Deck 9: Compensation

Question 1

Brent was sitting in his office feeling disillusioned and taken advantage of by his employees. He had just learned that his two most trusted employees had been caught stealing computer parts on almost a weekly basis for the past year. When he started his computer repair and upgrade business 10 years ago, he did all the work personally out of his basement. As the business grew so rapidly through word of mouth advertising, he finally opened a store front for his business three years ago and hired eight staff to perform the various functions required to operate his small business. His Office Manager handled the day to day bookkeeping, purchasing, and supervision functions. He had one staff member (Sales) handle sales and invoicing. Another staff member (Inventory Control) was responsible for inventory control as well as shipping and receiving. Two employees (Hardware Techs) were focused on hardware computer repairs and upgrades. The final three employees (Software Techs) focused their time and attention on software installation, repairs and some basic programming. In designing his compensation system, Brent thought the job value to the organization were as follows and paid them accordingly:
Highest to Lowest Paid:

Office Manager (Straight Salary)
Software Techs (Hourly wage)
Sales (Base salary plus commission)
Hardware Techs (Hourly wage)
Inventory Control (Hourly wage)

When the employees were hired, Brent told them in the future that he would consider implementing other incentive plans. He had been so busy with running and overseeing the growth of the business, he had not yet had time to consider his options on incentive plans. Now, he was wondering what to do about the two Hardware Techs that had been caught stealing computer parts. He thought their behaviour might have something to do with their fairly low hourly wage. He had also heard that the Hardware Techs were surprised that the Software Techs were paid more than they were paid.


-Dissatisfaction on the part of the Hardware Techs likely has arisen from

A)absolute rates of pay only
B)relative rates of pay only
C)corporate culture
D)job analysis
E)both absolute and relative rates of pay

Answer 1

both absolute and relative rates of pay

Question 2

Brent was sitting in his office feeling disillusioned and taken advantage of by his employees. He had just learned that his two most trusted employees had been caught stealing computer parts on almost a weekly basis for the past year. When he started his computer repair and upgrade business 10 years ago, he did all the work personally out of his basement. As the business grew so rapidly through word of mouth advertising, he finally opened a store front for his business three years ago and hired eight staff to perform the various functions required to operate his small business. His Office Manager handled the day to day bookkeeping, purchasing, and supervision functions. He had one staff member (Sales) handle sales and invoicing. Another staff member (Inventory Control) was responsible for inventory control as well as shipping and receiving. Two employees (Hardware Techs) were focused on hardware computer repairs and upgrades. The final three employees (Software Techs) focused their time and attention on software installation, repairs and some basic programming. In designing his compensation system, Brent thought the job value to the organization were as follows and paid them accordingly:
Highest to Lowest Paid:

Office Manager (Straight Salary)
Software Techs (Hourly wage)
Sales (Base salary plus commission)
Hardware Techs (Hourly wage)
Inventory Control (Hourly wage)

When the employees were hired, Brent told them in the future that he would consider implementing other incentive plans. He had been so busy with running and overseeing the growth of the business, he had not yet had time to consider his options on incentive plans. Now, he was wondering what to do about the two Hardware Techs that had been caught stealing computer parts. He thought their behaviour might have something to do with their fairly low hourly wage. He had also heard that the Hardware Techs were surprised that the Software Techs were paid more than they were paid.


-If Brent were to use a point system matrix for evaluating the jobs in his company,he could use any of the following compensable factors except

A)level of responsibility
B)employee goals
C)working conditions
D)skill requirements
E)effort needed

Answer 2

employee goals

Question 3

Brent was sitting in his office feeling disillusioned and taken advantage of by his employees. He had just learned that his two most trusted employees had been caught stealing computer parts on almost a weekly basis for the past year. When he started his computer repair and upgrade business 10 years ago, he did all the work personally out of his basement. As the business grew so rapidly through word of mouth advertising, he finally opened a store front for his business three years ago and hired eight staff to perform the various functions required to operate his small business. His Office Manager handled the day to day bookkeeping, purchasing, and supervision functions. He had one staff member (Sales) handle sales and invoicing. Another staff member (Inventory Control) was responsible for inventory control as well as shipping and receiving. Two employees (Hardware Techs) were focused on hardware computer repairs and upgrades. The final three employees (Software Techs) focused their time and attention on software installation, repairs and some basic programming. In designing his compensation system, Brent thought the job value to the organization were as follows and paid them accordingly:
Highest to Lowest Paid:

Office Manager (Straight Salary)
Software Techs (Hourly wage)
Sales (Base salary plus commission)
Hardware Techs (Hourly wage)
Inventory Control (Hourly wage)

When the employees were hired, Brent told them in the future that he would consider implementing other incentive plans. He had been so busy with running and overseeing the growth of the business, he had not yet had time to consider his options on incentive plans. Now, he was wondering what to do about the two Hardware Techs that had been caught stealing computer parts. He thought their behaviour might have something to do with their fairly low hourly wage. He had also heard that the Hardware Techs were surprised that the Software Techs were paid more than they were paid.


-Brent's management policy of ______________ is clearly not successful.

A)using skill-based pay
B)applying team-based pay plans
C)providing perks
D)pay secrecy
E)variable pay

Answer 3

pay secrecy

Question 4

Brent was sitting in his office feeling disillusioned and taken advantage of by his employees. He had just learned that his two most trusted employees had been caught stealing computer parts on almost a weekly basis for the past year. When he started his computer repair and upgrade business 10 years ago, he did all the work personally out of his basement. As the business grew so rapidly through word of mouth advertising, he finally opened a store front for his business three years ago and hired eight staff to perform the various functions required to operate his small business. His Office Manager handled the day to day bookkeeping, purchasing, and supervision functions. He had one staff member (Sales) handle sales and invoicing. Another staff member (Inventory Control) was responsible for inventory control as well as shipping and receiving. Two employees (Hardware Techs) were focused on hardware computer repairs and upgrades. The final three employees (Software Techs) focused their time and attention on software installation, repairs and some basic programming. In designing his compensation system, Brent thought the job value to the organization were as follows and paid them accordingly:
Highest to Lowest Paid:

Office Manager (Straight Salary)
Software Techs (Hourly wage)
Sales (Base salary plus commission)
Hardware Techs (Hourly wage)
Inventory Control (Hourly wage)

When the employees were hired, Brent told them in the future that he would consider implementing other incentive plans. He had been so busy with running and overseeing the growth of the business, he had not yet had time to consider his options on incentive plans. Now, he was wondering what to do about the two Hardware Techs that had been caught stealing computer parts. He thought their behaviour might have something to do with their fairly low hourly wage. He had also heard that the Hardware Techs were surprised that the Software Techs were paid more than they were paid.


-What kind of job evaluation method did Brent most likely use in his company?

A)job ranking
B)job grading
C)job classification
D)point system
E)job analysis

Question 5

Brent was sitting in his office feeling disillusioned and taken advantage of by his employees. He had just learned that his two most trusted employees had been caught stealing computer parts on almost a weekly basis for the past year. When he started his computer repair and upgrade business 10 years ago, he did all the work personally out of his basement. As the business grew so rapidly through word of mouth advertising, he finally opened a store front for his business three years ago and hired eight staff to perform the various functions required to operate his small business. His Office Manager handled the day to day bookkeeping, purchasing, and supervision functions. He had one staff member (Sales) handle sales and invoicing. Another staff member (Inventory Control) was responsible for inventory control as well as shipping and receiving. Two employees (Hardware Techs) were focused on hardware computer repairs and upgrades. The final three employees (Software Techs) focused their time and attention on software installation, repairs and some basic programming. In designing his compensation system, Brent thought the job value to the organization were as follows and paid them accordingly:
Highest to Lowest Paid:

Office Manager (Straight Salary)
Software Techs (Hourly wage)
Sales (Base salary plus commission)
Hardware Techs (Hourly wage)
Inventory Control (Hourly wage)

When the employees were hired, Brent told them in the future that he would consider implementing other incentive plans. He had been so busy with running and overseeing the growth of the business, he had not yet had time to consider his options on incentive plans. Now, he was wondering what to do about the two Hardware Techs that had been caught stealing computer parts. He thought their behaviour might have something to do with their fairly low hourly wage. He had also heard that the Hardware Techs were surprised that the Software Techs were paid more than they were paid.


-The perceived fairness issue related to their job ranking within the organization that appears to be causing the behaviour of the Hardware Techs is referred to as

A)external equity
B)internal equity
C)range equity
D)pay equity
E)productivity equity

Question 6

Brent was sitting in his office feeling disillusioned and taken advantage of by his employees. He had just learned that his two most trusted employees had been caught stealing computer parts on almost a weekly basis for the past year. When he started his computer repair and upgrade business 10 years ago, he did all the work personally out of his basement. As the business grew so rapidly through word of mouth advertising, he finally opened a store front for his business three years ago and hired eight staff to perform the various functions required to operate his small business. His Office Manager handled the day to day bookkeeping, purchasing, and supervision functions. He had one staff member (Sales) handle sales and invoicing. Another staff member (Inventory Control) was responsible for inventory control as well as shipping and receiving. Two employees (Hardware Techs) were focused on hardware computer repairs and upgrades. The final three employees (Software Techs) focused their time and attention on software installation, repairs and some basic programming. In designing his compensation system, Brent thought the job value to the organization were as follows and paid them accordingly:
Highest to Lowest Paid:

Office Manager (Straight Salary)
Software Techs (Hourly wage)
Sales (Base salary plus commission)
Hardware Techs (Hourly wage)
Inventory Control (Hourly wage)

When the employees were hired, Brent told them in the future that he would consider implementing other incentive plans. He had been so busy with running and overseeing the growth of the business, he had not yet had time to consider his options on incentive plans. Now, he was wondering what to do about the two Hardware Techs that had been caught stealing computer parts. He thought their behaviour might have something to do with their fairly low hourly wage. He had also heard that the Hardware Techs were surprised that the Software Techs were paid more than they were paid.


-The Hardware Techs' comments about their pay in comparison to that paid to the Software Techs relates to their _________________.

A)physiological and security needs
B)health needs
C)social and esteem needs
D)basic survival needs
E)love and affection needs

Question 7

Brent was sitting in his office feeling disillusioned and taken advantage of by his employees. He had just learned that his two most trusted employees had been caught stealing computer parts on almost a weekly basis for the past year. When he started his computer repair and upgrade business 10 years ago, he did all the work personally out of his basement. As the business grew so rapidly through word of mouth advertising, he finally opened a store front for his business three years ago and hired eight staff to perform the various functions required to operate his small business. His Office Manager handled the day to day bookkeeping, purchasing, and supervision functions. He had one staff member (Sales) handle sales and invoicing. Another staff member (Inventory Control) was responsible for inventory control as well as shipping and receiving. Two employees (Hardware Techs) were focused on hardware computer repairs and upgrades. The final three employees (Software Techs) focused their time and attention on software installation, repairs and some basic programming. In designing his compensation system, Brent thought the job value to the organization were as follows and paid them accordingly:
Highest to Lowest Paid:

Office Manager (Straight Salary)
Software Techs (Hourly wage)
Sales (Base salary plus commission)
Hardware Techs (Hourly wage)
Inventory Control (Hourly wage)

When the employees were hired, Brent told them in the future that he would consider implementing other incentive plans. He had been so busy with running and overseeing the growth of the business, he had not yet had time to consider his options on incentive plans. Now, he was wondering what to do about the two Hardware Techs that had been caught stealing computer parts. He thought their behaviour might have something to do with their fairly low hourly wage. He had also heard that the Hardware Techs were surprised that the Software Techs were paid more than they were paid.


-If the two employees in the Hardware Tech category are both women and the three employees int eh Software Tech category are men,what principle under the Canadian Human Rights Act may be contravened by paying the Software Techs more than the Hardware Techs?

A)equal pay for equal work
B)equal pay for work of equal value
C)employment equity
D)fair pay
E)fair employment pay

Question 8

Brent was sitting in his office feeling disillusioned and taken advantage of by his employees. He had just learned that his two most trusted employees had been caught stealing computer parts on almost a weekly basis for the past year. When he started his computer repair and upgrade business 10 years ago, he did all the work personally out of his basement. As the business grew so rapidly through word of mouth advertising, he finally opened a store front for his business three years ago and hired eight staff to perform the various functions required to operate his small business. His Office Manager handled the day to day bookkeeping, purchasing, and supervision functions. He had one staff member (Sales) handle sales and invoicing. Another staff member (Inventory Control) was responsible for inventory control as well as shipping and receiving. Two employees (Hardware Techs) were focused on hardware computer repairs and upgrades. The final three employees (Software Techs) focused their time and attention on software installation, repairs and some basic programming. In designing his compensation system, Brent thought the job value to the organization were as follows and paid them accordingly:
Highest to Lowest Paid:

Office Manager (Straight Salary)
Software Techs (Hourly wage)
Sales (Base salary plus commission)
Hardware Techs (Hourly wage)
Inventory Control (Hourly wage)

When the employees were hired, Brent told them in the future that he would consider implementing other incentive plans. He had been so busy with running and overseeing the growth of the business, he had not yet had time to consider his options on incentive plans. Now, he was wondering what to do about the two Hardware Techs that had been caught stealing computer parts. He thought their behaviour might have something to do with their fairly low hourly wage. He had also heard that the Hardware Techs were surprised that the Software Techs were paid more than they were paid.


-The Hardware Techs' fairly low hourly wage would primarily affect their _____________.

A)esteem needs
B)physiological needs only
C)security needs only
D)both physiological and security needs
E)belonging needs

Question 9

Brent was sitting in his office feeling disillusioned and taken advantage of by his employees. He had just learned that his two most trusted employees had been caught stealing computer parts on almost a weekly basis for the past year. When he started his computer repair and upgrade business 10 years ago, he did all the work personally out of his basement. As the business grew so rapidly through word of mouth advertising, he finally opened a store front for his business three years ago and hired eight staff to perform the various functions required to operate his small business. His Office Manager handled the day to day bookkeeping, purchasing, and supervision functions. He had one staff member (Sales) handle sales and invoicing. Another staff member (Inventory Control) was responsible for inventory control as well as shipping and receiving. Two employees (Hardware Techs) were focused on hardware computer repairs and upgrades. The final three employees (Software Techs) focused their time and attention on software installation, repairs and some basic programming. In designing his compensation system, Brent thought the job value to the organization were as follows and paid them accordingly:
Highest to Lowest Paid:

Office Manager (Straight Salary)
Software Techs (Hourly wage)
Sales (Base salary plus commission)
Hardware Techs (Hourly wage)
Inventory Control (Hourly wage)

When the employees were hired, Brent told them in the future that he would consider implementing other incentive plans. He had been so busy with running and overseeing the growth of the business, he had not yet had time to consider his options on incentive plans. Now, he was wondering what to do about the two Hardware Techs that had been caught stealing computer parts. He thought their behaviour might have something to do with their fairly low hourly wage. He had also heard that the Hardware Techs were surprised that the Software Techs were paid more than they were paid.


-What type of individual pay incentive plan would best be implemented for the Hardware Tech category of employee?

A)employee stock ownership plans
B)production bonuses
C)commissions
D)executive incentives
E)profit-sharing plans

Question 10

Brent was sitting in his office feeling disillusioned and taken advantage of by his employees. He had just learned that his two most trusted employees had been caught stealing computer parts on almost a weekly basis for the past year. When he started his computer repair and upgrade business 10 years ago, he did all the work personally out of his basement. As the business grew so rapidly through word of mouth advertising, he finally opened a store front for his business three years ago and hired eight staff to perform the various functions required to operate his small business. His Office Manager handled the day to day bookkeeping, purchasing, and supervision functions. He had one staff member (Sales) handle sales and invoicing. Another staff member (Inventory Control) was responsible for inventory control as well as shipping and receiving. Two employees (Hardware Techs) were focused on hardware computer repairs and upgrades. The final three employees (Software Techs) focused their time and attention on software installation, repairs and some basic programming. In designing his compensation system, Brent thought the job value to the organization were as follows and paid them accordingly:
Highest to Lowest Paid:

Office Manager (Straight Salary)
Software Techs (Hourly wage)
Sales (Base salary plus commission)
Hardware Techs (Hourly wage)
Inventory Control (Hourly wage)

When the employees were hired, Brent told them in the future that he would consider implementing other incentive plans. He had been so busy with running and overseeing the growth of the business, he had not yet had time to consider his options on incentive plans. Now, he was wondering what to do about the two Hardware Techs that had been caught stealing computer parts. He thought their behaviour might have something to do with their fairly low hourly wage. He had also heard that the Hardware Techs were surprised that the Software Techs were paid more than they were paid.


-If each type of job in this organization is considered a key job,there are most likely _______ rate ranges in the compensation structure.

A)2
B)3
C)4
D)5
E)8