Final Exam

Question 1

Difference between Job Description and Job Specification

Answer 1

Job Description: A summary of the duties, responsibilities, and reporting relationships pertaining to a particular job

Job Specification: The employee qualifications, skills, education required to do the job successfully

Difference = Job Description is list of duties, Job Specs is a list of Knowledge skills abilities and other attributes (KSAOs)

Job Descriptions must be current for Job Evaluations to be successful and accurate

Question 2

Difference Berween Job Analysis and Job Evaluation

Answer 2

Job Analysis is the collection of information on which job descriptions are based
Job Evaluation is the systematic approach to establishing the Relative Importance of Jobs against other internal jobs within the organization

Question 3

Ranking method and Classification method of Job Evaluation

Answer 3

RANKING method is asking a group of “judges” (i.e. Mgrs, HR specialists) to examine a set of job descriptions and then rank their overall worth to the organization
CLASSIFICATION (JOB GRADING) method of job evaluation established defined classes / grading of jobs - different grades possess different levels of KSAOs, then organizations compare jobs using these grade descriptions within the appropriate job class then select they pay grade that matches them

Question 4

Difference between Performance Appraisal and Performance Management

Answer 4

Performance Appraisal is the process of assessing the overall performance level of individual employees whereas
Performance Management is a method for IMPROVING employee performance based on goal-setting, feedback, encouragement, support and rewards for success.

Question 5

What are 4 principle methods of job analysis?

Answer 5

Observation, Interviews, Functional Job Analysis and Questionnaires

Question 6

What are the 3 purposes of job evaluation?

Answer 6

Ensure all jobs are compensated equitably
Ensured that employees believe the organization is compensating them equitably / fairly
Jobs are not over- or under-paid

Question 7

What are the 4 methods of job evaluation?

Answer 7

Ranking / Paired, Classification / Grading, Factor Comparison, Point Method and Statistical / Policy

Question 8

What are the five main steps in developing a job evaluation system using point method

Answer 8

1- IDENTIFY key characteristics / COMPENSABLE ($) FACTORS
2- Developing a MEASURING SCALE for each factor
3 - WEIGHTING (100% split among 4 factors - skill, effort, responsibilities, working conditions - depends on Organizations Strategy)
4 - Applying the Job Evaluation System ( a “Hierarchy” of jobs)
5- Testing the Job Evaluation System

Question 9

What is Pay Equity legislation?

Answer 9

Equal Pay for Equal work of EQUAL VALUE

Question 10

What are the 4 compensable factors in point job evaluation method?

Answer 10

Skill, Effort, Responsibility, Working Environment

Question 11

What is compa-ratio?

Answer 11

How much an employee is making relative to the midpoint of their salary grade…

Comparative Ratio or COMPARATIO or CR:
Distribution of Employee’s Salary in Salary Range
(Current salary divided by the Market median) in terms of %

E.g. 50,000 / 59,000 = 84%

Question 12

What is performance appraisal?

Answer 12

The process of assessing the overall performance level of individual employees

Question 13

What are the main 4 purposes for conducting performance appraisal?

Answer 13

Administrative, Symbolic, Supervisory & Developmental

Question 14

What is Management by Objective (MBO)?

Answer 14

MBO is an approach to mgmt that involves setting employee goals and providing feedback on goal accomplishment (setting goals together, coaching, checking in, etc.) and write an Objective for an HR manager following SMART criteria

Question 15

Write an objective for an HR Manager role following the SMART guidelines.

Answer 15

By the end of Q2, the employee will reduce manufacturing errors by 50%.

Question 16

what are the main 6 sources of performance appraisals?

[tatiana - think this is it?] I think so.. I don’t know what else it could be..

Answer 16

superiors
customer
peer
self
subordinate
360-degree feedback

Question 17

What are 6 steps in implementing the compensation system?

Answer 17

1 - Establish the implementation task forces
2 - Put the infrastructure into place
3 - Test the stem
4 - Conduct the training
5 - Communicate information on the system
6 - Launch and adjust the system

Question 18

What are the 3 aspects/impacts are being considered in evaluating compensation system?

Answer 18

Reliability, Validity and Market Fit (I think?)

Question 19

What is compensation cost ratio?

Answer 19

the ratio of total compensation costs to total costs or to revenues

Question 20

What is compensating differential?

Answer 20

A higher compensation level offered by am employer because of undesirable aspects of the employment

Question 21

What are the main 4 reasons pay different compensation?

Answer 21

Skill, Effort, Responsibility and Working Conditions

Question 22

What is the meaning of compa-ratio 100%?

Answer 22

A CR of 100% means that the Employee’s salary is at the exact midpoint of their paygrade

Question 23

Determine compa-ratio when salary is $80,000 and mid-point is $100,000.

Answer 23

$80,000 divided by $100,000 = 0.8 therefore, CR = 80%

Question 24

What is the difference between Pay range and Pay Grade

Answer 24

Pay Grades are steps within the compensation system, as Pay Grade increases, usually, so does responsibility and other compensable factors. Pay Grades are COMPRISED of Pay Ranges which have a min, mid and max Example: once an Employee is above the max pay range (i.e CR = 140%
), an ER may consider a promotion to the next Pay Grade

Question 25

What is the difference between Mean and Median

Answer 25

Mean is the average of all the numbers added up and then divided by the number of numbers whereas the Median is the middlemost number