Deck 1: The Pay Model

Question 1

Define the term compensation.

Answer 1

NA

Question 2

Describe how compensation is viewed differently by society, stakeholders, managers, and employees in Canada and around the world.

Answer 2

NA

Question 3

Discuss major components of total rewards.

Answer 3

NA

Question 4

Identify and explain the three strategic objectives of compensation.

Question 5

Describe the four strategic policies in the pay model and the techniques associated with them.

Question 6

How do differing perspectives affect our views of compensation?

Question 7

Refer to the image that opens this chapter and categorize the various items based on what the following stakeholder groups may refer to as compensation: employee, employer, society, and stockholders.

Question 8

Discuss five different forms of pay that one might expect to receive from work.

Question 9

What are the four policy issues in the pay model? And what are the strategic objectives of a pay system

Question 10

What is your definition of compensation? Which meaning of compensation seems most appropriate from an employee's view- return, reward, or entitlement? Compare your ideas with someone who has more experience, with someone from another country, with someone from another field of study.

Question 11

List all the forms of pay you receive from work. Compare yours to someone else's list. Explain any differences.

Question 12

What is your ideal total compensation package upon your completion of the program at your current institution? Do you think these are achievable? What are some of the things you can offer your employer?

Question 13

Go to the website of a company that you want to work in. Find out what kind of benefits it offers their employees.

Question 14

CASE: The Role of Labour Costs
Summary of Case
The case provides a brief history of the electronics retailer, Best Buy and its takeover a Canadian retailer, Future Shop. The differences in compensation between the two are firms are highlighted. The case describes various cost-saving measures taken by Best Buy in response to slowing sales and increased competition from Amazon and Walmart, among others. Savings were achieved through store closures, job cuts and reductions in compensation for Best Buy employees. The corporate culture of Best Buy is characterized. Stock prices for 11 years, 2009-2019 for Best Buy, Amazon, and Walmart are presented.
-Is replacement of highly-paid workers with lower-paid workers a good idea to ensure a company's success?

Question 15

CASE: The Role of Labour Costs
Summary of Case
The case provides a brief history of the electronics retailer, Best Buy and its takeover a Canadian retailer, Future Shop. The differences in compensation between the two are firms are highlighted. The case describes various cost-saving measures taken by Best Buy in response to slowing sales and increased competition from Amazon and Walmart, among others. Savings were achieved through store closures, job cuts and reductions in compensation for Best Buy employees. The corporate culture of Best Buy is characterized. Stock prices for 11 years, 2009-2019 for Best Buy, Amazon, and Walmart are presented.
-Why are Walmart and Amazon doing better than Best Buy? Do they have higher pay?

Question 16

CASE: The Role of Labour Costs
Summary of Case
The case provides a brief history of the electronics retailer, Best Buy and its takeover a Canadian retailer, Future Shop. The differences in compensation between the two are firms are highlighted. The case describes various cost-saving measures taken by Best Buy in response to slowing sales and increased competition from Amazon and Walmart, among others. Savings were achieved through store closures, job cuts and reductions in compensation for Best Buy employees. The corporate culture of Best Buy is characterized. Stock prices for 11 years, 2009-2019 for Best Buy, Amazon, and Walmart are presented.
-Are there larger problems in the competitive landscape for Best Buy that cannot be solved by compensation strategy changes (e.g., lowering labour costs) alone? When customers look to buy electronics, what options do they have other than Best Buy, and why would they choose these other options over Best Buy? Where do customers "test drive" the product and where do they buy it? Can compensation changes address these challenges? Explain.

Question 17

CASE: The Role of Labour Costs
Summary of Case
The case provides a brief history of the electronics retailer, Best Buy and its takeover a Canadian retailer, Future Shop. The differences in compensation between the two are firms are highlighted. The case describes various cost-saving measures taken by Best Buy in response to slowing sales and increased competition from Amazon and Walmart, among others. Savings were achieved through store closures, job cuts and reductions in compensation for Best Buy employees. The corporate culture of Best Buy is characterized. Stock prices for 11 years, 2009-2019 for Best Buy, Amazon, and Walmart are presented.
-The stock price for Best Buy went down to $11.81 in 2013, but it has been doing better since then. Are you surprised by their performance since 2013?

Question 18

CASE: The Role of Labour Costs
Summary of Case
The case provides a brief history of the electronics retailer, Best Buy and its takeover a Canadian retailer, Future Shop. The differences in compensation between the two are firms are highlighted. The case describes various cost-saving measures taken by Best Buy in response to slowing sales and increased competition from Amazon and Walmart, among others. Savings were achieved through store closures, job cuts and reductions in compensation for Best Buy employees. The corporate culture of Best Buy is characterized. Stock prices for 11 years, 2009-2019 for Best Buy, Amazon, and Walmart are presented.
-What do you think about the CEO's message to the shareholders about the beliefs that Best Buy's culture is built on?