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Compensation > Exam 2 > Flashcards

Exam 2 Flashcards

1
Q

Describe broad banding:

A

Collapsing a number of salary grades into a smaller number of broad
grades with wide ranges

A single band has one minimum and one maximum

Since it includes so many jobs of different values, a range midpoint is usually not used

Some advantages are more flexibility in providing pay raises without giving a promotion

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2
Q

Sets pay structures almost exclusively on external market rates

A

Market pricing

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3
Q

Willing to make adjustments to increase compensation in certain positions that are in demand

A

Market pricing

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4
Q

When the rates for jobs of the external market are calculated, and nonbenchmark jobs are blended into the pay hierarchy created by the external rates

A

Market pricing

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5
Q

Position which requires adjusting pay policy and pay structure

A

Correlator

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6
Q

A prototypical job, or group of jobs, used as a reference point for making pay comparisons within or without the organization.

A

Benchmark jobs

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7
Q

What are the characteristics of a benchmark job?

A

Contents well known and stable over time
Job is common across different employers
Reasonable proportion of the workforce is employed in this job

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8
Q

generalists with knowledge in all phases of operations including marketing, manufacturing, finance, and human resources

A

Breadth skill plan

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9
Q

Correlation helps out, gets rid of outliers

A

Normalization

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10
Q

The pay rates from minimum to maximum set for a pay grade or
class. It puts limits on the rates an employer will pay for a particular job

A

Pay ranges

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11
Q

Pay structure that links pay to the depth or breadth of the skills, abilities, and knowledge a person acquires that are relevant to the work.

A

Skill-based structure

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12
Q

specialists in corporate law, finance, or welding and hydraulic maintenance (likely based on education level)

A

depth skill plan

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13
Q

Orders jobs on the basis of internal factors

A

Job structure

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14
Q

What are the objectives for a skill based structure?

A

supports organizational strategy, supports work flow, fair to employees, directs behavior toward organization objectives

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15
Q

What are the 3 steps of skill based structures?

A

skill analysis, skill blocks, skill certification

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16
Q

What job was the highest rated?

A

marketing manager

17
Q

What job was lowest rated?

A

Material clerk

18
Q

What are the pay range ratios

A

0.8 minimum
0.9: 25th
1.0: 50th
1.1: 75th
1.2 maximum

19
Q

Why are pay surveys done?

A

Help companies set competitive pay policy relative to other organizations

20
Q

What does a job evaluation establish?

A

A job hierarchy based on job content

21
Q

Job evaluation where organizing jobs by extremes

A

Alternation ranking

22
Q

What is the most likely compensable factor

A

Accountability

23
Q

Jobs common across a variety of organizations are known as

A

benchmark jobs

24
Q

minimum a person will accept for job

A

reservation wage

25
Q

method of job evaluation based on points

A

point method

26
Q

Sometimes organizations are forced to give not a high enough salary increase because they are right against the line
Don’t want to pay beyond the maximum

A

Paid Compression

27
Q

a wage structure that is set to lead the market throughout the plan year. Its aim is to maximize a firm’s ability to attract and retain quality employees and to minimize employee dissatisfaction with pay

A

lead pay level policy

28
Q

a wage structure that is set to match market rates at the beginning of the plan year only. the rest of the plan year, internal rates will lag behind market rates.

A

lag pay level policy

29
Q

Compensation approach
that links pay to the depth and scope of competencies
that are relevant to doing the work

A

competency based structure

30
Q

How to determine the reliability of job evaluation method:

A

do different evaluators provide same results

31
Q

The relevant market can be…

A

local international or national

32
Q

process of taking different survey data, which can be accurate at different points in time, and adjusting the data to some common point in time

A

aging the data

33
Q

How to calculate departmental compa ratio

A

sum of salaries / sum of midpoints in pay grade

34
Q

Logic supporting person based pay is that…

A

it provides each individual with more flexibility

35
Q

the more education costs the more salary should be

A

Human capital theory

36
Q

How to find compa ratio

A

salary / midpoint of pay grade

37
Q

Supply chain issues during pandemic: lack of commercial drivers licenses

A

Use market pricing compensation strategy

Compensation (17 decks)

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