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Chapter 11 Group 17Name: Alida, Jin Name: Poppy, Lei Name: Trista, Zhang Name: Trista, Shang Name: Eillen, Wang Name: May, WangName: Vera, ZhouDiscussion Questions1. What is the difference between exempt and nonexempt jobs?Answer:First of all, there are differences on compensation structures. Exempt job means this employee can be not restricted by the minimum wage. Under the Fair Labor Standards Act, exempt employees are exempt from the act or certain provisions of the act. However, nonexempt employee need follow minimum wage law and nonexempt employees are not exempt from FLSA. Secondly, there are differences on overtime situation. Generally, exempt employees are expected to spend some hours on completing their individual tasks. Their compensation doesnt change based on actual hours expended. More important, theyre paid for getting the job done. Nevertheless, nonexempt employees must be paid overtime if they work more than 40 hours per workweek. 2. Should the job evaluation depend on an appraisal of the jobholders performance? Why? Why not?Answer:No. There are many things we need to take into consideration when we conduct the job evaluation, including the content of the job, work attitude and so on. Evaluating job only depends on an appraisal of the jobholders performance is unfair. All in all, individual performance is covered performance evaluation and the content of the jobholders job.3. What is the relationship between compensable factors and job specifications?Answer:There have many ways to determine the compensable factors, according to our textbook, it includes include skill, effort, responsibility, working conditions, problem solving, know-how, accountability. These factors decide that one job is more important than another one. So the job specification is a condition of compensable factors. In other words, many of compensable factors are obtainable from job specifications.4. Compare and contrast the following methods of job evaluation: ranking, classification, factor comparison, and point method.Answer:u As we all know, the simplest job evaluation method is ranking. And it is the quickest to implement. As for its disadvantage, it does not provide a standard for measuring the relative values of jobs.u The classification method has several advantages, the main one is widely used, and thus this method often makes sense. Moreover, there are many disadvantages. For instance, it is difficult to write the grade descriptions. u Compared with other methods of job evaluation, in fact, it may be considered to be more accurate than others. However, the tasks are arduous, therefore we must spend considerable time and effort to implement this work. u The point method is a quantitative technique. The result is a quantitative point rating for each job. The point method is probably the most widely used job evaluation method, because it is easy to implement. Whereas, developing a point manual is very expensive.5. What are the pros and cons of broadbanding, and would you recommend your current employee (or some other firm youre familiar with) use it? Why or why not?Answer:u Pros: 1). Broadband encourages the development of broad employee skills, because non-managerial jobs are appropriately valued and skill development is rewarded. 2). Besides, a broadband is not as sensitive to changing market pricing conditions, and then they cost less to administer and manage over time. 3). They also provide serious non-promotional income opportunities for employees.4). It allows training employees with fewer compensation problems. u Cons: 1).In my opinion the absolute worst thing about broadbanding is the severe reduction in opportunities for promotions. 2). May Lead to Inequities. 3). It may be more difficult to administer.u I think I will choose broadbanding. Broadbanding supports internal mobility and potentially more developmental assignments. At the same time, with broadbanding, managers have great latitude to pay what they want to an employee. So I will choose it.6. It was recently reported in the news that the average pay for most university presidents was around $ 250,000 per year, but that a few earned much more. For example, the new president of Vanderbilt received $ 852,000 in one year. Discuss why you would (or would not) pay university presidents as much or more than many corporate CEOs.Answer:In my opinion, the university presidents may be paid according to competency-based pay. They have a fund of knowledge and experience to draw on. The university will provide a wide platform, rich reserve of knowledge and skill in plenty for academician. Business needs universities to provide talented people to spark invention and innovation. To sum up, paying university presidents as much or more than many corporate CEOs is not surprising.7. Do small companies need to develop a pay plan? Why or why not?u Yes, small companies need to develop a pay plan. u There are many reasons small companies need a pay plan. Employee pay structure is important to a small business, and the growth, revenue maintenance and future success of your company relies on strong pay planning. The way in which the companies compensate employees can affect organizations image and ability to attract top talent. With a structured pay plan, the small business owner knows exactly how much he will be spending in raises and can budget appropriately. Lastly, to attract top employment candidates, the managers of small companies need to develop a competitive compensation plan based on the comparable plans being offered in the industry. So I think for this kind of small business should establish compensation plans.Continuing CaseSummary:Carter cleaning centers does not make formal pay standards. Jake always make pay policies based on informal salary survey. Compared with his colleagues, Carter cleaning centers pay more salary. Moreover, he considers that it could be motivate employees, mens salary more than womens salary, because Jake insists than men support big families and they bear more responsibilities than women.Questions:1. Is the company at the point where it should be setting up a formal salary structure based on a complete job evaluation? Why?Answer:u It should be setting up a formal salary structure based on a complete job evaluation.u First of all, according to this case, carter does not make any formal surveys, it is a correct action for Carter. Carter should pay more attention to the requirements of employees for building a formal pay policy. Secondly, Carter Company should pay different salaries for different job department rather than gender. Thirdly, it can determine a jobs relative worth by job evaluation. However, Jake has no enough evidence for building a pay policy. In my opinion, Carter may choose a job evaluation commitment to ensure right pay policies.2. Is Jake Carters policy of paying 10% more than the prevailing rates a sound one, and how could that be determined?Answer:u As far as Im concerned, Jake Carters policy of paying 10% more than the prevailing rates is sensible.u There are five steps for making a rational pay plan. Primarily, employer conducts informal salary survey and formal survey. Then employers use salary survey to know what others are paying. Secondly, Carter chooses job evaluation methods to determine the worth of one job. Thirdly, the company pays the similar salary for similar jobs. Fourthly, Carter can use a wage curve to help assign pay rates to each job. Then it is easy to price jobs with a wage curve. Lastly, we know Carter does not develop pay ranges. Therefore, it is important for developing pay ranges to motivate high performance employees. At the same time, Carter needs to correct out-of line rates. In this case, I disagree that men and women have different salary, it is unfair. Thus, Carter must ensure that men and women are paid comparably for essentially the same work.3. Similarly, is Carters male-female differential wise? If not, why not?Answer:In my opinion, the answer is no, Carters shop does not have male-female differential wise. And they also are equal to their employees. Because Carter Cleaning Centers does not make a formal and legal wage structure to their employees, and at the same time Carte Cleaning Centers also does not use a good compensable factors to their employees, it will cause some bad

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