What is job evaluation? Explain the differences between the major job evaluation systems, noting the advantages and disadvantages of each.

Chapter 9

Discussion Questions

1.    Tomax Corporation has 400 employees and wishes to develop a compensation policy to correspond to its dynamic business strategy.  The company wishes to employ a high quality workforce capable of responding to a competitive business environment.  Suggest different compensation objectives to match Tomax’s business goals.

3.    What is job evaluation? Explain the differences between the major job evaluation systems, noting the advantages and disadvantages of each.

4.    Describe the basic steps in conducting a wage and salary survey.  What are some factors to consider?

6.    What is a compensation scorecard and how does it help align a company’s strategy with its compensation system?


Case Study 2

1.    Why is it important for pay to be externally fair?


2.    Why is it important for pay to be internally fair?


3.    What should Costa Vida’s compensation strategy look like?  Hint: what are the company objectives and how can employee pay help to achieve those objectives?


4.    What should the pay structure look like?  What pay mix would you recommend?

5.    How should Nathan communicate a new compensation strategy to his franchisee owners and managers?

6.    What effect will paying higher wages have on Costa Vida in the short term?  What effect will it have in the long term? Explain.


Chapter 10

Discussion Questions

1.    Working individually or in groups, identify the factors for a successful incentive plan.

2.    Contrast the differences between straight piecework, differential piece rate, and standard hour plans.  Explain where each plan might best be used.

3.    A frequently heard complaint about merit raises is that they do little to increase employee effort.  What are the causes of this belief?  Suggest ways in which the motivating value of merit raises may be increased.

4.    Because of competitive forces within your industry, you have decided to implement a profit sharing plan for your employees.  Discuss the advantages of profit sharing and identify specific characteristics that will ensure success for your plan.


Case Study 1

1.    Are CEOs and key corporate executives worth the large pay packages they receive? Explain.

2.    Do you agree with Peter Drucker that corporate executives should receive compensation packages no larger than a certain percentage of the pay of hourly workers? Explain.

3.    Will the Dodd-Frank Wall Street Reform and Consumer Protection Act giving shareholders the right to vote on executive pay influence the size of these packages in the future?  Explain.

Case Study 2

1.    Do results from the survey illustrate typical complaints about teams and specifically about team incentive rewards?  Explain.

2.    If appropriate, what changes would you recommend to improve the incentive reward program?  Be specific.

3.    Would management have benefited from employee involvement in the initial design and implementation of the program?  Explain.

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