Compensations-Benefits Topic 4-5

Exists because the data a company obtains about market rates may not be an accurate representation of the market. Bad data challenge Job matching challenge Ethical challenge Cost challenge Data age challenge

Bad data challenge

There are many ways that rewards can be measured. Also called Fringe Benefits. Total Compensation Cash Compensation Variable Compensation Benefits

Benefits

Describes what is typical for a set of data, usually measured by the arithmetic mean, median or mode. Dispersion Proportions (%) Central Tendency External Reward Positioning

Central Tendency

In which approach would it appear that jobs are categorized by job descriptions? Job comparison approach Point factor approach Classification approach

Classification approach

The ___________________ is creating a job structure using logical categories and descriptions to organize the jobs. Job comparison approach Classification approach Point factor approach None of the above

Classification approach

The most fundamental question of internal reward alignment relates to the number of ____________ in an organization. Distinct benefit plans Distinct business strategy Distinct business goals Distinct reward structures

Distinct reward structures

What would be the next step after the jobs have been broadly organized into such a job structure? Job structure Job-value structure Job analysis Job descriptions Job classification

Job-value structure

In choosing benchmark jobs, organizations should be careful to ensure adequate representation for different job ________. a. organizational levels, government mandates and different job families b. families, organizational levels, and career points c. job families, company values and career goals

b. families, organizational levels, and career points

The characteristics of the job holder are not drivers of compensation in ___________ because it is assumed that the value to the company of each job has been measured, and to pay more for an over-qualified employee would be viewed as a waste of resources. job-based systems Individual-based system performance-based system

job-based systems

Through the use of __________________, an organization is going to create a link between its reward structures and the external markets. Interviews Exit intervie Surveys Benchmark jobs

Benchmark jobs

Through what method do you understand how valuable a job is? Job evaluation Job analysis Job creation Job devaluation

Job evaluation

With this system in place, the organization now has a quantitative indicator of the value that each job creates for the organization. Job evaluation Internal reward alignment Job classifications

Job evaluation

the process by which the value of each job in an organization is established. Job evaluation Job analysis Job creation Job devaluation

Job evaluation

This results from difficulties in determining exactly which organizational jobs match up with each benchmark job in the wage surveys. Bad data challenge Job matching challenge Ethical challenge Cost challenge Data age challenge

Job matching challenge

An organized listing of the business's jobs that functionally groups and hierarchically arranges the jobs for rewards purposes. Job structure Job-value structure Job analysis Job descriptions Job classification

Job structure

This approach to internal reward alignment assumes that organizations provide rewards based upon the job that a person holds. Job-based Individual-based Performance-based

Job-based

This answers the question of what the jobs are, how they are related, and the relative importance of each. Job structure Job-value structure Job analysis Job descriptions Job classification

Job-value structure

This represents the structure of jobs internally positioned according to their relative value. Job structure Job-value structure Job analysis Job descriptions Job classification

Job-value structure

Using job analysis, all work in business is organized into: Jobs Job classes Job families Job approaches

Jobs

Can be heavily influenced by outliers. Mean Median Mode Weighted Mean Weighted Average

Mean

The average. Mean Median Mode Weighted Mean Weighted Average

Mean

The most common way to summarize a group of numbers. Mean Median Weighted Mean Weighted Average

Mean

The middle number of a group of numbers when they are arranged from lowest to highest. Mean Median Mode Weighted Mean Weighted Average

Median

There are three basic ways an organization will pay. Which of the following is not part of this list? Mode Weighted Mean Mean Median

Mode

A job structure is: a. An organized listing of the business's jobs that functionally groups and hierarchically arranges the jobs for rewards purposes b. The way a company decides to recruit, retain, and develop employees c. A value system for the list of jobs created d. A systematic approach to creating a job analysis for the purposes of understanding the compensation plan

a. An organized listing of the business's jobs that functionally groups and hierarchically arranges the jobs for rewards purposes

Reward surveys are: a. Perks and other valuable factors b. Aggregations of the lump sum of employees' yearly salaries c. Aggregations of reward information gathered from other market organizations d. Paid time off

a. Perks and other valuable factors

A benchmark competitor is: a. A selection of choices a company should make on how to create a strategy b. A selection of primary organizations that exemplify the labor and product/service markets in which the organization competes c. The ability to decide how to create a new project within your organization

b. A selection of primary organizations that exemplify the labor and product/service markets in which the organization competes

According to the text, what is one way that a compensation manager can effectively age data? a. Calculate the time value of money b. Calculate for inflation c. Benchmarking

b. Calculate for inflation

The purpose of central tendency is to: a. Find a whole group of numbers to best represent one single number b. Find one single number that best represents a whole group of numbers c. Find a whole group of numbers to best represent another group of numbers d. Find one single number that best represents another single number

b. Find one single number that best represents a whole group of numbers

Why is the list of benchmark competitors important? a. It creates the standard to which the rewards system fluctuates according to the market b. It creates the standard to which the rewards system is anchored c. It creates the standard to which the company adds value to the community d. It creates the standard to which the company adds value to the industry

b. It creates the standard to which the rewards system is anchored

An outlier is: a. The number that is the weighted mean of the distribution b. Numbers that are far above or below most of the other numbers c. Numbers that are similar to other numbers d. The mode times the mean

b. Numbers that are far above or below most of the other numbers

Job evaluation is: a. The process by which the value of each department in an organization is established b. The process by which the value of each job in an organization is established c. The process by which the value of each employee in an organization is established d. The process by which the value of the compensation plan is established

b. The process by which the value of each job in an organization is established

The three primary concerns when integrating data from multiple rewards surveys are _______. a. job analysis, pay forms, and accuracy b. pay forms, matching benchmark jobs, and aging the data c. price, accuracy and aging data

b. pay forms, matching benchmark jobs, and aging the data

In a job-based system, pay changes occur when: a. A new hire starts his/her first day b. Pay changes never occur c. An employee changes jobs d. An employer changes jobs

c. An employee changes jobs

The Individual-based approach assumes that rewards should be based on: a. The job a person holds b. Results by an employee c. Characteristics of a person holding a job d. Merit based pay for end-of-year company performance

c. Characteristics of a person holding a job

Data aging refers to: a. The adjustment of market reward information to take into account how inflation has likely changed the market rates since the data were collected b. The adjustment of market reward information from 10 years ago c. The adjustment of market reward information to guess the rewards for 3 years from a certain starting point

c. The adjustment of market reward information to guess the rewards for 3 years from a certain starting point

Dispersion represents: a. The gap between lower and higher level employees b. The gap between the highest and lowest data point c. The gap between two data points d. The gap between industries

c. The gap between two data points

The job value structure represents: a. The structure of jobs internally positioned according to their immediate value b. The structure of jobs internally positioned according to their natural value c. The structure of jobs internally positioned according to their relative value

c. The structure of jobs internally positioned according to their relative value

In a ______________, a highly skilled manager with an MBA who is preparing food in a fast-food restaurant would be paid the same amount as a high-school dropout performing the same job. performance-based system purely job-based system Individual-based system

purely job-based system

There are many ways that rewards can be measured. Salary or Wages = ? Total Compensation Cash Compensation Variable Compensation Benefits

Cash Compensation

Will the organization have one reward structure that covers management, sales, and manufacturing job families, or will the organization have a different reward structure for each job family? This is an example of? Distinct benefit plans Distinct business strategy Distinct business goals Distinct reward structures

Distinct reward structures

Job evaluation is a tool to help organizations create Internal Reward Alignments that are both ____________ and ___________ to effective employee performance. Conducive and developed Conducive and available Equitable and conducive Equitable and creative

Equitable and conducive

This can also exist in establishing market rates. Bad data challenge Job matching challenge Ethical challenge Cost challenge Data age challenge

Ethical challenge

Refers to employee perceptions regarding the worth of their work conditions and rewards compared to the work conditions and rewards of individuals outside the company. External equity External reward positioning Equity theory

External equity

In choosing benchmark jobs, organizations should be careful to ensure adequate representation for all of the following, except: Organizational levels Government mandates Different job families Career points

Government mandates

This approach assumes that rewards should be based upon the characteristics of the person holding a job. Job-based Individual-based Performance-based

Individual-based

One advantage of using subscription information from a third party is: Relative Price Industry specific Accuracy

Industry specific

The extent to which the relative value of all jobs in the organization is clear, coherent, fair, and supportive of the business strategy. Job evaluation Internal reward alignment Job classifications

Internal reward alignment

The advantage of the job comparison approach is that it is: Intuitive Holistic Intuitive and holistic

Intuitive and holistic

The foundation for the development of a Job Structure. Job-value Job analysis Job descriptions Job classification

Job analysis

This yields a catalogue of job descriptions. Job structure Job-value structure Job analysis Job classification

Job analysis

A small supermarket, for example, might have categories labeled manager, assistant manager, cashier, stocker, and custodian. This is an example of: Job classification approach Job comparison approach Point factor approach

Job classification approach

The complexity of this approach becomes more apparent as the number and types of jobs in an organization grows. Job classification approach Job comparison approach Point factor approach

Job classification approach

Also called a ranking approach. Job classification approach Job comparison approach Point factor approach

Job comparison approach

In this approach jobs are placed in a relative hierarchy based upon how their value compares to the other jobs. Job classification approach Job comparison approach Point factor approach

Job comparison approach

In which approach are jobs compared and "winning" or more "important" jobs get points? Job comparison approach Point factor approach Classification approach

Job comparison approach

In which approach would it appear that jobs are ordered based on rank and file? Job comparison approach Point factor approach Classification approach

Job comparison approach

Using this approach, all jobs in the organization are compared, with points given for each comparison "won" by each job. Job classification approach Job comparison approach Point factor approach

Job comparison approach

This details the work done in the organization. Job structure Job-value structure Job analysis Job descriptions Job classification

Job descriptions

A tool to help organizations create Internal Reward Alignments that are both equitable and conducive to effective employee performance. Job evaluation Job structure Job classifications

Job evaluation

This produces a job value structure through placing jobs in a system of classifications, comparing jobs directly to each other, or assigning points based on the compensable factor of each job. Job evaluation Internal reward alignment Job classifications

Job evaluation

This provides the basis for developing a network or configuration of pay rates that make up a rewards structure. Job evaluation Job analysis Job creation Job devaluation

Job evaluation

This approach can better capture the unique contributions and compensation trends associated with different job families. Single structure approach Multiple structure approach Middle ground approach

Multiple structure approach

This method has the downside of reinforcing the functional silos and identifications that can impede organizational effectiveness. Single structure approach Multiple structure approach Middle ground approach

Multiple structure approach

This approach assumes that rewards should be based upon the performance or results produced by an employee. Job-based Individual-based Performance-based

Performance-based

This approach allocates points to jobs based upon the job's value to the organization. That is, each job in the organization is given a quantitative rating of its overall value to the organization. Job classification approach Job comparison approach Point factor approach

Point factor approach

This approach requires time to develop, it remains the most scalable of the approaches in that, once the system has been created, it can be applied to large organizations with many different jobs. Job classification approach Job comparison approach Point factor approach

Point factor approach

It is better to have a _____________ approach in job analysis. Quantitative Qualitative Both A & B

Quantitative

With the job evaluation system in place, the organization now has a ____________ indicator of the value that each job creates for the organization. Quantitative Small Qualitative Large

Quantitative

The advantages of this approach is that it creates a cohesive organizational culture. Single structure approach Multiple structure approach Middle ground approach

Single structure approach

The advantages of this approach is that it is simpler to design and implement. Single structure approach Multiple structure approach Middle ground approach

Single structure approach

A drawback to designing your own survey is: Industry specific Time Accuracy Price

Time

There are many ways that rewards can be measured. Cash + Variable + Benefits = ? Total Compensation Cash Compensation Variable Compensation Benefits

Total Compensation

Which of the following is not a primary concern when integrating data from multiple rewards surveys? Understanding government mandates Matching benchmark jobs Pay forms Aging the data

Understanding government mandates

There are many ways that rewards can be measured. Also known as Bonuses. Total Compensation Cash Compensation Variable Compensation Benefits

Variable Compensation

Job-value structure does not answer the question of: Whom to recruit for jobs How important are jobs What jobs are How jobs are related

Whom to recruit for jobs

A reward survey is: a. A survey designed to understand employees' desire for rewards b. A survey published by the government to employers to understand rewards offered c. A survey published by the AMA to employers to understand rewards offered d. Aggregations of reward information gathered from other market organizations

d. Aggregations of reward information gathered from other market organizations

Job evaluation produces a job value structure through: a. Placing jobs in a system of classifications b. Comparing jobs directly to each other c. Assigning points based on the compensable factors d. All of the above

d. All of the above

The Performance-based approach assumes that rewards should be based on: a. Merit based pay for end-of-year company performance b. The job a person holds c. Characteristics of a person holding a job d. Results by an employee

d. Results by an employee

Which of the following is not a primary concern when integrating data from multiple rewards systems? a. The matching of benchmark jobs in the survey to benchmark jobs within your organization b. Data aging c. Market surveys often use different metrics for measuring reward types and compensation levels d. Self-reported information and third-party websites can be fabricated

d. Self-reported information and third-party websites can be fabricated

A compensable factor is a: a. Statement of what the organization wants b. Statement of what the organization needs c. Statement of what the organization has d. Statement of what the organization values

d. Statement of what the organization values

Internal Reward Alignment is the extent to which the relative value of all jobs in the organization is ___________ the business strategy. a. Clear about b. Coherent with c. Fair to d. Supportive of e. All of the above

e. All of the above

In companies using ___________, pay changes occur when an employee changes jobs, not when the employee gains additional skills. job-based systems Individual-based system performance-based system

job-based systems

The three primary concerns when integrating data from__________ are pay forms, matching benchmark jobs, and aging the data. multiple rewards surveys creating company survey government surveys self-reported survey

multiple rewards surveys