VII. Discussion Questions and Suggested Answers
15.1. This chapter discusses four important issues that will shape compensation
professionals’ work for years to come. Which of these issues stands to create
the greatest uncertainty for compensation professionals? Explain your
answer.
Answer to this question can be found in the MyLab
15.2. Discuss at least one advantage and one disadvantage of increasing the
minimum wage. Consider this action’s impact on the company.
Answer to this question can be found in the MyLab
15.3. Discuss at least one advantage and disadvantage of raising the pay level to
qualify more employees for overtime pay protection. Consider this action’s
impact on the company.
In principle, raising the overtime pay threshold could create an economic advantage for
employees and companies due to increased spending and higher revenue for companies.
However, it could have some negative unintended consequences. First, managers may
15.4. Explain why wages are increasing in China, and discuss how this trend will
influence a company’s choice to conduct business there.
Chinese policy makers are supportive of increased wages because encouraging higher
wages promotes domestic consumption. Increased domestic consumption decreases the
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15.5. Discuss how companies stand to benefit from offering flexible benefit plans.
The growing diversity of the workforce creates workplaces with workers with differing
VIII. End of Chapter Case; Instructor Notes, and Questions and Suggested
Student Responses
Benefits for Part-time Workers
Instructor Notes
While the trend in the workplace is toward not offering benefits to part-time workers, as
more companies discover the benefits of engaging part-time workers, companies must
consider the their benefit policies for part-time workers. Extending part-time workers
Student Questions
15.6. What are some factors that Alan should consider when determining whether
or not to offer benefits to part-time workers?
Alan should consider the costs associated with extending part-time workers benefits. In
15.7. Do you think the firm should offer benefits to part-time workers? If yes,
should they offer paid time-off, the 401(k) plan and health insurance? Or
only one or two of the benefits? Explain your recommendation.
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Students should provide a response and support for their position. If in support of
offering benefits, students should cite the need to attract and retain talent, particularly
IX. Crunch the Numbers! Questions and Suggested Student Responses
Calculating Regional and Industry Pay Differences in China
15.8. Calculate the average annual pay for each region: (a) Beijing, (b) Tianjin, (c)
Shanghai, and (d) Henan.
a) Bejing
32531 + 42809 + 55689 + 47657 = 178686 /4 = 44671.5
b) Tianjin
15.9. Calculate the average annual pay for each industry: (a) agriculture, (b)
manufacturing, (c) scientific, research, and technical services, and (d) health
and social service.
a) agriculture
32531 + 41255 + 22722 + 19869 = 116377 / 4 = 29094.3
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15.10. Which industry displays the (a) lowest average annual salary, and (b) highest
average annual salary? Which region displays the (a) lowest average annual
salary, and (b) highest average annual salary?
Industry
Region
X. Assisted-graded Questions
15-11. Concisely summarize the four challenges discussed in this chapter.
15-12. If overtime pay protections were to be strengthened, how might companies
adjust staffing to minimize increased costs?
15-13. MyManagementLab Only – comprehensive writing assignment for this
chapter.
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