Roll No. …………………..
Lingaya’s University
MB A 2 n d Year (T er m – V)
E xami n ati on – Feb 2011
Co mp en sati on Man age men t (B A - 226 )
[Time: 3 Hours]
[Max. Marks: 100]
Before answering the question, candidate should ensure that they
have been supplied the correct and complete question paper. No
complaint in this regard, will be entertained after examination.
Note: – Attempt five questions in all. All questions carry equal
marks. Question no. 1 is compulsory. Select two questions from
Section B and two questions from Section C.
Section – A
Q-1. Part – A
Select the correct answer of the following multiple
choice questions.
[10x1=10]
(i) The relationship between the value of the job & the
average wage paid for this job
(a) Rate ranges
(b) Job analysis
(c) Pay grades
(d) Wage curve
(ii) Equal pay for equal work comes under
(a) Fair wages
(b) Living wages
(c) Rate range
(d) Minimum wages
(iii) Individual incentive plans given to employees based on
their productivity
(a) Gantt
(b) Rowan
(c) Halsey
(d) Emerson
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(iv) Process of sending managers to another country to run a
subsidiary of a multinational
(a) Broad banding
(b) Repatriation
(c) Expatriation
(d) Localization
(v) To minimize disparity in wages & levels, following a it is
passed
(a) Workmen Compensation Act
(b) Factory Act
(c) Minimum Wages Act
(d) Payment of Bonus Act, 1965
(vi) View that assumes that local managers in hast countries
know best how to run their operations
(a) Ethnocentric attitude (b) Geocentric attitude
(c) Polycentric attitude
(d) Cultural attitude
(vii) A base pay rate received by an employee which is above
the pay range is
(a) Red circle pay rate
(b) Green circle pay rate
(c) Black circle pay rate (d) White circle pay rate
(viii) Which pay commission recommended Rs.80 as minimum
wage
(a) Ist pay commission
(b) IInd pay commission
(c) IIIrd pay commission
(d) IVth pay commission
(ix) When law authorizes either party or an outside agency to
impose settlement after an arbitration hearing
(a) Compulsory arbitration (b) Compulsory conciliation
(c) Compensation adjustment (d) Guarantee payment
(x) It is level at which the organization decides to set its pay
against external market, usually midpoints of salary
structure is set as an estimate of market going rate
(a) Pay trend line
(b) Pay plan
(c) Pay policy line
(d) Pay dispersion line
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Part – B
(a)
(b)
Stock option plan has become quite fascinating scheme in
India’s corporate sector. Discuss & identify the reasons
for their phenomena.
Write a short note on the role of trade union in
compensation management.
[2x5=10]
Section – B
Q-2. (a)
(b)
Q-3. (a)
(b)
Q-4. (a)
(b)
(c)
Q-5. (a)
Why a well structured compensation system is important
in the life of an organization?
Explain the factors which determine the compensation
structure in an organization.
[2x10=20]
What
do
you
understand
by
‘International
Compensation’? Discuss the various approaches of
compensation in the light of practices adopted by
different countries.
What are the factors which must be considered while
designing a sales compensation plan?
[2x10=20]
Why organizations bother with job evaluation? Why not
simply market-price?
[10]
How can job evaluation link internal equity?
[5]
Write a detailed note on types of wage & salary
differentials.
[5]
Section – C
Explain the purpose of allowances & fringe benefits given
to the employees in the organization. How these programs
can become effective?
3
(b)
Critically examine the reasons & different forms of
performance linked reward system.
[2x10=20]
Q-6. (a)
Who are special groups? Explain the components of an
executive compensation package.
Write a short note on the compensation strategy of special
groups.
[2x10=20]
(b)
Q-7. (a)
(b)
Q-8. (a)
(b)
“Wage boards are formed to settle wage disputes.”
Explain this statement & also explain the factors for
determining wage structure.
Describe the statutory provisions in designing the reward
system. Also explain under which rule they are
mandatory.
[2x10=20]
What is compensation strategy? Enumerate the big steps
which must be kept in mind while designing
compensation strategy.
Explain wage policy. What could be the objective of
wage or reward policy at the enterprise level? [2x10=20]
4