HRM 598
Final Exam
Page 1
1. (TCO A)The new CEO
of your company, who just came from a competitor, has just asked you to discuss
the organizations compensation system. As the compensation manager, you tell
him about the organizations nearly 500 employees in about 70 different job
titles who are located in three locations in L.A. He asks you to describe
the strategy used to guide compensation system decisions. You explain that
ordinarily, pay models are guided by several strategic policies. Describe what
goals a compensation system should have and how four strategic pay policies
apply to the organization. (Points : 30)
2. (TCO B)The VP for
HR met with you, the compensation manager, to go over the new strategies for
attracting new employees for the offshore oil recovery division. The division
works with oil production companies to help prevent oil spills and recover oil
where leakages have occurred. The division employs many engineers and
scientists with expertise in hydraulics, oil production, chemistry, etc.
Employee assignments are often for three to six months in different
countries around the world. The VP for HR indicates that you should use a
job-based point method.
In creatinga job-based point evaluation plan for the organization,
identify and discuss four compensable factors that you would incorporate in the
job-based point evaluation plan. Please describe a job-based point evaluation
plan. In addition, define each factor, justify why you selected it, and provide
the weights or scales that you would assign to it. (Points : 30)
3. (TCO B)You are the
Compensation Director for Forever-Green Plywood, Inc. The company buys timber,
manufactures plywood sheets, and sells on the international market. The
organization’s three major units are timber purchasing (with five employees),
manufacturing plant (with 120 employees), and sales and management (with 12
employees).
You need to develop a job evaluation plan for the organization. Describe the
difference between person-based plans and job-based plans. Explain which one
you would use. What factors would you consider? What is one advantage and
disadvantage of each? (Points : 30)
4. (TCO C)A high-tech
start-up company has retained your services to assist them in determining a
competitive market pay policy for the company to use as they staff up. In order
to help them, what information would you need about the company? Describe four
competitive market pay policies, and give an example of when an organization
might want to use each policy. (Points : 30)
5. (TCO D)You are a
consultant who specializes in compensation. You are working with Midwest
Highway, Ltd., a road construction company housing five plants that produce
materials for road building. The CEO of the company wants to know what type of
performance measurement tool should be used in its production facilities in the
future. The main production job in the five plants (about 85 out of the total
of 125) involves operation of machines that mix and form the surfacing
materials. The production lines are well established and product lines are
consistent. The job appears to you to be a low-level one with prescribed
routines.
The CEO asks you the following question: Should we consider a straight
ranking approach, a rating system like a behavioral anchored rating scale
(BARS), a management by objectives (MBO) format, or a 360-degree multi-rater
approach? Describe the four types of performance assessment approaches.
Recommend one and justify why you have chosen it.(Points : 30)
Page 2
1. (TCO D)As the Compensation
Manager of a large accounting firm, you have reviewed the results of the last
performance appraisal cycle. It appears that supervisors and managers may be
having difficulty in doing the appraisals. You are concerned about validity and
reliability of the process.
In preparation for a training program for supervisors and managers, identify at
least three common errors in the performance appraisal process and describe
them. In addition, describe steps to minimize these errors. (Points : 30)

2. (TCO F)You are a
Compensation Consultant working with a Top 100 bank on the East Coast of the
U.S. The Board of Directors of the bank is in the process of hiring a new CEO.
They indicate that they are concerned about public perception. You are invited
to a Compensation Committee meeting to recommend an executive compensation
strategy.
Describe the components of an executive compensation plan and explain how these
components can help support the organizational strategy. (Points : 30)

3. (TCO G).The management
team of the Fossety Iron Works has raised questions about compensation policies
and procedures. They do not seem to understand the basic laws and regulations
that affect compensation. The chairperson of the team has asked you, as
Compensation Manager, to explain the most important laws to them. You selected
Fair Labor Standards Act (FLSA) to start with because it is probably the most
comprehensive and far-reaching legislation that affects compensation. Describe
the four key requirements and why they are important in
compensation. (Points : 30)

4. (TCO E).As a Compensation Consultant, you have been
asked by a client organization to brief their management group on incentive
plans like gain-sharing and profit-sharing plans.
Briefly describe what gain-sharing and profit-sharing plans involve. What
conditions should exist prior to implementation to make it easier to implement?
What are the advantages and disadvantages of group incentives like gain-sharing
and profit-sharing plans? (Points : 30)HRM 598
Final ExamPage 11. (TCO A)The new CEO
of your company, who just came from a competitor, has just asked you to discuss
the organizations compensation system. As the compensation manager, you tell
him about the organizations nearly 500 employees in about 70 different job
titles who are located in three locations in L.A. He asks you to describe
the strategy used to guide compensation system decisions. You explain that
ordinarily, pay models are guided by several strategic policies. Describe what
goals a compensation system should have and how four strategic pay policies
apply to the organization. (Points : 30)2. (TCO B)The VP for
HR met with you, the compensation manager, to go over the new strategies for
attracting new employees for the offshore oil recovery division. The division
works with oil production companies to help prevent oil spills and recover oil
where leakages have occurred. The division employs many engineers and
scientists with expertise in hydraulics, oil production, chemistry, etc.
Employee assignments are often for three to six months in different
countries around the world. The VP for HR indicates that you should use a
job-based point method.
In creatinga job-based point evaluation plan for the organization,
identify and discuss four compensable factors that you would incorporate in the
job-based point evaluation plan. Please describe a job-based point evaluation
plan. In addition, define each factor, justify why you selected it, and provide
the weights or scales that you would assign to it. (Points : 30)3. (TCO B)You are the
Compensation Director for Forever-Green Plywood, Inc. The company buys timber,
manufactures plywood sheets, and sells on the international market. The
organization’s three major units are timber purchasing (with five employees),
manufacturing plant (with 120 employees), and sales and management (with 12
employees).
You need to develop a job evaluation plan for the organization. Describe the
difference between person-based plans and job-based plans. Explain which one
you would use. What factors would you consider? What is one advantage and
disadvantage of each? (Points : 30)4. (TCO C)A high-tech
start-up company has retained your services to assist them in determining a
competitive market pay policy for the company to use as they staff up. In order
to help them, what information would you need about the company? Describe four
competitive market pay policies, and give an example of when an organization
might want to use each policy. (Points : 30)5. (TCO D)You are a
consultant who specializes in compensation. You are working with Midwest
Highway, Ltd., a road construction company housing five plants that produce
materials for road building. The CEO of the company wants to know what type of
performance measurement tool should be used in its production facilities in the
future. The main production job in the five plants (about 85 out of the total
of 125) involves operation of machines that mix and form the surfacing
materials. The production lines are well established and product lines are
consistent. The job appears to you to be a low-level one with prescribed
routines.
The CEO asks you the following question: Should we consider a straight
ranking approach, a rating system like a behavioral anchored rating scale
(BARS), a management by objectives (MBO) format, or a 360-degree multi-rater
approach? Describe the four types of performance assessment approaches.
Recommend one and justify why you have chosen it.(Points : 30)Page 21. (TCO D)As the Compensation
Manager of a large accounting firm, you have reviewed the results of the last
performance appraisal cycle. It appears that supervisors and managers may be
having difficulty in doing the appraisals. You are concerned about validity and
reliability of the process.
In preparation for a training program for supervisors and managers, identify at
least three common errors in the performance appraisal process and describe
them. In addition, describe steps to minimize these errors. (Points : 30)2. (TCO F)You are a
Compensation Consultant working with a Top 100 bank on the East Coast of the
U.S. The Board of Directors of the bank is in the process of hiring a new CEO.
They indicate that they are concerned about public perception. You are invited
to a Compensation Committee meeting to recommend an executive compensation
strategy.
Describe the components of an executive compensation plan and explain how these
components can help support the organizational strategy. (Points : 30)3. (TCO G).The management
team of the Fossety Iron Works has raised questions about compensation policies
and procedures. They do not seem to understand the basic laws and regulations
that affect compensation. The chairperson of the team has asked you, as
Compensation Manager, to explain the most important laws to them. You selected
Fair Labor Standards Act (FLSA) to start with because it is probably the most
comprehensive and far-reaching legislation that affects compensation. Describe
the four key requirements and why they are important in
compensation. (Points : 30)