Question 1

Wages must compare favourably with rates in other organizations or an employer will find it hard to attract and retain qualified employees. What is this known as?

Accepted Answer

This is known as external equity, which refers to the comparison of wages and benefits offered by an organization to those offered by other similar organizations in the same labor market. If an organization's wages are lower than those of its competitors, it may struggle to attract and retain qualified employees. Therefore, external equity is an important consideration in setting compensation policies.

Question 2

Which of the following would managers use to monitor and maintain external equity?

Accepted Answer

Salary surveys are used by managers to gather information on what other companies are paying employees in similar positions to ensure external equity. This helps to ensure that their company is offering competitive salaries and benefits packages, which can help to attract and retain talented employees.

Question 3

Kenty runs a small manufacturing company. A worker hurt his hand on a vertical grinding machine. Kenty filed the proper legal documents quickly so the worker could receive benefits while recovering from his injury. Which type of legislation did Kenty adhere to quickly?

Accepted Answer

Workers compensation legislation requires employers to provide benefits to workers who are injured on the job. By filing the necessary legal documents quickly, Kenty ensured that the injured worker could receive benefits while recovering from their injury.

Question 4

What does employee compensation encompass?

Accepted Answer

Employee compensation encompasses all forms of pay or rewards, including but not limited to salary, wages, bonuses, and benefits.

Question 5

In a recent study conducted by Towers Watson, what is the most important factor in retaining employees?

Accepted Answer

Competitive base pay is often cited as a critical factor in employee retention, as it directly affects an employee's financial well-being and satisfaction with their job.

Question 6

An employer chooses to be gender-neutral in devising salaries for jobs that are both male- and female-dominated. Which type of legislation is the employer adhering to?

Accepted Answer

Pay equity refers to the principle of providing equal pay for work of equal value, regardless of gender, ensuring that jobs traditionally dominated by one gender are compensated fairly compared to those dominated by another.

Question 7

What is engagement with respect to the impact of rewards?

Accepted Answer

Engagement in the context of rewards refers to a positive emotional connection to the employer and a clear understanding of the strategic significance of the job, which motivates employees to contribute to the organization's success.

Question 8

Which type of pay is predominant today?

Accepted Answer

Time-based pay is the predominant type of pay today. This is because it is seen as more fair and equitable, and it also allows for easier tracking and management of employee hours. Commission and piecework pay are still used in certain industries, but overall, time-based pay is more widely used. Flat rate and pay per project are also used in certain industries, but they are not as common as time-based pay.

Question 9

Brenda begins working at a retail gift store. She thinks older workers who have been at the store for years are lazy and that she does far more work than they do. Upon learning how much more they are paid than her, Brenda speaks to the manager about receiving a pay increase and is unhappy to be denied since pay increases are based on years of service. What is Brenda's unhappiness based on?

Accepted Answer

The answer of Brenda begins working at a retail gift...

Question 10

What does job evaluation determine?

Accepted Answer

Job evaluation determines the relative worth of jobs within a firm based on factors such as skill, effort, responsibility, and working conditions. It is used to establish a fair and consistent pay structure for employees within an organization. A, B, C, and D may be related to performance management or compensation, but they are not the primary focus of job evaluation.

Question 11

Who should write the compensation policies for a company?

Accepted Answer

HR managers are responsible for the design and implementation of compensation policies for a company. They have expertise in creating a fair and competitive pay structure, taking into consideration market analyses, workforce trends, and job responsibilities. As such, they are well-equipped to design compensation policies that align with the overall strategic objectives of the company and are fair to employees.

Question 12

Up to how many weeks does the Employment Insurance Act provide benefits to workers unemployed through no fault of their own?

Accepted Answer

The Employment Insurance Act in Canada provides benefits for up to 45 weeks to workers who are unemployed through no fault of their own, depending on the unemployment rate in their region and the number of insurable hours they have accumulated.

Question 13

Julien and Bernard, friends in the same commerce program, find similar summer jobs at banks at the end of their winter school terms. Julian learns that Bernard's compensation is 11% more than what he is being paid. Julien feels his employer provides unfair compensation and begins looking for a new job? What is this an example of?

Accepted Answer

This is an example of external equity as Julien is comparing his pay to that of someone in a similar job at a different organization. He believes that he is being paid unfairly compared to someone in a comparable position.

Question 14

Which of the following do unions believe will be the best able to judge the relative value of a job?

Accepted Answer

Unions often believe that the workers themselves are best able to judge the relative value of a job because they have firsthand experience and understanding of the work involved.

Question 15

Justin used to assemble 18 desks per hour during his shift for the furniture company he works for. Then he found out that other workers who only assemble 13 to 15 desks per hour were receiving the same compensation as he was. Justin now assembles 14 desk per hour. What is this an example of?

Accepted Answer

This is an example of equity theory, which suggests that individuals compare their inputs (such as effort and skill) to their outputs (such as compensation and recognition) with those of others in similar positions. Justin has realized that his inputs are greater than those of his coworkers but his compensation is the same, leading to feelings of inequality.

Question 16

Dylan is designing a compensation program for his company's sales force that will provide a base rate plus commission for sales over and above a minimum target. The company also provides a generous dental and medical program. He feels this will motivate the sales force to maximize their efforts and sales as well as be loyal to the company and not look for work at other companies. What has Dylan formally created?

Accepted Answer

The answer of Dylan is designing a compensation program for...

Question 17

Victoria is very happy. She has been a contract worker for a construction company and has just been offered full time. She will now receive additional benefits such as vacation pay. What is this component of employee compensation called?

Accepted Answer

Indirect financial payment refers to non-cash benefits provided to employees, such as vacation pay, health insurance, and retirement benefits.

Question 18

Kyle just started his new position with a large cola company. Part of his orientation was to provide banking information for deposit of his salary into his bank account as opposed to receiving a payment via a company cheque. What is this component of employee compensation called?

Accepted Answer

The answer of Kyle just started his new position with...

Question 19

When Mary started her web application company one of her missions was to make sure job applicants and employees would not experience discrimination as it related to their pay and opportunities for advancement. Which type of legislation did Mary adhere to?

Accepted Answer

Mary adhered to human rights legislation to ensure that there was no discrimination in pay and opportunities for advancement. Pay equity legislation specifically relates to equal pay for equal work, while workers compensation, overtime pay, and pensions are related to specific benefits and regulations for employees.

Question 20

Pay equity laws were enacted in response to which of the following?

Accepted Answer

Pay equity laws were enacted in response to the historical undervaluing of "women's work." These laws were put in place to ensure that employees are paid fairly and equally for comparable work, regardless of their gender.

Quiz 11: Strategic Pay Plans