hrm2600 chapters 6-9 short answers

8/10/2019 HRM2600 Chapters 6-9 Short Answers

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HRM2600

Chapter 6 Recruitment and Careers Short Answer Questions

Question #1: Explain the objectives of the personnel selection process.

The main objective of the personnel selection process is to choose individuals who have

relevant qualifications to fill existing or projected job openings.

The selection process should start with a job analysis. Selection considerations include

the person-job fit, which identifies the required individual competencies (KSAOs) for job

success. Similarly, the person-organization fit is the degree to which individuals match to

the culture and values of the organization.

The overall goal of the selection process is to maximize hits and avoid misses. Hits

are accurate predictions regarding a potential employees job performance, and misses

are inaccurate ones. The cost of one type of miss would be the direct and indirect

expense of hiring an employee who turns out to be unsuccessful. The cost of the other

type of miss is an opportunity cost someone who could have been successful did not

get a chance.

Organizations use several different means to obtain information about applicants. These

include gathering rsums and applications and conducting interviews, tests, and

investigations.


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Question #2: Explain what is required for an employee selection tool to be reliable and valid.

At any stage of the selection process, it is essential that the information obtained is

reliable and valid and gathered legally and that the privacy of the applicants is

safeguarded.

The degree to which interviews, tests, and other selection procedures produce

comparable data over a period of time is known as reliability. For example, a test that

gives widely different scores when it is administered to the same individual a few days

apart is unreliable.

Reliability also refers to the extent to which two or more methods (e. g., interviews and

tests) produce similar results or are consistent. Interrater reliabilityagreement among

two or more ratersis one measure of a methods consistency.

In addition to having reliable information regarding a persons suitability for a job, the

information must be as valid as possible. Validity refers to what a test or other selection

procedure measures and how well it measures it. In other words, the selection process

should be able to predict how well a person performs on the job.

Validity is important because it is related to increases in employee productivity.

Furthermore, employment equity regulations require valid selection procedures.

Question #3: What are the advantages of online applications?

An Internet-based automated posting, application, and tracking process helps firms to more

quickly fill positions by:

Attracting a broader and more diverse applicant pool

Collecting and mining resumes with keyword searches to identify qualified candidates

Conducting screening tests online


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Reducing recruiting costs significantly

Question #4: Illustrate the different approaches to conducting an employment interview.

The employment interview has a central role in the selection process. Interview

methods differ in several ways, such as the amount of control exercised by the

interviewer. In highly structured interviews, the interviewer determines the course that

the interview will follow as each question is asked. In the less structured interview, the

applicant plays a larger role in determining the course the discussion will take.

A structured interviewis an interview in which a set of standardized questions with an

established set of answers are used.

In contrast, a nondirective interview describes the situation when the applicant

determines the course of the discussion while the interviewer refrains from influencing

the applicant`s remarks.

Another interview approach is the situational interview, referring to an interview in

which an applicant is given a hypothetical incident and asked how he or she would

respond to it.

The behavioural description interview (BDI) is an interview in which an applicant is

asked questions about what he or she actually did in a given situation.

Lastly, the panel interview describes an interview in which a board of interviewers

questions and observes a single candidate.

A sequential interview is one in which a candidate is interviewed by multiple people,

one right after another. They allow different interviewers who have a vested interest in

the candidates success to meet and evaluate the person one on one. The interv iewers

later get together and compare their assessments of the candidates.


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Question #5:Compare the value of different types of employment tests.

There are several different types of employment tests.

1. The job knowledge test is an achievement test that measures a person`s level of

understanding about a particular job.

2. A work sample testrequires the applicant to perform tasks that are actually a part of

the work required on the job.

3. An assessment centre testis a process used to evaluate candidates as they participate

in a series of situations that resemble what they might be called on to handle on the job,

for example through role-playing etc.

4. Cognitive ability tests measure mental capabilities such as general intelligence, verbal

fluency, numerical ability, and reasoning ability. They can be divided into different

categories, such as aptitude teststhat measure a person`s capacity to learn and acquireskill or achievement teststhat measure what a person knows and can do right now.

5. Whereas cognitive ability tests measure a persons mental capacity, personality tests

measure disposition and temperament. Personality tests are good predictors of

motivation, such as leadership efforts and tendency to adhere to rules. There are 5

dimensions that can summarize personality traits. The Big Five factors are the

following: Extroversion, Agreeableness, Conscientiousness, Neuroticism, andOpenness to experience.

6. The polygraph, or lie detector, is a device that measures the changes in breathing, blood

pressure, and pulse of a person who is being questioned.Questions typically cover such


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items as whether a person uses drugs, has stolen from an employer, or has committed a

serious undetected crime. However, the use of lie detector tests for employment

purposes is prohibited in Ontario.

7. Interest testsanalyze preferences for certain activities and are used mainly for career

counselling.

8.

Honesty and Integrity Tests are used by employers to reduce the frequency and extent

of theft. These tests have commonly been used in settings such as retail stores, where

employees have access to cash or merchandise.

9. Physical Ability Tests are conducted when employers frequently need to assess a

persons physical abilities. Particularly for demanding and potentially dangerous jobs,

such as those held by firefighters and police officers, physical abilities such as strength

and endurance tend to be good predictors not only of performance but also of accidents

and injuries.

Question #6: Describe the various decision strategies for selection.

There are several decision models and strategies that can be employed in the selection process.

1. Compensatory Model: The compensatory model permits a high score in one area to

make up for a low score in another area.

2. Multiple Cutoff Model: The multiple cutoff model requires an applicant to achieve a

minimum level of proficiency on all selection dimensions.

3. Multiple Hurdle Model:The multiple hurdle model stipulates that only applicants with

sufficiently high scores at each selection stage go on to subsequent stages in the

selection process.


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Chapter 7 Training and Development Short Answer Questions

Question #1: Discuss the strategic approach to training.

The goal of training is to contribute to the organizations overall goals. The most important goalis to improve organizational performance, followed by the development of leaders and aligning

business and learning objectives. The strategic approach to training involves four phases: (1)

needs assessment, (2) program design, (3) implementation, and (4) evaluation.

Question #2: Describe the components of training needs assessment.

Needs Assessment: The first step in a needs assessment is the organization analysisto examine

the environment, strategies, and resources of the organization to determine where training

emphasis should be placed. A firms training should revolve around the strategic initiatives of

the organization. Mergers and acquisitions, for example, require that employees take on new

roles and responsibilities and adjust to new cultures and ways of conducting business. Otherissues, such as technological change, globalization, and quality improvements, influence the

way work is done and the types of skills needed to do it. Next, a task analysis should be

performed to determine the content of the training program based on the tasks and duties

involved in the job. A task analysis involves reviewing the job description and specifications to

identify the activities performed in a particular job and the skills needed to perform them. The

first step in task analysis is to list all the tasks or duties included in the job. The second step is to

list the steps performed by the employee to complete each task. Once the job is understood

thoroughly, the type of performance required along with the skills and knowledge necessary to

do it, can be defined. A person analysisis also helpful to determine the specific individuals who

need training.

Question #3: Describe the components of program design. Identify the principles of learning

and describe how they facilitate training.

Program design:Once the training needs have been determined, the next step is to design the

type of learning environment necessary to enhance learning. The design of training programs

should focus on at least four related issues: (1) the trainings instructional objectives (the skills

to be acquires), (2) the readiness of trainees and their motivation, (3) principles of learning

and (4) the characteristics of instructors (knowledge of subject, enthusiasm etc.).

The principles of learning are based on goal setting, meaningfulness of presentation, modelling,

individual differences, active practice and repetition, whole-versus-part learning, massed-

versus-distributed learning and feedback and reinforcement.


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Goal Setting: The value of goal setting for focusing and motivating behaviour extends into

training. When trainers take the time to explain the trainings goals and objectives to trainees

then the level of interest, understanding, and effort directed toward the training is likely to

increase.

Meaningfulness of Presentation:One principle of learning is that the material to be learnedshould be presented in a meaningful manner. Trainees will be better able to learn new

information if they can connect it with things that are already familiar to them. This is the

reason why trainers frequently use colourful examples to which trainees can relate. The

examples make the material meaningful. In addition, material should be arranged so that each

experience builds on preceding ones.

Modelling:Modelling demonstrates the desired behaviour or method to be learned. Real-life

demonstrations and demonstrations on DVDs are often helpful; even pictures and drawings can

get the visual message across.

Individual differences:People learn at different rates and in different ways. Trainers can help

accommodate different learning styles in a variety of ways. They should use visual aids,

encourage the participation of learners by including them in demonstrations, and ask them

questions about their own experiences. Hands-on activities and breaking large groups into

smaller groups for specific activities can also help trainers accommodate different learning

styles. To the extent possible, training programs should try to account for and accommodate

these individual differences to facilitate each persons style and rate of learning.

Active Practice and Repetition: Trainees should be given frequent opportunities to practise

their job tasks in the way that they will ultimately be expected to perform them.

Whole-versus-Part Learning: Most jobs and tasks can be broken down into parts. Determining

the most effective manner for completing each part then provides a basis for giving specific

instruction. Learning to sell a product, for example, is made up of several skills that are part of

the total process. If the task can be broken down successfully, it probably should be broken

down to facilitate learning; otherwise, it should probably be taught as a unit.

Massed-versus-distributed Learning: Another factor that determines the effectiveness of

training is the amount of time devoted to practice in one session. Should trainees be given

training in 5 two-hour periods or in 10 one- hour periods? It has been found in most cases that

spacing out the training will result in faster learning and longer retention. This is the principle of

distributed learning.

Feedback and Reinforcement:Feedback can help individuals focus on what they are doing right

and what they are doing wrong. In addition to providing participants with information about

their performance, feedback also plays an important motivational role.


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Question #4: Identify the types of training methods used for managers and nonmanagers.

Implementation: To choose among various training methods, it is essential to determine which

ones are appropriate for the knowledge and skills to be learned. If the material is mostly

factual, methods such as lecture, classroom, or programmed instruction may be sufficient.

However, if the training involves a large behavioural component, other methods, such as on-

the- job training, simulation, or computer-based training, might work better.

Training methods can also be divided between non-managerial employees and those used for

managers.

Training Methods for Non-Managerial Employees:

The most common method used for training non-managerial employees for example is

on-the-job training (OJt). On-the-job trainingis a method by which employees are given

hands-on experience with instructions from their supervisor or other trainer. OJT has

the advantage of providing hands on experience under normal working conditions.

Drawbacks include the lack of a well-structured training environment and the possibility

of poor training skills of managers.

The next training method is apprenticeship training, which is a system of training in

which a worker entering the skilled trades is given instruction and experience, both on

and off the job, in the practical and theoretical aspects of the work.

Similarly, cooperative trainingis a training program that combines practical on-the-job

experience with formal educational classes.

Internship programs are another option which are sponsored by colleges anduniversities and offer students the opportunity to gain real-life experience while

allowing them to find out how they will perform in work organizations.


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Classroom Instructionenables the maximum number of trainees to be handled by the

minimum number of instructors. It also allows for blended learning which combines

lectures and demonstrations with film, DVDs, computer etc.

Simulation is used when it is either impractical or unwise to train employees on the

actual equipment used on the job. Hence, this method emphasizes minimum cost and

maximum safety.

E-learningis learning that takes place via electronic media such as web and computer-

based training (CBT). It allows the firm to bring the training to employees. Furthermore,

it allows employees to customize their own learning in their own time and space and

training materials can be constantly updated. The advantages of e-learning include self-

paced learning and employees do not have to wait for a scheduled training session.

Moreover, the training can be cost-effective if used for both large and small numbers of

employees.

Training Methods for Management Development:

Training Methods for Management Development include on-the-job experiences, seminars and

conferences, case studies, management games and behaviour modeling.

On-the-Job experiencesinclude coaching, special projects, staff meetings etc.

Seminar and Conferencesare useful for brining groups of people together for training

and development.

The use of case studiesis most appropriate when problem-solving and critical thinking

skills are most important. Case studies can also be utilized if the knowledge and skills to

be acquired are complex and participants need time to master them. The process of

learning (questioning, interpreting, and so on) is as important as the content. Team

problem solving and interaction are possible.


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Management Games stimulate participation and aid decision-making.

Behaviour Modelling is an approach that demonstrates desired behaviour and gives

trainees the chance to practice and role-play those behaviors and receive feedback.

Question #5: Discuss the advantages and disadvantages of various evaluation criteria.

Evaluation: Training, like any other HRM function, has to be evaluated to determine its

effectiveness. A variety of methods are available to assess the extent to which a firms training

programs improve learning, affect behaviour on the job, and impact the performance of an

organization. There are four basic criteria available to evaluate training: (1) reactions, (2)learning, (3) behaviour, and (4) results, including return on investment (ROI).

Criterion 1: Reactions

One of the simplest and most common approaches to evaluating a training program is assessing

participants reactions. Happy trainees will be more likely to want to focus on training principles

and to utilize the information on the job. Another advantage is that trainees can give insights

into the content and techniques they found most useful. They can critique the instructors ormake suggestions about participant interactions, and feedback.

Although evaluation methods based on reactions are improving, too many conclusions about

training effectiveness are still based on broad satisfaction measures that lack specific feedback.

Furthermore, it should be noted that positive reactions are no guarantee that the training has

been successful. It may be easy to collect glowing comments from trainees, but this information

may not be useful to the organization unless it somehow translates into improved behaviour

and job performance that is measurable.


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Criterion 2: Learning

Testing the knowledge and skills of trainees before and after a training program will help

determine their improvement. The skill and knowledge levels of employees who haveundergone a training program can also be compared to those of employees who have not.

Criterion 3: Behaviour

The transfer of training refers to how well employees apply what they have learned in their

training to their jobs. To maximize the transfer of training, managers and trainers can take

several approaches:

1. Feature identical elements:Transferring the training to the job can be facilitated by having

conditions in the training program come as close as possible to those on the job.

2. Focus on general principles:When jobs change or the work environment cannot be matched

exactly, trainers often stress the general principles behind the training rather than focus on rote

behaviour. This approach helps trainees learn how to apply the main learning points to varying

conditions on the job.

3. Establish a climate for transfer: In some cases, trained behaviour is not implemented

because old approaches and routines are still reinforced by other managers, peers, and

employees. To prevent this kind of problem, managers need to support, reinforce, and reward

trainees for applying the new skills or knowledge.

4. Give employees transfer strategies: Particularly in settings that are not conducive to

transfer, managers should also provide trainees with strategies and tactics for dealing with their

transfer.

Criterion 4: Results, or Return on Investment (ROI)

HR managers are under pressure to show that their training programs produce results. One way

to measure their training is in terms of its ROI. A companys ROI refers to the benefits it derives

from training its employees relative to the costs it incurs. HR managers are responsible for

calculating and presenting these benefits to the companys top managers. The benefits can

include higher revenues generated, increased productivity, improved quality, lower costs, more

satisfied customers, higher job satisfaction, and lower employee turnover.


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The ROI formula can be calculated fairly simply: ROI = Results/Training Costs

A firms training costs include the various expenses it incurs related to the training, including

the direct costs of the programs (e. g., materials, employee travel and meals, meeting site costs,

equipment, trainers salaries or fees) and the indirect costs of the programs (participants

salaries and the productivity they lose while they are attending the training). So, for example, if

the ROI ratio of the training is > 1, its benefits exceed its cost; if the ROI ratio is < 1, the costs of

the training exceed the benefits.


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Chapter 8 Performance Management and the Employee Appraisal

Performance Short Answer Questions

Question #1: Explain what performance management is and how the establishment of goals,

ongoing performance feedback and the appraisal process are part of it.

Performance Management is the process of creating a work environment in which

people can perform to the best of their abilities.

Performance appraisals, which are an important part of performance management

systems, are the result of an annual or biannual process in which a manager evaluatesan employees performance relative to the requirements of his or her job and uses the

information to show the person where improvements are needed and why. Appraisals

are therefore a tool organizations can use to maintain and enhance their productivity

and facilitate progress toward their strategic goals.

Aligning the goals of employees with that of the firm, providing workers with continual

on-the-job feedback, and rewarding them are critical as well. Because feedback is most

useful when it is immediate and specific to a particular situation, it should be a regularly

occurring activity.


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Question #2: Explain the purposes of performance appraisals and the reasons that they can

sometimes fail.

The Performance Appraisalis a process performed by a supervisor and designed to help

employees understand their roles, objectives, expectations, and performance success.

A focal performance appraisalis one in which all employees of a company are reviewed

at the same time of year rather than on the anniversary dates they were hired. This can

be very helpful if a company is experiencing change and must quickly alter its strategy.

A focal performance appraisalalso enables managers to compare the performance of

different employees simultaneously, which can result in appraisals that are more

accurate and fair.

The purpose of performance appraisals is to influence employee behaviour and improve

an organizations performanceand profitability. Organizations with strong performance

management systems are more likely to outperform their competitors in the areas of

revenue growth, productivity, profitability, and market value. Formal appraisalprocesses also ensure that employees receive at least some feedback from their

supervisors.

Another purpose of appraisal programs is providing input that can be used for HRM

activities, such as promotions, layoffs, and pay decisions. For example, the practice of

pay for performance basesemployees pay on their achievements.

Performance appraisals also support individual development as they provide the

feedback essential for discussing an employees goals and how they align with the

organizations goals. The appraisal process provides managers and employees with the

opportunity to discuss ways to build on their strengths, eliminate potential weaknesses,


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identify problems, and set new goals for achieving high performance. Performance

appraisals are also used to develop training and development plans for employees.

At times performance appraisal systems might fail or be ineffective. Some of the most

common reasons for this are:

Lack of top-management information and support

Unclear performance standards

Difficult to give negative feedback

Manager rating personality rather than performance

Use of the appraisal program for conflicting (political) purposes.

Question #3: Explain the various methods used for performance evaluation.

Performance appraisal methods can be broadly classified as measuring traits, behaviours, or

results. Trait approaches continue to be more popular despite their inherent subjectivity.

Behavioural approachesprovide more action-oriented information to employees and therefore

may be best for development. The results-oriented approachis gaining popularity because it

focuses on the measurable contributions that employees make to the organization.


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Trait methods

Graphic Rating-Scale Method: In the graphic rating scale method, each trait or

characteristic to be rated is represented by a scale on which a rater indicates the degree

to which an employee possesses that trait or characteristic.

Mixed-Standard Scale Method:An approach to performance appraisal similar to other

scale methods but based on comparison with (better than, equal to, or worse than) a

standard.

Forced-Choice Method: Requires the rater to choose from statements designed to

distinguish between successful and unsuccessful performance.

Essay Method: Requires the rater to compose a statement describing employee

behaviour. The appraiser is usually instructed to describe the employees strengths and

weaknesses and to make recommendations for his or her development.

Behavioural methods

Critical Incident Method: A critical incident occurs when employee behaviour results in

unusual success or unusual failure in some part of the job. The manager keeps a log or

diary for each employee throughout the appraisal period and notes specific critical

incidents related to how well they perform.


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Behavioural Checklist Method: The rater checks statements on a list that the rater

believes are characteristic of the employees performance or behavior.

Behaviourally Anchored Rating Scale (BARS):Consists of a series of vertical scales, one

for each dimension of job performance; typically developed by a committee that

includes both subordinates and managers.

Behaviour Observation Scale (BOS): A performance appraisal that measures the

frequency of observed behaviour (critical incidents). It is preferred over BARS for

maintaining objectivity, distinguishing good performers from poor performers, providing

feedback, and identifying training needs.

Results methods

Productivity Measures:Appraisals based on quantitative measures (e.g. sales volume)

that directly link what employees accomplish to results beneficial to the organization.

The focus is on short-term results.

Management by Objectives (MBO): A philosophy of management that rates

performance on the basis of employee achievement of goals set by mutual agreement

of employee and manager.

Balanced Scorecard:The balanced scorecard (BSC) can be used to appraise individual

employees, teams, business units, and the corporation itself. The appraisal takes into

account four related categories: (1) financial measures, (2) customer measure, (3)

internal business processes, and (4) learning.


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Question #4: Identify the benefits and disadvantages of the various performance evaluation

methods.

Trait method: The trait methods can be beneficial because they are inexpensive to develop,

easy to use and they use meaningful dimensions. However, disadvantages include a high

potential for rating errors and not enough usefulness for employee counselling, allocating

rewards or promotion decisions.

Behavioural methods: Benefits of behavioural methods include using specific performance

dimensions, usefulness for providing feedback and making fair reward and promotion

decisions. Disadvantages are the time it takes to develop and use behavioural methods, the

costs and there is some potential for rating error.

Results methods: Advantages of the results methods includes having less subjectivity bias,

linking individual to organizational performance, encouraging mutual goal setting and

helpfulness for reward and promotion decisions. Negative aspects are the time it takes to

develop and use, the encouragement of short-term perspectives and the using of deficient

criteria.

Question #5: Describe the 3 different types of performance appraisal interviews.

There are three types of appraisal interviews: tell-and-sell, tell-and-listen, and problem solving.

tell-and-sell interview: skills required in the tell-and-sell interview include the ability to

persuade an employee to change in a prescribed manner. This may require the development of

new behaviours on the part of the employee and skillful use of motivational incentives on the

part of the appraiser or supervisor.


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tell-and-listen interview: In the tell-and-listen interview, the skills required include the ability

to communicate the strong and weak points of an employees job performance during the first

part of the interview. During the second part of the interview, the employees feelings about

the appraisal are thoroughly explored. The tell-and-listen method improves communication and

gives both managers and employees the opportunity to release any feelings of frustration they

might have.

Problem-Solving interview: Listening, accepting, and responding to feelings are essential

elements of the problem-solving interview. This interview method seeks to stimulate growth

and development in the employee by discussing the problems, needs, and on-the-job

satisfactions and dissatisfactions.


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Chapter 9 Managing Compensation Short Answer Questions

Question #1: Explain strategic compensation planning and common strategic compensation

goals.

Strategic Compensation Planning refers to the compensation of employees in ways that

enhance motivation and growth while at the same time aligning their efforts with the mission

and objectives of the organization. Strategic compensation seeks to motivate employees

through compensation.

Common strategic compensation goals are:

1) rewarding employees past performance

2) remaining competitive in the labour market

3) maintaining salary equity among employees

4) attracting new employees

5) reducing unnecessary turnover

Question #2: What is the pay-for-performance standard? What is pay-equity?

Pay-for-Performance Standard is the standard by which managers tie compensation to

employee effort and performance. It refers to a wide range of compensation options, including

merit-based pay, bonuses, salary commissions, job and pay banding, team/ group incentives,

and various gainsharing programs.


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Question #3: What are the different theories related to motivating employees through

compensation?

Pay Equityis an employees perception that compensation received is equal to thevalue of the

work performed. It is a motivation theory that explains how people respond to situations in

which they feel they have received less (or more) than they deserve.

The Expectancy Theory is a theory of motivation that holds that employees should exert

greater work effort if they have reason to expect that it will result in a reward that they value.

Employees also must believe that good performance is valued by their employer and will result

in their receiving the expected reward.

Pay Secrecy is an organizational policy prohibiting employees from revealing their

compensation information to anyone. It creates misperceptions and distrust of compensation

fairness and pay-for-performance standards.

Question #4: Identify the various factors that influence the setting of wages.

A combination of internal and external factors can influence, directly or indirectly, the rates at

which employees are paid.


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Question #5: Describe the various job evaluation systems.

Job Evaluation is the systematic process of determining the relative worth of jobs in order to

establish which jobs should be paid more than others within an organization.

Job Ranking System:is the oldest system of job evaluation by which jobs are arranged on the

basis of their relative worth. One disadvantage is that it does not provide a precise measure of

each jobs worth. Final job rankings indicate the relative importance of jobs, not the extent of

differences between jobs. The method can be used to consider only a reasonably small number

of jobs.

Job Classification System:is a system of job evaluation in which jobs are classified and grouped

according to a series of predetermined wage grades. Successive grades require increasing

amounts of job responsibility, skill, knowledge, ability, or other factors selected to compare

jobs.

Point System:is a quantitative job evaluation procedure that determines the relative value of a

job by the total points assigned to it. It permits jobs to be evaluated quantitatively on the basis

of factors or elements (compensable factors) that constitute the job.

Work Valuation: is a job evaluation system that seeks to measure a jobs worth through its

value to the organization. Jobs are valued relative to financial, operational, or customer service

objectives of the organization. Hence, this system considers that work should be valued relative

to the business goals of the organization rather than by an internally applied point-factor job

evaluation system.

Hay Profile Method: is a job evaluation technique using three factorsknowledge, mental

activity, and accountabilityto evaluate executive and managerial positions.


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Question #6: Define the wage curve, pay grades, and rate ranges as parts of the

compensation structure.

Wage Curve: is a curve in a scattergram representing the relationship between relative worth

of jobs and wage rates.

Pay Grades: are a group of jobs within a particular class that are paid the same rate.

Rate Ranges: are a range of rates for each pay grade that may be the same for each grade or

proportionately greater for each successive grade.

Red Circle Rates: Payment rates above the maximum of the pay range.

Question #7: Identify the major provisions of the laws and regulations affecting

compensation.

Employment Standards Act: Each provinces act contains a provision that stipulates that an

overtime rate, usually about 1.5 times the base rate, must be paid for all hours worked in

excess of the set minimum prescribed in the province. For example, if an employee works 45

hours in a province that legislates the minimum workweek as 40 hours, he or she is entitled to

overtime for the extra 5 hours at 1.5 times his or her base rate. Particular groups, including

lawyers, doctors, engineers, and managers, are exempt from overtime requirements.

Question #8: Discuss the current issues of equal pay for work of equal value and pay

compression.

Equal Pay for Work of Equal Value: is the concept that male and female jobs that are dissimilar,

but equal in terms of value or worth to the employer, should be paid the same.


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Wage-Rate Compression: is compression of pay differentials between job classes, particularly

the pay differentials between hourly workers and their managers.

To reduce wage-rate compression,

1) Reward high performing employees with large increases

2) Design the pay structure to allow a wide spread between hourly and supervisory jobs or

between new hires and senior employees.

3) Prepare high performing employees for promotions.

4)

Provide equity adjustments for selected employees hardest hit by pay compression.

hrm2600 chapters 6-9 short answers

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