Chapter 12 Pay-for-Performance and Financial IncentivesWhich of the following is an example of variable pay? Show Get answer to your question and much more According to expectancy theory, how can an employer increase motivation?1.Let employees pick rewards that they perceive to be most valuable.Motivation = instrumentality × valence (the perceived value a person attaches to thereward). Increasing valence increases motivation.2.Hire people with low expectations.3.Share rewards equally with employees.4.Decouple the reward from performance. Which of the following is not a type of piecework plan? Get answer to your question and much more Eligibility for senior manager or executive incentives is determined using any of the followingcriteria, except which one? Get answer to your question and much more Which of the following is one of the major disadvantages of a profit sharing plan? Get answer to your question and much more 11. Which of the following practices can NOT be used to achieve pay equity? a. Pay levels for male comparator jobs will be lowered. ch 9. 19. What term describes the process of adjusting survey results to account for the dated nature of compensation surveys, while at the same
time, taking into consideration potential market increases in the following year? ch 9. 20. Which condition tends to explain why jobs in the higher hierarchy positions of the public sector tend to be paid less than similar positions in the
private sector? b. publicly visible salaries ch 9. 21. Which topic would typically NOT be included in survey questions
asked by most consultants in the process of populating their compensation databases? CH 9. 22. Which of the following best explains why current employers do not seem to
reduce wages for existing employees in the short term when the supply for a particular set of skills far outstrips the demand? b. because of the negative impact on performance and increased turnover 36. Which of the following is NOT a component of the point method of job evaluation? 37. Which practice is a threat to the integrity of the job evaluation system? d. excessive overlaps between pay ranges 38. Which approach for deriving factor weights tends to be seen as being rather complex and difficult to understand? b. the statistical analysis method. 39. 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 $60,000.00. What is a
potential root cause of this issue? a. Ranges are too narrow and/or there are not enough pay grades. 40. The pay policy line is used to establish which pay structure component? a. midpoint of the pay range
42. Briefly describe the main pitfalls in designing a point method system of job evaluation. 42. The main pitfalls are inconsistent construct formation, factor overlaps, hierarchical grounding, and gender bias. Students should expand on this with material drawn from the textbook. ch 8. 43. What are the key considerations in establishing pay grades and pay ranges? 43. Issues in establishing pay grades include how many grades and grade sizes. In the number of pay grades, important considerations include the total range of pay of jobs covered by a particular job evaluation system and the width of the pay ranges to be used. In setting pay grade size, four methods to consider are: the equal interval approach, the equal increase approach, the equal percentage approach, and the telescopic approach. Issues in establishing pay ranges include setting the range midpoints and the range spreads. To set the range midpoints, a market line graph is used. Considerations in setting range spreads include the extent to which the organization wants to use compensation to recognize differences between employees performing the same jobs, the existence of promotional opportunities, and how many steps or increments the organization intends to have in the range. Ch 8. 44. Discuss the advantages and disadvantages of the point method of job evaluation. 44. The advantages of this system include a high degree of precision in measuring jobs; it’s easy to apply with consistency; it provides an ordering of jobs and relative value of each; and it allows jobs to be clustered in pay classes more easily. The disadvantages include the complexity and difficulty involved in developing this system, the fact that it is basically a subjective process, and the possibility of flaws. ch 8. 45. Identify and briefly describe the main steps in developing a job evaluation system using the point method. Ch 8. 45. The main steps in developing a point method of job evaluation system are as follows: identify the compensable factors, scale the factors, weight the factors, and apply and test the system. Appropriate compensable factors are those characteristics of jobs that are valued by the organization and differentiate jobs from one another. The four main categories of factors include: skill, effort, responsibility, and working conditions. Scaling involves breaking down the factors into major categories (i.e., universal factors, sub-factors, and degrees or levels). In “scaling the factors,” the objective is to create a scale for each factor that reliably measures the extent to which that factor is present in a given job. Determining the relative weight for each factor is based on how the organization values each factor. Although it can be done statistically, this is very rare, and it is generally a judgmental process. Once the weightings are determined, points are assigned across factors, sub-factors, and degrees. The total point value of each job is determined using the system. The resulting hierarchy of jobs is tested to determine validity (i.e., if the system is actually a true measure of relative job worth) and for reliability (i.e., if the results come out the same when the system is applied by different evaluators). If so, the system must then be calibrated to the market, using benchmark jobs and market comparator jobs. This provides the opportunity to test for market fit, as well as testing for other potential problems. 12. What is the term generally used to describe employees who are below the pay
ranges for their jobs? 13. Which statement would NOT describe an appropriate usage of job descriptions? c. supporting the development of business level strategies 14. Organizations need to answer a series of questions in order to conduct job evaluations effectively. What question would a job evaluation
process NOT address? b. Which jobs should be changed? 15. As a human
resource professional, you have been asked by your organization to develop a job description for the heavy-duty mechanic role. What are you likely NOT to include in the job description? b. the appropriate pay grades, ranges and future pay increase scales. 16. Which statement provides the best example of a job specification? b. possessing a valid driver’s licence 17. Which term is used to describe key characteristics of jobs that are valued by organizations and differentiate jobs from one another? 18. Which of the following is NOT a valid reason to re-evaluate jobs? c. A new performance system is implemented. 19. Which job evaluation method has historically been popular with government civil service organizations? b. Classification/ grading 20. Which job evaluation method is intended mainly for management and executive jobs? 21. What do job specifications focus on? c. employee qualifications 22. Which of the
following is NOT a valid purpose for conducting job evaluation? a. to control employee performance 23. The textbook introduces four main approaches to conducting job analysis. Which approach would you NOT likely use to collect information on the teller role at an existing Canadian bank? b. Perform a functional job analysis 24. 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? a. Update job descriptions systematically 25. Which job evaluation method is like sorting books among a series
of carefully labelled shelves in a bookcase? 26. 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? 27. Which evaluation method uses questionnaires to capture time spent on certain activities and the importance of those activities to the successful completion of the job? d. Statistical/ policy capturing 28. Which process is looked upon as the process of gathering data and information about the characteristics required for specific jobs? 29. Which procedure is NOT required under the Ontario Pay Equity Act? d. checking for performance appraisal
biases 30. Joel, whose pay 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?
b. constructive dismissal 31. An Ontario-based organization asks you to recommend a job evaluation method that may meet pay equity legislation. What job evaluation method are you likely NOT to recommend? 32. 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? 33. Which of the following is NOT one of the methods of job evaluation
discussed in the textbook? b. Forced distribution method 34. In Ontario, once completed, pay equity plans should be shared with
employees, including both process and outcomes. Which of the following organizations would be exempt from posting their pay equity plans? d. a farming operation in Ontario employing 25 employees annually. 35. You have been asked to present to management potential drawbacks associated with using a job analysis process at your company. Which of the following would likely NOT be included in your list of drawbacks? d. use of incorrect benchmark jobs. 36. Which job analysis method is used for organizations that are being created or when new jobs are introduced? d. Functional job analysis 37. Mario performs his job at a very high standard. Unfortunately, a job evaluation process determined that he is currently being paid at a level below the minimum in a new pay scale. Which statement
best describes Mario’s current position in the new pay scale? c. Mario would be classified as a “green-circled employee.” 38. Because your company is newly created, you do not have any job descriptions. Which method of job analysis will you need to use? 39. The textbook identifies several methods that may be
used when comparing female and male job classes. Which method would you consider to be inappropriate? 40. Which process is used to determine the relative importance of the employee’s job to the organization and the placing of those jobs in the same hierarchy level? 41. What should a job description contain if it is to be useful for job evaluation? 41. The following elements are important components of a job description: (a) job title, department or location, reporting relationships, and date when job analysis was originally completed or updated; (b) a brief statement of job purpose or objectives; (c) a list of the major duties of the job, in order of priority or importance; (d) an indication of responsibilities for people, results and organizational assets, including cash, tools, equipment, and facilities, along with budget allocations; (e) the mental and physical effort demanded by the job; (f) the conditions under which the work is performed, including hazards and quality of work environment; and (g) a specification of the qualifications needed to perform the job, including skills, training, education, and abilities, as well as any certificates or licences required. 42. Identify and briefly explain the main methods used to obtain the information necessary for effective job evaluation. 42. The four main methods are: (a) observation, (b) interviews, (c) questionnaires, and (d) functional job analysis. Used in conjunction with other methods, observation involves watching the employee as the job is performed and noting all of the necessary information needed for evaluating jobs. Although time-consuming interviews can be conducted with either a sample of employees, their supervisors, or preferably both, a structured interview format provides more consistent information. An open-ended or closed-ended questionnaire can be used to gather job-related data. Because care needs to be taken to develop a reliable and valid questionnaire, most organizations use questionnaires developed by outside specialists. A commonly used tool, the Position Analysis Questionnaire (PAQ) focuses on the behaviours that make up a job and utilizes job elements to describe work activities. Based on a common set of job functions, functional job analysis produces a series of task statements to describe the job. Managers can then analyze these statements to draw conclusions about the nature of the job. 43. With reference to Ontario pay equity legislation, briefly discuss the job comparison methods that can be used for comparing female and male job classes. 43. The three main methods are (a) the job-to-job method, where a female job class is compared to a male class comparable in terms of job evaluation criteria; (b) the proportional value method, used when no comparator male job class exists; and (c) the proxy comparison method, which can be applied only in public sector organizations and only when the job-to-job and proportional value methods cannot be applied 44. What key procedures need to be worked out to ensure the job evaluation process is effectively conducted and managed? 44. If the job evaluation system is to be effective, the process for conducting and managing job evaluation is crucial. Organizations need to work out procedures for who will conduct the job evaluation process, how it will be communicated, how results will be applied, how procedural justice can be established, and how job evaluations will be updated. 45. Briefly explain the purpose of job evaluation and the nature of “relative worth.” Ch 7 45. Job evaluation is a systematic process used to determine the relative worth of jobs within the organization. The key objectives in conducting job evaluations are as follows: control wage costs, create an equitable pay structure showing what is valued by the company, and create perceptions of equitable pay among those covered by the system—one that is seen as being fair to employees and provides justification for compensation practices. The end result of job evaluation is a hierarchy of jobs, where all jobs determined to be similar in value to the organization are located at the same level in the hierarchy. This hierarchy shows the internal alignment of jobs and provides the foundation for the development of pay grades and ranges. The worth of jobs evaluated is relative to the specific organization. The value added by the same work may be more (or less) in one organization than in another. For example, the value added by a compensation specialist to a clothing retail company whose profits are generated through clothing sales is less than the value added by that same specialist to a pay equity consulting firm whose clients pay for compensation knowledge. 11. The following are hypothetical points provided to
the following jobs: The organization sees these positions as having equal value from a base pay perspective; hence, there is no difference in pay. What term best describes the grouping of these jobs? 12. Assume that options (a), (b), (c), and (d) below represent degree 1, 2, 3, and 4, respectively, for the formal education factor on your summary rating chart for the point method of job evaluation. Based on the degree definitions, which of the following degrees is arranged out of place on the chart? d. degree 4: completion of grade 9 13. You have been asked to provide rationale for clustering jobs into so-called pay grades. What is NOT likely to be included in your rationale? a. Clustering of organization tends to reduce labour costs. 14. Which of the following is NOT a job evaluation compensable factor required by pay equity legislation in Ontario? 15. After several evaluators apply the job evaluation system to a
heavy-duty mechanic job, you find significant discrepancies in the weights associated with each compensable factor. What is NOT likely to be a reason for the discrepancies? c. evaluators using the wrong benchmarks 16. Four main categories of compensable factors are used widely in industry. Which of the following could be included in the skill category? b. Marie needs to solve a variety of problems at work. 17. Which statement best describes the use of job evaluations and pay equity in Ontario? b. A single plan is required for a bargaining unit in unionized organizations. 18. Which of the following is NOT a source of gender bias associated with developing a point method job evaluation process? a.excessive range in the degree statements 19. In calibrating job evaluation results with the market, we select “key” organizational jobs for market comparisons. What are these “key” jobs called? 20. What type of gender bias problem is exemplified by the belief that “any of the skills needed to work with young children should not be highly rated because care giving comes natural to women”? b. confusing job content with stereotypes 21. What is a negative consequence of clustering jobs into pay grades? c. There may be pressure to reclassify borderline jobs or to promote people to get more money. 22. Which statement best reflects the relationship between the
minimum wage and a living wage? b. A living wage tends to be higher than the minimum wage. 23. What does the market line determine? b. the relationship of job evaluation results to market pay rates 24. Which compensable factor would you include under the main category of “working conditions”? a. requirements associated with being exposed to health hazards 25. 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? c. There is not sufficient spread in job evaluation points between low-value and high-value jobs. 26. Two thousand points are distributed between compensable factors, based on the following: education 750 points, time pressure 350 points, customer contact 500 points, and communication skills 400 points. Which step in developing a job evaluation system using the point method recognizes these variations in importance? 27. Which of the following is an inevitable outcome of broad banding? d. Jobs with significantly different scores end up in the same “band.” 28. What does the correlation coefficient of the market pay line tell
you? a. “goodness of fit” between the job evaluation points and market pay 29. Which statement best explains how to establish pay grade sizes using the equal interval approach? d. Make the point spreads equal for all pay grades. 30. 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? d. point scores of the jobs 31. In exploring solutions to job evaluation problems, what is NOT one of the main steps? c. Adjust the point totals of the outlier jobs to improve the correlation coefficient.
32. 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? 33. Which term refers to the actual minimum and maximum pay rate, in dollar terms, for all the jobs that fall in a particular pay grade? 34. What is generally NOT considered an advantage of the point method of
job evaluation? c.It helps to establish market rates for jobs. 35. What
does a –1 (negative one) correlation coefficient mean? b. There is an inverse relationship between job evaluation points score and pay levels. ch 9. 11. Which measure can be used to assess the central tendency of pay? ch9. 12. You determined that $65,000.00 in salary represents the 85th percentile of total compensation paid by employers for the heavy-duty mechanic job in British Columbia. Which statement is most accurate, given the aforementioned statement? a. 15% of employers compensate above $65,000. ch 9. ch 9. 14. Which of the following is generally NOT a determinant of employees’ pay in the public sector? b. employees’ ability to generate revenues
a. 12 percent ch. 9. 16. Which statement best describes the compa-ratio? c. It is derived by dividing mean base pay by the midpoint of the pay range.
a. compa-ratio 18. What is a potential drawback associated with using compensation consultants to gather labour
market information? c. The data may be restricted to client firms; hence, it does not necessarily comprise an appropriate sample ch 9. 23. As a human resource specialist, you recommend an international scope when defining the relevant labour market for a nuclear physicist to be responsible for the safety of a Canadian nuclear reactor. Which variable is likely to be
informing your decision? a. the level of job specialization ch 9. 24. An employer is
contemplating conducting their own in-house compensation surveys. What would you caution them about? c. Skills and abilities associated with survey methodology are needed. ch 9. 25. Which of the following is NOT considered a general pattern in compensation levels? d. The wage gap between public-sector organizations and private-sector firms is narrow for top-level employees. ch. 9. 26. What are three of the main
“third-party” sources of compensation data? c. government agencies, industry groups, and consulting firms ch 9. 27. Which of the following is NOT a procedure used to analyze and interpret survey data? ch. 9. 28. Which method is used to measure dispersion of salary data across employers? ch. 9. 30. What is NOT a main step in conducting a proper compensation survey? b. identifying employees to be surveyed ch. 9. 31. Which survey source raises concerns among HR professionals about the validity of their data? ch 9. 32. What is a key concern related to using data from free compensation data websites? ch. 9. 33. Which of the following is generally NOT
collected in compensation surveys? b. performance appraisal methods ch. 9. 34. Which characteristic is NOT typically considered in the selection of market
comparator firms? b.whether the firm has achieved pay equity ch 9. 35. Which compa-ratio suggests
that, on average, employees are being paid above the mid-point of the range? ch 9. 36. What critical assumption underpins labour market compensation surveys that may serve to illustrate the need for pay equity legislation? a. Usage of compensation surveys assumes that the market values jobs in a fair manner. ch. 9. 29. Which of the following is NOT a possible limitation of compensation surveys? a. Free labour market data is not readily availabl ch. 9. 37. Which of the following identifies two crucial dimensions of the labour market? a. occupational grouping and geographic scope ch. 9. 38. What does a compa-ratio of greater than 1 mean? a. Employees, on average, are being paid above the midpoint in the pay range. ch. 9. 39.
Although very costly to use on a significant scale, which method of data collection provides the best quality of information? ch. 9. 40. Which of the following provides the best-quality compensation data? 41. Briefly describe the process for analyzing and interpreting survey data. 41. In analyzing survey data, the first steps are to assess the central tendency of pay and the variation across employers. Such statistics as the mean, weighted mean, median, quartiles or deciles, interquartile range, and compa-ratios are used. Inspection is often used to interpret the data, and inferences are drawn from patterns of compensation. 42. Briefly discuss some of the limitations of compensation surveys. 42. Compensation surveys are essential tools for compensation planning within the organization. However, they are subject to numerous limitations. First, they may vary dramatically in quality of job matches and methodology. Second, they may omit important information. Third, unless survey data are available for individual employers, we cannot surmise anything about the compensation strategies practised by other firms. Fourth, compensation data may not fit all of the jobs an organization may have. Fifth, surveys cannot capture the entire range of rewards—both extrinsic and intrinsic—offered by organizations. Sixth, there could be bias in the sample of firms selected. Seventh, markets may not value jobs fairly. 43. Identify and briefly describe the four main steps in conducting a compensation survey. 43. The first step is to identify the jobs to be surveyed. The rule of thumb is that surveying about 10 to 15 percent of jobs should be sufficient to calibrate the system. Key job matching is a common method used to match an organization’s jobs to those being surveyed. The second is to determine what information to collect. Collected information should include base pay, performance pay, indirect pay, weekly hours of work, and where most employees actually are in the pay range. The third step is to determine who to survey. Employers are selected based on industry type, geographic location, and size. The fourth step is to determine how to collect the data. Consider using the following methods: personal interviews, questionnaires, telephone interviews, and the Internet. 44. Discuss some of the advantages and disadvantages of in-house surveys. 44. Advantages of in-house surveys include: allowing the organization to select the key jobs, the firm does its own job matching, and the firm has the option of selecting and determining survey participants. Disadvantages include: (a) the fact that firms do not necessarily have qualified researchers, (b) the organization may run up against a lack of cooperation from certain participants because of the large number of surveys they face or the confidential nature of some of the information requested, (c) the time consumption of doing a survey, and (d) employees concerned may challenge the credibility of the survey results because the organization is both referee and player. Many of these disadvantages are eliminated when the organization turns to a consulting firm. 45. Briefly discuss the factors to be considered in defining the relevant labour market for a given firm. 45. Two kinds of competitors are important to consider:
competitors in the labour market and competitors in the product/service market. Two other dimensions are crucial: the occupational grouping under consideration and the geographic scope of the market. Besides these, relevant aspects include whether the firm is unionized or non-unionized, and the size of the firm. All of these factors must be balanced when defining a market sample. Ch. 10 11. XYZ Inc. appraises its
employees on key traits such as “initiative”, on a scale of 1 to 6, with 1=inferior performance and 6=outstanding. What method of performance appraisals is XYZ Inc. using? ch. 10. 12. Which
statement associated with Management by Objectives (MBO) is NOT accurate? c. Broad general goals are congruent with the MBO approach. ch.10. 13. Senior management determines how much money will be available for merit pay against performance metrics identified in the beginning of the fiscal year, and then distributes those funds across departments. Which approach has senior management used to determine the total amount of money available for merit pay? ch 10. 14. Which source uses many different rating groups to evaluate the employee’s performance? ch.10. 15. Which of the following is NOT an administrative reason for doing performance appraisals? c. to provide
useful feedback to employees. ch20 16. Which statement best describes self-appraisals? b. They tend to be inflated. ch. 10 17. As a supervisor you have a tendency to rate all employees as “average” in everything. You are guilty of using which perceptual error? c. central tendency error ch.10. 18. ABC Inc. uses “mystery shoppers” to appraise staff at its departmental stores. What type of performance appraisal method is ABC Inc. using? ch. 10. 19. Which performance appraisal method is congruent with a management approach that dictates that no more than 15 percent of employees are to be rated as excellent, commanding a top percentage increase in merit pay? ch. 10. 20. Karen’s performance appraisal provided almost identical results when six different managers evaluated her performance. Which conclusion could you make about the performance appraisal process experienced by Karen? a. It appears to be reliable; however, no conclusions can be made about its validity. ch. 10 21. Which statement would you NOT associate with a multisource/360-degree feedback
process?
c. They tend to be more effective when results are linked to merit pay. ch. 10. 22. Which statement does NOT accurately describe performance management? b. Although 90 percent or more of Canadian companies use some performance management process, only 10 percent find it “effective or very effective.” ch. 10. 23. What is NOT generally a source of employee performance appraisals? ch. 1024. Many organizations do not offer merit raises to employees who are at the top of their pay ranges. This can cause morale problems for these employees. What is a potential solution to this issue? c. Re-evaluate the performance appraisal methods. ch. 10. 25. What two key elements make management by objectives a
highly effective approach to employee motivation? ch. 10 26. Which performance appraisal method builds on the behavioural anchored rating scales by requiring that management provide
a “frequency rating” associated with positive behaviour? c. behavioural observation scale ch20 27. John tends to demonstrate behaviours
that are counterproductive to strong work performance. Which appraisal method would most likely provide the most inaccurate ratings? ch20 28. From your perspective as a compensation officer, what is the most important category of reasons for doing performance appraisals? ch. 10. 29. There are several critical issues that need to be addressed in designing an effective merit system. What is NOT identified as a critical issue in the textbook? d. process that ensures equal increases across employee job ratings ch. 10. 30. According to research cited in the textbook, which source is
used by the majority of Canadian employers? b. only supervisory appraisals ch. 10 31. Which performance appraisal method could be
described as “win–lose,” creating a situation whereby in order to improve his/her standing, an employee has to displace another team or department member? ch. 10 32. John has fabulous interpersonal skills. This causes raters to ignore some of his
weaknesses, which include time management, technical, and leadership skills. Which perceptual error is likely impacting John’s rating? ch.10 33. Which source is much less accurate in assessing the performance of managers? ch. 10 34. A particular organization uses a forced ranking system to appraise employees. As a peer appraiser, why might an employee be tempted to give colleagues a low rating? b. A limited amount of merit pay is available. ch. 10. 35. Which statement best describes peer evaluation ratings? a. Peers tend to be more lenient than superiors.
ch.10. b. management by objectives ch 10. 37. What is the first issue to decide when designing a merit pay system? a. the objectives of the system ch.10. 38. Which statement best summarizes the general sentiment expressed by stakeholders in describing performance appraisals in
Canada? c. Managers and employees have little faith that the process leads to valid and reliable results. ch.10. 39. What is NOT a key element of performance management? ch. 10. 40. Which
source of appraisals can be expected to work well only in classical organizations? ch 10. ********************* 41. Identify and describe the various perceptual errors that can affect appraisal accuracy. 41. Perceptual errors that can undermine appraisal accuracy include the following: (a) central tendency rating error, which occurs when appraisers rate all employees as “average” in everything; (b) halo error, which occurs when appraisers rate an individual either high or low on all characteristics because one characteristic is either high or low; (c) recency effect, which is the tendency of appraisers to overweight recent events when appraising employee performance; (d) contrast effect, which is the tendency for a set of performance appraisals to be influenced upward by the presence of a very low performer, or influenced downward by the presence of a very high performer; (e) similarity effect, which is the tendency of appraisers to inflate the appraisals of appraisees they see as similar to themselves; (f) leniency effect, which is the tendency of many appraisers to provide unduly high performance appraisals; and (g) harshness effect, which is the tendency of some appraisers to provide unduly low performance appraisals. ch. 10. 42. Describe the conditions under which recognizing individual contribution levels may be essential. 42. Evaluating individual performance is necessary in the following instances: (a) to discourage free riding and assure contributing team members that their positive efforts will be rewarded; (b) members do not have strong intrinsic motivation: (c) strong positive norms do not exist; (d) group sanctions against poor performers are ineffective; and (e) little member commitment to overall project goals is evident. ch 10.43. Identify and briefly explain the main categories of reasons for doing appraisals. ch. 10 43. The rationale
for having appraisals includes the following four main categories: (2) Developmental reasons: These include using the system to better understand employer expectations and the key performance dimensions of their jobs, assisting employees to understand strengths and weaknesses in their performance, and developing methods to improve this performance for the mutual benefit of the individual and the firm. (3) Supervisory reasons: These focus on enabling and helping supervisors think systematically about employee performance and encouraging communication with employees. (4) Symbolic reasons: These centre around creating the perception that management cares about good employee performance, and the appropriate conducting of appraisals manifests this concern. ch. 10. 44. Identify the key characteristics and advantages of 360-degree feedback appraisal system 44. This is an appraisal system that utilizes feedback from superiors, peers, subordinates, and possibly customers to establish a balanced and objective input on specific performance measures. These systems have several key characteristics. They use standardized forms that provide numerical ratings of the ratee along numerous dimensions. Individual raters, exclusive of the supervisor, are assured of anonymity so that they feel free to be candid about their input to the ratings. The system also employs several procedures to screen out invalid data. It is claimed that their advantages include: (a) they are more accurate in having numerous raters, which results in information from a variety of perspectives; (b) they are more credible to the recipient, as the ratees may believe a single rater to be wrong or biased, but certainly not all of them; (c) they may be more valuable for behavioural change, since work associates are likely to more specific about behavioural feedback; and (d) they may be more motivational, since peer pressure may motivate constructive behaviour changes. ch.10. 45. You have been tasked with developing an effective merit system for an organization. What critical issues would you have to address to ensure the merit system is effective? 45. Answers should draw on elements from the following:
a. Scanlon plan ch.11. 12. ABC Ltd. generated one million Canadian dollars in profits this year. ABC Ltd. decides to place 200,000
Canadian dollars (20 percent of pre-tax profits) in a bonus pool. In previous years, this figure has ranged from zero to 50 percent of pre-tax profits. What type of formula is ABC Ltd. using to determine contributions into the pool? ch.
11. 13. Which statement does NOT accurately describe a profit-sharing plan? b. Stock bonus plans provide employees with the right to purchase shares in the future at a fixed price. 14. What is NOT the “best practice” when designing nonmonetary reward plans? c. Whenever possible, reward only those employees in the top 10 percent. ch 11. 15. In designing gain-sharing plans, why is there a need to decide on the historical baseline against which to compare productivity? a. to determine whether real productivity gains actually occurred ch 11. 16. Which gain-sharing plan requires that management has access to historical data so as to be able to calculate a so-called “normal labour cost”? ch. 11. 17. Full-time employees at ABC Company are given the opportunity to purchase company stock at a future time at a fixed price. What type of performance-based pay is ABC Company using? ch. 11. 18. According to research on Canadian firms, in the majority of cases, which employees are included in the profit-sharing plan? d.all full-time employees ch 11. 19. Which statement does NOT accurately describe employee share purchase plans? a. Employees receive shares at no cost to themselves, usually as a bonus. ch. 11. 20. Working as a human resources compensation specialist for a manufacturing company, you become concerned employees will attempt to reduce labour costs “by any means” so as to enhance available bonuses via the
company’s gain-sharing plan. This behaviour may potentially lead to more work-related accidents or dissatisfied customers. What would you do to mitigate this reduction in labour costs due to “by any means” mentality? What are the 3 compensable factors in job evaluation?Typically the compensable factors include the major categories of:. Skill.. Responsibilities.. Effort.. Working Conditions.. What are the 4 compensable factors?The Equal Pay Act of 1963 has defined 4 most basic compensable factors: effort, skill, responsibility and working conditions. There are usually 5 to 12 compensable factors in any evaluation procedure. The compensable factors are different for different evaluations.
What are five compensable factors?Compensable factors help employers pay employees fairly based on their merits and responsibilities.. Experience. ... . Complexity. ... . Level of education. ... . Type of supervision required. ... . Impact of errors. ... . Fiscal accountability. ... . Confidentiality. ... . Mental and physical demands.. What are compensable factors?Compensable factor
A job attribute described in a job evaluation plan that provides the basis for evaluating the relative worth of a job inside the organization. Each compensable factor has a number of different degree levels on which jobs are evaluated.
|