Compensation
Jeopardy
Work in groups
 Phrase your response in the form of a
question
 Right=+1, wrong=-1, pass=0
 Time limited = 15 seconds
 Prize for team with most points

1
The term for the minimum pay increase
that employees will see as making a
meaningful change in their compensation

What is “just-meaningful pay increase?”
(ch 4)
2
Of job design, performance appraisal,
and top-management commitment, the
one that is a company’s way for telling
people what is expected of them in
their jobs and how well they are
meeting those expectations.

What is performance appraisal? (ch 4)
3
The pay system that rewards employees
with periodic additions to base pay
according to employees’ length of
service.

What is seniority pay or longevity pay?
(ch 4)
4
Pay that assumes that employees’
compensation over time should be
determined, at least in part, by
differences in job performance

What is pay for performance or merit
pay? (ch 4)
5
The performance appraisal system where
raters evaluate each employee’s
characteristics, such as quality of work,
quantity of work, appearance,
dependability, cooperation, initiative,
judgment, leadership responsibility,
decision-making ability, or creativity

What are trait systems? (ch 4)
6
One of the advantages of seniority pay

What is: employees feel they are treated
fairly based on an objective standard,
inherent objectivity leads to greater
cooperation, easier to administer, less
favoritism enables motivation. (ch 4)
7
The type of comparison system where a
rater ranks each employee against every
other employee and counts the number
of “wins” to determine the ranking of
each

What is paired comparison system? (ch 4)
8
Failure to differentiate among
performers, poor measures, supervisors’
biased ratings, lack of open
communication, undesirable social
structures, and factors other than merit

What are some possible limitations of
merit programs? (ch 4)
9
The type of performance appraisal that
gathers information about a person’s
performance from the employee, the
supervisor, the coworkers, the
supervisees, and/or the clients

What is a 360-degree performance
appraisal? (ch 4)
10
Link performance appraisal to business
goals, analyze jobs, communicate,
establish effective appraisals, empower
employees, differentiate among
employees.

What are ways to strengthen the pay-forperformance link? (ch 4)
11
Of individual, group, or company-wide,
the incentive pay plan that promotes
supportive, collaborative behavior
among employees in a division, and
rewards employees for their collective
performance.

What is a group incentive plan? ch5
12
An example of objective performance
measure that could be used for an
individual incentive plan.

What is (any of): number of units
produced, sales amount, reduction in
error rate? Ch 5
13
The type of plan that awards bonuses to
managers when they meet or exceed
objectives based on sales, profit,
production or other measures for their
department.

What is a management incentive plan?
14
The group incentive system that
provides participating employees with
an incentive payment based on
improved company performance
whether it be for increased productivity,
increased customer satisfaction, lower
costs, or better safety records.

What is gain-sharing? Ch 5
15
An example of one of the advantages or
disadvantage of group incentives for
companies

What is (any of): Easier to develop
performance measures than individual
plans, group cohesion, free-rider effect,
discomfort with others’ performance?
Ch 5
16
The type of gain-sharing plan that
develops a ratio of total labor costs to
sales value of production

What is a Scanlon plan? Ch 5
17
Of current profit sharing plans or
deferred profit sharing plans, the one
that places cash awards in trust accounts
for employees as a source of retirement
income.

What are deferred profit sharing plans?
Ch 5
18
Of piecework, management incentive
plans, behavior encouragement plans,
and referral plans, the type of individual
incentive plan where employee receive
payments of specific behavioral
accomplishments, such as good
attendance or safety records.

What are behavior encouragement plans?
Ch 5
19
One of the conditions under which
individual incentive plans are most
appropriate.

What is (any of): Employees performance
can be measured objectively, employees
have sufficient control over work
outcomes, they do not create unhealthy
competition among workers? Ch 5
20
The type of compensation, other than
base wages or salaries, that fluctuates
according to employees’ attainment of
some standard such as pre-established
formula, individual goals, company
earnings

What is incentive pay or variable pay? Ch
5
21
An example of a way to distribute profit
sharing money, e.g., who gets how
much.

What is (any of): equal payments,
proportional payments based on salary,
and proportional payments based on
employees contribution to profit? Ch 5
22
Of lowest-cost, differentiation, and focus,
the one where team-based incentives
and gain sharing are the most
appropriate

What is differentiation? Ch 5
23
These assign different pay rates for jobs
of unequal worth and provide the
framework for recognizing differences in
individual employee contributions

What is a pay structure?
24
One of the bases on which an
organization can group jobs in the pay
structure

What is (any of): exempt v. nonexempt;
job family; geography?
25
The typical approach companies take in
timing pay raises

What is (any of): common review
date/common review period, or
employee’s anniversary date?
26
Besides commission-only and salary-only,
an example of a sales compensation
plan.

What is (any of): salary-plus-bonus,
salary-plus-commission, commission-plusdraw?
27
A set of skills necessary to perform a
specific job or group of similar jobs

What are skill blocks?
28
An example of a sales objective (other
than sales volume)

What is (any of): new business, retaining
sales, product mix, win-back sales?
29
One of the IRS guidelines for key
employees

What is (any of): one of 10 employees
owning the largest percentages of the
company; an employee who owns more
than 5 % of co; Earns >$150,000/yr and
owns >1%?
30
Of discretionary, performance-contingent,
predetermined allocation, and target the
type of executive bonus that are based
on the attainment of specific
performance criteria as growth in profits,
etc. announced in advance.

What is performance-contingent?
31
Other than a company car, an example of
a executive perk
What is (any of): financial services, legal
services, recreation facilities, travel perks,
residential security, tickets to sporting
events.
32
The denial is necessary to prevent
substantial and grievous economic injury
to the employer, the employer has
notified the employee of its intent to
deny restoration, an employee already on
leave elects not to return to employment
after receiving such notice

What is a reason why executive may not
get back their jobs after FMLA leave?
33
An example of an individual or group that
participates in setting executive
compensation

What is (any of): executive compensation
consultants, board of directors,
compensation committee?
34
Of stock option, stock grant, exercise of
stock grant, disposition, and fair market
value, a right granted by a company to
an employee to purchase a number of
stocks at a designated price within a
specified period of time.

What is a stock option?
35
Other than current core compensation, a
component of executive pay.

What is (any of): stock compensation,
golden parachutes, fringes, perks.
36
One of the factors to be considered when
designing incentive pay programs.

What is (any of): group vs individual
incentives, level of risk, complementing or
replacing base pay, performance criteria,
time horizon.
37
The situation that occurs whenever a
company’s pay spread between newly
hired or less-qualified employees and
more-qualified job incumbents is small.

What is pay compression?
38
Of red circle, green circle, and yellow
circle, the pay rates that are below the
minimum of a specific pay range for that
grade

What is green circle?
39
The factor other than performance that
the merit pay grid is based on

What is position of employee’s current
salary in pay range ?
40
One of the four factors that determine
fixed pay and commission mix for
salespersons

What is: influence of salesperson on the
buying decision, competitive pay
standards within the industry, amount of
non-sales activities required, non-cash
incentives?
41
Of incentive stock options, nonstatuatory stock options, or phantom
stock, the type of deferred compensation
that entitles executives to purchase their
companies’ stock in the future at a
predetermined price.

What is incentive stock options?
42
The pay that assumes that employees
become more valuable to companies
with time and that valued employees
will leave if they do not have a clear
idea that their salaries will progress over
time.

What is seniority pay or longevity pay (ch.
4)
43
Final Jeopardy
Decide how many of your points
you will wager
 Write your wager on a piece of paper
 Write your response; phrase it in the form
of a question
 Time limited
 Prize for team with most points

44
The name for the type of executive
compensation that provides pay and
benefits to executives after their
termination resulting from a change in
ownership or corporate takeover.

What is a golden parachute?
45