Instructor’s Manual to Accompany
Strategic Compensation: A Human Resource Management Approach, 9e
Preface
This Instructor’s Manual provides instructors with course outlines as well as suggested responses
for the end-of-chapter Discussion Questions and other activities. In addition, answers to case
questions and instructor’s notes for the End of Chapter case and additional case found in
MyManagementLab are included. A sample syllabus is also provided. Finally, resources are
provided for the Building Strategic Compensation Systems case, which is a comprehensive
experiential learning opportunity for students.
Table of Contents
CHAPTER 1
Strategic Compensation: A Component of Human Resource Systems……………………..1
I. Overview
II. Defining Strategic Compensation
III. Compensation as a Strategic Business Partner
IV. Strategic Compensation Decisions
V. Building Blocks and Structure of Strategic Compensation Systems
VI. Fitting the Compensation Function in an Organization’s Structure
VII. Stakeholders of the Compensation System
VIII. Key Terms
IX. Discussion Questions and Suggested Answers
X. End of Chapter Case; Instructor Notes, and Questions and Suggested Student Responses
XI. Crunch the Numbers! Questions and Suggested Student Responses
XII. Assisted-Graded Questions
XIII. Additional Case from the MyManagementLab Website; Instructor Notes and Questions
and Suggested Student Responses
CHAPTER 2
Contextual Influences on Compensation Practice……………………………………………16
I. Overview
II. Interindustry Wage Differentials
III. Pay Differentials Based on Occupational Characteristics
IV. Geographic Pay Differentials
V. Labor Unions
VI. Employment Laws That Influence Compensation Tactics
VII. Key Terms
VIII. Discussion Questions and Suggested Answers
IX. End of Chapter Case; Instructor Notes, and Questions and Suggested
Student Responses
X. Crunch the Numbers! Questions and Suggested Student Responses
1
XI. Assisted-Graded Questions
XII. Additional Case from the MyManagementLab Website; Instructor Notes and Questions
and Suggested Student Responses
CHAPTER 3
Traditional Bases for Pay: Seniority and Merit………………………………………………32
I. Seniority and Longevity Pay
II. Merit Pay
III. Performance Appraisal
IV. Strengthening the Pay-for-Performance Link
V. Possible Limitations of Merit Pay Programs
VI. Key Terms
VII. Discussion Questions and Suggested Answers
VII. End of Chapter Case; Instructor Notes, and Questions and Suggested Student Responses
VIII. Crunch the Numbers! Questions and Suggested Student Responses
IX. Assisted-graded Questions
X. Additional Case from the MyManagementLab Website; Instructor Notes, and Questions
and Suggested Student Responses
CHAPTER 4
Incentive Pay……………………………………………………………………………………47
I. Exploring Incentive Pay
II. Contrasting Incentive Pay with Traditional Pay
III. Individual Incentives
IV. Group Incentives
V. Companywide Incentive Plans
VI. Designing Incentive Pay Programs
VII. Key Terms
VIII. Discussion Questions and Suggested Answers
IX. End of Chapter Case; Instructor Notes, and Questions and Suggested Student
Responses
X. Crunch the Numbers! Questions and Suggested Student Responses
XI. Assisted-graded Questions
2
CHAPTER 5
Person-Focused Pay…………………………………………………………………………….60
I. Defining Person-Focused Pay: Competency-Based, Pay-for-Knowledge, and Skill-Based
II. Usage of Person-Focused Pay Programs
III. Reasons to Adopt Person-Focused Pay Programs
IV. Varieties of Person-Focused Pay Programs
V. Contrasting Person-Focused Pay with Job-Based Pay
VI. Advantages and Disadvantages of Person-Focused Pay Programs
VII. Key Terms
VIII. Discussion Questions and Suggested Answers
IX. End of Chapter Case; Instructor Notes, and Questions and Suggested Student Responses
X. Crunch the Numbers! Questions and Suggested Student Responses
XI. Assisted-graded Questions
X. Additional Cases from the MyManagementLab Website; Instructor Notes, and Questions
and Suggested Student Responses
CHAPTER 6
Building Internally Consistent Compensation Systems………………………………………70
I. Internal Consistency
II. Job Analysis
III. Job Evaluation
IV. Job Evaluation Techniques
V. Internally Consistent Compensation Systems and Competitive Strategy
VI. Key Terms
VII. Discussion Questions and Suggested Answers
VIII. End of Chapter Case; Instructor Notes, and Questions and Suggested Student Responses
IX. Crunch the Numbers! Questions and Suggested Student Responses
X. Assisted-graded Questions
XI. Additional Case from the MyManagementLab Website; Instructor Notes, and Questions
and Suggested Student Responses
CHAPTER 7
Building Market-Competitive Compensation Systems………………………………………86
3
I. Market-Competitive Pay Systems: The Basic Building Blocks
II. Compensation Surveys
III. Integrating Internal Job Structures with External Market Pay Rates
IV. Compensation Policies and Strategic Mandates
V. Key Terms
VI. Discussion Questions and Suggested Answers
VII. End of Chapter Case; Instructor Notes, and Questions and Suggested Student Responses
VIII. Crunch the Numbers! Questions and Suggested Student Responses
IX. Assisted-graded Questions
X. Additional Cases from the MyManagementLab Website; Instructor Notes, and Questions
and Suggested Student Responses
CHAPTER 8
Building Pay Structures That Recognize Employee Contributions…………………………99
I. Constructing a Pay Structure
II. Designing Merit Pay Systems
III. Designing Sales Incentive Compensation Plans
IV. Designing Person-focused Programs
V. Pay Structure Variations
VI. Key Terms
VII. Discussion Questions and Suggested Answers
VIII. End of Chapter Case; Instructor Notes, and Questions and Suggested Student Responses
IX. Crunch the Numbers! Questions and Suggested Student Responses
XI. Additional Cases from the MyManagementLab Website; Instructor Notes, and Questions
and Suggested Student Responses
CHAPTER 9
Discretionary Benefits………………………………………………………………………116
I. Origins of Discretionary Benefits
II. Categories of Discretionary Benefits
III. Legislation Pertinent to Discretionary Benefits
IV. Designing and Planning the Benefits Program
V. The Benefits and Costs of Discretionary Benefits
VI. Key Terms
VII. Discussion Questions and Suggested Answers
VIII. End of Chapter Case; Instructor Notes, and Questions and Suggested Student Responses
IX. Crunch the Numbers! Questions and Suggested Student Responses
X. Assisted-graded Questions
XI. Additional Cases from the MyManagementLab Website; Instructor Notes, Questions and
Suggested Student Responses
4
CHAPTER 10
Legally Required Benefits……………………………………………….……………………132
I. Origins of Legally Required Benefits
II. Categories of Legally Required Benefits
III. Health Insurance Program Design Alternatives
IV. Additional Health Care Legislation
V. The Benefits and Costs of Legally Required Benefits
VI. Key Terms
VII. Discussion Questions and Suggested Answers
VIII. End of Chapter Case; Instructor Notes, and Questions and Suggested Student Responses
IX. Crunch the Numbers! Questions and Suggested Student Responses
X. Additional Cases from the MyManagementLab Website; Instructor Notes, and Suggested
Student Responses
CHAPTER 11
Compensating Executives………………………………………………..……………………152
I. Contrasting Executive Pay with Pay for Nonexecutive Employees
II. Defining Executive Status
III. Executive Compensation Packages
IV. Principles and Processes for Setting Executive Compensation
V. Executive Compensation Disclosure Rules
VI. Executive Compensation: Are U.S. Executives Paid Too Much?
VII. Key Terms
VIII. Discussion Questions and Suggested Answers
IX. End of Chapter Case; Instructor Notes, and Questions and Suggested Student Responses
X. Crunch the Numbers! Questions and Suggested Student Responses
XI. Assisted-graded Questions
XII. Additional Cases from the MyManagementLab Website; Instructor Notes, and Questions
and Suggested Student Responses
CHAPTER 12
Compensating the Flexible Work Force:
Contingent Employees and Flexible Work Schedules………………………………………….170
I. The Contingent Workforce
II. Pay and Employee Benefits for Contingent Workers
III. Flexible Work Schedules: Flextime, Compressed Work Weeks, and Telecommuting
IV. Pay and Employee Benefits for Flexible Employees
V. Unions’ Reactions to Contingent and Flexible Workers
VI. Strategic Issues and Choices in Using Contingent and Flexible Workers
VII. Key Terms
VIII. Discussion Questions and Suggested Answers
IX. End of Chapter Case; Instructor Notes, and Questions and Suggested Student Responses
X. Crunch the Numbers! Questions and Suggested Student Responses
XI. Assisted-graded Questions
XII. Additional Cases from the MyManagementLab Website; Instructor Notes, and Questions
and Suggested Student Responses
CHAPTER 13
5
Compensating Expatriates…………………………………………………………………….187
I. Competitive Strategies and How International Activities Fit In
II. Preliminary Considerations
III. Components of International Compensation Programs
IV. Incentive Compensation for U.S. Expatriates
V. Establishing Employee Benefits for U.S. Expatriates
VI. Balance Sheet Approach for U.S. Expatriates’ Compensation Packages
VII. Repatriation Pay Issues
VIII. Key Terms
IX. Discussion Questions and Suggested Answers
X. End of Chapter Case; Instructor Notes, and Questions and Suggested Student Responses
XI. Crunch the Numbers! Questions and Suggested Student Responses
XII. Assisted-graded Questions
XIII. Additional Cases from the MyManagementLab Website; Instructor Notes, and Questions
and Suggested Student Responses
CHAPTER 14
Pay and Benefits Outside the United States…………………………………………………203
I. Introduction
II. Pertinent Concepts for Quantifying Economic Elements in the Discussion of Pay and
Benefits Outside the United States
III. North America
IV. South America
V. Europe
VI. Asia
VII. Key Terms
VIII. Discussion Questions and Suggested Answers
IX. End of Chapter Case; Instructor Notes, and Questions and Suggested Student
X. Crunch the Numbers! Questions and Suggested Student Responses
XII. Assisted-graded Questions
XII. Additional Cases from the MyManagementLab Website; Instructor Notes, and Questions
and Suggested Student Responses
CHAPTER 15
Challenges Facing Compensation Professionals……………………………………………..218
I. Overview
II. Possible Increase to the Federal Minimum Wage Rate and Strengthening Overtime Pay
Protections
III. Rising Wages in China
IV. Underemployment and the Compensation-Productivity Gap
V. Workforce Demographic Shifts
VI. Key Terms
VII. Discussion Questions and Suggested Answers
VIII. End of Chapter Case; Instructor Notes, and Questions and Suggested Student Responses
IX. Crunch the Numbers! Questions and Suggested Student Responses
X. Assisted-graded Questions
Sample Syllabus……………………………………………………………………………….227
Building Strategic Compensation Systems ………………………………………………….229
6