Compensations-Benefits Topic 6-7

Which of the following is not a step in creating a capability-based pay structure? Define competency sets Implementation Create training support structure Develop protocols

Develop protocols

As a general rule, base pay strategies rarely lead the market by more than __%. 10% 15% 22% 8%

10%

In which industry is skill-based pay most often used? Bio-Pharmaceutical industry Education industry Manufacturing industry Automotive industry

Manufacturing industry

Suggests that the more grades that are used the smaller the ranges will be. Principle of inclusiveness Principle of overlap Principle of control Principle of parity Shadow ranges Compa-ratio

Principle of parity

Differentiations in pay should only be made when they are clearly ___________ and worth the potential tradeoffs. Expensive Understandable Defensible Forgettable

Defensible

What level of proficiency is the following statement? No familiarity with machine function, safety protocol, no progress made on task No proficiency Low proficiency Some proficiency Adequate Proficiency High Proficiency

No proficiency

What kind of analysis is best to use when finding out how much a job family should be paid? Suppression analysis Point factor analysis Job performance analysis Regression analysis

Regression analysis

Which of the following is not a historically used structured pay grade? Individualistic environment Linear careers Static Upward mobility

Upward mobility

In a work environment where jobs are_______ don't change much over time. static linear

static

When the work employee do changes on a regular basis. Dynamic Role-based Collaborative Environment Networked Careers Broadbanding

Dynamic Role-based

The most common form of Capability-based pay. Skill-based pay Competency-based pay Experience/Seniority-based pay

Experience/Seniority-based pay

What level of proficiency is the following statement? Very familiar with machine and safety protocols, finished the task without mistakes. No proficiency Low proficiency Some proficiency Adequate Proficiency High Proficiency

High Proficiency

Individual characteristics should be categorized into two categories: Strategic utility, job frequency Strategic utility, employer frequency Job analyses, strategic utility Job analyses, job frequency

Job analyses, strategic utility

When jobs are static: Jobs are quick to change over time Jobs are easier to get Jobs don't change much over time Jobs move freely

Jobs don't change much over time

It would be wise to establish a _____________ when developing the information sources. Panel Group meeting Benchmarking study Pamphlet

Panel

Means that the definition of criteria are all conceptually and empirically connected to employee, unit, and organizational outcomes. Strategic Measurement Reliable Measurement Transparent Measurement

Strategic Measurement

Managers should remember that the process of __________ is important and also consider any legal ramifications of the historic pay disparity. compensation change static

change

Static jobs have given way for this. Dynamic Role-based Collaborative Environment Networked Careers Broadbanding

Dynamic Role-based

Which of the following measurements is more successful than the others? Transparent Management Reliable Measurement Strategic Measurement Each has its own unique strengths

Each has its own unique strengths

What are the two key policies that need to be put in place to ensure clarity and cost control in the system? Eligibility & demand Frequency & market trends Eligibility & frequency Frequency & demand

Eligibility & frequency

Within broadband systems some organizations want to have a little more guidance on compensation levels. This can be done through a system of smaller ranges within the pay ranges. Principle of inclusiveness Principle of overlap Principle of control Principle of parity Shadow ranges Compa-ratio

Shadow ranges

For example, at a manufacturing facility, an employee that knows how to use a band saw, a lathe, belt-sander, table saw, and sprayer will be paid more than the employee who only knows how to use the band saw and the belt sander. Skill-based pay Competency-based pay Experience/Seniority-based pay

Skill-based pay

This pay is most often used in the manufacturing industry or blue-collar work settings. Skill-based pay Competency-based pay Experience/Seniority-based pay

Skill-based pay

What level of proficiency is the following statement? Is familiar with machine and safety protocols, finished the task with several minor mistakes No proficiency Low proficiency Some proficiency Adequate Proficiency High Proficiency

Some Proficiency

These ranges exist within the range of the broad band and are applied to specific job families to provide guidance on appropriate compensation levels. Principle of inclusiveness Principle of overlap Principle of control Principle of parity Shadow ranges Compa-ratio

Shadow ranges

Broadbanding allows employees to do all of the following except: a. Modify their role in the organization b. Join and exit multiple organizational teams c. Be promotable within a given time period d. Manage lateral changes in their career

c. Be promotable within a given time period

The value-reward line can best be explained by the mathematical equation: y=sx+a y=ax+b y=mx+b y=ax+m

y=mx+b

What level of proficiency is the following statement? Some familiarity with machine and safety protocols, was unable to finish task without several major mistakes No proficiency Low proficiency Some proficiency Adequate Proficiency High Proficiency

Low Proficiency

Plots a line minimally distant for each point in the data. Scatterplot Value-Reward Line Regression Analysis Suppression analysis

Regression analysis

Means that the criteria and system should be easily understood and the processes for implementing the system should also be well documented and followed. Strategic Measurement Reliable Measurement Transparent Measurement

Transparent Measurement

The resulting line when regression is used to estimate the line summarizing the relationship between Job Evaluation points and a compensation metric. Scatterplot Value-Reward Line Regression Analysis

Value-Reward line

This line allows us to estimate what the market pay for a job will be even if we only know how many job evaluation points it received, and we don't know how much it is paid in the labor market. Scatterplot Value-Reward Line Regression Analysis

Value-Reward line

The purpose of grades is to: a. Allow jobs creating a different amount of value for the organization to be treated in the same way. b. Allow jobs creating the same amount of value for the organization to be treated in the same way c. Allow jobs creating the same amount of value for the organization to be treated in a different way

b. Allow jobs creating the same amount of value for the organization to be treated in the same way

Reliable measurement means: a. An employee's ability to actively recruit based on the reliability of potential employees b. An employee's level of skill, competency, or experience can be measured consistently across employees and raters c. An employee's measurement to show in performance management

b. An employee's level of skill, competency, or experience can be measured consistently across employees and raters

What are the 6 steps in creating a capability-based pay structure. a. Define competency sets, outline the levels, gather information, create the controls, arrange training, implement the steps b. Define skill set, define levels, selection sources, establish controls, create training, implement the plan

b. Define skill set, define levels, selection sources, establish controls, create training, implement the plan

Linear careers are where: a. Employees begin their career floating and then settle into a single organization b. Employees can expect to spend the duration of their careers with a single organization c. Employees spend the first part of their career in one organization and then float to other organizations d. Employees can expect to move in and out of different jobs throughout their career

b. Employees can expect to spend the duration of their careers with a single organization

The Principle of Inclusiveness states: a. That a pay range does not need to be large enough to capture the pay range of all jobs in that grade or band b. That a pay range needs to be large enough to capture the pay range of all jobs in that grade or band c. That a gap does not need to be large enough to capture the pay range of all jobs in that grade or band

b. That a pay range needs to be large enough to capture the pay range of all jobs in that grade or band

What is an advantage to broadbanding? a. Allows for stronger relationships b. Allows for a better training guide in an orgranization c. Allows for more productive work results d. Allows for greater flexibility

d. Allows for greater flexibility

What level of proficiency is the following statement? Is very familiar with machine and safety protocols, finished the task with one or two minor mistakes No proficiency Low proficiency Some proficiency Adequate Proficiency High Proficiency

Adequate Proficiency

Entails the use of a few grades to organize work for pay purposes. Dynamic Role-based Collaborative Environment Networked Careers Broadbanding

Broadbanding

This approach makes a dramatically different assumption than the Job-based Approach about how rewards should be determined. Capability-based Individual-based Performance-based

Capability-based

Individualistic environments have given way for this. Dynamic Role-based Collaborative Environment Networked Careers Broadbanding

Collaborative Environment

Teams of employees work in concert to be creative, solve problems and produce results Dynamic Role-based Collaborative Environment Networked Careers Broadbanding

Collaborative environments

This is calculated by dividing the average pay for the pay grade by the midpoint of that range. Principle of inclusiveness Principle of overlap Principle of control Principle of parity Shadow ranges Compa-ratio

Compa-ratio

Used to measure the conformity of pay rates to the pay plan. Principle of inclusiveness Principle of overlap Principle of control Principle of parity Shadow ranges Compa-ratio

Compa-ratio

This type of pay is a configurations of knowledge, skills, and traits that enable employee performance. Skill-based pay Competency-based pay Experience/Seniority-based pay

Competency-based pay

This type pay is typically designed to apply to professional-level jobs Skill-based pay Competency-based pay Experience/Seniority-based pay

Competency-based pay

According to the reading, as recruited employees negotiate for higher salaries, they are more likely to receive such salaries if they have ______________________________. More competencies Greater work experience More education

Greater work experience

Refers to employees whose pay is below the range for their job. Green Circle Rates Red Circle Rates

Green Circle Rates

This approach states that pay should be driven by the knowledge, skills, experience, or competencies of that individual. Capability-based Individual-based Performance-based Job-based

Individual-based

This system's value is assumed to derive from the characteristics of the person within the job Capability-based Individual-based Performance-based Job-based

Individual-based

The rollout of capability-based pay systems, like all reward system changes, should be accompanied by: No communication Expressive communication Expensive communication Intensive communication

Intensive communication

Employees change jobs frequently, sometimes changing functions and industries to bring unique perspectives and competencies to their new roles. Dynamic Role-based Collaborative Environment Networked Careers Broadbanding

Networked Careers

Linear careers are being replaced with this. Dynamic Role-based Collaborative Environment Networked Careers Broadbanding

Networked Careers

States that the size of pay ranges should be kept sufficiently small to enable an organization to control labor costs. Principle of inclusiveness Principle of overlap Principle of control Principle of parity Shadow ranges Compa-ratio

Principle of control

States that a pay range needs to be large enough to capture the pay range of all jobs in that grade or band. Principle of inclusiveness Principle of overlap Principle of control Principle of parity Shadow ranges Compa-ratio

Principle of inclusiveness

When establishing these ranges, it is important to consider not only the current compensation but also the future compensation of jobs when rates rise due to inflation or market shifts. Principle of inclusiveness Principle of overlap Principle of control Principle of parity Shadow ranges Compa-ratio

Principle of inclusiveness

When establishing these ranges, it is wise to leave a buffer zone around the current pay rates to ensure that the range is adequate. Principle of inclusiveness Principle of overlap Principle of control Principle of parity Shadow ranges Compa-ratio

Principle of inclusiveness

States that there should be overlap in the pay ranges for successive pay grades or bands. Principle of inclusiveness Principle of overlap Principle of control Principle of parity Shadow ranges Compa-ratio

Principle of overlap

When using this type of grade it is easier career management as employees are promoted up through their own function or take a lateral position in a different function. Principle of inclusiveness Principle of overlap Principle of control Principle of parity Shadow ranges Compa-ratio

Principle of overlap

Refers to employees whose pay is above the range for their job. Green Circle Rates Red Circle Rates

Red Circle Rates

A statistical technique for drawing 'the line of best fit'. Scatterplot Value-Reward Line Regression Analysis

Regression Analysis

The process of finding the connection between 2 numbers . Scatterplot Value-Reward Line Regression Analysis

Regression analysis

Means that an employee's level of skill, competency, or experience can be assessed consistently across employees and raters. Strategic Measurement Reliable Measurement Transparent Measurement

Reliable Measurement

Generally speaking, the eligibility should be ____________ to ensure that the number of employees certifying is in line with current and future needs for that capability. Altered Enforced Changed Restricted

Restricted

The extent to which a company will pay above, at or below the market average, shown in a graphical form. Reward-level strategy Reward strategy line Magnitude line of lead/lag

Reward strategy line

It is typically expressed as a percentage above or percentage below the market. Reward-level strategy Reward strategy line Magnitude line of lead/lag

Reward-Level strategy

Refers to the extent to which a company will pay above, at, or below the market average. It is typically expressed as a percentage above or percentage below the market. Reward-level strategy Reward strategy line Magnitude line of lead/lag

Reward-Level strategy

A graphic tool used to display the relationship between 2 variables using a 'X' and 'Y' axis. Scatterplot Value-Reward Line Regression Analysis

Scatterplot

How do you calculate the Compa-ratio? a. By dividing the average pay for the pay grade by the midpoint of that range b. By dividing the midpoint of the range by the pay grade c. By subtracting the average pay from the midpoint of the pay grade d. By multiplying the average pay for the pay grade by the midpoint of that range

a. By dividing the average pay for the pay grade by the midpoint of that range

Strategic management means: a. The definitions of criteria are all conceptually and empirically connected to employee, unit, and organizational outcomes b. The ability to provide specific goals for your employees c. The definitions of criteria are not conceptually and empirically connected to employee, unit, and organizational outcomes d. The ability to provide goals and aspirations for your organization

a. The definitions of criteria are all conceptually and empirically connected to employee, unit, and organizational outcomes

The Principle of Parity suggests: a. The more grades that are used, the smaller the ranges will be b. The more grades that are used, the larger the ranges will be c. The fewer grades that are used, the larger the ranges will be d. The fewer grades that are used, the smaller the ranges will be

a. The more grades that are used, the smaller the ranges will be

The Principle of Control states: a. The size of pay ranges should be kept sufficiently small to enable an organization to control fixed costs b. The size of pay ranges should be kept sufficiently large to enable an organization to control fixed costs c. The size of pay ranges should be kept sufficiently small to enable an organization to control labor costs d. The size of pay ranges should be kept fairly large to enable an organization to control labor costs

a. The size of pay ranges should be kept sufficiently small to enable an organization to control fixed costs

The Principle of Overlap states: a. There should be overlap in the pay ranges for successive pay grades or bands b. There should not be a gap between pay ranges for successive pay grades or bands c. There should be a gap between pay ranges for successive pay grades or bands d. There should not be an overlap in the pay ranges for successive pay grades or bands

a. There should be overlap in the pay ranges for successive pay grades or bands

What is the most obvious downside to a capability-based pay? a. There are no downsides b. Wages and salaries paid to employees will rise c. Wages and salaries paid to employees will decrease d. Wages and salaries paid to employees will level off

b. Wages and salaries paid to employees will rise

Which of the following is not a reason a corporation would want to incorporate individual-based pay into its Total Reward system? a. Builds a more flexible workforce b. Creates a culture of learning c. Demonstrates good faith in the employees d. Allows the organization to build its capacity

c. Demonstrates good faith in the employees

Transparent management means: a. The ability to conduct a 360 degree feedback survey b. The information employees need in order to understand management c. The criteria for establishing a reward system should be easily understood and the processes for implementing the system should also be well documented and followed

c. The criteria for establishing a reward system should be easily understood and the processes for implementing the system should also be well documented and followed

The assumption of the value of carrying and growing capacity lies at the heart of justifying a ______________________. capability-based rewards system performance-based rewards system individual-based rewards system

capability-based rewards system

A pay-form specific rewards strategy is: a. Varying pay level strategy within job families b. Varying pay level strategy among the organization c. Varying pay level strategy within job functions d. Varying pay level strategy across reward types

d. Varying pay level strategy across reward types

Pay form-specific reward strategies are: a. Single pay level strategy across reward systems b. Varying pay level strategy across reward systems c. Single pay level strategy across reward types d. Varying pay level strategy across reward types

d. Varying pay level strategy across reward types

Capability-based pay is: a. When a reward system explicitly attempts to vary rewards based upon the capabilities of the organization b. When a reward system explicitly attempts to vary rewards based upon the market trends c. When a reward system explicitly attempts to vary rewards based upon an employee's ability to add value to the organization d. When a reward system explicitly attempts to vary rewards based upon the capabilities of the employee

d. When a reward system explicitly attempts to vary rewards based upon the capabilities of the employee