HR-Chapter 12

Question 1

Objective of a compensation function

Answer 1

To create a system of rewards that meets the needs of an employer and employee alike. The desired outcome is an employee who is attracted to his or her work and motivated to do a good job.

Question 2

Criteria for an effective compensation system

Answer 2

-Adequate
-Equitable
-Balanced
-Cost-effective
-Performance-related
-Acceptable to the employee

Question 3

Internal equity and job evaluation

Answer 3

to determine the worth or value of a job, the organization can use job description and job specification data derived from job analysis either to compare one job with another or to compare jobs with a standard

Question 4

External equity

Answer 4

To determine the pay level of the job, the organization needs to gather information about the market rate of payment-salary survey

Question 5

Individual equity

Answer 5

This involves taking into account the following individual equity concerns
-On what basis will the pay levels of individuals be determined?
-Will skills, seniority, experience and similar individual characteristics be taken into account