Job Architecture

Question 1

Total rewards impact

Answer 1

– Talent acquisition. Availability of potential employees. Labor market conditions influence rewards.
– learning and development. Performance evaluation should be a significant term of individual compensation.
– total rewards. Higher skill level should lead to higher compensation level levels.
– employee and labor relations. Rewards are negotiated with employee groups and labor unions.

Question 2

Total rewards influence

Answer 2

– Total reward system.
Influence potential applicants in the hiring process. Deliver a consumer great experience.

Influence performance levels. Bias the evaluation process.

Stimulate interest in training and reinforced the development new skills next.

Prioritize inclusion and diversity. Create adequate and equitable rewards.

Feedback to HR functions
– planning and acquisition
– performance management
– training and development.
– employee labor relations.

Question 3

Total reward motivators

Answer 3

Intrinsic rewards
– internal result received from performing the Task, derived from the employee, interest, and enjoyment.
Extrinsic rewards
External result received from performing the task, depending on others, e.g. rewards and status

Question 4

Head over rewards motivate employees

Answer 4

– positive reinforcement.
– design of work and work environment intrinsic
– Goal setting
– formal extrinsic rewards
– pay for performance systems

Question 5

Total rewards

Answer 5

– Functional area of HR that pays and rewards employees.
– operational influence. Processing payroll, complying with wage in our laws, managing benefits administration.
– strategic influence to increase overall employee performance and satisfaction.

Question 6

Development of total reward package

Answer 6

– Pay level decision. Overall level of how a business is compensation structure, how does pay compare with market?
– Pay structure decision. Pay awarded to different jobs within the business. How much does one job pay relative to other jobs?
– individual pay decision. Individual compensation regular and supplemental. How much do employers performing the same job get paid relative to each other
– indirect programs. Incentives to entice employees to perform efficiently. Which programs aren’t necessary to attract, qualified to join and stay.

Question 7

Factors influencing the pay level

Answer 7

– Organization. Compensation strategy, job evaluation, performance, appraisal, labor, market, labor, laws, society, economy. Strategy
– Unionization. Bargaining power, market conditions, industry factors.
– productivity. Standardization, profitability, ability to pay.

Question 8

Establishing the pay level

Answer 8

– Stated or implied pay level policy. Mostly communicated verbally rather than in writing.
– expected to achieve three objectives. Attract an adequate supply of labor, keep current employees, reasonably satisfied with their compensation, avoid costly turnover..

Question 9

Pay structure design

Answer 9

– Determining how much each job should be paid relative to other jobs in the business. Provided equal pay for jobs of equal worth, acceptable set of pay differentials for jobs of unequal worth.
– Amount of money is based on the job demands and not on how well the job holder performs.
– all jobs in an organization are not worth the same rate of pay.
–

Question 10

External equity

Answer 10

– Compare business with similarities. Industry, occupation, location
– businesses may decide to lag (pay below the market), match, lead

Question 11

Internal equity

Answer 11

– Equal pay for equal work within the business.
– leverage market data to support pay structure.
– promotes equity. Jobs of comparable value are assigned to the same grade range. Range of pay is the same for those jobs.
– assures that employees within the business are paid fairly versus each other.

Question 12

Job architecture

Answer 12

– Also referred to by sub components, job, catalogue, or job leveling or job structure.
– Serves as the foundation of effective pay program design.
– provides the infrastructure for the human capital and financial practices that drive into the business.
– Well designed job architecture can aid inattracting and retaining top talent, engaging in growing employees, maintaining better controls around people cost, and responding quickly to changing business needs

Question 13

Job architecture framework

Answer 13

– Inputs. Business context, talent, strategy, total reward, strategy, market data, job analysis, employee data next.
-Job catalog. Infrastructure for organizational jobs. (Codes, titles, functions, families, etc..)
- job leveling – systematic process of determining the businesses relative ranking of job
– Job structure. Equitable pay distribution between the pay grades and ranges to create distributed pay
– drivers. Business strategy shifts,, compensation program, revisions, HR system, new or update updates.

Question 14

Job architecture process

Answer 14

– Job catalog. Design classification framework, review job analysis, develop job, profiles, apply job evaluation, Map positions to jobs.
Job leveling. Established career levels and competencies. Identify the new job titles, standardize the existing job titles.
– job structure. Analyze jobs, evaluate job jobs, price jobs, create pay structure, place jobs and grades, administer plan, communicate plan, evaluate plan

Question 15

Job structure process

Answer 15

Analyze jobs – price job – evaluate job – create pay structure – place jobs in grades and ranges – administer plan – communicate plan

Question 16

Pay transparency.

Answer 16

Pay equity practices.
– Only 19% of employees in the US, compared to 22% globally, give their company an a grade for equity and pay and promotion
Pay equity perceptions
– During the past five years, employees perception of fair pay has declined from 57% to 52%

Question 17

Transparency considerations

Answer 17

– Potential advantages. Supports the achievements of strategic business objectives. Reduces conflict between employees in between employees and management next line – potential challenges. Leads to jealousy and performance problems and employees questioning the systems fairness. Poses a risk that information may be used for inappropriate or unintended purposes. Requires protection of employee privacy and priority information. Raises information and cultural concerns about fairness in the global environment.

Question 18

Total rewards in the budget

Answer 18

– Labor and the associated cost is the largest business expense.
– HR supports the accounting nature of total rewards by building pay ranges using market data from salary surveys.
– it is regulated by many labor laws and must comply with good accounting practices

Question 19

Controlling costs 3

Answer 19

– Ranges. Setting limits using compa ratios.
– Budgeting. Using top down approach to controlling costs.
– auditing. Monitoring expenditures.

Question 20

Value driven HR processes

Answer 20

– Infrastructure for the human resources and finance practices that drive to business.
– foundation for effective reward design. Determines the value of jobs based on talent, drivers, business needs, and market practices next line – consistent methodology, and decision support for assigning job levels and titles that are based on organizational elements. Eliminate guest work. Promotes trust and confidence in the job assignments and rewards practices.
– Workforce planning and career pass become logical, transparent, and physically responsible. Supports employees and business strategies.

Question 21

Managing job content

Answer 21

– Job analysis. Identify job task and qualifications of incubus
– job documentation. Create job descriptions and job specifications.
– job evaluation. Establishes the value of jobs in the business.
– pay structure. Establishes pay grades and pay ranges for the job.

Question 22

Job analysis

Answer 22

– Accurately predicts, an informed talent planning decisions by helping HR professionals to understand. Set of skills current employees, structure of jobs.
– identifies the knowledge, skills, abilities, and other characteristics necessary to successfully perform the job. Current and potentially future state.
– Forms the basis for all human resource practices

Question 23

Usefulness job analysis

Answer 23

Job analysis – job description/job specification – job competencies

External – Department of labor, industry competencies. Equal job competency.
Corporate – organizational competencies, equal job competency

Job competencies – performance standards – job profile

Question 24

Job analysis across HR

Answer 24

– Talent acquisition. Describes new job openings, advertises new positions, identifies the skills and activities to select candidates, notify employees of activities to perform.
– learning and development. Identify performance standards and objectives for evaluations, conducts a training needs assessment by identifying the activities that employee should be able to perform.
– total rewards. Develop job categories analyzes the characteristics of a job that need to be changed in job redesign project. Evaluate job worth. AIDS and developing a pay structure.
– employee and labor relations. Identifies unsafe working procedure procedures. Identify as acceptable performances for employees to achieve. Identify the essential function for people with disabilities to perform. Protects in other dispute, such as wage in our claims.

Question 25

Job descriptions

Answer 25

– Best known output from job analysis is the job description. Is the foundation for many human resource functions and identify the essential functions.
– job identification. Job title and other identifiers. Reporting relationships, location in hierarchy, exempt or non-exempt status and pay grade.
– job summary. General summary of the major responsibilities and components that make the job different from others.
– duties are responsibilities. Percent of time, devoted to each, relationships with others and supervisory responsibilities. Machines, tools, and materials used. Working conditions, potential hazards. Standards of performance.
Nonsense show functions. Other duties assigned
– job specification. Knowledge, skills, and the abilities. Educational and professional requirements. Experience needed for job
function.

Question 26

Job specifications

Answer 26

– Identify the minimum acceptable qualifications required for an employee to perform the job adequately.
– information typically falls into one of three categories;
– general qualification requirements. Experience, training, and specific job preparation.
– educational and professional requirements. High school, vocational, education, university degrees, and professional certifications.
– knowledge, skills, and abilities.

Question 27

Communication to employees

Answer 27

Talent acquisition. Recruit the right talent.
– learning and development. Evaluate employee productivity and performance. Communicate performance expectations to supervisors and employees. Helps establish evaluation criteria for job performance. Motivates employees with engaging career pass. Protect future with effective succession plans.
– total rewards Helps the assignment of objective classification or job titles to to employees. Benchmark/evaluate jobs to compensate employees fairly. Develop equitable pay structures.
– employee and labor relations. Assist employers in recognizing and addressing reasonable accommodation. Reduces an organization liability exposure to discrimination charges allegations. Protect business from regulatory sanctions.

Question 28

Non-exempt employee

Answer 28

– Covered by the minimum wage in overtime, pay provisions of the FLSA.
– Generally paid on an hourly basis, such as blue collar and nonsupervisory white collar

• job requirements, not the method of pay, determine whether a job is exempt or non-exempt

Question 29

Exempt employee

Answer 29

– Executive
– administrative
– professional. Learned, creative, teaching.
– outside sales
– computer related.

Question 30

Primary duty

Answer 30

– Main or most important job responsibility. Key part of exemption.
– no percentage of exempt duties is required under the FLSA. The lower the percentage, the greater the legal risk if challenged.

Question 31

Executive exemption

Answer 31

– Have a primary duty of managing an organization, department, or subdivision.
– direct the work of at least two full-time employees or their equivalent
– have the authority of the employer to hire and fire
– affect promotion decisions
–

Question 32

Professional exemptions

Answer 32

Learned professionals.
– require advanced knowledge in a field of science or learning that is acquired by prolonged instruction. Next line – work is an intellectual and nature and requires exercise of discretion and judgment.
– Must meet minimum salary requirements

Creative professionals.
– perform work that requires invention, imagination, originality, or talent.
– perform a recognize field of creative or artistic endeavor.
– must meet minimum salary requirements

Teaching professionals.
– primary duty must be teaching, tutoring, instructing or lecturing in the activity of importing knowledge.
– must be employed and engaged in the teaching activity as a teacher in an education, educational establishment by which the employee is employed

Question 33

Administrative exemption

Answer 33

– Requires performance of office or non-manual worker directly related to the management or general business operations of the employer or the employers customer.
– includes the exercise of discretion and independent judgment related to matters of the significant

Question 34

Human resources or personnel managers

Answer 34

Administrative exemption.
– formulate, interpret, or implement employment policies. When the interviewing and screening functions are performed by the manager, who makes the hiring decision or makes recommendation for hiring from a pool of qualified applicants.
– management consultants who study the operations of the business and proposed changes in organization.
– excludes personnel, clerks, who screen applicants to obtain data regarding their minimum qualifications and fitness for employment

Question 35

Outside sales employee exemption

Answer 35

– Have a primary duty in involving making sales or obtaining orders and contracts
– Be customarily and regularly engaged away from the employers’s place of business
– Outside sale employees are not subject to the minimum salary requirements of other exemptions

Question 36

Computer employee exemption

Answer 36

– Must meet the salary minimum requirement for either a salary or wages. 455 per week if paid on salary basis 23 660 for an annual salary or 2763 per hour if paid for each hour worked payment on hourly basis requires higher minimum weekly pay to qualify for exemption

Employees pay cannot be subjected deductions inconsistent with the salary basis requirement
– Primary duties must fall into one of the four categories : computer system, analyst, computer, programmer, software engineer, other similarly skilled job in the computer field

Question 37

Highly compensated exemption

Answer 37

– Be paid total an annual compensation of 100,000 or more that includes at least $455 per week paid on a salary or fee basis.
– perform one of the duties of an exempt executive, administrative, or professional employee

Question 38

Protecting exemption status

Answer 38

– Improper deductions.
Number of improper deductions compared to number of employee in fractions warranty deductions. Time. The proper deductions were made. Number of employees affected. Geographic location of be affected employees and managers responsible for the deductions.
–save harbors.
Clearly communicated policy, prohibiting and proper deductions that include a complaint mechanism for employees to use employer reimbursed employees for proper deductions. Employer makes a good faith commitment to comply in the future

Question 39

Job evaluation

Answer 39

– Also called job valuation.
– systematic approach to determining the relative worth or value of each job in a business.
– intertwined with the businesses concern for internal pay equity.
– supports the need for the total reward strategy to further the organization strategic objectives

Question 40

Job analysis versus job evaluation

Answer 40

Job analysis.
– Study of jobs within an organization. Task employees perform. Tools and equipment used. Working conditions.
– used to create job descriptions and specifications.

Job evaluation
– procedure for developing a pay structure.
– evaluating the jobs within a business to determine their relative value.
– provides job related data.

Question 41

Job evaluation methods

Answer 41

Non-quantitive whole job methods: job ranking method, job classification method/job, grading method, market based evaluation.
Quantitative factor by factor methods: factor comparison, method, point factor method

Question 42

Job ranking method

Answer 42

– Simple list, method, requiring little time or paperwork.
– consist of ranking job from the highest to lowest value.
– jobs are ranked in order of difficulty and pay ranges are assigned to each level.

Disadvantages:
Differentials between the ranks, I assumed to be equal when they usually are not.
– evaluating each job as a hole is not conducive to a careful analysis and cannot provide an accurate measurement of words.
– difficult to use an organizations with large number of jobs

Question 43

Job classification method

Answer 43

– Assign jobs to levels that best correspond, as a whole to their duties and responsibilities.
Group jobs into a pre-determined number of grades or classifications with a class description
– classes can be further identified by using French Mark jobs that fall into each class.
– benchmark jobs have the following characteristics: essential functions and knowledge, skills and abilities, are established and stable. Represent the entire range of jobs in each class. Significant percentage of workers is employed in these jobs. External market rates for these jobs are an accessible basis for setting wages.
– The federal government has a classification system known as a general schedule gs

Question 44

Point factor method

Answer 44

Identify key jobs – identify the compensable factors – wait the factors according to their overall worth – divide each job factor into degrees that range from high to low – – the final result will be a table with the complete range of points from 50

Question 45

Factor comparison method

Answer 45

– Identify key benchmark jobs – identify job factors – rank jobs – assigned monetary amounts to each jobs on each factor – compare unique jobs with key jobs

Question 46

Market based evaluation

Answer 46

– Not a true job evaluation system.
– develops a job worthy hierarchy.
– price jobs in the competitive labor markets.
– uses prevailing rates as a relative worth of the jobs.
– beneficial when a business has similar jobs in various locations throughout the United States.
– the disadvantages include;#DATA will be reliable only when gathered for a significant number of jobs in the business. Results are more vulnerable to legal challenge than job content approaches. Do not recognize internal job value, and as a result are more likely to lead to discontent and frustration.

Question 47

Job pricing

Answer 47

– Process of placing a dollar value on the word of a job.
– considers the job description in the relative industry in regional values.
– analyzes the data to determine in appropriate internal value.
– most businesses assign a pay range rather than a specific fix the amount to allow for individual differences in performance

Question 48

Benchmarking

Answer 48

– Collect information on prevailing market compensation and benefits practices.
– validate existing job descriptions to identify the external market rate for each position.
– compare duties, scope, and reporting relationships, and not titles, which can be misleading

Question 49

Internal versus external surveys

Answer 49

Internal surveys
– allow for more control over the survey technique and data analysis

External surveys
offer different options for externally data

Considerations in choosing between internal and external surveys / internal time and expertise required, relevant/match of external survey jobs to the match jobs. RECENCY of the external survey data. Expense associated with the type of survey.

Question 50

Data analysis

Answer 50

Aging – uses movement and market rates to adjust outdated salary data.
Leveling – adjust salaries. One survey jobs are not well matched.
Geography – adopts national surveys to adjust to local pay rates

Question 51

Measures of central tendency

Answer 51

– Unweighted average. Gives equal weight to every day to set.
– range spread. Difference between the highest and lowest numbers.
– quartile values that divide a list of numbers into quarters
– percentile. Value on a scale of 100 that indicates the percent of a distribution that is equal to or below it.
– Weighted average. Considers the number of items in the list.
– Median. Middle number of the group when they are ranked in order.
– mean. Some of the numbers divided by many numbers.

Question 52

Pay structure

Answer 52

– Critical for the success of effective compensation programs. Externally competitive. Internally equitable.
– robust structure provides flexibility to reward performance and skills development while controlling overall base pay costs.
– caps on ranges for jobs or locations.

Question 53

Pay structure definition

Answer 53

– Pay grade. Organization of the jobs of similar values. Reflect external market or internal value of a job.
– pay range. Established the upper and lower boundaries of each pay grade. Span between the minimum and maximum base pay for a job.
– range spread. Dispersion of pay from the lowest boundary to the highest boundary of a range pay. Typically varies by job categories.

Question 54

traditional pay structure

Answer 54

– Organize with numerous layers and pay grades.
– relatively small distance between each pay range.
– enables a recognition of differing rates of pay for performance and guarantees a reasonable level of control over internal compression and salary expenditures.
– provides a hierarchy system enabling employees to get promoted from one grade to another

Question 55

Broadband pay structure

Answer 55

– Most flexible type of pay structure.
– consolidate several pay grades or job classifications.
– Streamline, narrow pay ranges into a few water ranges or bands
Conduct periodic pay audits to identify pay disparities

Question 56

Why broadband?

Answer 56

Advantages.
– provides wider ranges, reduces the number of job grades, supports, layering, provide provides more autonomy to line managers, enhances, employee mobility, more flexible that allows for more growth and less movement within the structure

Disadvantages.
– produces the value of ranges,/less control, creates overly broad ranges, makes it difficult to maintain perception of equity, reduces the opportunity for promotion, can lead to diversion from the market

Question 57

Pay grades

Answer 57

– Reflection of organizational structure and philosophy.
– Usually expressed in terms of a range of salaries from the lowest pay wage level to the highest pay wage level based on credentials and experience.
– groups evaluated jobs into non-exempt jobs, exempt jobs, and job families.
– Number of grade should be a balance to distinguish levels of difficulty, but not so many has to dilute the significance
– Distance between the lowest and highest jobs, determine the amount to pay employees within a specific field

Question 58

Pay range

Answer 58

– Establishes the upper and lower boundaries of each pay grade. Market data for benchmark job in each pay range helps to determine the range midpoint.
Jobs are sorted from lease to greatest by market average.
– natural breaks in the result are used to develop the preliminary ranges.
– applying the best practice or specific methodology.
– shows how groups relate to each other throughout a pay range.
– quartiles time strategies are used for marketing positions
– Dollar differential between quartiles generally raised between 15% to 20%

Question 59

Determinant of pay

Answer 59

– External factor. Changes in labor supply and demand and unemployment. Frequently overlooked is social expectations or social customs.
– organizational factors. Industry, standards, presence or absence of a union and the size and profitability of a company. Pay philosophy, pay leaders or pay followers.
– job factors. Importance of contribution to the company. Skill, responsibility, effort.
– Individual factors. Most important are productivity, seniority

Question 60

Individual pay decision

Answer 60

– Performance. Differences are clearly the most reasonable. Excepted justification for paying differential amounts.
– experience. Common justification for giving some employees more money is more experience.
– Seniority. Pay differential common and many compensation systems. Seniority or length of service
– potential. Occasionally organizations pay higher than average pay to individuals who demonstrate outstanding potential

Question 61

Compa-ratio

Answer 61

– Analysis of how people are paid within each pay range.
– comp ratios below 1.00 mean pay is below the midpoint.
– comp ratio is greater than 1.00 means pay exceeded to the midpoint

Question 62

Administering the compensation plan

Answer 62

– Compensation handbook typically contain the following information: business, compensation, philosophy, roles played by HR, line, managers, and executives and pay administration, basic information about pay increases, description of how salaries or wages are for new hires are determined, information on determining bonuses and other incentives

Question 63

Applying the pay structure

Answer 63

– Provides a fair and equitable structure for making pay decisions. Next line – placing Cuban employees within the ranges. Identify red circled and green circled workers. Test for pay conference, especially jobs that are difficult to fill.

Question 64

Communicating the pace structure – seven levels

Answer 64

Level one – pay is not discussed.
Level two – managers are trained to discuss pay next.
Level three – manager and employee discuss pay
level four – company pay philosophy is shared
Level five – market study and processes are known.
Level six pay ranges and grades are published
Level seven salary is Publix knowledge