As an HR manager, you learn that an employee is being overpaid. What would be the best way to handle ...

As an HR manager, you learn that an employee is being overpaid. What would be the best way to handle this situation?
 
  A) promote the employee, if qualified, to a job in a higher pay grade
  B) bring the job rate and employee into line with a pay cut
  C) freeze the rate until cost-of-living increases bring it into line
  D) redesign the job by quantifying it with the factor comparison method

Question 2

Entry-level engineers at A-1 Manufacturing are paid as much as engineers who have been with the firm for five years. Which of the following best describes the situation at A-1?
 
  A) single-rate pay system
  B) competency-based pay
  C) union representation
  D) salary compression

Question 3

Ryan, an HR manager at a publishing firm, may begin broadbanding jobs. Which of the following is NOT a benefit of broadbanding?
 
  A) focusing on vertical promotional options
  B) simplifying the firm's compensation system
  C) encouraging employees to develop laterally
  D) adding flexibility to the firm's compensation system

Question 4

As an HR manager at an electronics firm, you learn that the position of Technician I at your firm is underpaid. What would be the best way to handle this situation?
 
  A) notify the affected workers and their union representatives
  B) immediately increase the pay for workers in that job to at least the minimum pay level
  C) give workers in that job a bonus at the end of the year
  D) wait until the next broadbanding opportunity

Question 5

What creates the basis for a simpler compensation system that de-emphasizes structure and places greater importance on flexible decision making?
 
  A) organic structures
  B) broadbanding
  C) gainsharing
  D) clustering

Question 6

What is a technique that collapses many pay grades into a few wide bands to improve organizational effectiveness?
 
  A) job banding
  B) job clustering
  C) downsizing
  D) broadbanding

Question 7

What includes a minimum and maximum pay rate with enough variance between the two to allow for a significant pay difference?
 
  A) job cluster
  B) pay curve
  C) job rank
  D) pay range

Question 8

Pay differentials need to be greater to be meaningful, especially ________.
 
  A) at lower job levels
  B) at higher job levels
  C) during periods of recession
  D) during periods of inflation