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Flashcards in Final Deck (70)
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1

What is aging the data

the process of adjusting compensation data to bring it up to date with the time period in which the new compensation will take effect.

2

average employee earnings

total compensation divided by the number of full time equivalent employees

3

base pay structure

the structure of pay grades and pay ranges, along with the criteria for movement within pay ranges, that applies to base pay

4

behaviour observation scales (BOS)

appraisal method under which appraisers rate the frequency of occurrence of different employee behaviors

5

behaviourally anchored rating (BARS)

appraisal method that provides specific descriptors for each point on the rating scale

6

broadbanding

the practice of reducing the number of pay grades by creating large or "fat" grades, sometimes known as "bands"

7

central tendency error

occurs when appraisers rate all employees as "average: in everything

8

classification/grading job evaluation method

the use of generic grade descriptions for various classes of jobs to assign pay grades to specific jobs.

9

compa-ratio

a measure of distribution employees within their pay range calculated by dividing the mean base pay by the midpoint of the pay range

10

compensable factors

characteristics of jobs that are valued by the organization and differentiate jobs from one another

11

compensating differential

a higher compensation level offered by an employer because of undesirable aspects of the employment

12

compensation cost ratio

the ratio of total compensation costs to total costs or to revenues

13

contrast effect

the tendency for a set of performance appraisals to be influenced upward by the presence of a very low performance or downward by the presence of a very high performer

14

defined benefit plans

pension plans that provide retirement income based on a proportion of the employees pay at the time of retirement.

15

defined contribution plan

pension plans that provide retirement income based on the accrued value of employer and employee contributions to the plan

16

fixed benefit system

an employee benefit plan that provides a standard set of benefits to all those covered by the plan

17

flexible benefit system

an employee benefit plan that allows employees to allocate employer provided credits to purchase the benefits of most value to them

18

graphic rating scale

an appraisal method in which appraisers use a numerical scale to rate employees on a series of characteristics

19

halo error

occurs when appraisers rate an individual either high or low on all characteristics because one characteristic is either high or low

20

job analysis

the process of collecting information on which job descriptions are based

21

job description

a summary of the duties, responsibilities, and reporting relationships pertaining to a particular job

22

key job matching

including jobs on a compensation survey that are well understood and numerous in the labour market, and asking respondents to supply compensation information for those jobs

23

management by objective (MBO)

an approach to management that involves setting employee goals and providing feedback on goal accomplishment

24

market line

a regression line that relates job evaluation points to market pay in dollars for the benchmark jobs

25

paired comparison job evaluation method

every job is compared with every other job, providing a basis for a ranking of jobs

26

pay grade

a grouping of jobs of similar value to the organization, typically grouped by point totals

27

pay policy line

the intended pay policy for the organization, generated by adjusting the market line for the intended pay level strategy of the organization`

28

pay range

the minimum and maximum pay rates (in dollars) for jobs in a particular pay grade

29

performance management

method for improving employee performance based on goal - setting, feedback, encouragement and support, and rewards for success

30

ranking job evaluation method

the relative values of different jobs are determined by knowledgeable individuals

31

what does the position analysis questionaire focus on

behaviors that make up the job

32

what are two methods of job evaluation

ranking/paired comparisons and classification/grading

33

a job description serves several purposes what are these

providing guaindce in the selection and recruitment process

34

what are the four main methods of conducting job analysis

interviews, observation, questionnaires, and functional job analysis

35

Must you go through the pay equity process in ontario

not if your firm has no female job classes

36

what practices can be used to ahieve job equity

-all positions in a job class will receive adjustments in dollar terms
-each female job class met receive a yearly adjustment until pay equity is achieved
-inequitable female job classes with the lowest job rate must receive a greater adjustment

37

what is the term generally used to describe employees who are below the pay ranges for their jobs

green-circled

38

What kind of questions would a job evaluation process address

-who conducts the job evaluations
-what appeal mechanisms are to be established
-how should the job evaluation results be applied

39

which term is used to describe key characteristics of jobs that are valued by organizations and differentiate jobs from one another

compensable factors

40

what is not a valid reason to re-evaluate jobs

a new performance system is implemented

41

what job evaluation method has historically been popular with government civil service organizations

classification/grading

42

what job evaluation method is intended mainly for management and executive jobs

Hay Plan

43

what do job specifications focus on

employee qualifications

44

one of the shortcomings associated with job analysis in dynamic work environments is the potential for obsolete data to be used for a variety of human resource decisions. what proactive steps would you recommend to an organization facing this issue

update job descriptions systematically

45

which job evaluation method is like sorting books among a series of carefully labelled shelves in a bookcase

classification

46

Carlos decides to use a time and motion study to gather information about a particular job. what kind of job analysis method is Carlos using

observations

47

which evaluation method uses questionnaires to capture time spent on certain actives and the importance of those actives to the successful completion of the job

statistical/policy capturing

48

which process is looked upon as the process of gathering data and information about the characteristics required for specific jobs

job analysis

49

Joel who was above the pay range was forced to take a substantial pay cut. he has decided to challenge his employers in the courts. what will he likely claim

constructive dismissal

50

XYZ. Inc uses a group of judges to examine its job descriptions and determine the value of these jobs to the organization. what job evaluation method is xyz inc. using

ranking method

51

which job analysis method is used for organizations that are being created or when new jobs are introduced?

functional job analysis

52

because your company is newly created, you do not have any job descriptions. which method of job analysis will you need to use?

functional

53

which process is used to determine the relative importance of the employees job to the organization and the placing of those jobs in the same hierarchy level

job evaluation

54

what are the two methods for deriving factor weightings

statistical analysis and expert judgement

55

what does reliability of the job evaluation system mean

that the system will produce the same results even if different evaluators are used.

56

what does the final step in developing a job evaluation system using a point method require

that the job hierarchy scheme meet certain criteria, including validity and market fit.

57

do job evaluations help to establish internal equity

yes

58

T or F? the primary drawback associated with using the point method of job evaluation is that it provides an illusion of a scientific process when in fact the method relies significantly on the judgement of evaluators in selecting appropriate weights

true

59

true or false? one possible solution to excessive pay scare overlaps is to ensure that the maximum pay in a lower scale is less than the midpoint of the next higher pay scale.

true

60

in calibrating job evaluation results with the market, we select "key" organizational jobs for market comparisons. what are these "key" jobs called

benchmark jobs

61

what is a negative consequence of clustering jobs into pay grades

there may be pressure to reclassify borderline jobs or to promote people to get more money

62

what does the market line determine

the relationship of job evaluation results to market pay rates

63

after plotting a regression (market line), you determine that the slope is very steep. what possible conclusion can you make from observing the slope of the regression line

there is not sufficient spread in job evaluation points between low-value and high-value jobs

64

what does the correlation coefficient of the market pay line tell you

"goodness of fit" between the job evaluation points and market pay

65

under the point method scheme of job evaluation, what is the main characteristic that distinguishes one job from another thereby making a job more valuable to an organization.

point score of the jobs

66

the textbook identifies four possible pitfalls associated with the point method of job evaluation. which category of pitfalls would include a situation whereby the factor is poorly defined, creating a situation in which the evaluator is not clear what the factor is designed to pick up?

inconsistent construct

67

what does a -1 (negative one) correlation coefficient mean?

there is an inverse relationship between job evaluation points score and pay levels

68

which practice is a threat to the integrity of the job evaluation system?

excessive overlaps between pay ranges

69

after reviewing pay ranges for your organization, you realize a significant number of pay ranges do not overlap or do not connect. for example the maximum of the pay range for pay grade number 2 is $50,000 and the minimum range for pay grade number 3 is $60,000 . what is a potential root cause of this issue?

ranges are too narrow and/or there are not enough pay grades

70

how is the comps-ratio calculated

by taking the average pay of all employees holding a particular job title and then dividing this by the midpoint of the pay range for that job.