Compensation : Chapter 3-6 and 12 Flashcards

1
Q

Refers to the relationships among different jobs/skills/competencies within a single organization → job structure.

A

Internal Alignment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Often referred to as internal equity.

A

Internal Alignment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Structure needs to:

A

Supports organization strategy
Supports work flow
Motivates behavior

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

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

A

Work flow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

relationship between each job and the organization’s objectives

A

Motivates behavior

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

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

A

Internal Pay Structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Factors that define internal pay structures

A

the number of levels,
the pay differentials between the levels, and
the criteria or bases used to determine those levels and differentials.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The pay differences among levels

A

Differentials

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Higher pay is usually due to work:

A

requiring more skill/knowledge,
performed in unpleasant work conditions, or
work that adds more value to the company.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Work performed in a job and how it gets done

A

Content

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The worth of the work.

A

Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

A structure based on this criteria ranks jobs based on skills required, complexity of tasks, problem solving, and/or responsibility.

A

Content

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A structure based on this criteria focused on the relative contribution of the skills, tasks, and responsibilities of a job to the organization’s goals.

A

Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

relies on the work content – tasks, behaviors, responsibilities

A

Job- and Person-Based Structures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

shifts the focus to the employee

A

person-based structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The skills, knowledge, or competencies the employee possesses and if they are used in the job

A

person-based structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What Shapes Internal Structure?

A

External Factors and Organizational Factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are the External Factors?

A

Economic Pressures
Government Policies, Laws and Regulations
Stakeholders
Cultures and Customs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Organizational Factors

A

Strategy
Technology
Human Capital
HR Policy
Employee Acceptance
Cost Implications

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

determine the pay for the different jobs within a single organization

A

Internal Labour Markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

allocate employees among those different jobs.

A

Internal Labour Markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Strategic Choices in Designing Internal Structures

A

Tailored
Loosely Coupled
Egalitarian
Hierarchical

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Adapted by organizations with a low-cost, customer-focused strategy

A

Tailored

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Has well-defined jobs with detailed steps or tasks.

A

Tailored

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Adapted by organizations that require constant innovation.

A

Loosely Coupled

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Jobs are flexible, adaptable and changing

A

Loosely Coupled

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Pay structures are more loosely linked to the organization to provide flexibility.

A

Loosely Coupled

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Has well-defined pay structure

A

Tailored

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Example of Tailored internal structure

A

McDonald’s, Walmart

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Example of Loosely coupled structure

A

3M

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Fewer levels and smaller differentials.

A

Egalitarian

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Have multiple levels and have detailed job descriptions

A

Hierarchical

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Equal treatment can mean knowledgeable employees feel underpaid, who may quit or change their behaviours.

A

Egalitarian

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Results in higher performance when collaboration is required.

A

Egalitarian

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Results in higher performance when work flow depends on individual effort.

A

Hierarchical

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

People compare the ratio of their own outcomes to inputs with that of others.

A

Fairness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Employees judge fairness by comparing:

A

to jobs similar to their own,
their job to others at the same employer, or
their pay against external pay levels.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Relationship between motivation and performance.

A

Tournament Theory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Works best in situations where individual performance matters most

A

Tournament Theory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Example of Tournament Theory

A

players perform better where prize differentials are sizeable.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Organizations use “best practices”, and are simply copied

A

Institutional Theory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Copy others and conform

A

Institutional Theory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Disadvantages of Institutional theory

A

What aligns with the strategy of one organization may not align with that of another.
It may not be possible to have “competitive advantage” by simply imitating practices.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Consequences of an Internally-Aligned Pay Structure / Internally-Aligned pay structure can help an organization achieved these?

A

Efficiency
Fairness
Compliance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Comply with regulations of the country.

A

Compliance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Fair differentials motivate.

A

Fairness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Aligned structures lead to better performance.

A

Efficiency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Potential Outcomes of an Internally-Aligned Pay Structure:

A

Undertake training
Increase experience
Reduce turnover
Facilitate career progression
Facilitate performance
Reduce pay-related grievances
Reduce pay-related work stoppages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

What are the theoretical approaches

A

equity theory, tournament theory, institutional model.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

look at what people are doing and the expected outcomes

A

Job-based structures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

look at the person

A

Skill- and competency-based structures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

What is the purpose of both Job-based and skill-and competency-based structures?

A

Collect and summarize work content information that identifies similarities and differences.
Determine what to value.
Assess the relative value.
Translate the relative value into an internal structure.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

the systematic process of collecting information about the nature of jobs.

A

Job Analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

Involves the identification and description of what is happening on the job

A

Job Analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

Why does an organization needs to perform job analysis?

A

Job analysis potentially aids every HR function.
An internal structure based on job-related information provides a work-related rationale for pay differences.
In compensation, job analysis has two critical uses:
-it establishes similarities and differences in the work contents of the jobs, and
-it helps establish an internally fair and aligned job structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

The information to be collected in job analysis

A

Related to the job and Related to the Incumbent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

Related to the job includes the following:

A

Job Identification and job content

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Related to the incumbent includes the following:

A

Employee characteristics
Internal relationships
External relationships

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

includes job titles, departments, and the number of people who hold the job

A

Job Identification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

elemental tasks or units of work, with emphasis on the purpose of each task

A

Job content

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

Methods for Collecting Information

A

Interviews
Focus Groups
Questionnaires
Observation
Journals and Diaries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

Who Collects job information?

A

Human resource generalists and supervisors.
Someone thoroughly familiar with the organization and its job.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

Who provides job information?

A

Jobholders and supervisors.
Subordinates and employees in other jobs that interface with the job under study.
Number of incumbents from which to collect data varies with the stability of the job and ease of collecting the information.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

Outcomes of Job Analysis

A

Job description, job specification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

A written record of the tasks, duties, and responsibilities that make up a job.

A

Job description

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Identifies and describes the job title, job summary, relationships to other jobs.

A

Job description

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

Specifies the knowledge, skills, and abilities necessary to perform the job.

A

Job Specification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

The steps to conventional job analysis include:

A
  1. develop preliminary job information
  2. conduct initial tour of work site,
  3. conduct interviews,
  4. conduct second tour of work site,
  5. consolidate job information
  6. verify job description.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

The information that must be collected for job analysis includes :

A

job identification data, job content data, and data on qualifications necessary to do the job

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

True or False: Conventional methods are being replaced by online quantitative questionnaires or inventories which are more objective and less time-consuming

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

What is the benefit of traditional job analysis?

A

that it provides the basis for defensible job-related decisions and establishes a foundation for career paths.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

What is the disadvantage of traditional job analysis?

A

it is sometimes considered too rigid for today’s more flexible organizations with fluid work assignments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

Job analysis (both the process and the outcomes) should be ______ in order to achieve its purpose?

A

reliable, valid, acceptable, current and useful

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

A measure of the consistency of results among various analysts/methods/ sources of data, or over time.

A

Reliability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

Examines the convergence of results among sources of data and methods.

A

Validity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

Data and process must be acceptable to job holders and managers.

A

Acceptability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

Refers to the practicality of the information collected, e.g. Can it be used for multiple purposes?

A

Usefulness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

The job information must be current

A

Currency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

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

A

Offshoring

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

How much detail is needed to make these pay decisions?

A

enough to set pay levels, encourage continuous learning, increase the experience / skill of the work force, and minimize the risk of pay-related grievances.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

differences in work determine ____________

A

Pay differences

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

needed to determine pay

A

Work-related information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

Employers are doing these in order to increase productivity and reduce cost

A

reducing jobs, cross-training employees so they can do a wider variety of tasks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

This kind of job description can increase flexibility

A

Generic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

True or False: Generic job descriptions can decrease flexibility

A

False - increase flexibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

True or False: It is very important to verify the description with jobholders and supervisors to make sure it is accurate and complete, note needed clarifications.

A

True

87
Q

These are often more detailed – the job, its scope and accountability.

A

Descriptions of managerial/professional jobs

88
Q

to avoid starting from scratch or to cross-check externally use this type of job description

A

use generic job descriptions

89
Q

What are the disagreements that can occur when doing job analysis?

A

clarify expectations, learn a better way to do a job, and document how the job is performed.

90
Q

How to resolve job analysis discrepancies?

A

Collect more data and discuss discrepancies, asking for sign off on revised results.

91
Q

What is critical in the job analysis?

A

Support of top management, and union officials

92
Q

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

A

Job Evaluation

93
Q

What is job evaluation based on?

A

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

94
Q

these are strengths and challenges of job evaluation

A

potential to blend organizational forces and external market forces

95
Q

Major Decisions in Job Evaluation

A

Establish purpose of evaluation
Decide whether to use single or multiple plans.
Choose among alternative approaches.
Obtain involvement of relevant stakeholders.
Evaluate the usefulness of the plan.

96
Q

A structure is aligned if it:

A

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

97
Q

What’s the objective of establishing a purpose?

A

helps ensure the evaluation is a useful systematic process

98
Q

True or False: Many employers may design different evaluation plans for different types of work.

A

TRUE

99
Q

The number of job evaluation plans hinges _________

A

how detailed it needs to be to make pay decisions, and how much it will cost.

100
Q

Job Evaluation Methods

A

Job Ranking
Job Classification
Point Method

101
Q

Raters examine job description and arrange jobs according to their value to the company

A

Job Ranking

102
Q

Classes or grades are defined to describe a group of jobs

A

Job Classification

103
Q

Numerical values (points) are assigned to specific job components; sum of values provides quantitative assessment of the job’s worth

A

Point Method

104
Q

Types of Job Ranking

A

Simple, Alternation & Paired Comparison

105
Q

Orders job descriptions from highest to lowest based on relative value.

A

Simple Ranking

106
Q

Advantages of Simple Ranking Method

A

Simple, fast, and easy to understand and explain to employees; least expensive, initially.

107
Q

Disadvantages of Simple ranking method

A

If ranking criteria is poorly defined, evaluations become biased.
Evaluators must be knowledgeable about every job.
Results are difficult to defend and costly solutions may be required.

108
Q

Orders job descriptions alternately at each extreme

A

Alternation Ranking

109
Q

Evaluators agree on which jobs are the most and least valuable, then the next, etc.

A

Alternation Ranking

110
Q

Uses a matrix to compare all possible pairs of jobs.

A

Paired Comparison

111
Q

When all comparisons are completed, the job judged “more valuable” becomes the highest-ranked job, and so on

A

Paired Comparison

112
Q

A series of classes covers the range of jobs.

A

Classification

113
Q

the labels which capture general nature of work

A

Class descriptions

114
Q

compared to class descriptions to determine class level.

A

Job descriptions

115
Q

True or False: Greater specificity of the class definition improves the reliability of the evaluation.

A

TRUE

116
Q

this is the end result of a series of classes with a number of jobs in each class

A

Job Structure

117
Q

This method allows the assignment of a numeric score to each job in an organization, through the identification of factors that are valued by the organization.

A

Point Method

118
Q

This procedure results in a relative ordering of jobs based on the number of points that each job “scores”.

A

Point Method

119
Q

Steps in Designing a Point Plan

A
  1. Conduct Job Analysis
  2. Determine the compensable factors
  3. Scale the factors
  4. Apply to remaining jobs
  5. Communicate and train users
  6. Weight factors by imporatnce
120
Q

Its contents are well known and relatively stable over time

A

Benchmark jobs

121
Q

The job is common across employers

A

Benchmark jobs

122
Q

A reasonable proportion of the work force holds this job

A

Benchmark jobs

123
Q

Characteristics in the work that the organization values, that help it pursue its strategy and achieve its objectives.

A

Compensable factors

124
Q

Compensable factors should be:

A

based on the strategy and values of the organization,
based on the work performed, and
acceptable to the stakeholders affected by the resulting pay structure.

125
Q

four universal compensable factors

A

Skill, Effort, Responsibility and Working Conditions.

126
Q

small numbers is defined by:

A

If even one job has a certain characteristic, it is used in the entire work domain.

127
Q

Criteria for scaling factors

A

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

128
Q

range of degrees that most factors scales have

A

4 to 8 degrees

129
Q

In step 3 of designing a point plan, factors are scaled according to ___

A

Factors are scaled for presence

130
Q

In step 4 of designing a point plan, factors are weighted according to ___

A

Factors are weighted for importance

131
Q

How are factor weights being determined?

A

Weights are often determined through an advisory committee – a priori judgment approach

132
Q

policy capturing

A

Statistical modeling techniques determine the weight for each factor

133
Q

True or False: Factor weights reflect the relative importance of each factor

A

TRUE

134
Q

In communicating the plan and training the users what is crucial?

A

Employee acceptance

135
Q

this may be included for employee recourse

A

An appeals process

136
Q

Who Should Be Involved in Job evaluation?

A

involve managers and employees with a stake in the results
committees, task forces, or teams that include:
Employees from key operating functions
Union representatives
Compensation professionals
Consultants

137
Q

Fairness of the design process helps achieve____

A

employee and management commitment, trust, and acceptance of results.

138
Q

Why the need for appear/review procedure in job evaluation?

A

This ensures procedural fairness.
Procedures should be judged for their susceptibility to political influences.

139
Q

What is the final result of the job evaluation process?

A

Job Structure or hierarchy of work

140
Q

The disadvantage and advantages of Point method

A

Although the point method allows an organization to develop one job evaluation plan for all jobs in the organization, most times it is difficult to identify one set of compensable factors that is applicable for all jobs

141
Q

True or False: organizations commonly have multiple structures, derived from different approaches, and applicable to different functional groups or units.

A

True

142
Q

Balancing Chaos and Control in Job Evaluation Process

A

Complex procedures and bureaucracy can cause users to lose sight of the objectives.
Allow flexibility to adapt to changing condition.
Flexibility without guidelines increases chaos.
Balanced guidelines ensure employees are treated fairly.

143
Q

Link pay to the depth or breadth of the skills, abilities, and knowledge a person acquires that is relevant to the work.

A

Skill-Based Plans

144
Q

pay individuals for all the relevant skills for which employees have been certified regardless of whether the work they are doing requires all or just a few of those particular skill – the wage attaches to the person.

A

Skill-Based Plans

145
Q

Difference between skill-based and job based plan?

A

A job-based plan pays employees for the job to which they are assigned, regardless of the skills they possess

146
Q

pays employees for the job to which they are assigned

A

Job-Based plan

147
Q

Advantages of Skills-Based plans

A

higher flexibility as multi-skilled employees can be better matched to the work flow.

148
Q

Types of Skill-Based Plans

A

Specialist and Generalist

149
Q

Pay is based on knowledge of the person doing the job, rather than on job content or output.

A

Specialist: Depth

150
Q

Higher pay from certification of new skills.

A

Generalist/Multiskill Based: Breadth

151
Q

Responsibilities can change over a short time.

A

Generalist/Multiskill Based: Breadth

152
Q

Pay increases by acquiring new knowledge.

A

Generalist/Multiskill Based: Breadth

153
Q

Basic responsibilities do not vary on a day-to-day basis.

A

Specialist: Depth

154
Q

Purpose of a Skill-Based Structure

A

Supports organization’s strategy
Supports work flow: A main advantage is matching people to changing workflow
Fair to employees: Skill-based plans may give workers more control over their work life but favoritism and bias may be a problem.
Motivates behaviours toward organization objectives

155
Q

Skill-based structure is well suited for ____________

A

Suited for continuous-flow technologies where employees work in teams

156
Q

A systematic process to identify and collect information about skills required to perform work in an organization

A

Skill Analysis

157
Q

What information to collect?

A

Defining the skills
Arranging them into a hierarchy
Bundling them into skill blocks

158
Q

methods to determine and certify skills

A

Peer review, on-the-job demonstrations, or tests
Scheduled fixed review points and recertification

159
Q

Who are involved?

A

Employees and managers

160
Q

Outcomes of Skill-Based Plans

A

Well accepted by employees and provide strong motivation for individuals to increase their skills.
Become increasingly expensive – when workers top-out
Unless flexibility permits a leaner staff, labor costs will be higher
A plan’s success is determined by how well it aligns with the organization’s strategy.

161
Q

True or False: Research showed 60% of companies starting a skill-based plan continued using the plan after seven years.

A

TRUE

162
Q

Are jack-of-all-trades really a master of none?

A

Greater increments of flexibility achieve fewer improvements.
There may be an optimal number of skills per individual.

163
Q

True or False: The skill based plans may be a better fit in industries where labor costs are a small share of total costs.

A

TRUE

164
Q

estimated percentage of higher labor costs.

A

10-15%

165
Q

Purpose of a Competency-Based Structure

A

Supports organization’s strategy
Supports work flow: Competencies may require more tacit knowledge
Fair to employees:
- Advocates say they can empower employees.
- Critics worry about basing pay on personal characteristics.
- Justifying pay differences may create risks that need managed
Motivates behaviours toward achieving organization objectives

166
Q

These are underlying, broadly applicable knowledge, skills, and behaviours that form the foundation for successful work performance (exhibited by excellent performers more consistently than average performers)

A

Competencies

167
Q

are often linked to the mission statement

A

Core

168
Q

translate each core competency into action

A

Competency sets

169
Q

are the observable behaviors that indicate competency.

A

Competency indicators

170
Q

A systematic process to identify and collect information about the competencies required for successful work performance.

A

Competency Analysis

171
Q

are not unique for each company

A

Core competencies

172
Q

derive from leadership’s beliefs about the organization and its strategic intent.

A

Competencies

173
Q

True or False: There seems to be no objective way of certifying competency.

A

False

174
Q

have relatively few levels and wide differentials for increased flexibility.

A

Competency-based structures

175
Q

True or False: Competencies may identify outstanding performance but there is debate on whether they can be measurable and objective.

A

TRUE

176
Q

Competencies often morph into ___________

A

compensable factors

177
Q

What is the purpose of job-and-person-based procedures?

A

to design and manage a pay structure that aids success

178
Q

How do managers ensure that the structure remains aligned?

A

by reassessing work/skills/competencies as necessary.

179
Q

True or False: when evaluating higher-value, nonroutine work, the distinction between job- and person-based approaches blurs

A

TRUE

180
Q

Essential criteria in administering and evaluating the plan:

A

Fairness in the plan’s administration.
Availability of sufficient information to apply the plan.
Adequate communication and employee involvement are critical for acceptance.

181
Q

one where different evaluators produce the same results.

A

reliable evaluation

182
Q

How can reliability be improved?

A

by using evaluators familiar with the work and trained in job evaluation.
Some organizations use group consensus.

183
Q

refers to the degree the evaluation assesses relative job worth.

A

Validity

184
Q

TRUE OR FALSE: Validity needs to be broadened to include the impact on pay decisions.

A

TRUE

185
Q

Methods to assess and improve employee acceptability

A

formal appeals process allows a request for reanalysis and/or skills reevaluation.
employee attitude surveys assess perceptions of how useful evaluation is as a management tool.

186
Q

TRUE OR FALSE: Job evaluation may be susceptible to gender bias

A

TRUE

187
Q

Recommendations to ensure bias-free evaluation plans:

A

Define the compensable factors and scales to include the content of jobs held predominantly by women.
Ensure that factor weights are not consistently biased against jobs held predominantly by women.
Apply the plan in as bias-free a manner as feasible. Ensure that the job descriptions are bias-free, exclude incumbent names from the job evaluation process, and train diverse evaluators.

188
Q

Internally aligned pay structures can be designed to:

A

Help determine pay for the wide variety of work and ensure that pay influences attitudes and behaviors and directs toward objectives.

189
Q

The major skills analysis decisions are:

A

(1) What is the objective of the plan? (2) What information should be collected? (3) What methods should be used to determine and certify skills? (4) Who should be involved?

190
Q

TRUE OR FALSE: Employee acceptance is crucial for person-based plans

A

TRUE

191
Q

ways to enhance employee acceptance in person-based plan

A

Employee involvement, having a formal appeals process, and conducting employee attitude surveys

192
Q

Possible sources of bias in internal pay structures

A

bias in the job evaluation of traditionally female-dominated jobs
bias in current wages that may be perpetuated when job evaluation plans are structured to mirror existing pay rates.

193
Q

TRUE OR FALSE: Skill-based pay plans and competency-based pay plans are conceptually identical, but skills are very specific and competencies are more general.

A

TRUE

194
Q

Governments’ interest in part of employment relationship includes:

A

procedures for determining pay are fair (no pay discrimination)
safety nets for the unemployed and disadvantaged are sufficient (minimum wage, employment insurance)
employees are protected from exploitation (human rights, pay equity)

195
Q

These are continuing compensation objectives

A

Compliance and fairness

196
Q

Employment Standards Acts/Codes

A

minimum wage
paid vacation
paid holidays
standard hours of work and overtime pay
pay on termination of employment
minimum age of employment
equal pay for equal work by men and women

197
Q

equal treatment in employment and opportunity for employment regardless of race, colour, religion, sex…

A

Human Rights Legislation

198
Q

the amount by which the average pay for female workers is less than the average pay for male workers

A

gender wage gap

199
Q

issue relating to the gender wage gap

A

Pay Equity

200
Q

one of the compensable factors that includes experience, training, education, and ability as measured by job performance requirements

A

SKILL

201
Q

one of the compensable factors that includes mental or physical, the degree of effort actually performed on the job

A

effort

202
Q

the degree of accountability required in the job performance

A

responsibility

203
Q

the physical surroundings and hazards of a job; inside/outside, heat/cold, and poor ventilation

A

working conditions

204
Q

Reasons for Gender Wage Gap

A
  1. differences in occupational attainment; women historically segregated in small number of occupations e.g., sales, nursing
  2. differences in number of hours worked
  3. differences in industries and firms
  4. differences in union membership
  5. presence of discrimination
205
Q

What is the role of government in compensation?

A

is to assess whether procedures for determining pay are fair, whether safety nets for the unemployed and disadvantaged are sufficient, and whether employees are protected from exploitation. Governments also affect the supply of and demand for workers.

206
Q

What are the major compensation-related provisions of employment standards legislation

A

minimum wage, paid vacation, paid holidays, standard hours of work and overtime pay, pay on termination of employment, minimum age of employment, and equal pay for equal work by men and women.

207
Q

This affects compensation in that compensation decisions based on any of the prohibited grounds for discrimination are illegal.

A

Human rights legislation

208
Q

This intended to redress the portion of the wage gap assumed to be due to gender discrimination.

A

Pay equity legislation

209
Q

Effect of Government on Supply of & Demand for Workers

A

Demand
- Governments (federal, provincial/territorial and municipal) employ a lot of workers
- Indirectly affects labor demand through its purchases and financial policy decisions
Supply
- Affects labor supply through legislation
- Licensing requirements restricts labor supply.
- Immigration policy and how rigorously it is enforced is an important factor in labor supply

210
Q

The Impact of Unions

A

General wage and benefit levels
The structure of wages
On non-unionized firms (also known as spillover effect)
Wage and salary policies and practices in unionized firm

211
Q

Union Impact on General Wage and Benefit Levels

A

union workers earn about 10 percent more than non-union workers
size of the gap varies from year to year
-union impact higher during periods of higher unemployment and slow economy
-union impact smaller during strong economy
union benefits 20 to 30 percent higher than non-union

212
Q

For management, wage tiers can be used

A

as a cost control strategy to allow expansion or investment, or
as a cost-cutting device to allow economic survival.

213
Q

differentiate pay based on hiring date

A

Two-tier wage pay plans

214
Q

The spillover effect occurs when

A

employers avoid unionization by offering wages, benefits, and conditions won in unionized firms.