HRM2600

Chapter 6 Recruitment and Careers Short Answer Questions

Question #1: Explain the objectives of the personnel selection process.

The main objective of the personnel selection process is to choose individuals who have
relevant qualifications to fill existing or projected job openings.

The selection process should start with a job analysis. Selection considerations include
the person-job fit, which identifies the required individual competencies (KSAOs) for job
success. Similarly, the person-organization fit is the degree to which individuals match to
the culture and values of the organization.

The overall goal of the selection process is to maximize hits and avoid misses. Hits
are accurate predictions regarding a potential employees job performance, and misses
are inaccurate ones. The cost of one type of miss would be the direct and indirect
expense of hiring an employee who turns out to be unsuccessful. The cost of the other
type of miss is an opportunity cost someone who could have been successful did not
get a chance.

Organizations use several different means to obtain information about applicants. These
include gathering rsums and applications and conducting interviews, tests, and
investigations.

Question #2: Explain what is required for an employee selection tool to be reliable and valid.

At any stage of the selection process, it is essential that the information obtained is
reliable and valid and gathered legally and that the privacy of the applicants is
safeguarded.

The degree to which interviews, tests, and other selection procedures produce
comparable data over a period of time is known as reliability. For example, a test that
gives widely different scores when it is administered to the same individual a few days
apart is unreliable.

Reliability also refers to the extent to which two or more methods (e. g., interviews and
tests) produce similar results or are consistent. Interrater reliability agreement among
two or more raters is one measure of a methods consistency.

In addition to having reliable information regarding a persons suitability for a job, the
information must be as valid as possible. Validity refers to what a test or other selection
procedure measures and how well it measures it. In other words, the selection process
should be able to predict how well a person performs on the job.

Validity is important because it is related to increases in employee productivity.

Furthermore, employment equity regulations require valid selection procedures.

Question #3: What are the advantages of online applications?

An Internet-based automated posting, application, and tracking process helps firms to more
quickly fill positions by:

Attracting a broader and more diverse applicant pool

Collecting and mining resumes with keyword searches to identify qualified candidates

Conducting screening tests online

Reducing recruiting costs significantly

Question #4: Illustrate the different approaches to conducting an employment interview.

The employment interview has a central role in the selection process. Interview
methods differ in several ways, such as the amount of control exercised by the
interviewer. In highly structured interviews, the interviewer determines the course that
the interview will follow as each question is asked. In the less structured interview, the
applicant plays a larger role in determining the course the discussion will take.

A structured interview is an interview in which a set of standardized questions with an

established set of answers are used.

In contrast, a nondirective interview describes the situation when the applicant

determines the course of the discussion while the interviewer refrains from influencing
the applicant`s remarks.

Another interview approach is the situational interview, referring to an interview in

which an applicant is given a hypothetical incident and asked how he or she would
respond to it.

The behavioural description interview (BDI) is an interview in which an applicant is

asked questions about what he or she actually did in a given situation.

Lastly, the panel interview describes an interview in which a board of interviewers

questions and observes a single candidate.

A sequential interview is one in which a candidate is interviewed by multiple people,

one right after another. They allow different interviewers who have a vested interest in
the candidates success to meet and evaluate the person one on one. The interviewers
later get together and compare their assessments of the candidates.

Question #5: Compare the value of different types of employment tests.

There are several different types of employment tests.

1. The job knowledge test is an achievement test that measures a person`s level of
understanding about a particular job.

2. A work sample test requires the applicant to perform tasks that are actually a part of
the work required on the job.

3. An assessment centre test is a process used to evaluate candidates as they participate

in a series of situations that resemble what they might be called on to handle on the job,
for example through role-playing etc.

4. Cognitive ability tests measure mental capabilities such as general intelligence, verbal
fluency, numerical ability, and reasoning ability. They can be divided into different
categories, such as aptitude tests that measure a person`s capacity to learn and acquire
skill or achievement tests that measure what a person knows and can do right now.

5. Whereas cognitive ability tests measure a persons mental capacity, personality tests
measure disposition and temperament. Personality tests are good predictors of
motivation, such as leadership efforts and tendency to adhere to rules. There are 5
dimensions that can summarize personality traits. The Big Five factors are the
following:

Extroversion,

Agreeableness,

Conscientiousness,

Neuroticism,

and

Openness to experience.

6. The polygraph, or lie detector, is a device that measures the changes in breathing, blood
pressure, and pulse of a person who is being questioned. Questions typically cover such

items as whether a person uses drugs, has stolen from an employer, or has committed a
serious undetected crime. However, the use of lie detector tests for employment
purposes is prohibited in Ontario.

7. Interest tests analyze preferences for certain activities and are used mainly for career
counselling.

8. Honesty and Integrity Tests are used by employers to reduce the frequency and extent
of theft. These tests have commonly been used in settings such as retail stores, where
employees have access to cash or merchandise.

9. Physical Ability Tests are conducted when employers frequently need to assess a
persons physical abilities. Particularly for demanding and potentially dangerous jobs,
such as those held by firefighters and police officers, physical abilities such as strength
and endurance tend to be good predictors not only of performance but also of accidents
and injuries.

Question #6: Describe the various decision strategies for selection.

There are several decision models and strategies that can be employed in the selection process.
1. Compensatory Model: The compensatory model permits a high score in one area to
make up for a low score in another area.
2. Multiple Cutoff Model: The multiple cutoff model requires an applicant to achieve a
minimum level of proficiency on all selection dimensions.
3. Multiple Hurdle Model: The multiple hurdle model stipulates that only applicants with
sufficiently high scores at each selection stage go on to subsequent stages in the
selection process.

Chapter 7 Training and Development Short Answer Questions

Question #1: Discuss the strategic approach to training.
The goal of training is to contribute to the organizations overall goals. The most important goal
is to improve organizational performance, followed by the development of leaders and aligning
business and learning objectives. The strategic approach to training involves four phases: (1)
needs assessment, (2) program design, (3) implementation, and (4) evaluation.
Question #2: Describe the components of training needs assessment.
Needs Assessment: The first step in a needs assessment is the organization analysis to examine
the environment, strategies, and resources of the organization to determine where training
emphasis should be placed. A firms training should revolve around the strategic initiatives of
the organization. Mergers and acquisitions, for example, require that employees take on new
roles and responsibilities and adjust to new cultures and ways of conducting business. Other
issues, such as technological change, globalization, and quality improvements, influence the
way work is done and the types of skills needed to do it. Next, a task analysis should be
performed to determine the content of the training program based on the tasks and duties
involved in the job. A task analysis involves reviewing the job description and specifications to
identify the activities performed in a particular job and the skills needed to perform them. The
first step in task analysis is to list all the tasks or duties included in the job. The second step is to
list the steps performed by the employee to complete each task. Once the job is understood
thoroughly, the type of performance required along with the skills and knowledge necessary to
do it, can be defined. A person analysis is also helpful to determine the specific individuals who
need training.
Question #3: Describe the components of program design. Identify the principles of learning
and describe how they facilitate training.
Program design: Once the training needs have been determined, the next step is to design the
type of learning environment necessary to enhance learning. The design of training programs
should focus on at least four related issues: (1) the trainings instructional objectives (the skills
to be acquires), (2) the readiness of trainees and their motivation, (3) principles of learning
and (4) the characteristics of instructors (knowledge of subject, enthusiasm etc.).
The principles of learning are based on goal setting, meaningfulness of presentation, modelling,
individual differences, active practice and repetition, whole-versus-part learning, massedversus-distributed learning and feedback and reinforcement.

Goal Setting: The value of goal setting for focusing and motivating behaviour extends into
training. When trainers take the time to explain the trainings goals and objectives to trainees
then the level of interest, understanding, and effort directed toward the training is likely to
increase.
Meaningfulness of Presentation: One principle of learning is that the material to be learned
should be presented in a meaningful manner. Trainees will be better able to learn new
information if they can connect it with things that are already familiar to them. This is the
reason why trainers frequently use colourful examples to which trainees can relate. The
examples make the material meaningful. In addition, material should be arranged so that each
experience builds on preceding ones.
Modelling: Modelling demonstrates the desired behaviour or method to be learned. Real-life
demonstrations and demonstrations on DVDs are often helpful; even pictures and drawings can
get the visual message across.
Individual differences: People learn at different rates and in different ways. Trainers can help
accommodate different learning styles in a variety of ways. They should use visual aids,
encourage the participation of learners by including them in demonstrations, and ask them
questions about their own experiences. Hands-on activities and breaking large groups into
smaller groups for specific activities can also help trainers accommodate different learning
styles. To the extent possible, training programs should try to account for and accommodate
these individual differences to facilitate each persons style and rate of learning.
Active Practice and Repetition: Trainees should be given frequent opportunities to practise
their job tasks in the way that they will ultimately be expected to perform them.
Whole-versus-Part Learning: Most jobs and tasks can be broken down into parts. Determining
the most effective manner for completing each part then provides a basis for giving specific
instruction. Learning to sell a product, for example, is made up of several skills that are part of
the total process. If the task can be broken down successfully, it probably should be broken
down to facilitate learning; otherwise, it should probably be taught as a unit.
Massed-versus-distributed Learning: Another factor that determines the effectiveness of
training is the amount of time devoted to practice in one session. Should trainees be given
training in 5 two-hour periods or in 10 one- hour periods? It has been found in most cases that
spacing out the training will result in faster learning and longer retention. This is the principle of
distributed learning.
Feedback and Reinforcement: Feedback can help individuals focus on what they are doing right
and what they are doing wrong. In addition to providing participants with information about
their performance, feedback also plays an important motivational role.

Question #4: Identify the types of training methods used for managers and nonmanagers.
Implementation: To choose among various training methods, it is essential to determine which
ones are appropriate for the knowledge and skills to be learned. If the material is mostly
factual, methods such as lecture, classroom, or programmed instruction may be sufficient.
However, if the training involves a large behavioural component, other methods, such as onthe- job training, simulation, or computer-based training, might work better.
Training methods can also be divided between non-managerial employees and those used for
managers.

Training Methods for Non-Managerial Employees:

The most common method used for training non-managerial employees for example is
on-the-job training (OJt). On-the-job training is a method by which employees are given
hands-on experience with instructions from their supervisor or other trainer. OJT has
the advantage of providing hands on experience under normal working conditions.
Drawbacks include the lack of a well-structured training environment and the possibility
of poor training skills of managers.

The next training method is apprenticeship training, which is a system of training in

which a worker entering the skilled trades is given instruction and experience, both on
and off the job, in the practical and theoretical aspects of the work.

Similarly, cooperative training is a training program that combines practical on-the-job

experience with formal educational classes.

Internship programs are another option which are sponsored by colleges and
universities and offer students the opportunity to gain real-life experience while
allowing them to find out how they will perform in work organizations.

Classroom Instruction enables the maximum number of trainees to be handled by the

minimum number of instructors. It also allows for blended learning which combines
lectures and demonstrations with film, DVDs, computer etc.

Simulation is used when it is either impractical or unwise to train employees on the

actual equipment used on the job. Hence, this method emphasizes minimum cost and
maximum safety.

E-learning is learning that takes place via electronic media such as web and computerbased training (CBT). It allows the firm to bring the training to employees. Furthermore,
it allows employees to customize their own learning in their own time and space and
training materials can be constantly updated. The advantages of e-learning include selfpaced learning and employees do not have to wait for a scheduled training session.
Moreover, the training can be cost-effective if used for both large and small numbers of
employees.

Training Methods for Management Development:

Training Methods for Management Development include on-the-job experiences, seminars and
conferences, case studies, management games and behaviour modeling.

On-the-Job experiences include coaching, special projects, staff meetings etc.

Seminar and Conferences are useful for brining groups of people together for training
and development.

The use of case studies is most appropriate when problem-solving and critical thinking
skills are most important. Case studies can also be utilized if the knowledge and skills to
be acquired are complex and participants need time to master them. The process of
learning (questioning, interpreting, and so on) is as important as the content. Team
problem solving and interaction are possible.

Management Games stimulate participation and aid decision-making.

Behaviour Modelling is an approach that demonstrates desired behaviour and gives

trainees the chance to practice and role-play those behaviors and receive feedback.

Question #5: Discuss the advantages and disadvantages of various evaluation criteria.
Evaluation: Training, like any other HRM function, has to be evaluated to determine its
effectiveness. A variety of methods are available to assess the extent to which a firms training
programs improve learning, affect behaviour on the job, and impact the performance of an
organization. There are four basic criteria available to evaluate training: (1) reactions, (2)
learning, (3) behaviour, and (4) results, including return on investment (ROI).
Criterion 1: Reactions
One of the simplest and most common approaches to evaluating a training program is assessing
participants reactions. Happy trainees will be more likely to want to focus on training principles
and to utilize the information on the job. Another advantage is that trainees can give insights
into the content and techniques they found most useful. They can critique the instructors or
make suggestions about participant interactions, and feedback.

Although evaluation methods based on reactions are improving, too many conclusions about
training effectiveness are still based on broad satisfaction measures that lack specific feedback.
Furthermore, it should be noted that positive reactions are no guarantee that the training has
been successful. It may be easy to collect glowing comments from trainees, but this information
may not be useful to the organization unless it somehow translates into improved behaviour
and job performance that is measurable.

Criterion 2: Learning
Testing the knowledge and skills of trainees before and after a training program will help
determine their improvement. The skill and knowledge levels of employees who have
undergone a training program can also be compared to those of employees who have not.

Criterion 3: Behaviour
The transfer of training refers to how well employees apply what they have learned in their
training to their jobs. To maximize the transfer of training, managers and trainers can take
several approaches:
1. Feature identical elements: Transferring the training to the job can be facilitated by having
conditions in the training program come as close as possible to those on the job.
2. Focus on general principles: When jobs change or the work environment cannot be matched
exactly, trainers often stress the general principles behind the training rather than focus on rote
behaviour. This approach helps trainees learn how to apply the main learning points to varying
conditions on the job.
3. Establish a climate for transfer: In some cases, trained behaviour is not implemented
because old approaches and routines are still reinforced by other managers, peers, and
employees. To prevent this kind of problem, managers need to support, reinforce, and reward
trainees for applying the new skills or knowledge.
4. Give employees transfer strategies: Particularly in settings that are not conducive to
transfer, managers should also provide trainees with strategies and tactics for dealing with their
transfer.

Criterion 4: Results, or Return on Investment (ROI)

HR managers are under pressure to show that their training programs produce results. One way
to measure their training is in terms of its ROI. A companys ROI refers to the benefits it derives
from training its employees relative to the costs it incurs. HR managers are responsible for
calculating and presenting these benefits to the companys top managers. The benefits can
include higher revenues generated, increased productivity, improved quality, lower costs, more
satisfied customers, higher job satisfaction, and lower employee turnover.

The ROI formula can be calculated fairly simply: ROI = Results/Training Costs
A firms training costs include the various expenses it incurs related to the training, including
the direct costs of the programs (e. g., materials, employee travel and meals, meeting site costs,
equipment, trainers salaries or fees) and the indirect costs of the programs (participants
salaries and the productivity they lose while they are attending the training). So, for example, if
the ROI ratio of the training is > 1, its benefits exceed its cost; if the ROI ratio is < 1, the costs of
the training exceed the benefits.

Chapter 8 Performance Management and the Employee Appraisal

Performance Short Answer Questions

Question #1: Explain what performance management is and how the establishment of goals,
ongoing performance feedback and the appraisal process are part of it.

Performance Management is the process of creating a work environment in which

people can perform to the best of their abilities.

Performance appraisals, which are an important part of performance management

systems, are the result of an annual or biannual process in which a manager evaluates
an employees performance relative to the requirements of his or her job and uses the
information to show the person where improvements are needed and why. Appraisals
are therefore a tool organizations can use to maintain and enhance their productivity
and facilitate progress toward their strategic goals.
Aligning the goals of employees with that of the firm, providing workers with continual
on-the-job feedback, and rewarding them are critical as well. Because feedback is most
useful when it is immediate and specific to a particular situation, it should be a regularly
occurring activity.

Question #2: Explain the purposes of performance appraisals and the reasons that they can
sometimes fail.

The Performance Appraisal is a process performed by a supervisor and designed to help

employees understand their roles, objectives, expectations, and performance success.

A focal performance appraisal is one in which all employees of a company are reviewed
at the same time of year rather than on the anniversary dates they were hired. This can
be very helpful if a company is experiencing change and must quickly alter its strategy.
A focal performance appraisal also enables managers to compare the performance of
different employees simultaneously, which can result in appraisals that are more
accurate and fair.

The purpose of performance appraisals is to influence employee behaviour and improve

an organizations performance and profitability. Organizations with strong performance
management systems are more likely to outperform their competitors in the areas of
revenue growth, productivity, profitability, and market value. Formal appraisal
processes also ensure that employees receive at least some feedback from their
supervisors.

Another purpose of appraisal programs is providing input that can be used for HRM
activities, such as promotions, layoffs, and pay decisions. For example, the practice of
pay for performance bases employees pay on their achievements.

Performance appraisals also support individual development as they provide the

feedback essential for discussing an employees goals and how they align with the
organizations goals. The appraisal process provides managers and employees with the
opportunity to discuss ways to build on their strengths, eliminate potential weaknesses,

identify problems, and set new goals for achieving high performance. Performance
appraisals are also used to develop training and development plans for employees.

At times performance appraisal systems might fail or be ineffective. Some of the most
common reasons for this are:

Lack of top-management information and support

Unclear performance standards

Difficult to give negative feedback

Manager rating personality rather than performance

Use of the appraisal program for conflicting (political) purposes.

Question #3: Explain the various methods used for performance evaluation.
Performance appraisal methods can be broadly classified as measuring traits, behaviours, or
results. Trait approaches continue to be more popular despite their inherent subjectivity.
Behavioural approaches provide more action-oriented information to employees and therefore
may be best for development. The results-oriented approach is gaining popularity because it
focuses on the measurable contributions that employees make to the organization.

Trait methods

Graphic Rating-Scale Method: In the graphic rating scale method, each trait or
characteristic to be rated is represented by a scale on which a rater indicates the degree
to which an employee possesses that trait or characteristic.

Mixed-Standard Scale Method: An approach to performance appraisal similar to other

scale methods but based on comparison with (better than, equal to, or worse than) a
standard.

Forced-Choice Method: Requires the rater to choose from statements designed to

distinguish between successful and unsuccessful performance.

Essay Method: Requires the rater to compose a statement describing employee

behaviour. The appraiser is usually instructed to describe the employees strengths and
weaknesses and to make recommendations for his or her development.

Behavioural methods

Critical Incident Method: A critical incident occurs when employee behaviour results in
unusual success or unusual failure in some part of the job. The manager keeps a log or
diary for each employee throughout the appraisal period and notes specific critical
incidents related to how well they perform.

Behavioural Checklist Method: The rater checks statements on a list that the rater
believes are characteristic of the employees performance or behavior.

Behaviourally Anchored Rating Scale (BARS): Consists of a series of vertical scales, one
for each dimension of job performance; typically developed by a committee that
includes both subordinates and managers.

Behaviour Observation Scale (BOS): A performance appraisal that measures the

frequency of observed behaviour (critical incidents). It is preferred over BARS for
maintaining objectivity, distinguishing good performers from poor performers, providing
feedback, and identifying training needs.

Results methods

Productivity Measures: Appraisals based on quantitative measures (e.g. sales volume)

that directly link what employees accomplish to results beneficial to the organization.
The focus is on short-term results.

Management by Objectives (MBO): A philosophy of management that rates

performance on the basis of employee achievement of goals set by mutual agreement
of employee and manager.

Balanced Scorecard: The balanced scorecard (BSC) can be used to appraise individual
employees, teams, business units, and the corporation itself. The appraisal takes into
account four related categories: (1) financial measures, (2) customer measure, (3)
internal business processes, and (4) learning.

Question #4: Identify the benefits and disadvantages of the various performance evaluation
methods.
Trait method: The trait methods can be beneficial because they are inexpensive to develop,
easy to use and they use meaningful dimensions. However, disadvantages include a high
potential for rating errors and not enough usefulness for employee counselling, allocating
rewards or promotion decisions.
Behavioural methods: Benefits of behavioural methods include using specific performance
dimensions, usefulness for providing feedback and making fair reward and promotion
decisions. Disadvantages are the time it takes to develop and use behavioural methods, the
costs and there is some potential for rating error.
Results methods: Advantages of the results methods includes having less subjectivity bias,
linking individual to organizational performance, encouraging mutual goal setting and
helpfulness for reward and promotion decisions. Negative aspects are the time it takes to
develop and use, the encouragement of short-term perspectives and the using of deficient
criteria.

Question #5: Describe the 3 different types of performance appraisal interviews.

There are three types of appraisal interviews: tell-and-sell, tell-and-listen, and problem solving.
tell-and-sell interview: skills required in the tell-and-sell interview include the ability to
persuade an employee to change in a prescribed manner. This may require the development of
new behaviours on the part of the employee and skillful use of motivational incentives on the
part of the appraiser or supervisor.

tell-and-listen interview: In the tell-and-listen interview, the skills required include the ability
to communicate the strong and weak points of an employees job performance during the first
part of the interview. During the second part of the interview, the employees feelings about
the appraisal are thoroughly explored. The tell-and-listen method improves communication and
gives both managers and employees the opportunity to release any feelings of frustration they
might have.
Problem-Solving interview: Listening, accepting, and responding to feelings are essential
elements of the problem-solving interview. This interview method seeks to stimulate growth
and development in the employee by discussing the problems, needs, and on-the-job
satisfactions and dissatisfactions.

Chapter 9 Managing Compensation Short Answer Questions

Question #1: Explain strategic compensation planning and common strategic compensation
goals.
Strategic Compensation Planning refers to the compensation of employees in ways that
enhance motivation and growth while at the same time aligning their efforts with the mission
and objectives of the organization. Strategic compensation seeks to motivate employees
through compensation.
Common strategic compensation goals are:
1) rewarding employees past performance
2) remaining competitive in the labour market
3) maintaining salary equity among employees
4) attracting new employees
5) reducing unnecessary turnover

Question #2: What is the pay-for-performance standard? What is pay-equity?

Pay-for-Performance Standard is the standard by which managers tie compensation to
employee effort and performance. It refers to a wide range of compensation options, including
merit-based pay, bonuses, salary commissions, job and pay banding, team/ group incentives,
and various gainsharing programs.

Question #3: What are the different theories related to motivating employees through
compensation?
Pay Equity is an employees perception that compensation received is equal to the value of the
work performed. It is a motivation theory that explains how people respond to situations in
which they feel they have received less (or more) than they deserve.

The Expectancy Theory is a theory of motivation that holds that employees should exert
greater work effort if they have reason to expect that it will result in a reward that they value.
Employees also must believe that good performance is valued by their employer and will result
in their receiving the expected reward.

Pay Secrecy is an organizational policy prohibiting employees from revealing their

compensation information to anyone. It creates misperceptions and distrust of compensation
fairness and pay-for-performance standards.

Question #4: Identify the various factors that influence the setting of wages.
A combination of internal and external factors can influence, directly or indirectly, the rates at
which employees are paid.

Question #5: Describe the various job evaluation systems.

Job Evaluation is the systematic process of determining the relative worth of jobs in order to
establish which jobs should be paid more than others within an organization.
Job Ranking System: is the oldest system of job evaluation by which jobs are arranged on the
basis of their relative worth. One disadvantage is that it does not provide a precise measure of
each jobs worth. Final job rankings indicate the relative importance of jobs, not the extent of
differences between jobs. The method can be used to consider only a reasonably small number
of jobs.
Job Classification System: is a system of job evaluation in which jobs are classified and grouped
according to a series of predetermined wage grades. Successive grades require increasing
amounts of job responsibility, skill, knowledge, ability, or other factors selected to compare
jobs.
Point System: is a quantitative job evaluation procedure that determines the relative value of a
job by the total points assigned to it. It permits jobs to be evaluated quantitatively on the basis
of factors or elements (compensable factors) that constitute the job.
Work Valuation: is a job evaluation system that seeks to measure a jobs worth through its
value to the organization. Jobs are valued relative to financial, operational, or customer service
objectives of the organization. Hence, this system considers that work should be valued relative
to the business goals of the organization rather than by an internally applied point-factor job
evaluation system.
Hay Profile Method: is a job evaluation technique using three factorsknowledge, mental
activity, and accountabilityto evaluate executive and managerial positions.

Question #6: Define the wage curve, pay grades, and rate ranges as parts of the
compensation structure.
Wage Curve: is a curve in a scattergram representing the relationship between relative worth
of jobs and wage rates.
Pay Grades: are a group of jobs within a particular class that are paid the same rate.
Rate Ranges: are a range of rates for each pay grade that may be the same for each grade or
proportionately greater for each successive grade.
Red Circle Rates: Payment rates above the maximum of the pay range.

Question #7:

Identify the major provisions of the laws and regulations affecting

compensation.

Employment Standards Act: Each provinces act contains a provision that stipulates that an
overtime rate, usually about 1.5 times the base rate, must be paid for all hours worked in
excess of the set minimum prescribed in the province. For example, if an employee works 45
hours in a province that legislates the minimum workweek as 40 hours, he or she is entitled to
overtime for the extra 5 hours at 1.5 times his or her base rate. Particular groups, including
lawyers, doctors, engineers, and managers, are exempt from overtime requirements.

Question #8: Discuss the current issues of equal pay for work of equal value and pay
compression.
Equal Pay for Work of Equal Value: is the concept that male and female jobs that are dissimilar,
but equal in terms of value or worth to the employer, should be paid the same.

Wage-Rate Compression: is compression of pay differentials between job classes, particularly

the pay differentials between hourly workers and their managers.
To reduce wage-rate compression,
1) Reward high performing employees with large increases
2) Design the pay structure to allow a wide spread between hourly and supervisory jobs or
between new hires and senior employees.
3) Prepare high performing employees for promotions.
4) Provide equity adjustments for selected employees hardest hit by pay compression.