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Chapter 12 – Establishing a Pay Structure

1. Fairness, or equity, is an important concept in creating a company’s compensation system. Answer
the following questions dealing with establishing equity in a compensation system.

a. Why is equity important when creating a compensation system?

b. What happens if employees see the pay system as unfair?

c. Employees will try to determine if their compensation is fair by comparing their salary to
those within the company (i.e., internal equity) and those outside the company (external
equity). What two HR practices are used to help ensure that internal equity and external
equity exist?

Chapter 13 – Recognizing Employee Contributions with Pay

2. Discuss the balanced scorecard as it applies to incentive pay for managers, including its purpose, its
four common perspectives, and sample performance measures for each perspective.

Chapter 14 – Providing Employee Benefits

3. Identify and describe three legally required benefits.

Chapter 15 – Collective Bargaining and Labor Relations

4. Labor contracts typically include clauses that explain the security arrangements the union has with
respect to when, and if, the workers must join the union.

a. Name and describe four types of security arrangements discussed in the text (three have the
word “shop” in them).

b. Which one is an illegal shop arrangement?

c. Which law made this shop arrangement illegal?

5. Describe the union organizing process. In other words . . .

a. What steps must typically take place for a union to be recognized by an employer as the
bargaining representative for a group of employees (i.e., from organizing effort through
election certification)? Describe each step in as much detail as possible.

b. Then explain the process of decertifying a union.

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