Exam 1

Question 1

Incentive Effect

Answer 1

o Degree to which pay influences motivation

Question 2

Incentive Effect

Answer 2

o Degree to which pay influences motivation

Question 3

Sorting effect

Answer 3

o Effect pay has on the composition of the workforce

Question 4

Direct Returns

Answer 4

Total compensation (cash and benefits)

Question 5

Indirect returns

Answer 5

Relational, (recognition, opportunity)

Question 6

Merit is based on?

Answer 6

Changes in others pay, living costs, and experience or skill

Question 7

Merit pay

Answer 7

increases base salary, but meritbonus is aone time payment

Question 8

Incentives are

Answer 8

objective and don’t increase base salary, must eb reearned

Question 9

Pay Model Objectives

Answer 9

Efficiency, Fairness, Compliance, Ethics

Question 10

Pay Model Policies

Answer 10

Internal alignment, external competition, employee contributions, management

Question 11

Sorting effect

Answer 11

o Effect pay has on the composition of the workforce

Question 12

Direct Returns

Answer 12

Total compensation (cash and benefits)

Question 13

Indirect returns

Answer 13

Relational, (recognition, opportunity)

Question 14

Merit is based on?

Answer 14

Changes in others pay, living costs, and experience or skill

Question 15

Merit pay

Answer 15

increases base salary, but meritbonus is aone time payment

Question 16

Incentives are

Answer 16

objective and don’t increase base salary, must eb reearned

Question 17

Pay Model Objectives

Answer 17

Efficiency, Fairness, Compliance, Ethics

Question 18

Pay Model Policies

Answer 18

Internal alignment, external competition, employee contributions, management

Question 19

Best practice

Answer 19

Socio, HRRp, Strat Form, Gainign comp adv

Question 20

Best fit

Answer 20

Socio, Strat form, HRP, gaining comp adv

Question 21

AMO Theory

Answer 21

Ability,, MOtivation, Opportunity, P=f(A,M,O)

Question 22

SAS Institute Hr Policy

Answer 22

work/life programs > cash compensation

Question 23

RBV must

Answer 23

add value
unique and rare
imperfectly imitable
not substitutable

Question 24

Internal Alignment

Answer 24

is pay relations among jobs/skills in an organization

Question 25

External Competitive ness includes:

Answer 25

Econmic Pressures Government policies and regulations External stakeholders cultures and customs

Question 26

Three features of internal pay structure

Answer 26

Hierarchal or compressed How to distribute Work content

Question 27

Hierarchal (layered, dispersion)

Answer 27

Description of work done at each level, incentive effect ( lower turnover)

Question 28

Egalitarian (delayered, compression)

Answer 28

Removing job titles, negative or detrimental sorting effect

Question 29

Two features of external competitiveness

Answer 29

Pay level - Avg rate an employer pays | Pay mix- various types of payments leading to total comp

Question 30

Mods to labor demand side

Answer 30

Compensating differentials - employers offer higher wages if job has negative characteristics Efficiency wage - high wages increase efficiency and lower labor costs Signaling theory - pay levels to emplpyee signaling behavior

Question 31

Mods to labor supply side

Answer 31

Reservation wage - lowest wage they'll accpet | Human Capital - people paid at marginal value of what they provide

Question 32

Competitive pay policies

Answer 32

Lead, match, lag

Question 33

Job analysis

Answer 33

systematic process of collecting observable info that identifies similarities and differences between work

Question 34

Job Description

Answer 34

Tasks, duties, responsiblities

Question 35

Job specification

Answer 35

KSAO necessary for the job

Question 36

Job analysis to compensation

Answer 36

Internalyl fair and aligned job structure, provides rationale for differences

Question 37

Enhance flexibility in job design

Answer 37

Broad descriptions, easily changing tasks

Question 38

Usefulness of job analysis

Answer 38

Reliability, validity, acceptability, currency, usefulness

Question 39

Job evaluation

Answer 39

Process for dtermining the relative value of jobs to create a job structure

Question 40

Job eval methods

Answer 40

ranking, classification, point

Question 41

Ranking

Answer 41

Alternation, orders alternaitng at each extreme | Paired, matrix compares all jobs

Question 42

Classification

Answer 42

Jobs -> Class

Question 43

Point

Answer 43

Compensable factors numerically scaled and weighted

Question 44

Skill-based pay

Answer 44

Link pay to depth and breadth of the KSAO relevant person

Question 45

Competency based pay

Answer 45

Underlying KSAO needed to succeed