Lussier, Human Resources Management 3e
SAGE Publishing, 2019
Sample Answers
Chapter 11: Compensation Management
Answers to Applying the Concept Exercises
Applying the Concept 11-1: Types of Compensation
Review the types of compensation and then write the letter corresponding to each one before
the statement(s) describing it.
a. base pay
b. wage and salary add-ons
c. incentive pay
d. benefits
1. I’d like to work for a firm that will help pay for me to get my Masters of Business
Administration (MBA) degree.
2. I only get paid $11 an hour, so I’m looking for a better job.
3. I like getting paid the same each week. It helps me to budget my expenses.
A. Base pay. Getting paid the same each week is a salary.
4. I like being paid for every sale I make, but my pay does vary from week to week.
5. I like working nights because it pays more.
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
Applying the Concept 11-2: Employee Exemptions
Identify each job as generally being considered exempt or not from minimum wage or
overtime pay (write a or b before each job type).
a. exempt
b. nonexempt
6. Auto mechanic
B. Nonexempt.
7. Fruit picker
8. Worker on a foreign-flag cruise ship
9. Librarian
B. Nonexempt.
10. Taxi driver
11. Real estate agent
12. Bellperson at a hotel
A. Exempt. They get tips, so they don’t have to be paid minimum wage.
13. Computer programmer (paid more than $27.63 per hour)
14. Hairdresser
15. Bank teller
Applying the Concept 11-3: Job Evaluation
Review the list of job evaluation methods and then write the letter corresponding to each
method before each statement below.
a. external
b. job ranking
c. point-factor
d. factor comparison
16. I use two methods together to determine how much to pay each position because I’m an
HR professional.
17. 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.
18. To figure out how much to pay the data entry person, I’m checking the SHRM data.
A. External. The SHRM data are external to the organization.
19. 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 determine how much to pay for each position.
20. All of the companies in our industry pay essentially the same hourly wage.
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
Answers to Skill Builder Exercises
Skill Builder 11-1: Job Evaluation
NOTE: Varies, or there is no one correct set of answers. But here is ours.
Step 1. Ranking: 5 owner/manager, 4 cook, 3 bartender, 2 wait staff, 1 helpers
Step 2 and Step 3 added as the last row.
Job
Mental
Requirements
(general
education,
intelligence,
knowledge)
Physical
Requirements
(effort such as
standing,
walking,
lifting)
Skill Requirements
(specific job
knowledge/education
/training to do work)
Responsibilities
(for equipment,
money, public
contact,
supervision)
Working
Conditions
(risk of
safety, heat,
ventilation)
Manager
5
1
5
5
1
Wait Staff
4
4
2
2
3
Cook
2
5
4
4
5
3.70
Helpers
1
3
1
1
4
1.25
Weighted math for the five jobs based on our weights. Students are asked for the weights, but
are not required to do the math. However, you may want to share our answers with them.
Manager: 5 40%, 5 30%, 5 20%, 1 5% and 1 5% = 2 + 1.5 + 1 + 0.05 + 0.05 = 4.6
Wait Staff: 2 40%, 2 30%, 4 20%, 4 5% and 3 5% = 0.8+0.6+0.8+0.2+0.15 = 2.55
Step 4. As stated, this is not required of students to provide pay to factors because it is
beyond the scope of an introductory HR course. However, you can do so if you desire.
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
Skill Builder 11-2: Product Market Competition Limits
1. $200/20% 1. $1,000 – 300 – 300 – 200 = 200/1,000.
2. $50/7% 2. $750 – 250 – 300 – 150 = 50/750 (6.666%)