Question 1

How can an organization ensure that its compensation system is internally aligned? Describe three methods.

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Question 2

Rather than developing an internal compensation structure, some organizations use ________ to look at external wage information first when making compensation decisions.

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Question 3

When evaluating a job it is important to identify what the ________ are, such as working conditions, skills, or creativity.

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Question 4

An organization's pay policy is generally created during the process of ________, which assigns dollar amounts to jobs to ensure internal and external alignment.

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Question 5

________ or ________ a salary survey are two methods to gather wage information to determine ________ competitiveness.

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Question 6

When an employee moves from an electrician's apprentice to master electrician and they receive a pay increase, this compensation system is known as ________ pay.

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Question 7

Explain two alternative approaches to compensation. Be sure to what the drawbacks of each method may be.

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Question 8

Identify and explain three examples of how organizational demands can impact compensation programs.

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Question 9

When an organization benchmarks jobs against something like physical requirements or level of responsibility it is using a job evaluation method known as ________.

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Question 10

Identify and explain three examples of how external factors can influence compensation programs.

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Question 11

As the HR Manager you have been asked to do a review of compensation rates in your organization as compared to the external market. What steps will you follow to determine if wages need to be adjusted to be more externally competitive?

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Question 12

The current federal minimum wage rate is ________ while the minimum wage in this state is ________. If the state minimum wage rate is higher than the federal rate the ________ rate must be used.

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Question 13

Explain three key components of the Fair Labor Standards Act. How does this regulation impact how organization's design their compensation systems?

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Question 14

Explain the difference between internal alignment and external competitiveness. Why do organizations need both when designing their compensation system?

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Question 15

In order to reduce the complexity of the ________ process some organizations use ________ to consolidate their pay grades into larger grades.

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Question 16

The ________ is used to determine the actual pay rate for an employee and they should not make less than the ________ or more than the ________.

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Question 17

What is the difference between a pay range and a pay grade? Define the three different components of a pay range? What does overlap of pay ranges mean?

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Question 18

What are the three key pieces to administering an effective compensation program? Explain each in detail.

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Question 19

Explain the pros and cons of using a merit based compensation system to give employee wage increases.

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Question 20

Giving an employee a raise or reclassifying a job into a lower grade are both ways to eliminate a ________ issue.

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Quiz 10: Compensating Employees