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Chapter: 8 -Problem: 5 >> Will Google’s pay strategy work “forever”? Consider the evolution of Microsoft’s pay strategy as its growth slackened. Should Google prepare for a similar future? If so, when and what sort of actions should they take to prepare?
Answer Preview: Googles pay strategy will not work fore…

, Chapter: 10 -Problem: 5 >> You are the teacher in a class where team projects account for 25 percent of course grades. Each student is assigned to a team and that team is responsible for all team assignments. Students comes to you and complain bitterly about one of their members who does absolutely nothing. You know this will affect your teacher ratings if you don’t do something about it. What should you do?
Answer Preview: You have several choices: a. Explain to students this is like the …

, Chapter: 10 -Problem: 2 >> The likely behavioral impact of profit sharing in this case, assuming the payout is based on overall net revenue of the organization. Some impacts might be positive or negative. What is your assessment of the use of profit sharing, given what we’ve said about when to use such a compensation tool?
Answer Preview: Why wouldnt American use profit sharing for this group…

, Chapter: 4 -Problem: 5 >> What process would you go through to understand and minimize the differences?
Answer Preview: A suggested process could include the following steps: Each studen…

, Chapter: 16 -Problem: 6 >> Has the globalization of the English Premier League been a good thing? Who is better off as a result? Who is worse off? Think carefully about owners, fans/consumers, and players. Are there others who have been affected as well?
Answer Preview: Globalizing soccer is generally a good thing for owner…

, Chapter: 11 -Problem: 4 >> Was Elizabeth treated fairly? Should initiative be a performance dimension? What other action might she take? Could she make a case that she was discriminated against? What defense, if any, might the company have?
Answer Preview: The treatment of Elizabeth was shameful. It sounds like she was taken advantage of by the coworkers…

, Chapter: 13 -Problem: 1 >> Given the facts from the case, what can you glean from news reports about McDonald’s, what do you think is going on? Specifically, how do corporate strategy and wage/benefit decisions either support or conflict with each other?
Answer Preview: McDonalds faces several pressures. They need faster drive times. They have fewer menu i…

, Chapter: 12 -Problem: 5 >> Google is famous for paying wages significantly above the market and also providing employee benefits that one might call lavish. Currently the European Union is suing Google for its monopolistic behavior, claiming that the company’s internet search function systematically favors its own comparison shopping products in its search results pages. (Their products turn up earlier in the search effort.
Answer Preview: The best guess is that Google wouldnt change anything about either its wage or bene…

, Chapter: 2 -Problem: 4 >> In chapter 1, we talked about incentive and sorting effects of pay strategies. Describe the incentive and sorting effects at Merrill Lynch and how changes to the compensation strategy might affect them.
Answer Preview: Incentive effect refers to the degree to which pay influences individual and aggregate motivation am…

, Chapter: 2 -Problem: 2 >> Explain why there is such a strong relationship between pay and performance for brokers. Why isn’t this true of many other jobs?
Answer Preview: The performance of brokers determines their pay. Big fir…

, Chapter: 8 -Problem: 10 >> If you are majoring in computer science, you may find that some surveys include data on software developers, but not software engineers (and vice versa). How similar are these jobs and can you use data on one of these job titles to estimate pay rates for the other title? Also, where does the job of computer programmer fit in?
Answer Preview: Software engineers are also software developers but not all softw…

, Chapter: 11 -Problem: 3 >> Should Billy Ray have quit? Why? Should John have accepted his return? What other action might Billy Ray have taken that could have been hurtful to the company?
Answer Preview: Quitting in a horrible job market isnt a good idea. T…

, Chapter: 16 -Problem: 1 >> Rank the factors in the global guide according to your belief in their importance for understanding and managing compensation. How does your ranking differ from those of your peers? From those of international peers? Discuss how the rankings may change over time.
Answer Preview: The following suggested rank…

, Chapter: 7 -Problem: 2 >> What factors shape an organization’s external competitiveness?
Answer Preview: The factors include labor ma…

, Chapter: 3 -Problem: 1 >> Should NCAA athletes get paid as employees?
Answer Preview: In favorNCAA athletes, at least in some sports, produce a great deal of revenue for universities and …

, Chapter: 18 -Problem: 2 >> How does the management of the pay system affect pay objectives?
Answer Preview: Management of the pay system hel…

, Chapter: 16 -Problem: 7 >> Consider the proposal by Mr. Dyke to limit the number of foreign players in theEnglish Premier League.Take the perspective of owners, players, and fans/consumers.Whowould benefit and who would lose under this proposal?
Answer Preview: Owners could be on the losing end of this propo sal by not bei…

, Chapter: 16 -Problem: 8 >> Do players from England play in elite leagues outside of England?  Does that affect your evaluation of the proposal?  If so, how?
Answer Preview: No, only one player plays in another co…

, Chapter: 2 -Problem: 1 >> What is the likely result of bidding wars of this type for top brokers? Will most firms benefit? Who will be the winners and losers? What about the brokers?
Answer Preview: The bidding war is beneficial to top brokers as most of the big firms are not retreating from …

, Chapter: 8 -Problem: 1 >> What is Google’s pay level? How do you define and measure its pay level? How well is it captured by salary alone?
Answer Preview: Googles pay level currently ranges from $90,000 to $10…

, Chapter: 7 -Problem: 2 >> How strongly do relative job evaluation points and relative survey pay correspond? For example, what is the ratio of job evaluation points you assigned to Job B (Cashier) and Job F (Team Member, Stock and Display) in the Chapter 5 Your Turn? What is the ratio of survey pay from Occupational Employment Statistics for 41-2011 Cashiers and 43-5081 Stock Clerks? Are the two ratios the same? (In Chapte
Answer Preview: This is just asking students to describe what they see and asking them what to do whe…

, Chapter: 11 -Problem: 2 >> What might John have done differently in the early communications process to improve later performance review sessions?
Answer Preview: The performance dimensions are very gene…

, Chapter: 1 -Problem: 5 >> Is Best Buy focusing too much or too little on cost reduction? Explain.
Answer Preview: If customer satisfaction is the determining factor…

, Chapter: 7 -Problem: 4 >> Will the two-tier wage structure go away in the near future? Summarize the pressures to eliminate it as well as the pressures to keep it. Be sure to consider labor costs and productivity of workers and plants at other companies and in other parts of the world. Auto worker Gary Walkowicz, a member of the UAW bargaining committee at Ford’s Dearborn Truck assembly plant, estimates that Ford could con
Answer Preview: The two-tier wage structure is more like a temporary solu…

, Chapter: 7 -Problem: 7 >> How do you think the UAW and the workers it represents will react to Mr. Marchionne’s plan? Consider the global competitive market forces we have identified and consider also the degree to which worker interests in keeping and creating jobs and achieving higher wages (and/or total compensation) are in line with Fiat Chrysler’s interests.  How large have profit-sharing payments for workers been at
Answer Preview: UAW workers with high seniority are not going to like Mr. Marchionne…

, Chapter: 9 -Problem: 3 >> Eric Dempsey Associates (EDA) is a relatively small Public Relations/Advertising firm in Western New York. They recently shifted their strategic plan to focus almost exclusively on clients who generate $200,000 or more in revenue for the firm. There are six employees in the firm who focus exclusively on business development, identifying new client prospects and making “pitches” to these prospects
Answer Preview: Should talk about the increased difficulty of landing these la…

, Chapter: 11 -Problem: 1 >> What problems do you see in the performance appraisal system and accompanying merit pay system? Did any of these problems contribute to the people problems John had with his two employees in the performance review process?
Answer Preview: There is no evidence the PA system is linked to the strategy of the company. Indeed we dont know wh…

, Chapter: 16 -Problem: 9 >> One concern expressed by Mr. Dyke is that the English national team may be suffering because fewer English players can develop in the English Premier League. Jürgen Klinsmann, coach of the U.S. National team has criticized players who play in the Major League Soccer (MLS) league in the United States, rather than in one of the European elite leagues, because he feels MLS does not provide strong eno
Answer Preview: If the American players …

, Chapter: 4 -Problem: 6 >> What are some of the relational returns of the job?
Answer Preview: Based on Mr. Ryans description of his work, these returns are likely to include: employment security (minimal turnover, doubling of staff during the p…

, Chapter: 6 -Problem: 4 >> A few years ago, Sullivan & Cromwell announced that year-end bonuses would be cut in half, with a maximum of $17,500 for early-career associates and $32,500 for eighth-year associates. In the following two years, bonuses were cut further. However, the trend was then reversed with bonuses subsequently being increased (to range from $30,000 to $65,000 for associates) and more recently, Exhibit 1 sho
Answer Preview: Pay Structure at a Law Firm, it appears bonuses are determined by seniority and …

, Chapter: 10 -Problem: 5 >> Do you have any predictions about attraction and retention for each company?
Answer Preview: During high profit sharing years Delta should do better in both …

, Chapter: 3 -Problem: 3 >> What would your pay strategy design cost and how would it be funded? What impact would the required level of funding have on colleges and universities? How would athletes outside of sports such as basketball and football be affected?
Answer Preview: Facts of the case: The athletes of an organization NC entered a contract with CB and TS telecommunic…

, Chapter: 10 -Problem: 3 >> How important is seniority in each of these situations? Should the importance be more or less? Why?
Answer Preview: There is a very small difference in compensation for different levels of seniority. The …

, Chapter: 7 -Problem: 1 >> What pay level (e.g., 50th or other) would you recommend be used for the Whole Foods Jobs? Would you use the same pay level for all jobs? Explain.
Answer Preview: They should understand that market pay data (from product market and labor market competitors) is im…

, Chapter: 4 -Problem: 4 >> Distinguish between task data and behavioral data.
Answer Preview: Task data emphasizes the actual work …

, Chapter: 10 -Problem: 4 >> Do these airlines pay for skill acquisition? What data do you have to support your position? Should skill acquisition be rewarded?
Answer Preview: The skill differential is considerably bigger than the seniority …

, Chapter: 3 -Problem: 2 >> If NCAA athletes are paid as employees, either because of legal action or colleges/universities deciding on their own to change the system, how should the pay strategy be designed to “work” and avoid the potential pitfalls identified above?
Answer Preview: The challenge would be to balance the need for individual excelle…

, Chapter: 10 -Problem: 6 >> Does the external environment influence any of your answers?
Answer Preview: Yes! The huge profit sharing payout is attributable almost solely t…

, Chapter: 4 -Problem: 4 >> How similar/different are the two descriptions? You and your teammate started with exactly the same information. What might explain any differences?
Answer Preview: Point out that differences in stude…

, Chapter: 10 -Problem: 1 >> What would you deduce these two airlines believe about the importance of base wages relative to variable pay (profit sharing)?
Answer Preview: American has not profit sharing. We can deduce, absent …

, More recently, Fiat Chrysler CEO Sergio Marchionne referred to the two-tier wage structure as “impossible” and described it as “almost offensive.” He also offered more detail on his preferred path to eliminating the two-tier system. Specifically, the Wall Street Journal described his plan as “freezing veteran worker wages and offering less-senior workers more profit-sharing potential.” The Wall St
Answer Preview: The two-tier wage structure refers to a system in which workers are paid different wages based …

, Chapter: 2 -Problem: 3 >> Should Bank of America change its compensation strategy to include more subjective assessments of performance and a greater emphasis on cross-selling? What effect might this have on its success in the bidding war for top brokers?
Answer Preview: A subjective assessment of performance refers to evaluation of intangible qualities of employees and …

, Chapter: 7 -Problem: 3 >> What are the limitations of the Occupational Employment Statistics data?
Answer Preview: The job descriptions in the OES (market pay survey data) are not detailed enough in terms of job res…

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9 Reviews for Compensation Textbook Questions And Answers