CHAPTER 6 Building internally consistent compensation systems

Question 1

Internal consistency

Answer 1

this principle establishes a clear job hierarchy, ensuring that jobs within an organization are paid according to their relative value. Jobs that demand higher qualifications, responsibilities, and complexity should be paid more than simpler roles

Question 2

Job analysis

Answer 2

a systematic and descriptive process to gather and analyze information about job duties, responsibilities, and required qualifications

Question 3

Job content

Answer 3

describes job duties and tasks

Question 4

worker requirements

Answer 4

identifies the minimum knowledge, skills, and abilities (KSAs) necessary for job performance

Question 5

working conditions

Answer 5

specifies the physical and social context in which the job is performed

Question 6

steps in job analysis

Answer 6

1. determine a job analysis program
   2.select and train analysts
2. direct job analyst orientation
3. conduct a study using questionnaires, interviews or observation
   5.summarize finding in job descriptions

Question 7

Job analysis units

Answer 7

1. element: the smallest tasks
2. task: one or more element
3. position: a collection of tasks
4. job: a group of positions with similar tasks
5. job families: a group of two or more jobs with similar characteristics. Example: Clerical job family: file clerk, clerk typist, administrative
   clerk
6. Occupation: a group of jobs
   – Office support occupation

Question 8

Reliable Job Analysis Method

Answer 8

Yields consistent results
under similar conditions

Question 9

Valid Job Analysis Method

Answer 9

Accurately assesses each
job’s duties or content

Question 10

Job description should include

Answer 10

– Job title
– Job summary
– Job duties
– Worker specifications

Question 11

ONET content model : worker oriented

Answer 11

1. worker characteristics
2. worker requirements
3. experience requirements

Question 12

Onet content model: job oriented

Answer 12

1. occupational requirements
2. workforce characteristics
3. occupation-specific information

Question 13

Job evaluation

Answer 13

a process used to determine the relative worth of jobs within the organization, which establishes pay differentials between jobs.

Question 14

compensable factors

Answer 14

these are the salient job characteristics (skill, effort, responsibility, and working conditions) that are used to establish pay

Question 15

job evaluation process

Answer 15

1. Select technique
2. Choose committee
3. Train members to evaluate
4. Document plan
5. Communicate with employees
6. Set up appeals process

Question 16

two job evaluation techniques

Answer 16

1. market-based evaluation- uses market data to determine differences in job worth
2. job-content evaluation- establishes a hierarchy of internal job worth based on the company’s value system

Question 17

point method

Answer 17

assigns numerical values to compensable factors, such as skills and responsibilities, and sums these values to determine the overall worth of a job.

Question 18

steps of point method 7

Answer 18

1.select benchmark jobs
2. choose compensable factors
3.define factor degrees
4.determine weight of factors
5.determine point value
6.verify factor degrees and point values
7.evaluate all jobs

Question 19

simple ranking plans

Answer 19

this plan orders all jobs from lowest to highest according to single criterion such as job complexity

Question 20

paired comparisons

Answer 20

every job is paired with every other job. After all pairs are rated, the jobs are ranked by total points received.

Question 21

alternation ranking

Answer 21

the relative value of each job is judged by a single criterion. Ranking begins by determining which job is the most then least valuable

Question 22

classification plans

Answer 22

place jobs into categories based on compensable factors