09/09/08
	Psy 4416: Test 1 Study Guide

In preparing for Test 1, be able to recognize, list, describe, discuss, or define:
1.	Compensation.
2.	Book’s version of “total returns for work” and “forms of pay.”
3.	Primary components and layout of the text’s “pay model.”
4.	Relation between an organization’s strategy and compensation decisions, and systems.
5.	Four steps in developing a total compensation strategy.
6.	Pay system objectives.
7.	The three generic business-level strategies and their implications for compensation.
8.	Virtuous and vicious cycles as they relate to compensation and performance.
9.	Definitions of internal alignment and pay structure.
10.	The objectives of internal alignment.
11.	Components of an internal structure (e.g., differentials) and factors that influence the internal structure.
12.	The intended consequences of an internally aligned structure.
13.	Equity and tournament theories and how each relates to pay structure decisions.
14.	Ways to create an internally consistent structure.
15.	Definitions of job analysis, job description, and job evaluation and their roles in building a job structure.
16.	Text’s version of the typical data collected for job analysis.
17.	Key stages and decisions in a job content-based approach to building a job structure.
18.	Definition and characteristics of benchmark jobs.
19.	Definition of compensable factors and examples of “universal” compensable factors.
20.	Process, advantages, and disadvantages of the following techniques:
	a.	Ranking	c.	Classification
	b.	Paired Comparison	d.	Point Plans
21.	Types of skill-based plans
22.	Process, advantages, and disadvantages of using skill-based plans.
23.	Compare and contrast job-based, skill-based, and competency-based structures.