Question

This exercise is also a good review of the chapter, as it uses most of the important concepts discussed in this chapter. Select an organization that you work for, or have worked for, and select your level of satisfaction with each of the following parts of the compensation 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 to pay
• _____ 8. Pay for performance vs. longevity
• _____ 9. What the firm pays based on being below, at, or above market-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 continuum below.

20	30	40	50	60	70	80	90	100
Not satisfied					Satisfied

The higher the score, the greater your level of satisfaction with the compensation management system of the organization. However, to most employees, what really matters most is answers to questions regarding their own pay and benefits (compensation), and we all are more satisfied when these increase.

Think about the people you worked with as a group. You can select the group’s level of satisfaction with each question. Would their answers vary from yours? Would the satisfaction level vary by the level in the organization—among executives versus nonmanagers, by department, or among other groupings?

Answer 1

#	Description	Individual	Group
1	Base pay	4	3
2	Wage and salary add-ons	4	3
3	Incentive pay	2	2
4	Benefits	2	3
5	Meeting expectancy theory	3	3
6	Meeting equity theory	3	3
7	What the firm actually pays based on its ability to pay	4	3
8	Pay for performance vs. longevity	3	3
9	What the firm pays based on being below, at, or above market-level pay	3	4
10	Wage compression	4	4
11	Pay secrecy	3	3
12	Meeting the Fair Labor Standards Act	4	3
13	Pay equity and comparable worth	4	3
14	The system used for job evaluation	2	2
15	Job structure	3	2
16	Pay levels	3	3
17	Benchmarking	4	4
18	Pay structure	4	4
19	Pay raises	2	2
20	Benefit increases	2	2
21	Total points	63 (Not Satisfied)	59 (Not Satisfied)

Remarks:

I worked in a telecommunication company as a Safety Officer located in Qatar working for major clients like Vodafone, Nokia, Ericsson, Huawei, etc., and the rating is given based on the 4 years of experience I had with the company. The total score for the individual and the group the results show not satisfied and the result of the group is slightly less than the individual results. This is because the team I worked with had more experience than me in the company. The negative remark on the pay-performance of the company is that though people are more or less satisfied with the job and the payscale, increment or incentives do not happen. Hence if a person joins with a particular salary, it will be almost the same throughout his or her employment in the company. The results from also exhibits the same because, though the total points refer to ‘Not Satisfied’, it is close to reaching the satisfaction which can be achieved by performance appraisal. Being less experienced than the others in the group, my satisfaction was a little more when compared with others.