This exercise is also a good review of the chapter, as it usesmost of the important concepts discussed in this chapter. Select anorganization that you work for, or have worked for, and select yourlevel of satisfaction with each of the following parts of thecompensation management system, on a scale of 1 to 5.
1 | 2 | 3 | 4 | 5 |
Not satisfied | Satisfied |
- _____ 1. Base pay
- _____ 2. Wage and salary add-ons
- _____ 3. Incentive pay
- _____ 4. Benefits
- _____ 5. Meeting expectancy theory
- _____ 6. Meeting equity theory
- _____ 7. What the firm actually pays based on its ability topay
- _____ 8. Pay for performance vs. longevity
- _____ 9. What the firm pays based on being below, at, or abovemarket-level pay
- _____ 10. Wage compression
- _____ 11. Pay secrecy
- _____ 12. Meeting the Fair Labor Standards Act
- _____ 13. Pay equity and comparable worth
- _____ 14. The system used for job evaluation
- _____ 15. Job structure
- _____ 16. Pay levels
- _____ 17. Benchmarking
- _____ 18. Pay structure
- _____ 19. Pay raises
- _____ 20. Benefit increases
- _____ Total the points and place the score on the continuumbelow.
20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | 100 |
Not satisfied | Satisfied |
The higher the score, the greater your level of satisfactionwith the compensation management system of the organization.However, to most employees, what really matters most is answers toquestions regarding their own pay and benefits (compensation), andwe all are more satisfied when these increase.
Think about the people you worked with as a group. You canselect the group’s level of satisfaction with each question. Wouldtheir answers vary from yours? Would the satisfaction level vary bythe level in the organization—among executives versus nonmanagers,by department, or among other groupings?
