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
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.
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?
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.
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.
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
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.
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.
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?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 organization2. (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.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?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.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.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 errors2. (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.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.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?