What Do Compensation Managers Use to Recognize Differences in the Relative

question 6

Multiple Choice

What do compensation managers use to recognize differences in the relative net worth of jobs and to establish pay differentials based upon management priorities?

• A)job evaluation
• B)internal consistency
• C)job analysis
• D)strategic analysis

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Definitions:

Mutually Exclusive

Decisions or events that cannot occur at the same time, implying that the selection of one precludes the selection of another.

Pay Back

The time period required for an investment to generate cash flow sufficient to recover its initial cost.

Cash Flows

The total amount of money being transferred into and out of a business, especially considered as affecting liquidity.

Shareholder Wealth

The total value of shares held by investors in a company, often used as a measure of company’s financial health and management performance.