UNIVERSITY OF SOUTHERN INDIANA
Romain College of Business
Management 441
Wage and Salary Administration
D.M. Partridge
Spring 2014
STUDY GUIDE FOR FINAL EXAM
The exam will consist of six (with a choice out of seven) vocabulary terms [30%], 20 multiple choice
questions [40%], and three (with a choice out of six) short answer questions [30%].
Keep in mind that you are responsible for material covered in the text, class lecture and discussion, and
assigned supplemental readings. A good written answer is one that demonstrates command of the basics;
an excellent answer is one that goes beyond the basics to integrate text, class lecture and discussion, and/or
other things such as examples from supplemental readings or one’s work experiences. Conversely, a
deficient answer is one that fails to demonstrate a command of the basics.
Course Vocabulary. Students will be asked to explain the meaning (the definition) and significance (the
“so what”) of the term.
Chapter 12
deductible
coinsurance
Chapter 14
stock option
perquisites
Chapter 15
spillover effect
lump-sum awards
ESOP
pay-for-knowledge plan
gainsharing plan
profit-sharing plan
Chapter 13
workers’ compensation
FMLA
COBRA
defined benefit plan
defined contribution plan
ERISA
vesting
portability
PBGC
HMO
PPO
HIPAA
Chapter 16
expatriate
Chapter 18
CPI
compa-ratio
Multiple Choice Questions. These questions will be based primarily on text material. Material covered
both in the text and in class has a greater likelihood of appearing on the exam. Here is an example:
1.
Which of the following benefits has the lowest rated value by employees?
a. long-term disability
b. sick pay
c. pensions
d. dental insurance
Short Answer Questions. These questions will be based on the chapter learning objectives.
After reviewing Chapter 12, students should be able to:
1.
2.
3.
4.
5.
Identify the primary reasons for the growth in employee benefits.
Discuss the major issues affecting benefit planning, design, and administration.
Discuss the advantages of flexible benefit programs in terms of employee satisfaction and cost
containment.
Explain the key factors affecting the choice of benefits, from both an employer and employee
perspective.
Understand the key role of communications in increasing the perceived value of benefits.
After reviewing Chapter 13, students should be able to:
1.
2.
3.
4.
5.
Explain the benefits that are legally required by employers.
Discuss the key factors associated with the rapid cost increases with workers’ compensation programs.
Discuss the major problem associated with the solvency of social security and identify the potential
options to reform the social security program.
Explain the key differences between the two types of retirement plans: defined benefit and defined
contribution.
Identify the several different forms of health care delivery systems and discuss the cost containment
strategies to control the escalating costs of health care.
After reviewing Chapter 14, students should be able to:
1.
2.
3.
4.
5.
Explain the key factors to be considered in designing a compensation strategy for each of the special
groups.
Discuss the importance of maintaining equity in the compensation of special groups.
Discuss the issue of executive pay and explanations of why executive pay may be justified, or
unjustified.
Explain the special compensation problems faced by professional (scientists and engineers) employees.
Identify and describe the factors that influence the design of a sales compensation plan.
After reviewing Chapter 15, students should be able to:
1.
2.
3.
Discuss each of the factors that affect wage determination in unionized organizations.
Discuss the union impact on wage and benefit levels and the wage structure.
Discuss the union perspective on the use of alternative reward systems.
After reviewing Chapter 16, students should be able to:
1.
2.
3.
4.
5.
Identify the general factors in the global guide to international compensation and be able to apply the
global guide to increase understanding of the variations in international pay practices.
Explain how certain key factors in the global guide – social contract, culture, trade unions, ownership
and capital markets, managers’ autonomy – impact international pay systems.
Understand the key strategic differences among the pay systems of Japan, Germany and the U.S. using
the total compensation model.
Discuss the general compensation strategies used by companies with worldwide operations.
Describe the key features of expatriate pay systems.
After reviewing Chapter 18, students should be able to:
1.
2.
3.
4.
5.
6.
Explain how management of the pay system affects the pay objectives.
Discuss the importance of controlling labor costs.
Identify the two approaches to manage labor costs and describe the key aspects of each approach.
Understand how inherent controls affect managerial pay decisions.
Explain the importance of communication in managing the pay system.
Clarify the role of pay as a change agent.