HP Computers

HP builds custom personal computers for several office supply chains. The companys ability to build a quality product to specifications in an efficient manner allows HP to hold an advantage over competitors. However, recently the company has experienced some delays in shipments, and the plant manager is growing concerned. The technicians at HP work in teams to build the computers to the desired specifications. It is a complex process, and the technicians ability to build the computers efficiently has helped build HPs reputation as a quality producer of personal computers.

Depending on the specifications, building each computer can involve between 10 and 18 different steps. Most technicians have the knowledge and skills to complete one or two of the steps, but some technicians can complete multiple steps. Each step in the building process involves intricate procedures, and a technician must take the initiative to attend training to learn each new step and get paid for the knowledge. However, there is little incentive for the technicians to attend the training with person focused pay plan.

The technicians work in teams to build the computers, and they are paid an hourly pay rate plus a team based bonus payment for each computer that is built on time with no defects. The teams are composed of technicians that have complementary skills, but the company has had some delays when a team member with the skills to complete a certain step is absent or already working on another computer. HP encourages vertical and horizontal skills that enable employees to gain significant depth of expertise in managing their work and responsibilities.

Jiff Anderson, HPs human resource director, has been asked by the plant manager to examine the technicians pay structure to determine if a change in the structure could affect the technicians efficiency. According to Anderson, job-point accrual develops skills from different job families.

Which pay plan generally rewards employees for building quality products to specification at HP according to the objectives? *

A) knowledge-based

B) seniority

C) longevity

D) job-based

This type of pay system rewards employees for successfully acquiring new job-related knowledge. *

A) person-focused pay

B) competency-based pay

C) merit pay

D) incentive pay

Which compensation approach refers to three types of person-focused pay programs? *

A) competency-based

B) innovation-based

C) service based

D) stair-step

This type of pay program rewards employees for successfully learning specific curricula. *

A) skill-based

B) person-based

C) pay-for-knowledge

D) incentive

Which of the following pay systems is used by the company to reward their employees for increasing technical abilities? *

A) knowledge-based

B) incentive

C) skill-based

D) merit-based

Employees would need to learn these types of skills in order to develop self-managed work teams. *

A) horizontal

B) vertical

C) depth

D) breadth

This term refers to the level of specialization or expertise an employee possesses in a particular job. *

A) vertical skills

B) depth of skills

C) breadth of skills

D) horizontal skills