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1. What are the different ways in which pay can influence employee motivation and behavior? Be specific and please provide examples.

2. Are the three main goals of compensation departments outlined in your textbook equally important? Or, do you believe that they differ in importance? Provide your rationale.

3. What are BOTH the advantages and disadvantages of using the gainsharing methods of group incentives?

4. Describe the various returns received from work. Please be specific in your response and provide examples.

5. Opponents of incentive pay programs argue that these programs manipulate empoyees more than seniority and merit pay programs. Discuss your views on this statement.

6. What is merit pay? Explain the role of performance appraisals in merit pay programs.

7. How would the compensation system change if the minimum wage provision of the Fair Labor Standards Act of 1938 in the USA were repealed?

8. List and discuss four possible limitations of merit pay programs. How can a company overcome these limitations?

9. Compare and contrast person focused pay and job-based pay. Discuss the advantages of person-focused pay to employers.

10. Define and discuss profit-sharing plans and also the advantages. Additionally, critics of profit sharing plans maintain that these plans do not motivate employees to perform at higher levels. Under what conditions are profit sharing plans not likely to motivate employees?

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