Final Flashcards
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
broadbanding
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.
compa-ratio
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
green-circled
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
classification/grading
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
classification
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
observations
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?
functional
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
yes
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
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.
true
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.
