Reference no: EM133180674

1. For the past week, the compensation team at Fresh Munchables has been collecting market data and identifying benchmark jobs. They have collected data from three years ago from a number of different sources to establish external market pay rates.

In order for the data to be most accurate, the compensation team must first do which of the following?

• The team does not have to do  anything to the data because it is already accurate.
• The team must age the data in order to account for inflation.
• The team must first aggregate the data, because it comes from multiple sources.
• The team must compare the data to data from another industry in order to account for market biases.

2. The supply chain management unit at Fresh Munchables is creating an entirely new international purchasing team solely focused on purchasing food ingredients, machinery, and supplies from companies abroad. The compensation team must determine how to pay this new team. The compensation for the new jobs must account for the shifting budgetary allowances involved in the creation of the new team. It should also motivate employees to do their best work.

Which form of pay should you choose to use in order to address these needs?

• Hourly-based pay, because it is the standard for purchasing positions and will help control costs
• Performance-based pay, because it is flexible and controls costs within the company
• Achievement-based pay, because it motivates employees to compete with one another
• Seniority-based pay because it encourages employees to stay at the company

3. After Fresh Munchables has finished creating a capability-based pay system, the compensation team must then implement it.

While rolling out the new system, which of the following is advisable to ensure the success of the program?

• The team should avoid implementing a pilot program because employees will feel excluded, which will lower morale.
• The team should implement a pilot program to allow the organization to better understand the parameters.
• The team should limit the amount of communication to ensure that competitors do not copy the organization's strategy.
• The team should avoid including a sunset clause in order to allow the team to adapt the plan as needed after implementation.