Ccm Certification Requirements

Errata—September 2009
CMS 1—Compensation Concepts and Principles
Modules 9 and 14
The accompanying material updates CMS 1—Compensation Concepts and Principles. This
Errata replaces the Errata—September 2008. It is required reading for purposes of the CEBS
program and is subject to inclusion on the national examination for CMS 1.
The Certified Employee Benefit Specialist Program
International Foundation of Employee Benefit Plans
18700 W. Bluemound Rd., P.O. Box 1270, Brookfield, WI 53008-1270, (262) 786-6700

Errata—September 2009
CMS 1—Compensation Concepts and Principles
Module 9—Pay for Performance: Plan Design and Performance Appraisal
1. Learning Guide, replace pages 9.19-9.20.
Module 14—Exam Review Questions
1. Learning Guide, replace pages 14.9-14.10, 14.19-14.20 and 14.29-14.30.
14. Does the level of pay influence an individual’s motivation to perform their job well?
Explain. (Text, pp. 241-242)
There is evidence to suggest that management and workers alike believe pay should be tied
to performance. Workers believe the most important factor for salary increases should be
job performance. Research does suggest that tying pay to individual performance can have a
positive impact on employee performance. There is also strong evidence that pay for performance
can have a direct, and at times substantial, impact on organizational performance.
Most well-controlled studies where organizations base part of pay on some measure of
corporate or division performance report increases in performance of about 4-6% per year.
15. Identify and briefly describe the common errors in appraising performance.
(Text, p. 243)
Nine common errors in the performance appraisal process are:
(1) Halo error. Involves an appraiser giving favourable ratings to all job duties based on
impressive performance in just one job function. For example, a rater who is intolerant
of tardiness rates a prompt employee high across all performance dimensions...