Part One:

• Define the terms:
  • Base pay
  • Wage and salary add-ons
  • Incentive pay
  • Benefits
• Which number below corresponds to the type of compensation above:
  • 1- I'd like to work for a firm that will help pay for me to get my master of business administration (MBA) degree.
  • 2 - I only get paid $11 an hour, so I'm looking for a new job.
  • 3 - I like getting paid the same each week. It helps me to budget my expenses.
  • 4 - I like beigng paid for every sale I make, but my pay does vary from week to week.
  • 5 - I like working nights because it pays more.

Part Two:

• Distinguish between Exempt Employees and Nonexempt Employees as outlined in the Fair Labor Standards Act of 1938 (FLSA).
• Include a brief discussion of when an Exempt Employee is eligible for overtime based on the salary threshold and duties test as outlined in the FLSA.
• Identify each job below as generally being considered exempt or not from minimum wage or overtime pay
  • Auto mechanic
  • Fruit picker
  • Worker on a foreign-flag cruise ship
  • Librarian
  • Taxi driver
  • Real estate agent
  • Bellperson at a hotel
  • Computer programmer (paid more than $27.63 per hour)
  • Hairdresser
  • Bank teller

Part Three:

• Define what the Job Evaluation process is and its purpose in determining a pay structure for a firm.
• Review the following list of Job Evaluation Methods and then identify which of corresponding statements applies to the following job evaluation metods:
  • External
  • Job Ranking
  • Point-factor
  • Factor Comparison
    • I use two methods together to determine how much to pay each position because I'm an HR professional.
    • I look at the job and determine the specific skills needed to do the job, and then I add up the total point value of the skills to set the pay.
    • To figure out how much to pay the data entry person, I'm checking the SHRM data.
    • I placed all the jobs in rank order, from the one that was worth the most to the one that was worth the least, in order to detremoine how mch to pay for each position.
    • All of the companies in our industry pay essentially the same hourly wage.