Question 1

What is being described here? A gratuitous payment made by the employer that is not directly earned by the employee.&#10;A) Bonus&#10;B) Premium&#10;C) Incentive&#10;D) Plussage

Accepted Answer

A bonus is a form of additional compensation given to an employee on top of their regular earnings, often without a direct requirement for specific performance criteria to be met, making it a gratuitous payment.

Question 2

What is being described here? A group of employers, often based in the same locality, who agree to exchange pay information for mutual benefit.&#10;A) A wage association&#10;B) A salary club&#10;C) A compensation circle&#10;D) A pay databank

Accepted Answer

B

Question 3

What type of reward consists of money and other benefits?&#10;A) Relational&#10;B) Intrinsic&#10;C) Total&#10;D) Transactional

Accepted Answer

Transactional rewards consist of money and other benefits, such as bonuses or company perks. Relational rewards refer to social or emotional benefits, intrinsic rewards are those derived from internal satisfaction, and total rewards encompass all types of rewards, including those related to work-life balance and career development.

Question 4

What is being described here? The process by which an individual's rate of pay is protected following a job evaluation exercise which finds their job to be overpaid.&#10;A) Whole job analysis&#10;B) Weighting&#10;C) Green circling&#10;D) Red circling

Accepted Answer

Red circling is the process used to protect an individual's pay rate when their job is evaluated and found to be overpaid compared to the new evaluation. This means their pay is "frozen" at the current rate until the pay scale catches up.

Question 5

What is being described here? An approach to determining pay rates which compares each job with others in terms of the skills, knowledge and experience needed to carry it out effectively.&#10;A) Analytical job evaluation&#10;B) Non-analytical job evaluation&#10;C) Proprietary job evaluation&#10;D) Structural job evaluation

Accepted Answer

Analytical job evaluation is an approach to determining pay rates by comparing the skills, knowledge, and experience required for a particular job with other jobs in the organization. This method involves breaking down the components of each job and evaluating them based on factors such as complexity, responsibility, and required expertise. The resulting data can then be used to establish a fair and consistent pay structure. Non-analytical job evaluation, on the other hand, typically involves a more subjective evaluation of job worth based on factors such as market rates and internal equity. Proprietary job evaluation refers to a specific method developed by a particular organization, while structural job evaluation is a broader term that encompasses various approaches to comparing jobs within a hierarchy.

Question 6

In which country is the following approach to the setting of pay most common? Government plays a central role in co-ordinating collective bargaining across industries with a view to agreeing long-term pay deals.

A) Japan
B) Germany
C) Sweden
D) USA

Accepted Answer

This approach is most common in Sweden. Sweden has a tradition of centralized wage bargaining, where labor market partners negotiate wages, working conditions, and dispute resolution procedures at a national level. The government plays a central role in co-ordinating collective bargaining across industries, with a view to agreeing long-term pay deals, and often intervenes to resolve disputes.

Deck 20: Total Reward and Setting Pay