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George is a long-term exceptional performer

George is a long-term exceptional performer. He has a compa-ratio of 120 and once again his performance has exceeded expectations. But, George only gets a raise of 3%, which is less than some of his co-workers who have less seniority and whose performance only meets expectations. George is incensed and waiting in your office. As director of HR, how will you explain this situation to George?

a.You should discipline George and his co-workers because employees should not discuss their pay.

b.You explain that George’s compa-ratio shows that he is at the top of his pay range and that he is already earning above the market midpoint set in his pay grade.

c.You should describe the reality of pay compression to George and that market rates determine what the organization can pay for a particular job no matter how well carried out.

d.You decide to give George a lump-sum increase equivalent to a 10% raise. This will recognize George’s exceptional performance without affecting his base pay.

102.The goal in giving pay increases to average performers should be keep their pay competitive with the labor market..

b.on motivating them to perform better.

c.on encouraging them to leave the organization.

d.on achieving a compa-ratio of 100.

103.Which of the following employees will be qualified for the LARGEST pay raise according to a typical pay adjustment matrix? An employee with

a.a compa-ratio of 85 who meets performance expectations.

b.a compa-ratio of 85 who exceeds performance expectations.

c.a compa-ratio of 115 who meets performance expectations.

d.a compa-ratio of 115who exceeds performance expectations.

104.An individual’s ____ is that employee's current pay level divided by the midpoint of the pay range.

a.compa-ratio ratio ratio

d.matrix ratio

105.Which of the following is an advantage of a lump-sum increase (LSI) plan compared with traditional raises?

a.LSI plans eliminate the need for annual adjustments of the pay matrix.

b.Employees are more satisfied with LSIs.

c.It heightens employees' awareness of what reward their performance merited.

d.It increases the compounding effect of succeeding raises on the employee’s base pay.

106.A true cost-of-living raise

a.must be based on the cost of living in the local area where the organization is based.

b.must be tied to economic indicators such as the CPI. the same thing as an automatic increase. the same thing as a merit raise.

107.As a young employee who consistently meets (but does not exceed) performance expectations, which type of pay increase system would most likely be to your personal financial benefit considering that you expect to stay with the company another 10 years?


b.lump sum increases

c.across-the-board raises

d.second quartile approach

108.Cost-of-living adjustments are typically tied to changes in the

a.consumer interest rate. interest rate.

c.Dow Jones Industrial Average.

d.Consumer Price Index.

109.Wimsey Enterprises has announced that it will give all employees a 5% merit increase this year. This increase should really be termed a/an

a.cost-of-living adjustment.

b.across-the-board increase.

c.lump-sum increase. rate alignment.

110.Of the following, which type of pay adjustment has the most ability to reward employee performance?

a.cost-of-living adjustments.

b.seniority increases

c.lump-sum increases

d.across-the-board increases

Dec 13 2019 View more View Less

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