition of employment - not directly
related to performance
Role of indirect compensation (3) - Answer-1. Societal Objectives
-solve social problems, security of independent wage earners, can deduct cost of
benefits as business expense, benefits tax free usually, financial security against illness,
disability, retirement
2. Organizational objectives
- recruit and retain, reduce fatigue, enhance productivity (rest, breaks, vacations),
discourage labour unrest, satisfy employee objectives, aid recruitment, reduce turnover,
minimize OT cost
3. Employee objectives
- lower costs availability, lower income taxes, partial protection from inflation, to obtain
benefits and services
List legally required benefits - Answer-- CPP, EI
- Employment insurance
- Workers compensation (injuries)
- Health insurance
- Holiday and Vacation
List Voluntary benefits - Answer-- Life/health insurance
- Salary continuation
- Employee security
- Paid time-off benefits
- Employee services
CPP - Answer-Canada Pension plan: mandatory, contributory and portable pension
plan to all employees and self-employed persons in Canada, except the feds
EI - Answer-Employment insurance: program to help alleviate financial problems of
workers in Canada during transition between jobs
Severance pay - Answer-payment to a worker upon permanent separation from
company
, GAW - Answer-Guaranteed annual wage: min annual income regardless of layoffs/lack
of work
DB plan - Answer-Defined benefits: by a formula based on age and length of service,
employer pays
DC plan - Answer-Defined contribution: amounts contributed by employer to employee,
final pension depending on amount contributed, investment income, economic
conditions at retirement
SUB - Answer-Supplemental unemployment Benefits: private plans providing
compensation for wage loss to laid off workers
Vesting - Answer-Employer provides retirement plans that gives workers right to
pension after specified number of years of service
Emerging services and trends: benefits - Answer-- Increased medical coverage
- longer vacations, reduced length of service requirements
- increased pension coverage
Flexible benefit programs - Answer-allow employees to select mix of benefits & services
that will answer individual needs. (or cafeteria benefit program)
Career planning and development (3) - Answer-a) Planning - become more aware of
interests, needs & motivations
b) Management - series of formal and less formal activities designed by management of
organization
c) Development - series of activities undertaken by individuals in pursuit of careers
Individual Career Development - Answer-- exceptional job performance
- increase visibility and exposure w/in org
- leave org to seek better job
- demonstrate org commitment
- seek mentors, sponsors, coaches
- seek growth opportunities
Factors affecting individual career choice - Answer-- Social or enviro
- Work life balance
- Personality job fit
Benefits of Career planning - Answer-- management commitment and support
- communication plans to raise awareness of career options
- Align HR processes
- Develop promotable employees
- Lower turnover
- Furthers employee growth
AND ANSWERS
Incentives: Individual vs team based - Answer-Individual: piecework, production
bonuses, commissions, executive incentives
Team based: team results, production incentives, profit sharing plans, Employee stock
ownership plans (ESOPs), cost reduction plans, non monetary, pay secrecy
Pay Secrecy + advantages vs disadvantages - Answer-= management policy not to
discuss individual salaries
Advantages:
- Employees prefer
- Managers greater freedom
- Covers up inequities
Disadvantages:
- Distrust in pay system
- Perceived no relationship between pay & performance
Red Circled rate - Answer-a rate of pay higher than contractual, or formerly established,
rate of the job
Compa-ratio - Answer-=avg salaries paid / midpoint of pay grade
index that indicates how individual or group salary relates to midpoint of their relevant
pay grades
Piecework - Answer-type of incentive system that compensates workers for each unit of
output - ex: certain amount per tree planted
Scanlon Plan - Answer-incentive plan to reduce labour costs through increased
efficiency and sharing of resultant savings among workers
New approaches to pay (5) - Answer-1. Skill or knowledge based pay
2. Variable pay: performance
3. Broad-banking: consolidation many pay grades into a few
4. Tailor-made perks: employees choice rewards
5. International Pay - global trends
Autonomous work groups - Answer-any of a variety of arrangements that allow
employees to decide democratically how they will meet their groups work objectives
Total reward model - Answer-inclusion of everything employees value in an employment
relationship
Pay and organizational Strategy (7) - Answer-1. Motivating performance: money
,2. Identifying valued rewards: money leads to status and prestige
3. Relating rewards to performance: connection between pay and performance
4. Setting goals: goals must be reachable for system to work
5. Motivation & punishment: if consequences are too bad, individual may not attempt to
succeed
6. Motivation skill and knowledge department: right mix of skills for business objectives
7. Attraction & retention: pay and reward system has major impact on both
Compensation: Direct vs Indirect - Answer-Direct: Pay - based on critical job
factors/performance
Indirect: benefits and services extended as condition of employment - not directly
related to performance
Role of indirect compensation (3) - Answer-1. Societal Objectives
-solve social problems, security of independent wage earners, can deduct cost of
benefits as business expense, benefits tax free usually, financial security against illness,
disability, retirement
2. Organizational objectives
- recruit and retain, reduce fatigue, enhance productivity (rest, breaks, vacations),
discourage labour unrest, satisfy employee objectives, aid recruitment, reduce turnover,
minimize OT cost
3. Employee objectives
- lower costs availability, lower income taxes, partial protection from inflation, to obtain
benefits and services
List legally required benefits - Answer-- CPP, EI
- Employment insurance
- Workers compensation (injuries)
- Health insurance
- Holiday and Vacation
List Voluntary benefits - Answer-- Life/health insurance
- Salary continuation
- Employee security
- Paid time-off benefits
- Employee services
CPP - Answer-Canada Pension plan: mandatory, contributory and portable pension
plan to all employees and self-employed persons in Canada, except the feds
EI - Answer-Employment insurance: program to help alleviate financial problems of
workers in Canada during transition between jobs
Severance pay - Answer-payment to a worker upon permanent separation from
company
, GAW - Answer-Guaranteed annual wage: min annual income regardless of layoffs/lack
of work
DB plan - Answer-Defined benefits: by a formula based on age and length of service,
employer pays
DC plan - Answer-Defined contribution: amounts contributed by employer to employee,
final pension depending on amount contributed, investment income, economic
conditions at retirement
SUB - Answer-Supplemental unemployment Benefits: private plans providing
compensation for wage loss to laid off workers
Vesting - Answer-Employer provides retirement plans that gives workers right to
pension after specified number of years of service
Emerging services and trends: benefits - Answer-- Increased medical coverage
- longer vacations, reduced length of service requirements
- increased pension coverage
Flexible benefit programs - Answer-allow employees to select mix of benefits & services
that will answer individual needs. (or cafeteria benefit program)
Career planning and development (3) - Answer-a) Planning - become more aware of
interests, needs & motivations
b) Management - series of formal and less formal activities designed by management of
organization
c) Development - series of activities undertaken by individuals in pursuit of careers
Individual Career Development - Answer-- exceptional job performance
- increase visibility and exposure w/in org
- leave org to seek better job
- demonstrate org commitment
- seek mentors, sponsors, coaches
- seek growth opportunities
Factors affecting individual career choice - Answer-- Social or enviro
- Work life balance
- Personality job fit
Benefits of Career planning - Answer-- management commitment and support
- communication plans to raise awareness of career options
- Align HR processes
- Develop promotable employees
- Lower turnover
- Furthers employee growth
