________blank fits well with the increasing demands that changing technology continues to bring.

Multiple Choice

• Comparative productivity
• Skills-based pay systems
• Internal equity
• Banding
• Delayering

HR leaders and senior management at the JMS Corporation want to

make pay structure that rewards employees based on their knowledge and competency. Based on this situation, which approach should be used?

Multiple Choice

• delayering approach
• pay grade approach
• pay policy line approach
• skill-based pay approach
• market survey data approach

Hanna and Lucas Inc. wants to determine the pay policy line as the basis for developing its pay structure. Given this, which analysis should it use to achieve its objective in this situation?

Multiple Choice

• regression analysis
• range spread analysis
• benchmarking analysis
• compa-ratio analysis
• rate range analysis

Marcus Jones and Serena Tuttle are two sales representatives at the GBO Corporation. Marcus was hired three years before Serena, but they hold the same job. Based on this, Serena will most likely make less than Marcus because

Multiple Choice

• she is a woman.
• the job structure has changed.
• pay scales change every year.
• she is a newer employee.
• Marcus has less experience.

Which of the following is a disadvantage of the pay grade approach?

Multiple Choice

• It does not recognize that performance difference in the higher levels has much impact on the organization.
• It might give rise to some jobs being underpaid and some being overpaid.
• It is inflexible when it comes to moving employees from job to job.
• The administrative burden of setting separate rates of pay for numerous employees is increased.
• Demotions are not well received in a pay grade system when compared to a job-based system.

Which of the following is true of how agents may differ from principals?

Multiple Choice

• Agents are likely to prefer more emphasis on uncertain incentives than base pay.
• Agents can diversify investments better.
• Agents are more averse to risk.
• Agents can diversify the risks more easily.
• Agents are more likely to pursue projects with high potential payoffs.