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
method of job evaluation based on points
point method
26
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
Paid Compression
27
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
lead pay level policy
28
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.
lag pay level policy
29
Compensation approach that links pay to the depth and scope of competencies that are relevant to doing the work
competency based structure
30
How to determine the reliability of job evaluation method:
do different evaluators provide same results
31
The relevant market can be...
local international or national
32
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
aging the data
33
How to calculate departmental compa ratio
sum of salaries / sum of midpoints in pay grade
34
Logic supporting person based pay is that...
it provides each individual with more flexibility
35
the more education costs the more salary should be
Human capital theory
36
How to find compa ratio
salary / midpoint of pay grade
37
Supply chain issues during pandemic: lack of commercial drivers licenses
Use market pricing compensation strategy