Question 1

Pay equity is achieved when employees' compensation is equal to the value of the work they perform.

Accepted Answer

Pay equity means that employees are compensated based on the value of their work, regardless of their gender, race or any other factor that could lead to discrimination. So, pay equity is achieved when there is no wage gap between employees who perform the same or similar work, with the same skills and qualifications. Therefore, the statement is true.

Question 2

According to your text, which of the following is the predominant approach to employee compensation?
A) pay-for-performance
B) competence-based pay
C) job-based pay
D) individual contract

Accepted Answer

The answer of According to your text, which of the...

Question 3

Which of the following is NOT an idea that organizations may incorporate in an attempt to minimize the problem of wage-rate compression?
A) giving larger increases to more-senior employees
B) emphasizing pay-for-performance
C) providing equity adjustments for employees hardest hit by pay compression
D) linking all employees' pay more tightly to the CPI

Accepted Answer

Linking all employees' pay more tightly to the CPI would actually exacerbate the problem of wage-rate compression, as it would give all employees the same increase regardless of their individual performance or seniority. A better solution would be to give larger increases to more-senior employees or to emphasize pay-for-performance. Providing equity adjustments for employees hardest hit by pay compression is also a good idea.

Question 4

Pay-for-performance programs have little if any effect on employee productivity.

Accepted Answer

Pay-for-performance programs have been shown to increase employee productivity, as the potential for increased pay creates motivation to work harder and achieve better results. However, the effectiveness of these programs may depend on how they are designed and implemented.

Question 5

As the year 2000 approached, many organizations hired "young" and "inexperienced" information technology (IT) specialists to help address the Y2K problem. Many of these new hires were paid high compensation that brought them very close to the compensation earned by experienced IT specialists working with these companies. Which of the following can such a practice lead to?
A) wage inversion
B) pay equity
C) wage-rate compression
D) high turnover across the board

Accepted Answer

Hiring "young" and "inexperienced" IT specialists at high compensation can lead to wage-rate compression, as it brings their wages close to those of experienced IT specialists who may have been working for the company for a longer period of time. This can cause tension and dissatisfaction among experienced employees, as they may feel undervalued and underpaid in comparison to the new hires.

Question 6

The major provisions of which of the following acts are concerned with minimum wage rates and overtime payments?
A) Equal Pay Act
B) Employment Equity Act
C) Employment Standards Act
D) Pay Equity Act

Accepted Answer

The Employment Standards Act contains provisions defining minimum wage rates, overtime payments, and other standards for employment in the province of Ontario, Canada. The Equal Pay Act deals with equal pay for equal work for women and men, the Employment Equity Act establishes policies to achieve workplace equality, and the Pay Equity Act provides for equal pay for work of equal value.

Question 7

Which of the following is NOT an outcome of wage-rate compression?
A) increased employee performance
B) low employee morale
C) delinquent employee behaviour
D) increased absenteeism

Accepted Answer

Increased employee performance is not typically considered an outcome of wage-rate compression, which is the narrowing of the pay gap between employees at different levels of the organization. Rather, wage-rate compression can lead to lower employee morale, delinquent behavior, and increased absenteeism as employees become dissatisfied with pay differentials and job satisfaction decreases.

Question 8

Which of the following is NOT a potential challenge to competence-based pay?
A) limits by organizations to how much employees can earn despite their competencies
B) reluctance by employees to participate in relevant training
C) the development of appropriate measures of skills and competencies
D) staff flexibility

Accepted Answer

Staff flexibility is actually a potential benefit rather than a challenge to competence-based pay. Competence-based pay encourages employees to develop a wider range of skills and competencies, and staff flexibility allows them to apply those skills to different tasks and roles within the organization. A is a potential challenge as it limits the earning potential of competent employees. B is a potential challenge as it is difficult to motivate employees to participate in training programs when they do not see a direct benefit to their pay. C is a potential challenge as it can be difficult to accurately measure and assess employee competencies.

Question 9

Strategic compensation is the compensation of employees in ways that enhance motivation and growth while concurrently aligning their efforts with the goals of the organization.

Accepted Answer

Strategic compensation is a deliberate and purposeful approach to compensating employees in a way that benefits both the employee and the organization. It involves aligning compensation with the organization's strategic goals and objectives, as well as with individual employee performance and potential. This approach to compensation is intended to enhance motivation, job satisfaction, and overall employee engagement, which in turn benefits the organization through increased productivity, innovation, and profitability.

Question 10

Woolite Fabrics is located in Vancouver, British Columbia. Which of the following laws regulate its compensation?
A) federal and international laws
B) municipal and federal laws
C) provincial and federal laws
D) international laws

Accepted Answer

Woolite Fabrics is located in Vancouver, British Columbia, which is in Canada. The laws that regulate compensation in Canada are provincial and federal laws. International and municipal laws would not apply in this scenario.

Question 11

Rewarding an employee's past performance is a goal of strategic compensation policy.

Accepted Answer

Strategic compensation policy includes rewarding an employee's past performance as a means of encouraging future performance and retaining valuable employees.

Question 12

Jambrone Foods and CUPE Local 5000 have a collective agreement in place that allows for wages to be paid at more than the minimum wage set by the Employment Standards Act. Which of the following describes this agreement?
A) illegal
B) legal
C) legal but stupid
D) acceptable under the Employment Standards Act but illegal under the Canada Labour Code

Accepted Answer

A collective agreement between an employer and a union that allows for wages to be paid above the minimum wage set by the Employment Standards Act is legal in Canada.

Question 13

Which of the following is the most likely outcome of collapsing many salary grades into a few wide salary bands through broadbanding?
A) It reduces pay levels.
B) It encourages lateral skill building.
C) It reduces the number of employees needed.
D) It leads to a collapse of broadbands.

Accepted Answer

Broadbanding encourages lateral skill building by allowing employees to move laterally between different job positions within the broader salary bands. This provides employees with the opportunity to gain a wider range of skills and experience and can result in greater job satisfaction and retention. While it is possible that pay levels may be reduced through broadbanding, this is not necessarily the most likely outcome. Likewise, while broadbanding may result in a reduction in the number of employees needed, this is not a given outcome, and a collapse of broadbands is not a likely outcome.

Question 14

Among the goals of strategic compensation policy are rewarding past performance, attracting new employees, and reducing turnover.

Accepted Answer

These are indeed goals of strategic compensation policy. Rewarding past performance can incentivize current employees to continue performing at a high level, attracting new employees with competitive compensation packages can improve the quality of hires, and using compensation as a tool to retain current employees can help reduce turnover.

Question 15

A potential difficulty with pay-for-performance programs is how to measure employee performance.

Accepted Answer

Pay-for-performance programs are based on the idea that employees should be rewarded for their performance rather than just their tenure or seniority. However, measuring employee performance can be challenging as it requires defining clear metrics and ensuring they are fair and accurate. Different jobs may require different metrics, and subjective factors such as teamwork and creativity can be hard to quantify. Therefore, designing and implementing pay-for-performance programs requires careful consideration to avoid potential pitfalls such as unintended consequences or demotivation.

Question 16

Desirée is a female receptionist employed by York University in Toronto. John is a male janitor with the same employer. Both jobs are evaluated as having 500 points, yet Desiree is paid less than John. She has decided to legally challenge the employer. Which of the following is relevant in this case?
A) the Peter principle
B) market matching
C) equal pay for work of equal value
D) equal pay for equal work

Accepted Answer

Desirée's case involves the principle of equal pay for work of equal value, which means that jobs that require the same skills, effort and responsibility should be paid the same, regardless of gender or other personal characteristics. This principle is recognized by many countries' labor laws and is also an issue of social justice. The Peter principle and market matching are not relevant in this case, as they do not address pay discrimination or job evaluation. Equal pay for equal work is related, but not as applicable, as it only applies to jobs that are essentially the same, rather than those that require the same value of work.

Question 17

Which of the following pay systems would an organization wishing to establish greater job-staffing flexibility most likely use?
A) straight pay
B) competence-based pay
C) incentive pay
D) two-tier pay

Accepted Answer

The answer of Which of the following pay systems would...

Question 18

The allocation of compensation sends a message to employees about what is important.

Accepted Answer

The allocation of compensation can signal what an organization values and what kind of behavior it wants to encourage among employees, which can impact employee satisfaction, motivation, and performance. Therefore, the statement is true.

Question 19

Indirect compensation includes bonuses and commissions.

Accepted Answer

Indirect compensation refers to non-monetary benefits such as health insurance, retirement plans, and paid time off, rather than direct cash payments like bonuses and commissions.

Question 20

How may organizations dodge comparable worth issues?
A) by paying female and male secretaries the same wage
B) by having an employment equity program in place
C) by using one job evaluation system for clerical jobs and another system for other jobs
D) by having a valid performance appraisal system

Accepted Answer

Having an employment equity program in place addresses comparable worth issues by ensuring that employees are paid fairly and equitably based on their education, experience, and skill level, regardless of their gender or other personal characteristics. Paying female and male secretaries the same wage (A) may be one step towards achieving pay equity, but it does not necessarily address the issue of comparable worth for other jobs. Using different job evaluation systems for different types of jobs (C) could create discrepancies in pay based on gender or other personal characteristics, which is the opposite of what comparable worth aims to achieve. A valid performance appraisal system (D) can help ensure that employees are rewarded based on their performance, but it does not address the issue of pay equity across different job categories.

Quiz 9: Managing Compensation

Pay equity is achieved when employees' compensation is equal to the value of the work they perform.

According to your text, which of the following is the predominant approach to employee compensation?

Which of the following is NOT an idea that organizations may incorporate in an attempt to minimize the problem of wage-rate compression?

Pay-for-performance programs have little if any effect on employee productivity.

The major provisions of which of the following acts are concerned with minimum wage rates and overtime payments?

Which of the following is NOT an outcome of wage-rate compression?

Which of the following is NOT a potential challenge to competence-based pay?

Strategic compensation is the compensation of employees in ways that enhance motivation and growth while concurrently aligning their efforts with the goals of the organization.

Woolite Fabrics is located in Vancouver, British Columbia. Which of the following laws regulate its compensation?

Rewarding an employee's past performance is a goal of strategic compensation policy.

Jambrone Foods and CUPE Local 5000 have a collective agreement in place that allows for wages to be paid at more than the minimum wage set by the Employment Standards Act. Which of the following describes this agreement?

Which of the following is the most likely outcome of collapsing many salary grades into a few wide salary bands through broadbanding?

Among the goals of strategic compensation policy are rewarding past performance, attracting new employees, and reducing turnover.

A potential difficulty with pay-for-performance programs is how to measure employee performance.

Which of the following pay systems would an organization wishing to establish greater job-staffing flexibility most likely use?

The allocation of compensation sends a message to employees about what is important.

Indirect compensation includes bonuses and commissions.

How may organizations dodge comparable worth issues?