COMPENSATION ADMINISTRATION

Prefinal Exam
1. What is the primary motive of the government in consistently implementing the
minimum wage law?

2. Which among the factors affecting the salary structure should be the primary
consideration of an organization? Justify your answer.

3. How can “living wage” affect the organization more than the employee? Why?

4. What are the basic principles that organizations should consider in designing
their salary structures? Explain briefly.

5. An organization can choose from the different strategies to have a competitive

salary structure. In doing so, why do you think the organization should stay close
to the market?

6. What do you think do organizations consider in choosing broadbands to pay

sizable increases without promotion? Why would they want to give steady
increases only?

7. What would monitoring do for an organization which has implemented its salary
structure?

8. Should mall companies with less than 100 employees develop their own salary
structure? Why or why not?
9. What is a compensation philosophy? What is its effect on the organization and
on the employees?

10. What are the considerations of organizations in providing contingent pay?

11. Briefly explain the three forms of contingent pay.

12.Discuss briefly executive compensation.

13.What makes salespeople pay plans unique?

14.How did computerization of payroll change the way salaries are distributed in
organizations? What may be its long-term effects?