Compensation marked classwork

Seniority pay is based on the assumption that under the human capital theory, employees become more valuable over time​

• True

• False

Which is not an advantage of seniority pay?

• Facilitates administration of pay​

• Avoids perception of favoritism​

• Poor fit with most competitive strategies ​

• Designed to award job tenure

Ask raters to evaluate each employee’s characteristics​

• Behavioral systems

• comparison systems

• goal-oriented systems

• traits approach

Used mainly for managerial and professional employees and typically evaluate employees’ progress toward strategic planning objectives​

• Traits systems

• Comparison systems

• Behavioral systems

• Goal oriented systems

Which is NOT true about Behaviorally Anchored Rating Scales?

• it is based on 8–10 expected job behaviors ​ ​ ​

• Ratings are not defensible

• Employees rated on ability to perform each behavior ​ ​

• Encourages all raters to make evaluations in similar ways​

Effective merit-pay systems need to reward amounts that employees will see as making a meaningful change in compensation for their performance​

• True

• False

What is the third step in a basic performance appraisal process?

• conduct a job analysis

• incorporate ratings into results

• trains supervisors

• implement a process for appeals

All of the following are advantages of merit pay system except?

• it helps to utilize the human resources to its fullest

• it motivates competent employees

• it may not guarantee future success

• encourages employees to acquire new skills

Which of the following is not an element of an effective merit pay system?

• periodic performance reviews are conducted

• focuses on unattainable standards of performance

• based on both objective and subjective indicators

• pay increases reflect performance

There are 70 cleaners working for the XYZ Company. Their supervisor is required to rate the performance of these workers based on the following criteria: 30% of clerks will be rated below average, 50% of clerks will be rated as average, and 20% of the clerks will be rated as above average. What type of performance appraisal is used?

• paired comparison

• forced distribution

• critical incident technique

• behaviorally anchored rating scale