Modult 7--Selection and Implementation Issues

Question 1

When selecting a Job Evaluation Strategy, what should you be Mindful of?

Answer 1

■ Business environment – the key HR and business factors that contribute to the success of the organization, including
* Labor supply
* Union influence
* Ability to offer competitive pay

■ Organizational culture – the structure, processes, style and history of an organization, including
* Decision-making mode (centralized or decentralized)
* Demand for quick re-evaluation due to changes in job content
* Management style
* Level of overall support for the HR function and compensation specifically
* Degree of openness in compensation communication
* Relative emphasis on either internal equity or external competitiveness

■ Organizational design – the way work is structured
* Job-based or team-based, or a combination
* Flat (broadbanded) or hierarchical management structure
* Relatively stable or rapidly changing

■ Top management approval and support – senior management decisions and direction
* Budget for staffing and training in job analysis, job documentation and job evaluation
* Use of outside instead of inside consultants
* Level of commitment to final results
* Communication style

■ Compensation function – the structure, size and competency
* Centralized versus decentralized
* Size of compensation staff
* Technical competence in job analysis, job documentation and evaluation
* Availability of labor market data

Question 2

Traditional Manufacturing is a large, privately held manufacturer of business equipment. More than half of its annual sales are to the federal government. The company dominates the marketplace for its
products, but has started to see some erosion of market share to some overseas suppliers. There is a large human resources staff to serve the 20,000 employees. Management values have traditionally
been paternalistic. There are no unions, but the company has maintained pay at union levels and taken extraordinary steps to ensure that employees are treated fairly. There are no incentive pay
programs. In the last six months the company has lost some of its key long-term employees to small start-up firms and local affiliates of the company’s overseas competitors. Detailed job descriptions
have been created based on one-on-one interviews conducted by trained compensation analysts.

Which approach to job evaluation would you recommend? Why?

What are the key issues?

Question 3

Technology Consulting Inc. is a 5-year-old provider of software consulting services that has doubled in size in the last two years from 200 to 400 employees. The workforce includes a large contingent of technical personnel in high-demand jobs. The industry is very competitive and business success is highly dependent on having a substantial core of key technical resources available to address client needs. Internal equity is important, but the company’s compensation strategy emphasizes a marketdriven pay program. It has a relatively small HR staff and need to develop a competitive job worth hierarchy within three months. Brief job documentation has been completed by supervisors using standardized questionnaires developed by human resources.

Which approach to job evaluation would you recommend? Why?

What are the key issues?

Question 4

What shold be considered when introducing a new job evaluation plan?

Answer 4

■ Fit with organization, culture and strategy

■ Selection of appropriate benchmark positions

■ Education and communication about job evaluation to employees and management
* How the new plan supports company strategy
* How the plan works and how it supports the business objectives of line management
* How the plan helps the company determine pay and manage pay programs fairly and consistently

■ Involvement of management and employees in design and implementation

■ Appropriate selection and weighting of compensable factors – what you value and for which you want to pay

Question 5

1. What best describes an important factor that should be considered when selecting a job evaluation strategy?
   A. The prevalence of the strategy among industry competitors
   B. The availability of a qualified consultant to assist with design and implementation
   C. The relative emphasis on either internal equity or external competitiveness
   D. The research results on the reliability of different approaches

Answer 5

C. The relative emphasis on either internal equity or external competitiveness

Question 6

2. Which of the following job evaluation methods is generally easier to communicate to employees?
   A. Classification
   B. Job component
   C. Point factor
   D. Market pricing

Answer 6

D. Market pricing

Question 7

3. What is one of the advantages of using a job evaluation committee to evaluate jobs?

A. The job evaluation process can be completed more quickly and efficiently.
B. Committee members can clarify job content information found in job documentation.
C. Committee members can dedicate whatever time is needed to accomplish the evaluation prior to the deadline.
D. The decisions made are less likely to be affected by turf issues and incumbent bias.

Answer 7

B. Committee members can clarify job content information found in job documentation.