Compensation Management Final Summer 2026 Question Paper

1. An employee has a final annual salary of $30,000, has completed 20 years of service, and is entitled to a defined benefit pension at 2% for each year of service. The organization also provides employees with different forms of pay for time not worked. Demonstrate the calculation of the employee's annual pension benefit and explain the different types of pay for time not worked that an organization may provide to its employees. [CLO-1, L-2 | Marks: 10] 2. A manufacturing company wants to evaluate two jobs Production Supervisor and Machine Operator to establish a fair wage structure. Analyze the two jobs using the Point Method of Job Evaluation. Prepare a table showing the compensable factors, factor weights, degree/points, and total points for each job. Using the same two jobs, compare their job requirements and categorize them into appropriate job grades using the Classification Method. Give reasons for your classification. [CLO-2, L-4, Marks-10] 3. A company uses different incentive plans for its employees. Using the information below, determine the incentive earnings and evaluate the suitability of each incentive plan based on employee performance. [CLO-3, L-5, Marks-10]