Which of the following groups is usually compensated using a market-pricing appr
ID: 414442 • Letter: W
Question
Which of the following groups is usually compensated using a market-pricing approach?
A.Entry-level personnel
B.Assembly line workers
C.Professional employees
D.Company executives
E.Non-managerial roles
Which aspect of top executive pay includes stock or cash bonuses for achieving semiannual or annual goals?
A.Perks
B.Long-term incentives
C.Base pay
D.Short-term incentives
E.Executive benefits
Executive compensation emphasizes _______ more than do any other employees' pay plans.
A.job evaluation
B.performance
C.short-term results
D.long-term results
E.retirement benefits
Because professional positions often require skills that are difficult to measure, such as creativity and problem solving, what approach do most employers take when determining pay for these jobs?
A.Market pricing
B.Broadbanding
C.Ranking
D.Competency-based pay
E.Base plus pay for performance
Explanation / Answer
Which of the following groups is usually compensated using a market-pricing approach?
A. Entry-level personnel
B.Assembly line workers
C.Professional employees
D.Company executives
E. Non-managerial roles
Answer C.Professional employees
Most employers use a market-pricing approach to determine compensation for professional employees
Professional employees’ jobs involve a lot of factors that are difficult to identify measure and quantify like judgment, problem-solving creativity etc more than entry-level personnel/line workers etc. so their compensation is based on market pricing. Also, their pay is tied more to performance .
Professional are also loyal to the profession and may switch to other company if they are being valued better in the other firm. Hence market-based pricing becomes important.
Executive compensation is different and is primarily based on three factors: job complexity, ability to pay and human capital. It is not primarily based on market
Which aspect of top executive pay includes stock or cash bonuses for achieving semiannual or annual goals?
A.Perks
B. Long-term incentives
C.Base pay
D.Short-term incentives
E.Executive benefits
Answer
D.Short-term incentives
Executive pay include the following component
Executive performance is linked to results and for short terms goals like annual revenue short-term incentives are used
Executive compensation emphasizes _______ more than do any other employees' pay plans.
A.job evaluation
B.performance
C. short-term results
D. long-term results
E.retirement benefits
Answer
B.performance
Executive pay is more tied to performance and results, more than any other job. The pay reflects directly the contribution of the executive than that of other employees. Their jobs are critical to the organization and they have broader responsibilities.
Because professional positions often require skills that are difficult to measure, such as creativity and problem solving, what approach do most employers take when determining pay for these jobs?
A.Market pricing
B.Broadbanding
C.Ranking
D. Competency-based pay
E.Base plus pay for performance
Anwer
A.Market pricing
Most employers use a market-pricing approach to determine compensation for professional employees
Professional employees’ jobs involve a lot of problem-solving, creativity, technical knowledge, and expertise. This involves a lot of factors that are difficult to identify measure and quantify judgment, problem-solving creativity etc. so their compensation is based on market pricing. Also, their pay is tied more to performance than others.
Professionals are also loyal to the profession and may switch to other company if they are being valued better in the other firm. Hence market-based pricing becomes important
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