Question 1

Wage compression may create problems related to which of the following?

Accepted Answer

Wage compression can result in employees at different skill levels being paid the same amount, which can create issues related to internal equity. This is because employees with more experience or higher skill levels may feel that they are not being appropriately compensated for their contributions, which can lead to dissatisfaction and turnover. Wage compression does not necessarily relate to issues of external equity, gender discrimination or racial discrimination.

Question 2

Tiffany works as an IT specialist at Nortel.She is compensated based on such skills as programming and service to clients.It is likely that she is paid under which of the following pay plans?

Accepted Answer

In a competency-based pay plan, an employee's compensation is determined based on the skills and knowledge they possess, rather than solely on job performance or seniority. As Tiffany's compensation is based on her programming and service skills, it is likely that she is being paid under a competency-based pay plan.

Question 3

What is the scope of the impacts of collective bargaining agreements?

Accepted Answer

Collective bargaining agreements may include provisions that affect all employees, unionized or not, such as wage increases, benefits, and working conditions. Thus, their impact goes beyond just union members.

Question 4

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?

Accepted Answer

The relevant principle in this case is "equal pay for work of equal value," which asserts that jobs with comparable value should receive comparable compensation, regardless of the gender of the employee. This principle is supported by Ontario's Pay Equity Act, which was established to address gender-based wage discrimination in the workplace.

Question 5

What do we call jobs that are selected to be included in salary surveys?

Accepted Answer

Jobs that are selected to be included in salary surveys are called benchmark jobs. These jobs are selected because they are representative of the industry, occupation or organization being studied and their salaries are used as a basis for comparison.

Question 6

ABC Corporation is a furniture firm based in Ontario that supplies its products to the federal government.What laws would apply to ABC Corporation?

Accepted Answer

As ABC Corporation is based in Ontario and supplies its products to the federal government, both federal and provincial laws would apply to them.

Question 7

Which of the following is NOT a method of comparison used in job evaluation?

Accepted Answer

The comparable worth system is not a method of job evaluation; it is a concept aimed at ensuring equal pay for work of equal value, often used to address gender pay disparities.

Question 8

In collective agreements,what are escalator clauses associated with?

Accepted Answer

Escalator clauses in collective agreements are associated with cost of living adjustments, which are increases in pay rates that are tied to inflation or other economic factors. These adjustments typically result in annual pay increases for unionized employees, helping to ensure that their wages keep pace with the rising cost of living.

Question 9

In geography,the water catchment area or watershed refers to the area that channels or supplies a specific area with its water.Catchment areas divide drainage basins.In wage surveys,what is this catchment area similar to?

Accepted Answer

A catchment area in geography channels or supplies water to a specific area, much like how the labour market supplies workers to a specific area. A wage survey's catchment area would be similar to the labour market where it gathers data on wages and salaries for a specific area.

Question 10

How would you describe "an increase in real wages"?

Accepted Answer

An increase in real wages refers to an increase in wages that exceeds the rate of inflation. In other words, it is an increase in purchasing power that allows workers to buy more goods and services than they could before. This is measured by comparing the increase in wages to the consumer price index, which tracks changes in the cost of living. Options B, C, and D could all potentially lead to an increase in wages, but they do not necessarily guarantee an increase in real wages.

Question 11

Both Sam and Samantha work as cashiers at Modelo Hot Dogs.They do work of equal value to the firm,yet Sam receives less pay than Samantha.Sam is not happy because he perceives the system as being unfair to him.Which theory can you use to explain Sam's perceptions?

Accepted Answer

Equity theory suggests that individuals compare their input-output ratio (such as effort and productivity) with that of others in order to determine whether the distribution of rewards is fair or not. In this case, Sam is comparing his input and output with that of Samantha and believes that he is being treated unfairly, which is why he is not happy. Therefore, the best theory to explain Sam's perception is equity theory.

Question 12

To help achieve internal equity,factors such as skills,effort,responsibilities,and working conditions may be used to assess jobs.What do we call these factors?

Accepted Answer

These factors that are used to assess jobs in order to achieve internal equity are called compensable factors.

Question 13

Which of the following clauses are found in some labour agreements that periodically adjust compensation rates to reflect increases in cost of living?

Accepted Answer

Escalator clauses are the clauses found in labour agreements that periodically adjust compensation rates to reflect increases in cost of living. The other options, maintenance clauses, roll-up clauses, and guarantee clauses, do not typically involve adjusting compensation rates in relation to cost of living increases.

Question 14

Which of the following terms is also used to describe competency-based pay?

Accepted Answer

Skilled-based pay is also used to describe competency-based pay as it rewards employees based on their level of skills and abilities rather than their job titles or hierarchy within the organization. In this system, employees receive pay increases when they acquire new skills or develop higher levels of competency. Incentive pay, commission pay, and broadband pay are different models of pay structures and do not necessarily focus on individual skill level.

Question 15

What is a key implication of expectancy theory when applied to pay systems?

Accepted Answer

Expectancy theory states that an employee's motivation is influenced by their belief that a certain level of effort will lead to a certain level of performance, and that this performance will lead to specific outcomes, such as rewards. Therefore, for pay systems to effectively motivate employees, the rewards must be valuable and perceived as achievable through good performance.

Question 16

Which of the following issues does job evaluation helps to address?

Accepted Answer

Job evaluation helps to address issues dealing with employees' perceptions of equity. It is a tool used to determine the relative worth of different jobs in an organization, ensuring that employees are fairly compensated for the work they do. This can help address concerns about equity and fairness in pay. However, it is not primarily focused on addressing issues related to employees' financial needs or employers' perceptions of the labour market. It may inform decisions about matching market pay, but this is not its primary purpose.

Question 17

Which of the following is a firm's internal factor that can influence the rates at which employees are paid?

Accepted Answer

The employer's strategy is an internal factor that can influence employee pay rates, as the company has control over its own policies and decisions regarding pay levels. Factors such as the company's financial goals, performance metrics, and compensation philosophy can all play a role in determining employee compensation. Factors such as labour market conditions, collective bargaining, and the cost of living are external factors that are outside of the direct control of the employer.

Question 18

Which of the following is the simplest job evaluation system?

Accepted Answer

Job ranking is the simplest job evaluation system where jobs are ranked from highest to lowest based on their value to the organization. It does not involve a complex point system or detailed job analysis.

Question 19

What types of jobs are usually evaluated using the Hay profile method?

Accepted Answer

The answer of What types of jobs are usually evaluated...

Question 20

Which of the following is a relatively new job evaluation system?

Accepted Answer

Work evaluation is a relatively new job evaluation system designed to assess jobs in a more holistic and comprehensive manner, incorporating various factors such as skill requirements, responsibilities, and working conditions. Unlike the more traditional methods like job classification, job ranking, and the point system, work evaluation aims to provide a more nuanced and adaptable approach to understanding and valuing different roles within an organization.

Quiz 9: Managing Compensation