Case Study 1: read the case and answer the following questions.

Jason works at a call center for an insurance company called ABF, and he has been answering calls regarding auto insurance. Recently, he started to attend a training program about home insurance. Upon successful completion of this training program, Jason will be able to handle home insurance questions and queries as well. Jason now will get in addition to his base salary a medical insurance, vacations, day care assistance, and spot bonus. ABF does not employ highly experienced and knowledgeable employees. It gives employee the minimal required training only. However, it rewards employees for partially or completely attaining a predetermined work objective. ABF compensation managers or staff employees such as compensation generalists and HR specialists use job evaluation to recognize differences in the relative worth of jobs and attracting and retaining the most qualified employees based upon market and compensation surveys. Another technique they use at ABF to recruit technicians is checking the market pay and paying similar to their competitors in the market. All this is done by an HR specialist who helps in finding the right candidate that fits within the company. However, line employees are directly involved in producing goods and delivering services for a company. Employees, customers, and suppliers are considered stakeholders because they have direct interest within the company.

What type of pay system rewards employees for partially or completely learning how to perform a certain job or task? *

A) seniority pay

B) merit pay

C) incentive pay

D) skill-based pay

Which of the following competitive strategies does ABF use? *

A) lowest-cost strategy

B) differentiation strategy

C) total quality management strategy

D) human capital strategy

Which of the following is an example of a nonmonetary reward? *

A) transportation

B) vacations

C) commission

D) spot bonus

If this insurance company has a compensation policy that rewards Jason on every sales he accomplishes, then what type of pay system does it employ? *

A) incentive pay

B) merit pay

C) seniority pay

D) pay-for-knowledge