Reference no: EM132777189

Question

1.Kit is an employee at Kormel Foods, a local competitor of Fresh
Munchables. Kit has worked for his company for roughly 10 years, and, for the most part, has been happy with his pay. Recently, however, Kit had a conversation with an old friend from high school who works in one of Fresh Munchables' manufacturing facilities but makes $10 more per hour for performing the exact same work. Apparently, Kit isn't the only Kormel employee being underpaid.
How can management at Fresh Munchables leverage this information?

-They can capitalize on the dissatisfaction of the Kormel employees and attract talented workers from Kormel.
-They can now reduce the wages of their manufacturing employees to match the competition.
-They can inform union officials that Kormel may be a good candidate for union formation.
-They can inform Kormel that Kormel's employees are unhappy with their pay.

2.One of the ways that Fresh Munchables grows its revenue streams is by finding new retail locations to sell products. The company is currently seeking to grow its client base and has established a search team to seek out and acquire new retail locations. The search team is composed of self-motivated employees with a growth mindset toward development and goal achievement, and they are currently being paid a base salary. The compensation team is going to revise the current pay plan to motivate these employees even further.
Which of the following forms of pay will help Fresh Munchables reward the desired behaviors?

-Piece-rate pay, because it is the gold standard for customer relations employees and provides a foundation for performance appraisal
-Capability-based pay, because some employees naturally have better social skills and are better at persuading new clients to partner with them
-Hourly pay, because the more time the team members spend contacting potential clients, the more they will be paid
-Performance-based pay, because it provides an incentive for the team members to produce the desired result of growing the company's client base

3.The marketing department at Fresh Munchables is having trouble meeting deadlines because several employees are vying for their own creative ideas to take center stage rather than listening to the ideas of others. This competitive atmosphere undermines the complex and interdependent nature of their work. Further, it is essential that the team learns how to work together efficiently because no one member of the team has all the knowledge and skills necessary to carry out an entire coordinated marketing campaign on their own. Management has decided to provide an incentive to help the marketing employees develop a sense of teamwork.
Which type of performance-based pay would best help the marketing department?

-Stock options, because employees will be motivated to perform well in order to raise the stock price in the future
-Team-based bonuses, because they require employees to develop team-oriented behaviors and ensure that the whole team performs well in order to receive the bonus
-Profit-sharing, because rewards based on pay grades will remind the department that upper-level employees should take the lead on creative projects
-Commissions, because they will provide a strong incentive for employees to do their best work and maximize the reach of their marketing efforts

4.The executive team at Fresh Munchables is working to increase collaboration and flexibility in regard to compensation. They are also trying to motivate lateral changes within the business operations unit without facing compensation-related barriers.
How can the compensation specialist achieve this outcome?

-Incorporate a rigid structure because it provides an incentive for employees to reach strategic company goals that are tied to compensation.
-Incorporate broadbanding because it allows employees to manage career changes within the organization without a reduction in compensation.
-Incorporate a hierarchical structure because it increases employee motivation to collaborate and solve problems.
-Incorporate widebanding because it encourages employees to change roles and responsibilities and bring new perspectives to different parts of the company.

5.The compensation team at Fresh Munchables is working on a capability-based pay system for the information technology unit. While developing a capability-based pay system, it is critically important to ensure that employee skills and competencies are tied directly to the desired performance outcome.
How can the compensation team facilitate this critical need?

-They must ensure that the measurement is strategic, meaning that the desired skills are tied to employee performance and are in line with company goals.
-They must ensure that the measurement is transparent, meaning that employees who take the initiative to develop new skills receive capability-based pay raises.
-They must ensure that the measurement is consistent, meaning that every employee should be responsible for conducting a peer review of other employees.
-They must ensure that the measurement is reliable, meaning that employees who have certain skills consistently perform better than those who do not have those skills.