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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.


average employee earnings

total compensation divided by the number of full time equivalent employees


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


behaviour observation scales (BOS)

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


behaviourally anchored rating (BARS)

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



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


central tendency error

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


classification/grading job evaluation method

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



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


compensable factors

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


compensating differential

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


compensation cost ratio

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


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


defined benefit plans

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


defined contribution plan

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


fixed benefit system

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


flexible benefit system

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


graphic rating scale

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


halo error

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


job analysis

the process of collecting information on which job descriptions are based


job description

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


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


management by objective (MBO)

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


market line

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


paired comparison job evaluation method

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


pay grade

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


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`


pay range

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


performance management

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


ranking job evaluation method

the relative values of different jobs are determined by knowledgeable individuals


what does the position analysis questionaire focus on

behaviors that make up the job


what are two methods of job evaluation

ranking/paired comparisons and classification/grading


a job description serves several purposes what are these

providing guaindce in the selection and recruitment process


what are the four main methods of conducting job analysis

interviews, observation, questionnaires, and functional job analysis


Must you go through the pay equity process in ontario

not if your firm has no female job classes


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


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



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


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

compensable factors


what is not a valid reason to re-evaluate jobs

a new performance system is implemented


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



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

Hay Plan


what do job specifications focus on

employee qualifications


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


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



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



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


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

job analysis


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


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


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

functional job analysis


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



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


what are the two methods for deriving factor weightings

statistical analysis and expert judgement


what does reliability of the job evaluation system mean

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


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.


do job evaluations help to establish internal equity



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 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.



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

benchmark jobs


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


what does the market line determine

the relationship of job evaluation results to market pay rates


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


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

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


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


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


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

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


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

excessive overlaps between pay ranges


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


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.