Org. Reward Test 2

What criteria should you consider when scaling compensable factors (4)?

1. Ensure the number of degrees is necessary to distinguish jobs 2. Use understandable terminology 3. Anchor definitions with benchmark job titles and work behaviors 4. Make it apparent how the degree applies to the job

Which 2 job evaluation plans look at the job as a whole (qualitative)?

1. Job ranking 2. Job classification

Which 2 job evaluation plans look at components of the job (quantitative)?

1. Point factor 2. Market pricing

What are the two types of person based plans?

1. Skill based 2. Competency based

What are the purposes of a skill based structure (4)?

1. Supports strategy & objectives 2. Supports work flow 3. Fair to employees 4. Motivates behavior toward organization objectives

What type of structure begins by looking at the work performed in the organization?

Competency based

______________________ policy pays below market rates which hinders attracting and retaining employees

Lag level pay policy

What is the most prevalent method of job evaluation that is used?

Market pricing

Which job evaluation plan measures value of each job through the analysis of the external marketplace as typically reported through salary surveys?

Market pricing

What factors are used to determine a company's relevant labor market (3)?

Occupation, geography, competitors

This type of job evaluation method looks at the external market to get an idea of the going rate for benchmark jobs and uses this to create an internal hierarchy.

Paired comparison

What is the purpose of factor weights in the point factor method of evaluation?

Reflect the relative importance of each factor to the overall value of the job

A pay mix that focuses heavily on base wage and benefits with little to no inclusion of bonuses/incentives describes what type of pay mix?

Security commitment

What is the systematic process of identifying and collecting information about skills required to perform work in an organization.

Skill analysis

What type of pay plan is used in environments that rely on teams, multi-skilled works, flexibility?

Skilled based pay

Not all jobs are considered benchmark jobs. How do you align them with your internal hierarchy?

Slot jobs accordingly into the hierarchy

T/F An employer offering lower base pay with high bonuses is a likely signal that it is seeking risk-taking employees.

True

T/F Compared to an on-demand review of certifications, scheduling fixed review points makes it easier to budget and control payroll increases.

True

When using the point factor method, how do you know a job's relative value?

Ultimately determined by the total points assigned to it

In the context of the point method of job evaluation, ________ are job attributes that provide the basis for evaluating the relative growth of jobs inside an organization. a) Competitive skills b) Compensable factors c) Core competencies d) Benchmark factors

b) Compensable factors

Which of the following statements is true of pay level? a) Pay level is the same across all organizations for the same job. b) The higher the pay level relative to what competitors pay, the lower the relative costs to provide similar products or services. c) Pay level is directly proportional to labor costs. d) Pay level is independent of the number of employees in an organization.

c) Pay level is directly proportional to labor costs.

Employees in a multiskill system earn pay increases: a) Increasing their productivity b) Based on job content c) Based on job assignments d) By acquiring new knowledge

d) By acquiring new knowledge

Which of the following labor demand theories states that work with negative characteristics requires higher pay to attract or retain workers? e) Job competition f) Compensating differentials g) Efficiency wage h) Sort and signaling

f) Compensating differentials

Most factor scales have ________ degrees. e) Six to nine f) Four to eight g) Three to seven h) Two to four

f) Four to eight

A ________ approach controls costs by paying only as much as the work performed is worth, regardless of any greater skills the employee may possess. e) Performance based f) Competency based g) Job based h) Skill based

g) Job based

Point factor methods all have 3 things (components) in common. What are they?

o Compensable factors o Factor degree numerically scaled o Weights reflecting the relative importance of each factor

What is the purpose of pay level & pay mix (2)?

o Control costs and increase revenues o To attract and maintain the right employees

What is the purpose of a job evaluation (3)?

o Help set pay for jobs by comparing the internal value o Match a job in a market pay survey o Pay jobs based on which ones are most important to the company's strategy

What are the benefits of job content evaluations (6)?

o Internal consistency o Organizational alignment o Control labor costs o Fairness & equity o Job worth hierarchy o Market competitiveness

Explain the difference in a job based structure and a person based structure related to pay plans

o Job based - focused on responsibilities o Person based - skills/competencies of the person hired for the job

External competitiveness is shaped by what factors (3)?

o Labor market factors o Product market factors o Organizational factors

What is the difference in pay level and pay mix?

o Pay level - average of the array of rates an employer pays o Pay mix - various types of pay that make up total compensation

What are the pro's & con's of a Lead Level pay policy?

o Pros: ease of attraction, reduced vacancy rates, better quality employees o Cons: increase pay of existing jobs, higher turnover

Describe the difference in a reliable and a valid evaluation technique.

o Reliable techniques produce same results o Valid techniques refer to the degree to which the job evaluation assesses what is intended

What is the difference in a specialist and a generalist? Give an example of each.

o Specialist has deep knowledge (HVAC maintenance specialist) o Generalist has broad knowledge (Marketing Manager)

When selecting compensable factors for an organization, what two things should they be based on?

o Strategic direction o How the work contributes to these objectives and strategy

Why are compensable factors based on strategic direction and how the work contributes to the strategy?

o The degree to which they are present o The importance to the organization

What are some examples of benchmark jobs?

Accountant Marketing Manager IT Helpdesk Technician Administrative Assistant Top Operations Executive Engineer

___________________ job have contents that are well-known and relatively stable over time, common across different employers, reasonable proportion of the workforce is employed in this job

Benchmark

___________________ _________________ is defined as the pay relationships among organizations

External competitiveness

T/F Since business strategies may change often, compensable factors should rarely be added or deleted.

False

Which job evaluation plan defines categories of jobs and slots jobs into these categories?

Job classification

_________________ is the work that is performed and how it gets done

Job content

___________________ is the process of systematically determining the relative worth of jobs to create a job structure for the organization

Job evalution

In what type of evaluation plan do raters look at each job and compare them with every job possible in their department?

Job ranking

Which job evaluation plan measures jobs by pairing and the most impactful job of the two is chosen?

Job ranking

_________________ orders jobs on the basis of the relative contribution of the skills, duties, and responsibilities of each job to the organizations goals; may also include job value in external market

Job value

__________________________ policy tries to equal wage costs to those of competitors.

Pay-with-competition policy.

How do organizations certify that employees possess and apply skills (3)?

Peer review, on-the-job demonstrations, or tests

A pay mix that relies on a smaller percentage of base wage and an increased focus on options and bonuses would best describe what type of pay mix?

Performance driven

Which job evaluation plan has jobs assessed on required know-how, problem-solving abilities, and accountability? Each factor is assigned points and the total number of points indicates the job's ranking?

Point factor

Which type of job evaluation plan is the most defensible in a court of law? Why?

Point factor - has the most reasoning behind the points of the job, can be justified on every level

How is it possible to lead the market in base pay and lag in total compensation? (or vice versa)

Promise of higher future returns

What does employer of choice mean?

The brand or image a company projects as an employer