Strategic Compenstion Exam 2 Study Guide (Chapter 6)

Compensable Factors

Compensation professionals generally base job evaluations on _________________.

Creating an accurate and detailed job matrix, job description, Job Analysis provides protection against these laws by establishing, with evidence, bonafide occupational qualifications.

How to you protect yourself against employment laws like the Equal Pay Act, FLSA or ADA?

the pay will increase a well.

In internally consistent compensation, as the compensable factors increase the pay will _______________.

Fair Labor Standards Act

Justification for exempt status falls under which law?

Simple ranking is the easiest, however, it can be very inaccurate.

Of simple ranking, paired comparison, alternation raking, and classification plans, which is the easiest.

Balance is key. It's all about finding a balance between rigidity and flexibility. It is important to create a rational structure, that still provides some flexibility for adaptability without being too ambiguous.

Should an internal consistent compensation plan be very rigid, very narrow, or a mix?

Universal Compensable Factors

Skill, effort, responsibility, and working conditions are ____________________.

Job Summary

The ___________ statement conciesely summarizes the job with two to four descriptive statements.

Job Duties

The ____________ section describes the major work activities and, if pertinent, supervisory responsiblities.

The Point Method Quantitative methods assign numerical values to compensable factors that describe jobs, and these values are summed as an indicator of the overall value for the job.

The _____________ is a job-content valuation technique that uses quantitiative methodology.

Paired Comparision Technique

The _______________ technique is useful if there are many jobs to ratem usually more than 20.

Alternation Ranking Method This ranking process begins by determining which job is the most valuable, followed by determining which job is the least valuable.

The ________________ method orders jobs by extremes.

Worker Specifications

The ________________ section lists the education, KSAs, and other qualifications individuals must possess to perform the job adequately.

The Equal Employment Opportunity Commission (EEOC) Guidelines

These guidelines distinguish among the terms skill, ability, and knowledge.

Internally Consistent Compensation Systems

These systems clearly define the relative value of each job among all jobs within a company. This ordered set of jobs represents the job structure or hierarchy.

False, the government does not require companies to conduct job analysis. However, conducting job analyses increases the chance that employment decisions are based solely on pertinent job reuirements.

True or False: Job Analyses are required by law.

1. Watching people do the job 2. Asking people who do the job 3. Asking people who interact with people who do the job. Especially supervisors. 4. Do the job 5. Referencing online job advertisements 6. Referencing online job categorizations 7. Adapting information to the specific organization 8. Adapting information to the specific physical location Each source on its own can be very unreliable, it is important to combine as many as possible.

What are the best methods to determine job content, requried KSAOs, and working conditions?

1. Determine a job analysis program 2. Select and train analysts 3. Direct job analyst orientation 4. Conduct the study: data collection methods and sources of data 5. Summarize the reulsts: writing job description

What are the five main activities in the Job Analysis Process

1. Simple Ranking Plans 2. Paired Comparisons 3. Alternation Ranking 4. Classification Plans

What are the four prevalent kinds of qualitative job evaluation techniques?

1. Job Title 2. Job Summary 3. Job Duties 4. Worker Specifications

What are the four sections that job descriptions usually contain?

1. Determining single versus multiple job evaluation techniques 2. Choosing the job evaluation committee 3. Training employees to conduct job evaluations 4. Documenitng the job evaluation plan 5. Communicating with employees 6. Setting up the appeals process

What are the six steps of the job evaluation process?

Job-Content evaluation plans

___________ plans emphasize the company's internal value system by establishing a hierarchy of internal job worth based on each job's functions in company strategy.

Knowledge

___________ refers to a body of information applied directly to the performance of a function.

Education

___________ refers to formal training.

Interests

____________ describe preferences for work environments and outcomes.

Job Content

____________ describes job duties and tasks as well as such pertinent factors as the skill and effort needed to perform the job adequately.

Organizational Context Information

____________ information indicates the characteristics of the orgnaization that influence how people do their work.

Working Conditions

______________ are the social context or physical environment where work will be performed.

Basic Skills information

______________ information describes developed capacities that facilitate learning or the more rapid acquisition of knowledge.

Licensing Information

______________ information describes licenses, certificates, or registrations that are used to identify levels of skill that are required for entry and advancement in an occupation.

Cross-Functional Skills information

______________ information indivates developed capacitiies that facilitate performance of activities that occur across jobs.

Job Evaulation

______________ is key for casting internally consistent compensation systems as strategic tools.

Education

______________ refers to prior educational expereince requried to perform in a job.

Workers requirements

______________ represent the minimum qualifications and the knowledge, skills and abilities that people must have to perform a particular jobs.

Equal Pay Act

This law relates to Justification for pay variation based on universal compensable factors: skill, effort, responsibility and working conditions.

1. Traditionally autocratic organizations use this 2. Most common in the military 3. Different categories/ranks each have their own categories/designations, each with their own pay grade/rates 4. Makes sense if you have a rigid command culture 5. No real room for variable pay. 5.a if you want more money, just get promoted.

What are the main traits of a classification plan?

1. Select Benchmark Jobs 2. Choose compensable factors based on benchmark jobs 3. Define factor degrees 4. Determine the weight of each factor 5. Determine point values for each compensable factors 6. Verify factor degrees and point values 7. Evaluate all jobs

What are the steps of the point method?

1. Ranking results rely on purely subjective data 2. Ranking methods use neither job analyses nor job descriptions 3. Ranking approaches do not incorporate objective scales that indicate how different in value one job is from another.

What are the three limitations of ranking plans?

1. The factors must be job related. 2. Compensation professionals should select compensable factros that further a company's strategies.

What are the two considerations that compensation professionals should use to choose compensable factors?

Externally Focused: Market Competitive Internally Consistent: Percieved as fair, similar pay for similar jobs, those with more difficult jobs get paid more. This is important in order to create an fair pay system based on logic and consistency.

What does it mean when compensation is Externally Focused, Internally Consistent, and why is it important?

The military

What is the most common example of a classification plan that is still used?

This does not work well in highly technical jobs.

When does doing the job not work for determining job content, KSAOs, and working conditions?

Americans with Disabilities Act

Whic law relates to the determination of essential functions and what constitutes required accommodations.

Ability

_______ refers to a present competence to perform an observable behavior or a behavior that results in an observable product.

Skill

________ refers to an observable competence to perform a learned psychomotor act.

Abilities

_________ are enduring attributes of the individual that influence performance.

Generalized work activities information

_________ information descrives general types of job behaviors occurring on multiple jobs.

Simple Ranking Plans

__________ order all jobs from lowest to highest according to a single criterion.

Work Styles

___________ are personal characteristics that describe important interpersonal and work style requirements in job and occupations.

Work Context Information

___________ information describes physical and social factors that influence the nature of work.

Market-Based Evaluation plans

_______________ plans use market data to determine differences in job worth.

Knowledge

_______________ refers to organizational experience required to perform in a job.

Job Descriptions

_______________ summarize a job's purpose and list its tasks, duties, and responsiblities, as well as the KSAs necessasry to perform the job at a minimum level.

Occupation-Specific Information Requirements

________________ detail a comprehensice set of elements that apply to a single occupation or a narrowly defined job family.

Expereince and Training Information

________________ information describes specific preparation require for entry into a job plus past work experience contributing to qualifications for an occupation.

Workforce Characteristics

________________ refer to variables that define and describe the general characteristics of occupations that may influence occupational requirements.