1

Compensation Jeopardy

Work in groups Phrase your response in the form

of a question Right=+1, wrong=-1, pass=0 Time limited = 15 seconds Prize for team with most points

2

The term for the minimum pay increase that employees will see as making a meaningful change in their compensation

What is “just-meaningful pay increase?” (ch 4)

3

Of job design, performance appraisal, and top-management commitment, the one that is a company’s way for telling people what is expected of them in their jobs and how well they are meeting those expectations.

What is performance appraisal? (ch 4)

4

The pay system that rewards employees with periodic additions to base pay according to employees’ length of service.

What is seniority pay or longevity pay? (ch 4)

5

Pay that assumes that employees’ compensation over time should be determined, at least in part, by differences in job performance

What is pay for performance or merit pay? (ch 4)

6

The performance appraisal system where raters evaluate each employee’s characteristics, such as quality of work, quantity of work, appearance, dependability, cooperation, initiative, judgment, leadership responsibility, decision-making ability, or creativity What are trait systems? (ch 4)

7

One of the advantages of seniority pay

What is: employees feel they are treated fairly based on an objective standard, inherent objectivity leads to greater cooperation, easier to administer, less favoritism enables motivation. (ch 4)

8

The type of comparison system where a rater ranks each employee against every other employee and counts the number of “wins” to determine the ranking of each

What is paired comparison system? (ch 4)

9

Failure to differentiate among performers, poor measures, supervisors’ biased ratings, lack of open communication, undesirable social structures, and factors other than merit

What are some possible limitations of merit programs? (ch 4)

10

The type of performance appraisal that gathers information about a person’s performance from the employee, the supervisor, the coworkers, the supervisees, and/or the clients

What is a 360-degree performance appraisal? (ch 4)

11

Link performance appraisal to business goals, analyze jobs, communicate, establish effective appraisals, empower employees, differentiate among employees.

What are ways to strengthen the pay-for-performance link? (ch 4)

12

Of individual, group, or company-wide, the incentive pay plan that promotes supportive, collaborative behavior among employees in a division, and rewards employees for their collective performance.

What is a group incentive plan? ch5

13

An example of objective performance measure that could be used for an individual incentive plan.

What is (any of): number of units produced, sales amount, reduction in error rate? Ch 5

14

The type of plan that awards bonuses to managers when they meet or exceed objectives based on sales, profit, production or other measures for their department.

What is a management incentive plan?

15

The group incentive system that provides participating employees with an incentive payment based on improved company performance whether it be for increased productivity, increased customer satisfaction, lower costs, or better safety records.

What is gain-sharing? Ch 5

16

An example of one of the advantages or disadvantage of group incentives for companies

What is (any of): Easier to develop performance measures than individual plans, group cohesion, free-rider effect, discomfort with others’ performance? Ch 5

17

The type of gain-sharing plan that develops a ratio of total labor costs to sales value of production

What is a Scanlon plan? Ch 5

18

Of current profit sharing plans or deferred profit sharing plans, the one that places cash awards in trust accounts for employees as a source of retirement income.

What are deferred profit sharing plans? Ch 5

19

Of piecework, management incentive plans, behavior encouragement plans, and referral plans, the type of individual incentive plan where employee receive payments of specific behavioral accomplishments, such as good attendance or safety records. What are behavior encouragement

plans? Ch 5

20

One of the conditions under which individual incentive plans are most appropriate.

What is (any of): Employees performance can be measured objectively, employees have sufficient control over work outcomes, they do not create unhealthy competition among workers? Ch 5

21

The type of compensation, other than base wages or salaries, that fluctuates according to employees’ attainment of some standard such as pre-established formula, individual goals, company earnings

What is incentive pay or variable pay? Ch 5

22

An example of a way to distribute profit sharing money, e.g., who gets how much.

What is (any of): equal payments, proportional payments based on salary, and proportional payments based on employees contribution to profit? Ch 5

23

Of lowest-cost, differentiation, and focus, the one where team-based incentives and gain sharing are the most appropriate

What is differentiation? Ch 5

24

These assign different pay rates for jobs of unequal worth and provide the framework for recognizing differences in individual employee contributions

What is a pay structure?

25

One of the bases on which an organization can group jobs in the pay structure

What is (any of): exempt v. nonexempt; job family; geography?

26

The typical approach companies take in timing pay raises

What is (any of): common review date/common review period, or employee’s anniversary date?

27

Besides commission-only and salary-only, an example of a sales compensation plan.

What is (any of): salary-plus-bonus, salary-plus-commission, commission-plus-draw?

28

A set of skills necessary to perform a specific job or group of similar jobs

What are skill blocks?

29

An example of a sales objective (other than sales volume)

What is (any of): new business, retaining sales, product mix, win-back sales?

30

One of the IRS guidelines for key employees

What is (any of): one of 10 employees owning the largest percentages of the company; an employee who owns more than 5 % of co; Earns >$150,000/yr and owns >1%?

31

Of discretionary, performance-contingent, predetermined allocation, and target the type of executive bonus that are based on the attainment of specific performance criteria as growth in profits, etc. announced in advance. What is performance-contingent?

32

Other than a company car, an example of a executive perk

What is (any of): financial services, legal services, recreation facilities, travel perks, residential security, tickets to sporting events.

33

The denial is necessary to prevent substantial and grievous economic injury to the employer, the employer has notified the employee of its intent to deny restoration, an employee already on leave elects not to return to employment after receiving such notice What is a reason why executive may not

get back their jobs after FMLA leave?

34

An example of an individual or group that participates in setting executive compensation

What is (any of): executive compensation consultants, board of directors, compensation committee?

35

Of stock option, stock grant, exercise of stock grant, disposition, and fair market value, a right granted by a company to an employee to purchase a number of stocks at a designated price within a specified period of time.

What is a stock option?

36

Other than current core compensation, a component of executive pay.

What is (any of): stock compensation, golden parachutes, fringes, perks.

37

One of the factors to be considered when designing incentive pay programs.

What is (any of): group vs individual incentives, level of risk, complementing or replacing base pay, performance criteria, time horizon.

38

The situation that occurs whenever a company’s pay spread between newly hired or less-qualified employees and more-qualified job incumbents is small.

What is pay compression?

39

Of red circle, green circle, and yellow circle, the pay rates that are below the minimum of a specific pay range for that grade

What is green circle?

40

The factor other than performance that the merit pay grid is based on

What is position of employee’s current salary in pay range ?

41

One of the four factors that determine fixed pay and commission mix for salespersons

What is: influence of salesperson on the buying decision, competitive pay standards within the industry, amount of non-sales activities required, non-cash incentives?

42

Of incentive stock options, non-statuatory stock options, or phantom stock, the type of deferred compensation that entitles executives to purchase their companies’ stock in the future at a predetermined price.

What is incentive stock options?

43

The pay that assumes that employees become more valuable to companies with time and that valued employees will leave if they do not have a clear idea that their salaries will progress over time.

What is seniority pay or longevity pay (ch. 4)

44

Final Jeopardy

Decide how many of your points you will wager

Write your wager on a piece of paper Write your response; phrase it in the

form of a question Time limited Prize for team with most points

45

The name for the type of executive compensation that provides pay and benefits to executives after their termination resulting from a change in ownership or corporate takeover.

What is a golden parachute?