P | M04 CB Assignment 2

What is the compa-ratio for an employee who earns $15 per hour where the salary range has a midpoint of $12 per hour?

• 0.03

• 0.80

• 1.25

• 1.35

Which pay strategy offers wage rates and benefits packages similar to that of the competition and is the most common approach?

• Lag competition

• External equity

• Match competition

• Lead competition

An employee is motivated by knowing there is room for base pay to grow. This BEST exemplifies

• an effective metric.

• required communication.

• a benefits summary.

• pay transparency.

Which of the following HR activities should NOT be outsourced?

• Payroll administration

• Creation of online employee manuals

• Relocation programs for employees

• Development of goals and strategies for improving work force skills

An employer has redesigned its pay structure, and a position has a pay range for the grade of

$9.10 to $12.75 per hour. What term would apply to an employee in this position who is earning

$8 per hour?

• Red-circle rate

• Green-circle rate

• Broadband

• Career-banded

An employee is terminated for repeated violations of employer policy. How does this type of separation impact severance payments?

• It reduces the amount of compensation the employee receives.

• It requires outplacement support to help the employee find a new job.

• It depends on whether the employee has accrued but unused vacation.

• It depends on country law and whether compensation is required.

Which philosophy would an entitlement-oriented organization embrace?

• Individual rewards

• Across-the board annual raises

• Bringing in new talent

• Performance-driven pay

Two consecutive years of mandated 10% increases in the minimum wage would probably result in ______

• compression between the lowest-paid workers and more-skilled workers for a retail trade employer.

• less pressure on the available pool of discretionary funds for pay increases for most employers who have minimum-wage employees.

• reduced leverage of employees making one to two times the minimum wage in asking for larger pay increases.

• increased pressure for larger pay increases among employees making one to two times the minimum wage.

A compensation method related to an employee’s individual performance is known as

• an incentive pay plan.

• a differential pay plan.

• a step plan.

• a merit pay plan.

Richard was recently offered a position as vice president of marketing at a national retail chain. As a top executive at the firm, Richard will most likely be compensated with all of the following EXCEPT               .

• stock options

• pension plans

• sales commissions

• supplemental life insurance