Compensation Mgt Quizam 1: Chapters 1-6

Identify the main sources of job analysis data

job holders + supervisors (and or anylysts)

Identify the factors that combine to form the basis for job evaluation

- organizational culture - job content - the external market - value to org. - skills required

what are the consequences of an internally aligned structure?

- reduced pay-related work stoppages - increased experience - reduced pay-related grievances

Identify the ways in which compensation affects the success of managers?

- it is a major expense that must be manages - it is a major factor determining employee attitudes and behaviors and thus organization.

Which of the following requirements should be met by an organization's pay structure?

- it should be fair to employees - employees should be able to view the way in which their work is linked to the work of the other's and the organization's objectives

How compensation systems might be tailored to three general business strategies

1. Innovator 2. Cost-cutters 3. Customer-focused

Arrange the units of job analysis according to size, starting with the smallest

1. Task 2. Position 3. Job 4. Job family

Arrange the steps involved in the determination of an internally aligned job structure in the order in which they occur

1. job analysis 2. job description 3. job evaluation

Identify the similarities between google, Nucor, and Merrill Lynch in terms of compensation strategies.

- All three formulate their pay strategy in a way that supports their business strategy - All three give importance to outstanding employee performance and commitment

According to the AMO theory, when will HR systems be most effective?

- When employee ability is enhanced through selective hiring and training and development - When roles are designed to allow employees to participate in decision making and have an opportunity to make an impact and when the compensation system encourages employees to act on their abilities and utilize the opportunity to make a difference

Identify the factors that influence the formulation of compensation strategies

- employee & union preferences - A company's culture and values - Social and political context

Identify the strategic choices involved in tailoring a pay structure that is internally aligned

- how specific the tailoring of their pay structure should be to the organization's design + work flow - how pay should be distributed through the levels in the structure

Merit increases

- increments to base pay and are based on performance - Merit payments are based on an assessment or rating of recent past performcance

Arrange the steps involved in developing a total compensation strategy in the order which they are conducted

1. Assess total compensation implications 2. Map a total compensation strategy 3. Implement strategy 4. Reassess

Total Compensation Strategy:

1. Assesses total compensation implications 2. Map a total compensation strategy 3. Implement strategy 4. Reassess

Steps to a Point Plan:

1. Conduct job analysis 2. Determine compensable factors 3. Scale the factors 4. Weight factors by importance 5. Select criterion pay structure 6. Communicate and train users 7. Apply to remaining jobs 8. Develop online support

while designing a point plan, arrange the steps that are conducted after job analysis in the order in which they occur

1. Determination of compensable factors 2. scaling of compensable factors 3. weighing of compensable factors according to importance 4. selection of criterion pay structure 5. communication of the plan and training users 6. applying the plan to non benchmark jobs and developing online software support

Four Policy Choices

1. Internal alignment 2. External Competitiveness 3. Employee contributions 4. Management

Job Analysis:

A systematic method to discover and describe similarities and differences among jobs

According to Boxall and Purcell, the ____ ____ is an increasingly common "very basic theory of performance" that bases performance on ability, motivation, and opportunity

AMO Theory

Compensation

All forms of financial returns and tangible services and benefits employees receive as part of an employment relationship.

Match the ways of ranking (Alternation ranking and paired comparison) while evaluating jobs w/ their descriptions

Alternation ranking: Evaluators reach a consensus on which jobs are the most and least valuable, followed by the next most and least valued, and so on until all the jobs have been arranged in order Paired comparison: evaluators use a matrix to compare every possible coupling of jobs

Which of the following is a difference between layered and delayered pay structures?

As opposed to the layered structure, employees are given more freedom and responsibility in the delayered structure

_______ _______ is the cash compensation that an employer pays an employee for the work performed.

Base wage

Identify a similarity between merit increases and merit bonuses

Both are based on a performance rating

How do most organizations motivate employees to apply for higher-level positions?

By associating promotions with money

Which of the following come from the basis for a cost of living adjustment to base wage?

Changes in living cost, experience or skill, changes in what other employees are paying for the same work

_____ refers to all forms of financial returns and tangible services and benefit empployee's receive as part of an employment relationship

Compensation

What does compensation mean to managers?

Compensation influences managers success in two ways: - Major expense that must be managed - Major determinant of employee attitudes and behaviors

The business strategy of Orient inc. a clothing company, involves providing customers w/ clothes at prices lower than those of their competitors. Which of the following would be an important compensable factor for this company?

Cost containment

Match the types of data collected for job analysis w/ their categories

Data related to job: work identification Data related to employee: Internal and external relationships

Which test of compensation strategy is the most difficult?

Determining whether it adds value

The pay differences among levels are referred to as ________.

Differentials

Identify an aspect of compensation that may be viewed as a measure of justice in society?

Earning differentials between women and men

Match the compensation objectives

Efficiency: Improving performance and quality, pleasing customers and stockholders and keeping labor costs under control Fairness: Equitable treatment of all employees through the recognition of employee contributions and needs Compliance: Conforming to federal and state compensation laws and regulations

Marginal productivity:

Employees pay use value

Management

Ensuring that the right people get the right pay for achieving the right objectives in the right way

which compensation objective has a company failed to meet if it misuses the statistics used to measure competitors' pay rates?

Ethics

______ ______ refers to pay comparisons w/ competitors

External competitiveness

Quantitative job analysis:

Facilitates statistical analysis of results, allowing faster data collection

Administering and Evaluating the Plan:

Fairness in the plan's administration Availability of sufficient information Adequate communication and employee involvement

True or False: Alignment is probably the most difficult test that a pay strategy has to pass

False

True or false: Union reps who actively participate in the design of internal structure believe that collective bargaining yields more equitable results

False

Strategic perspective

Focuses on those compensation choices that help the organization gain and sustain competitive advantage

Match the companies w/ their strategies for internal alignment

Google: It minimizes hierarchy and stresses collaboration Nucor: Provides several opportunities but no defined career paths Merrill Lynch: It sizes jobs based on knowledge/skill, complexity, business impact, and strategic value

Which of the following would be considered a measure of success of the training provided to users to help them apply a point plan?

High (inter) rater reliability

_____ ___ - the education, experience, knowledge, abilities, and skills required to perform the work is a major influence on internal structures

Human capital

Job Data:

Identification

In which of the following situations should an organization's internal structure be redesignes?

If it does not motivate employees to work towards achieving the organizations objective

Wall street financial services firms and banks rewarded employees for developing "innovative" new financial investment vehicles and for taking risks that helped them and their firms earn a significant amount of money by using...

Incentive plans

Which theory sees organizations as responding a conforming to normative pressures in their environments in order to gain legitimacy and to minimize risk?

Institutional theory

_____ _____ refers to the pay relationships among different jobs or skills competencies w/in a single organization

Internal Alignment

____ ____ is the policy that refers to comparisons among jobs or skill levels inside a single organization

Internal alignment

Match the types of internal structure alignment (int. align. based on content and int. align. based on value) with their features

Internal alignment based on content: it organizes jobs based on the requires skills and associated duties and responsibilities Internal alignment based on value: It organizes jobs based on the relative contribution of the skills, duties, and responsibilities of each job to the organization's goals

Which of the following is true of Nucor steels corporate mission?

It believes in achieving success by working together

Why has Nucor Steel done well despite paying its workers higher than companies inside and outside the steel industry?

It has much higher productivity than is usually seen in the steel industry

which of the following is a possibility if managers and employees are not involved in designing the internal pay structure

It may be easier for them to imagine ways the structure might have been rearranged to their personal preferences

Identify a true statement about the compensation strategy at google

It offers its employees significant stock programs

Which of the following makes a company's compensation strategy difficult to imitate?

Its alignment within the overall HR strategy

the first step in designing a point plan is ______.

Job analysis

A job summary that can be used to make HR decisions is called a(n) ______ ______

Job description

Job Specification:

Knowledge, skills, and abilities necessary to perform the job

Identify common examples of income protection benefits provided by employers

Life insurance, retirement programs, medical insurance

Supply chain analysis:

Looks at how an organization does its work

Which of the following means ensuring that the right people get the right pay for achieving the right objectives in the right way?

Management

identify the types of jobs for which every point plans, such as the National Metal Trades Association (NMTA) plan and the National Electrical Manufacturers Ass. (NEMA) plan, were developed

Manufacturing jobs + office jobs

_______ _______ is a theory that was put forth in the last half of the 19th century and that countered the views of Karl Marx by stating that employers pay use value

Marginal productivity

Delayering:

May cut an entire level of work

Increments to base pay that are given to employees one the basis of their performance are known as....

Merit increases

Match the companies by their compensation strategy maps

Microsoft: total compensation is given prominence SAS: Total compensation supports work/life balance

Which of the following are forbidden by equal employment legislation in the U.S. from serving as the criteria for setting pay differentials?

National origin, religion, gender, and race

How does compensation influence employees?

Pay can influence employee motivation and behavior in 2 ways: - incentive effect - sorting effect

Vicious Circle:

Pay for performance is a downward momentum and continuous difficulties

Virtuous circle:

Pay for performance is at an upward momentum and continuous improvement

_____ ______ refers to the array of pay rates for different work or skills w/in a single organization

Pay structure

which method of job evaluation has compensable factors whose degrees are numerically scaled and whose relative importance is weighed in the determination of job structure?

Point metjod

What are Porfyra and Colina Manufacturing's internal structures?

Porfyra: Hierarchical structure Colina: Egalitarian structure

Employee Data:

Position analysis questionnaire

____ ____ refers to the process used to make pay decisions and suggests that the way a pay decision is made may be equally as important to employees as the results of the decision.

Procedural fairness

Match the sources of fairness of a pay structure w/ their meanings

Procedural justice: The method used for determining a pay structure Distribution Justice: A pay structure itself

Job Evaluation:

Process of systematically determining the relative worth of jobs to create a job structure for the organization. The evaluation is based on a combination of job content, skills, value to the organization.

People who support the idea of adopting best practices in developing a pay strategy feel that this ______

Provides the employer with preferential access to superior employers

In order to collect job information, employees may be directed to a website where they fill in an online questionnaire. The approach is known as _____ ______ _____ (QJA)

Questionnaire job analysis

Job Evaluation Methods:

Ranking Classification Point method

Match the common job evaluation methods ( ranking and classification and point) w/ their advantages

Ranking: It's quick, simple, and easy to explain Classification: A wide range of work can be grouped together in a single system Point: the basis for comparisons is determined by compensable factord

External competitiveness

Refers to pay comparisons with competitors - Have twofold effect on objectives: 1. To ensure that the pay is sufficient to attract and retain employees 2. To control labor costs so that the organization's prices of products or services can remain competitive in a global economy

Pay Structure:

Refers to the array of pay rates for different work or skills within a single organization.

Distributive Justice:

Refers to the fairness of the decision

______ is a measure of the consistency of results among various job analyst, various methods of job analysis, various sources of data, or overtime

Reliability

Job-based Structure:

Relies on the work content- tasks, behaviors, responsibilities

Best Practices:

Results in better performance with almost any business strategy

Task Data:

Reveals the actual work performed and its purpose or outcome

Which of the following do most unions demand as a way to promote solidarity among members?

Seniority-based promotions + small pay differences among jobs

Person-based Structure:

Shifts the focus to the employees skills, knowledge, or competencies

Skill-based pay:

Shows up in manufacturing, where the work involves teams, multiskills, and flexibility

Identify the ways in which pay can influence employee motivation and behavior?

Sorting effect & incentive effect

Outsourcing:

Specialists are paid based on the internal structure of their home employer

Long-term incentives are usually in the form of?

Stock ownership

____ refers to the fundamental directions that an organization chooses

Strategy

Customer-focused business strategy

Stresses delighting customers and bases employee pay on how well they do this

Cost-cutter efficiency focused strategy

Stresses doing more with less by minimizing costs, encouraging productivity increases, and specifying in greater detail exactly how jobs should be performed

Innovator

Stresses new products and short respond time to new market trends

Line of Sight:

Structure must be fair to employees

Match the job analysis terms (Task, Job, Job family) w/ their examples

Task: Analyzing data Job: Content developer Job family: clinical research

Job Description:

Tasks, duties, and responsibilities that make up a job

Base wage

The cash compensation that an employer pays in return for the work performed

Validity:

The degree the evaluation assesses relative job worth Degree of agreement between Hit rates

Strategy

The fundamental directions an organization chooses - defines its strategy through the trade offs it makes in choosing what to and not to do

Workflow:

The process by which goods and services are delivered to the customer

Which of the following factors are likely to influence the number incumbents per job from which to collect data?

The stability of the job and the ease of collecting the info

Use Value:

The value of goods/ services an employee produces in a job

Exchange Value:

The wage agreed upon by the employer and employee

Value:

The worth of the work (the relative contribution of a job to the organization aims)

The business units at United technologies follow different compensation strategies b/c?

They faced varied competitive conditions

Why do some stockholders support the use of stock to pay employees?

They feel that it creates a sense of ownership among employees that will improve performance

Why are some people against the idea of viewing pay as an investment w/ measurable returns?

They feel that this view reduces the importance of treating employees equitably

Which of the following is true of the income protection benefits provided by employers?

They help protect employees from the financial risks inherent in daily life

which of the following is true of allowances?

They often grown out of whatever is in limited supply

Identify the examples of programs that help employers balance their work and personal responsibilities

Time away from work, access to services to meet specific needs, flexible work arrangements

Mark's an employee at a multinational technology company. In addition to receiving a comfortable base wage, he receives a pension and medical insurance. He also enjoys employment security and receives recognition for his work.

Total compensation: Pension + medical insurance Relational returns: Employment security recogonition

According to ______ _____, players will play better in a tournament where the prize differentials are large than in a tournament where the prize differentials are small

Tournament theory

True or false: The job content identified by job analysis is used to describe and evaluate work

True

What is the first step in formulating a total compensation strategy?

Understanding business strategy and competitive dynamics

Employee contributions

Understanding the basis for judging performance, helps percieves pay as fair - Important policy decision because it directly affects employees' attitudes and behaviors - team incentives

_____ examines the convergence of results among sources of data and methods

Validity

Match the companies w/ the flexible benefits they offer their employees

Whole foods: employees vote on the benefits of their choice Netflix: Employees can select the mix of stock options and salary General Mills: Employees are allowed to exchange several needs salary for stock awards

Content:

Work performed in a job and how it gets done

Compliance

as a pay objective means conforming to federal and state laws and regulations

How do employees Judge the equity of their pay?

by making several comparisons

In the ______ method of job evaluation, a series of well-described classes covers the range of jobs in an organization, and a job description is compared to the class descriptions to decide which class is the best fit for that job

classification

what is the best way to deal with discrepancies in job analysis data?

collect more data

characteristics in the work that organization values, and those that help it pursue its strategy and achieve its objectives are called _____ ______

compensable factors

________ refers to all forms of financial returns and tangible services and benefits employees receive as part of as employment relationship

compensation

After the determination of factor weights by an advisory committee members recommend the _____ ____ ____, that is a pay structure they wish to duplicate w/ the point plan

criterion pay structure

The ____ ____ business strategy places emphasis on pleasing customers and bases employee pay on how well they do this

customer-focused

A major work decision change is ______, in which entire levels of work are removed

delayering

Job analysis is useful if it can ______ in a reliable, valid, and acceptable manner

determines similarities and differences among jobs

What are the objectives of the compensation strategy followed at google?

emphasis on innovation, recognition of contributions, committed to cost containment

The importance given to employee contributions is a significant policy decision because it directly affect _____.

employee's attitudes and work behaviors

The Americans with Disabilities Act (ADA) requires that ______ ______ of a job --- those that cannot be reassigned to other workers -- must be specified for jobs covered by the legislation

essential elements

True or False: Not all organizations that pay people have a compensation strategy

false

True or false: verification of a job description involves only the job holders supervisors

false

true or false: tradition does not influence whether or not the compensable factors used to slot jobs into the pay structure are accepted

false

The occupational info network, or O&*NET, is an easily accessible source of ____ that can be used during job analysis

generic job descriptions

Stockholders who are not a favor of using stock to pay employees believe that ...

granting employees too much ownership dilutes stockholder wealth

A characteristic of any pay structure is its

hierarchical nature

The final result of the job analysis --- job description- job evaluation process is a ______.

hierarchy of work

Sorting effect

higher pay levels help organizations attract more high-quality applicants, allowing them to be more selective in their hiring. May improve employee retention.

In the point method of job evaluation, different factor weights indicate differences in.....

importance attached to each factor by the employer

Identify a true statement about the application of a point plan ti non benchmark jobs

it can be done by people who were not necessarily involved in the design process

identify the products of job analysis

job description and job specification

In the 14th century western Europe, the Christian church endorsed a(n) ____ ______ _______ that denied market forces such as skills shortages as appropriate determinants of pay structure

just wage doctrine

A drawback of the ranking method of job evaluation is that evaluators using this method must ______.

know about every single job under study

Which of the following is likely if a company pays its employees based on performance?

low turnover

Cost of Living Adjustment (COLA)

made to base pay on the basis of changes in: - What others are paying, living costs, or experience/skill

In a survey of approximately 1,000 members of world at work was selected by the majority as the primary method of job evaluation

market pricing

identify a true statement about the factor scales constructed in the point method of job evaluation

most factor scales consist of four to eight degrees

A disadvantage of egalitarian pay structure is that they may result in a ____--

negative sorting effect

In the context of compensation, which of the following is a way better satisfy employees individual needs and preferences?

offering more choice

_______ refers to the movement of jobs to locations beyond a country's boarders

offshoring

AMO Theory

p=f(A,M,O) - p is performance - A is ability - M is motivation - O is opportunity - HR systems will be most effective when roles are designed to allow employees to be involved in decisions to have an opportunity to make an impact

Incentive effect

pay influences individual and aggregate motivation

Internal alignment

refers to comparisons among jobs or skill levels inside a single organization - jobs and people's skills are compared in terms of their relative contributions to the business objectives

Salary

refers to the pay for employees who are EXEMPT from regulations of the Fair Labor Standards Act (FLSA) and hence do not receive over pay

Relational returns from work: Procedural Fairness

refers to the process used to make pay decisions. It suggests that the way a pay decision is made may be equally as important to employees as the results of the decision

In the United States, the pay for employees who are exempt from regulations of the Fair Labor Standards Act (FLSA) and hence do not receive overtime pay is referred to as...

salary

Pay structures undergo changes due to external factors such as _____

skill shortages

identify the aspects of job content whose values depend on their relationships to market wages

skills required + customer contacts

Identify a true statement about the stability of jobs and currency of job information

some jobs remain relatively stable over time

A ___ ___ focuses on those compensation choices that help the organization gain and sustain competitive advantage

strategic perspective

Who performs job analysis in present times?

supervisors and human resource generalists

______ ______ ____ looks at the way in which an org. does its work: activities pursued to accomplish specific objectives for specific customers

supply chain analysis

______ ______ reveal the actual work performed and its purpose or outcome

task data

The reassessment step in formulating a total compensation strategy recognizes that ______

the compensation strategy must undergo modifications in response to changing conditions

the level at which job analysis begins influences _______

the extent of similarity or dissimilarity between jobs

what is the advantage of conventional questionnaires and interviews?

the involvement of employees improves their understanding of the process

Identify a difference between layered and delayered pay structures

the layered structure is more hierarchical than the delayerd structure

Which of the following does job content emphasize?

the purpose of each elemental task or unit of work

Performance-based pay is most effective when ______

there is success to share

Which of the following are true of aligned pay structure

they support the way work gets done and they are fair to employees

What are the pay objectives followed at merrill lynch

to hire, motivate, and retain the best talent

why is a manual prepared after a job evaluation point plan is designed?

to permit users who were not involved in the plans development to apply the plan as its developers intended

True or false: Flexible and balanced guidelines are necessary to ensure efficient job evaluation

true

True or false: job context does not have intrinsic value if its value depends on what it can command in the external market

true

Identify a common example of a characteristic that is usually present in a limited number of jobs but is made into a compensable factor and applied to all jobs

unpleasant working conditions

______ refers to the practicality of the collected info.

usefulness

Identify the ways in which the reliability of job analysis data can be improved

using multiple raters and providing more training

The process by which goods and services are delivered to the customer is referred to as ______ ______

work flow

Unlike Microsoft's compensation strategy, SAS institutes approach to compensation emphasizes ______.

work/life programs

Identify the true statements about whole foods business objectives

- to take extraordinary measures to satisfy and delights customers - to hire and try to retain employees who are going to help the company make money

Identify the conditions under which jobs are susceptible to outsourcing

- when the work can be routinized - when the electronic transmission of inputs and outputs is simple - when only limited interaction of the collected information

Which of the following features of research should be kept in mind while deciding the usefulness and relevance of a research study?

- whether the research separates correlation from causation - whether there are alternate explanations - whether the research is useful

which of the following can form the basis for a cost of living adjustment (COLA) to base wages?

Changes in experiences or skill and changes in what other employers are paying or the same work

Identify a true statement about relative compensation costs and productivity rates across nations

Countries like Mexico and China have much lower hourly compensation rates than the U.S.A

How are efficiency, fairness, and compliance affected by internal alignment policies?

Efficiency: it's influenced by employees motivation to choose increased training and more responsibility in dealing with customers Fairness: Its influenced by employees comparisons of their pay to pay of other employers in an organization. Compliance: It's influenced by the basis used while making internal comparisons among employees

Match the factors (External and organizational) that shape the internal structure of an organization w/ their examples

External Factors: Economic pressures and gov't policies, laws and regulations Organizational factors: strategy, technology, human capital

What shapes Internal Structures?

External factors Organization factors

Match the types of factors (external and internal factors) that affect the pay for jobs w/ the types of jobs they influence

External factors: Entry Internal: Non entry

True or False: Cost of living adjustments to base wages are becoming increasingly common nowadays

False

Identify a draw back of egalitarian pay structures

High-performing and more skilled employees may feel unpaid

Match the types of cash compensation with their aims

Incentives --> explicitly attempt to influence future behavior reward a past behavior which is helped to ....

_____ _____ _____ refer to the rules and procedures that determine the pay for the different jobs within a single organization and allocate employees among those different jobs

Internal labor markets

Reliability:

Is a measure of the consistency of results among various analysts, various methods, various sources of data, or over time

Source of Competitive Advantage: Three Tests

Is it aligned? Does it differentiate? Does it add value?

Mach the products of job analysis (Job description & Job specification) w/ their definitions

Job description: the list of tasks, duties, and responsibilities included in a job Job specification: the list of knowledge, skills, abilities, and other characteristics that an individual must possess to perform the job

Match the types of work-related internal structures w/ their areas of focus

Job related structures: focus on what people are doing and the anticipated outcomes Skill and competency based structures: focus on the person

The _____ _____ _____ (PAQ) groups work info into seven basic factors: info input, mental process, work output, relationships w/ other persons, job context, other job characteristics, and general dimensions

Position analysis questionnaire

Match the universal compensable factors employed by the hay group method w/ the dimensions that are included in them

Problem solving: Environment and challenge Accountability: Freedom to act and impact

Offshoring:

Refers to the movement of jobs to locations beyond a country's borders

Internal Alignment(internal fairness/equity)

Refers to the pay relationships among different jobs/skills within a single organization

Procedural justice:

Refers to the process by which a decision was reached

Best fit:

Reflects the company's strategies and values, globally competitive

which of the following are true of the perspective of researchers who make pay decisions based on job evaluation?

- they view job evaluation as a method that helps pay differences among jobs get accepted - they believe that job evaluation allows the exchange of views

Incentives

- tie pay increases to performance - are a one- time payment which differs from merit adjustments (so they don't permanently increase labor costs) - may be long-term (stock ownership, or stock options) or short-term - frequently referred to as variable pay

External and Organization factors influence a company's internal structure, what are the examples for both of these?

External factors: stakeholders, and cultures and customs Organization factors: HR policy, employee acceptance, and cost implications

True or false: A present-value perspective focuses on the value of a company's initial offers to job applicants

False

True or false: organizations commonly use an established approach to derive a single internal structure that can be applied to different functional groups or units.

False

Recognition and status, employment security, challenging work, and opportunities are examples of ________

Relational returns

Job losses or gains in a nation over time are partly influenced by_____ across

Relative labor costs and productivity

Relational Returns

- Psychological - (learning opportunities, status, challenging work)

Identify the functions that a job evaluation must perform

- it should encourage behavior that supports org. obj. - it should support org. strategy and work flows - it should be fair to employees

What did Matt Bloom discover about the effect of pay differences on performance-based on 8 years of data on major league baseball?

Teams with small differences in member salaries did better than those w large differentials

True or false: professional or managerial job descriptions should include the relationship between the job, the person performing it, and the org. objectives

true

In which of the following ways can employees view compensation?

- As an entitlement for being an employee of the company - As a return in an exchange between their employer and themselves - A reward for having done well in a job - As an incentive to take or stay in a job and try ti perform well in that job

Merit bonuses

- Based on performance rating - Paid in the form of a lump sum rather than becoming a permanent part of the base salary

Identify examples of information that helps in identifying a job

- the number of people employed in a job - whether a job is exempt from the fair labor standards act - job departments - job traits

Identify the aspects of the pay model that influence the impact of any internal structure on organization performance

management, contributions, competitiveness

Total compensation

pay received directly as cash and indirectly as benefits

Conventional job analysis:

- Developing preliminary information - Interviewing jobholders and supervisions - Using the information to create and verify job description

Benefits

- Income protection- medical insurance, retirement programs, life insurance, saving plans - Work/Life balance- includes time away from work, access to services, and flexible work arrangements - Allowances often grow out of short supply

Identify the characteristics of a benchmark job

- It employs a reasonable proportion of the work force - its contents are well known and relatively stable over time

Identify the ways in which compensation affects the success of managers

- It is is a major factor determining employee attitudes and behaviors and thus, organization performance - it is a major expense that must be managed

In the context of pay structures, a(n) ____ - _____ ______ focuses on the skills, knowledge, or competencies possessed by an employee, whether or not they are utilized in the employee's particular job

person-based structure

Identify the provisions of the Dodd-Frank Wall street reform and consumer protection act

- Say pay that makes it obligatory for public companies to submit their executive compensaiton plan to a vote by shareholders - Clawback provisions designed to allow companies to take back compensation from executives in some instances

What does compensation mean to society?

- Some people see pay as a measure of justice - Job losses (or gains) in a country is partly a function of labor costs (and productivity)

What does compensation mean to stockholders?

- Some stockholders say using stock to pay employees creates a sense of ownership. - Stockholders have a interest in executive pay

Identify the true statements about incentives

- They are one time payments - They are often known as variable pay

Arrange the steps involved in the conventional job analysis procedure developed by the U.S fed gov't in the order of their occurrence

1. develop preliminary job info 2. conduct initial tour of work site 3. conduct interviews 4. conduct second tour of work site 5. consolidate job info 6. verify job description

Identify the true statement about a company's strategic compensation map

- It provides a visual reference of the company's compensation system - It can elucidate the message that the company is trying to deliver w/ its compensation system

What does compensation mean to employees?

- Pay is usually a major source of financial security - Employees may see compensation as- entitlement, incentives, and rewards

Total earnings opportunities: Present value of a stream of earnings

- Present value of a stream of earnings - returns from work - A network of returns - A present-value perspective shifts the comparison of today's initial offers to consideration of future bonuses, merit increases, and promotions

why is it important to maintain some documentation to support the choice of compensable factors while developing a point plan?

- it can with stand a variety of challenges to the pay structure - it helps gain acceptance by employees and managers - its easier to understand

Identify the major uses of job analysis in compensation

- it helps establish an internal job structure that is fair and aligned - it identifies similarities and differences in the work contents of a jobs.