PetFair, a national chain of pet supply stores, employs nearly 1,000 workers. In the past two years, the firm's market share has dropped and employee turnover has increased.
The vice president of human resources at PetFair suggests implementing a new compensation policy to improve the firm's performance and retain quality workers. Currently, PetFair employees receive compensation primarily based on years with the firm and job level. Which of the following, if true, best supports the argument that PetFair should implement a competency-based pay system?
A) PetFair uses the classification method to price management jobs.
B) PetFair sales representatives earn straight commissions.
C) PetFair managers experience variable work assignments.
D) PetFair offers a profit-sharing plan to top executives.
Question 2Competency-based pay plans are increasingly common as employees shift from traditional jobs to variable work assignments.
Indicate whether this statement is true or false.
Question 3Cost-of-living allowances are becoming increasingly popular in nonunion settings.
Indicate whether this statement is true or false.
Question 4Nominal compensation and real compensation are never equal.
Indicate whether this statement is true or false.
Question 5Individuals performing in professional jobs are compensated initially for their ________.
A) productivity
B) goal achievement
C) knowledge
D) extensive experience
Question 6The objective of ________ is to improve productivity by rewarding those who best assist in achieving this goal.
A) performance-based pay
B) cost-of-living allowances
C) skill-based pay
D) salary compression
Question 7What gainsharing plan embodies management-labor cooperation, collaborative problem-solving, teamwork, trust, open-book management and servant leadership?
A) deferred plan
B) Scanlon plan
C) Roth plan
D) current plan
Question 8Which of the following is a gainsharing plan that provides a financial reward to employees for labor cost savings resulting from their suggestions?
A) deferred plan
B) Scanlon plan
C) current plan
D) Rucker plan
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