Chapter 10 Discussion Questions

1. 10-1. What is the difference between exempt and nonexempt jobs?

2. 10-2. What is the relationship between compensable factors and job specifications?

3. 10-3. Compare and contrast the following methods of job evaluation: ranking, classification, factor comparison, and point method.

4. 10-4. What are the pros and cons of broad banding, and would you recommend your current employer (or some other firm youre familiar with) use it? Why or why not?

5. 10-5. After Walmart raised its minimum starting pay to $10 an hour, some longer-term employees (like one earning $12 per hour) complained that the strictly entry-level increase was unfair to them. And when the head of a company called Gravity Payments decided to pay all his employees at least $70,000 a year, some longer tenure employees complained that it was unfair to raise new peoples salaries and not theirs. 117 How should Walmart and Gravity address these complaints?

6. 10-6. Define and give an example of how to conduct a job evaluation.

7. 10-7. Explain in detail how to establish a market-competitive pay plan.

8. 10-8. Explain how to price managerial and professional jobs.