An egalitarian pay structure provides?

A msg that all employees are valued equally. The assumption is that more equal treatment will improve employee satisfaction, support cooperation, and therefore affect workers' performance. This type of structure has fewer levels and smaller differentials between adjacent levels and between the highest- and lowest-paid workers.

A job description consists of?

A summary of the most important features of a job. It identifies the job and describes the general nature of the work, specific task responsibilities, outcomes, and the employee characteristics required to perform the job.

What are “compensable factors”?

Are those characteristics in the work that the organization values, that help it pursue its strategy and achieve its objectives.

Stockholders generally pay particular attention to what aspect of pay?

·         Executive pay (especially) because of the degree in which the interests of executives are aligned with those of the shareholders (paying executives on the basis of company perfomance measures shareholder return

·         Stock ownership to increase sense of ownership to improve performance

This refers to a wide range of factors, including legal and regulatory requirements, cultural differences, changing workforce demographics, expectations, and the like. They also affect compensation. Because governments are major stakeholders in determining compensation, lobbying to influence laws and regulations can also be part of compensation strategy.

Define “distributive justice”

The second of the two sources of fairness in employee acceptance, the first is the procedures for determining the pay structures, called procedural justice; and the results of those procedures—the pay structure itself—called THIS.

What questions are asked when assessing the worth of a study related to compensation?

1.       Is the Research Useful?  (How useful are the variables and how well are they measured?)

2.       Does the Study Separate Correlation from Casuation? (are the variables related)

3.       Are There Alternative Explanations?

What are the 3 tests that determine whether a pay strategy is a source of advantage?

Align

Differentiate

Add Value

Align

One of the 3 tests that determine whether a pay strategy is a source of advantage

1.    Do This with the business strategy

2.    Do This externally with the economic and sociopolitical conditions

3.    Do THIS internally within the overall HR Systematic

THIS is probably the easiest test to pass

Differentiate

One of the 3 tests that determine whether a pay strategy is a source of advantage

Making the pay system difficult for competitors to copy

Add Value

One of the 3 tests that determine whether a pay strategy is a source of advantage

Compensation is often a company's largest controllable expense. Since consultants and a few researchers treat different forms of pay as investments, the task is to come up with ways to calculate the return on those investments (ROI).

When determining the usefulness of a job analysis, what factors are considered?

Part of Judging Job Analysis

• Reliability
• Validity
• Acceptability
• Currency
• Usefulness
• A judgement Call

Reliability

one of the factors in considering the usefulness of job nalysis

  (measure of consistency of results among various analysts, various methods,  various sources of data, or over time)

Validity

One of the factors considered in determining the usefulness of job analysis

 (examines the convergence of results among sources of data and methods)

Acceptability

One of the factors to consider when determining the usefulness of job analysis

·         (Job holders & mgrs satisfaction with initial data collected and the process in order to buy the resulting job structure or the pay rates attached to that structure)

Currency

One of the factors to consider when determining the usefulness of job analysis

Usefulness

One of the factors in considering the usefulness of job analysis

(refers to the practicality of the information collected)

·         Its contents are well known and relatively stable over time

To be sure that all relevant aspects of work are included in the evaluation, and organization may start with a sample of THIS (key) jobs. THIS would be identified for as many of the levels in the structure and groups of related jobs (administrative, manufacturing, technical) as possible.

Refers to the fairness of the decision

• Based on the strategy and values of the organization

• Based on the work performed

• Acceptable to the stakeholders affected by the resulting pay structure

     The job is common across a number of different employers. It is not unique to a particular employer

 behavior that may be an essential element of a job