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Compensation and Benefits

Answer each question.  Make sure the questions are numbered and the question is written out in your final copy.                Questions 7-1. You are a compensation analyst for a pharmaceuticals company, which is located in Los Angeles, California. Define the scope of the relevant labor markets for chemists and for data entry clerks. Describe the rationale for your definitions 7-2 Can Companies easily develop compensation that is both internally consistent and market competitive? What are some challenges to this goal? 7-3 Which do you believe is most important for a company’s competitive advantage: internal consistency or market competitiveness? Explain you answer. 7-4. Refer to the regression equation presented earlier in this chapter. When b = 0, the market pay line is parallel to the x-axis (i.e., job evaluation point scale). Provide your interpretation. 7-5. Refer to Table 7-3. Cross out salaries for Company F and Company G. Calculate the mean and median for the set of Companies A through E. 8-1. Respond to the following statement: “Pay grades limit a company’s ability to achieve competitive advantage.” Do you agree? Provide a rationale for your position. 8-2. Two employees peform the same job, and each received exemplary performance ratings. Is it fair to give one employee a smaller percentage merit increase because his pay falls within the 3rd Quartile but give a larger percentage merit increase to the other because his pay falls within the 1st quartile? Please explain your answer. 8-3. Describe some ethical dilemmas sales professionals may encounter. How can sales compensation programs be modified to minimize ethical dilemmas? 8-4. React to the statement: “Merit pay grids have the potential to undermine employee motivation.” Please discuss your views. 8-5. Compression represents a serious dysfunction of pay structures. Discuss some of the major ramifications of compression. Also, discuss how companies can minimize or avoid these ramifications. 9-1.Many compensation professionals are faced with making choices about which discretionary benefits to drop because funds are limited and the costs of these benefits continually increase. Which benefits would you most likely eliminate? Which would you least likely eliminate? Explain your rationale. 9-2.What are your beliefs about whether discretionary employee benefits should be an entitlement or something earned based on job performance? Explain. 9-3.Assume that you are an HRM professional whose responsibility is to develop a brochure for conveying the value of your company’s benefits program to potential employees. Your company has asked you to showcase the benefits program in a manner that will encourage recruits to join the company. Which features would you showcase to prospective and current employees? Explain. 9-4.Conduct some research to identify examples of innovative benefit practices. A useful starting point is an Internet search using phrases such as “best companies to work for.” What are some of the more innovative benefits practices that you found? Explain. 9-5.Are employees more likely to favor defined contribution plans over defined benefit plans? How about employers? Explain your answers.

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