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WorksheetsStrategic Compensation Plan
Total questions: 15
Worksheet time: 10mins
Arrange the compensation planning strategy creation steps:
A. Determine Pay Grades
B. Plan for Rewards
C. Allocate Budget
D. Confirm Compliance
E. Ask for Employee Input
F. Communicate About Total Compensation
G. Benchmark against Competitors
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______________ creates an informed strategic compensation approach that fits with the talent management strategy and will satisfy most employees.
Planning
Asking for employee input
Involving the top management
Agreeing to employee terms
Which of the following should be included when allocating Budgets?
Costs
Benefits
Bonuses
Performance plans
Incentives
Factors determining the employee incentives:
Experience and education level
industry
cost of living
in-demand skill sets
supply and demand of workforce and market.
Choose from below all the types of incentives for employees to boost their morale and performance:
Bonus
Saying thank you(applauding)
One on one lunch with your employer
Tips
Flexibility at work
A particular company wants to make sure employees feel they are appreciated, while at the same time ensuring key employees have a sense of loyalty towards the company. Which of the following systems does this company most likely use?
Benefits
Performance Pay
Indirect Pay
Wage pay
Base pay
As an employer, you believe it is always a good idea to pay people for their contributions to organizational results. Which of the following plans would likely be the key component of the compensation plan?
Indirect pay
Base Pay
Pay for knowledge
Performance Pay
A particular organization wants to include in their compensation system some element of organizational performance linkage, while at the same time it wants to encourage employee commitment. In addition to base pay, which of the following would most likely be included in this compensation mix?
Merit Pay
Piece rates
Profit Sharing
Targeted Incentives
As a human resource consultant, you have been asked to provide some rationale why an organization may decide to use base pay as a cornerstone for a compensation scheme. Which of the following notions would you advance in supporting your argument?
It provides an organization with more labour flexibility in the allocation of tasks.
It guarantees employee performance and aligns salaries to performance.
It is the most popular; hence, the organization should use it.
Unions are most likely to agree with management's approach, given this scheme
Which of the following is a reason why employees may prefer base pay over performance pay?
Performance pay is more predictable.
Base pay is directly related to their performance level.
They dislike uncertainty about their compensation.
Market conditions are always changing.
Which of the following is the most important potential disadvantage of performance pay?
It increases the need for layoffs in poor economic conditions.
It does not fit well with high-involvement management.
It is mainly effective in small companies.
It does not pay off for some employers.
Johnny is compensated based on a rate of $25.00 per hour worked. Which of the following terms best describes the manner in which Johnny is compensated?
Commission
Wage
Piece rate
Salary
Alex is a sales representative in a jewelry store. He typically works 40 hours per week and his pay is completely based on his sales. He earns a 5% commission for every sale he makes. Which of the following terms best describes Alex's situation?
Pay for performance
Indirect financial compensation
Piecework pay
Time-based compensation
Your executive vice president has asked you to explain the basic notion of "skill blocks" within the context of skill-based pay systems design. What two variables would you emphasize?
different skills and depth of each skill
skill certification and criterion
key competencies and training requirements
broad banding and market value
Peter, a manager at a local manufacturing firm, is perplexed that employees tend to respond to management's request by evoking the dreaded "That is not on my job description," or "That is above my pay grade." From a compensating perspective, which base pay method is normally associated with the aforementioned responses?
Market pricing
Job evaluation
Competency-based pay
Skill-based pay
