1. In locating a new office that would employ about 300 employees how would compensation play a role in making the decision for where the new office should be located?

2. How would you go about deciding if a pay survey you want to buy had the necessary characteristics to be useful to your organization?

3. Define the pay-structure decision. What is job evaluation, and how does it help managers build a pay structure?

4. Do you believe that outsourcing is here to stay or is it a passing fad? Explain.

5. Define the term broadbanding. How does it relate to traditional job evaluation outcomes like pay ranges and classes?

6. Read Application Case - The Comparable Worth Debate in Chapter 10 and answer the following questions.

a) In your view, is comparable worth a legitimate strategy for determining job compensation?

b) As the director of Twin Oaks' HR department, what recommendations would you make to James Bledsoe?

c) From an HRM perspective, what are the challenges of implementing comparable worth?

7. Should stock option plans be used as a part of executive compensation packages? Why or why not?

8. How can a person's acquisition of knowledge be determined so that his or her pay can be changed? Explain.

9. Explain the meaning and intent of a feedback pay system.

10. Why do some organizations use a variable pay system? Explain.

11. Outline a plan to develop a fair and equitable compensation system.

12. Read Application Case - Customizing Bonus Pay Plans in Chapter 11 and answer the following questions.

a) Why is it important to include operating employees (nonmanagers) in the development and use of an incentive program?

b) What is the individual performance modifier that the Towers Perrin (Towers Watson) survey identified? Explain it in managerial terms.

c) A scorecard approach can be most effectively used with what type of organizations? Employees?