Rewards Test 2

What criteria should you consider when scaling compensable factors?

- ensure the number of degrees is necessary to distinguish jobs, use understandable terminology, anchor definitions with benchmark job titles and work behaviors, make it apparent how the degree applies to the job

Most factor scales have ________ degrees.

4-8

What are key identifiers of a benchmark job?

Contents are well known and stable over time, common across a number of employers, reasonable proportion of the workforce is employed in this job

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

True

What is an example of a benchmark job?

accountant

•What is the purpose of pay level & pay mix?

attract and retain the right employees

Employees in a multiskill system earn pay increases:

by acquiring knowledge

•How do organizations certify that employees possess and apply skills?

certification methods

What is job evaluation based on

combination of job content, skills required, value to the organization, organizational culture, and the external market

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

compensable factors

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

compensable factors, factor degrees numerically scaled, weights reflecting the relative importance of each factor

Which of the following labor demand theories states that work with negative characteristics requires higher pay to attract or retain workers?

compensating differentials

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

competency based

What does employer of choice mean?

corresponds to the brand or image a company projects as an employee

refers to the pay relationships among organizations

external competitiveness

thos ei n a multi-skill system earn pay increases by acquiring new knowledge, more pay comes from certification of new skills, responsibilities can change drastically over a short time,

generalist or breadth

What are the benefits of job content evaluations?

internal consistency, organizational alignment, control labor costs, fairness and equity, job worth hierarchy, market competitiveness

Defines categories of jobs and slots jobs into these classes.

job classification

what work is performed and how it gets done

job content

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

job evaluation

Jobs are paired and for each pair the most impactful job is chosen. This results in a forced ranking of different jobs. Compare jobs using a single global factor that presumably combines all parts of the job

job ranking

What are the 4 types of job evaluation plans

job ranking, job classification, point factor, market pricing

orders jobs on the basis of the relative contribution of the skills, duties, and responsibilities of each job to the organization's goals, and may also determine the external market value

job value

A ________ approach controls costs by paying only as much as the work performed is worth, regardless of any greater skills the employee may possess.

job-based

External competitiveness is shaped by what factors?

labor market factors, product market factors, organization factors

•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?

lag

•coupled with the promise of higher future returns, this may increase employee commitment and foster teamwork, increasing productivity

lag level pay policy

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

lead

Value of each job is determined through the analysis of the external marketplace as typically reported through salary surveys

market pricing

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

market pricing

•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

market pricing

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

occupation, geography, competitors

the average of the array of rates an employer pays

pay level

the various types of payments, or pay forms, that make up total compensation

pay mix

•tries to equal wage costs to those of its competitors

pay with competition policy

skill and competence based

person based pay plans

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

point factor

compares jobs on a specific rating scale. Jobs are assessed on required know-how, problem-solving abilities, and accountability.

point factor

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

reflect the importance to the organization

has evaluators producing the same result

reliable

•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, multiskilled works, flexibility?

skill based

What are the 2 types of person based plans?

skill based and competency based

What are the compensable factors based on?

skill, effort, and responsibility

pay is based on the knowlesge of the individual, focus is less about job content or output, basic responsibilities do not vary on a daily basis

specialist or depth

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

strategic direction and how the work contributes to these objectives and strategy

•What are the purposes of a skill based structure?

supports the strategy and objective, supports work flow, is fair to employees, motivates behavior toward organization objectives

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

true

refers to the degree to which the job evaluation assesses what is intended- the relative worth of the job to the organization

validity

What are the purposes of job evaluation?

Help set pay for jobs, match jobs in a market to a similar job (market pay survey), pay jobs based on which is most important to the company's strategy

Since business strategies may change often, compensable factors should rarely be added or deleted. True or False

False

Which of the following statements is true of pay level?

Pay level is directly proportional to labor costs.