Compensation

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Author:
carluccia87
ID:
262836
Filename:
Compensation
Updated:
2014-02-19 16:20:38
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Midterm review questions
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for midterm
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  1. What 4 factors does the human rights act require to be part of the evaluation of jobs to satisfy pay equity?
    (Skill / Effort / Responsibility / Working Conditions)
  2. Define Job Evaluation:
    Systematic approach to evaluating the worth or value of a job that leads to a Job description
  3. 2 Types or forms of Cash Compensation:
    Base/Salary, Merit increase, short term incentives/long term incentives
  4. 2 components of relational returns
    (Recognition, challenging work, status, etc)
  5. According to recent studies, on average what percentage on every dollar does women earn less than men?
    71%
  6. Why might woman earn less than men, all being equal ?
    (Performance rating, seniority, skills/ knowledge/experience, etc)
  7. 3 reasons why women traditionally learn less than men?
    (Family responsibility, child bearing, discrimination, difference in hours work, type of work, etc)
  8. Describe maslow’s theory and apply it to compensation:
    (Hierarchy of needs, you can align the levels clearly with aspects of compensation – understand this, it might be a long answer qtn)
  9. What’s a position analysis questionnaire [PAQ]?
    (A structured tool used during job analysis that covers every aspect of a job in order for evaluation to be done)
  10. How does a company determine how many factors to include in their job evaluation process?
    (Strategy of the company determines compensable factors, depends on structure of company, complexity of the work , what makes sense to the company, criticality of the process)
  11. Name 5 items that should be included in an effective job description:
    (Date, title, who you report to, tasks, working conditions, education, experience, etc)
  12. Why is fairness important in the compensation process? Give two reasons.
    (Legally defensible, motivation of employees – their perception matters)
  13. What’s the min wage now and what will it be in June?
    (10.25, 11.00)
  14. Explain what weighting means in the evaluation of jobs.
    (When you look at the 4 common factors, looking at the job, you assign a weight to it in terms of how much value it has to the organization. Once you’ve determine the factors you want to use, weighting refers to how you rank or “weight” those factors).
  15. Corporate Objective: Invest in the capabilities and commitment of our employees. What would be a comp strategy to support it?
    (Increase training and development, provide employee assistance programs, review pay structure and up salaries maybe, reward for additional accreditation, review benefits provided, etc)
  16. True or false: Employee performance is important to consider when making pay equity comparisons
    (False – we are looking at the JOB, not the person)
  17. True or false: Ontario’s pay equity laws apply to both public and private companies:
    (True – within Ontario if I have my own company, I’m still required to consider pay equity when hiring / If my company is publicly traded, I have the same requirement – NOTE THIS DOES NOT refer to jurisdiction)
  18. Why might employees be suspicious and un-open to a job analysis exercise?
    (Makes them think that THEY are being evaluated, not their job and / they might fear that they’ll lose their job / may not trust the people doing the analysis)
  19. What does red circling mean and why might it occur?
    (When you’ve reached the top of the salary band and are already being paid the most they can for that job. Could occur because you’ve been there for so long and gotten raises over the years to this limit)
  20. Describe the Canadian Human Rights Act.
    (Legislation that says that employers cannot discriminate based on prohibited grounds)
  21. What is green circling mean and why might it occur?
    (Exactly the opposite of red circling. Bottom of the band, could be because you’re new)
  22. Name 3 typical benefits that are part of a total compensation program:
    (Health, vision, dental, work-life programs, allowances)
  23. Define a best-fit approach to compensation strategy:
    (When it aligns with the company’s strategy or objective. It’s an internal perspective – What is my company all about – fits with this)
  24. Explain Hurtzburg’s (sp?) motivational theory and how it might apply to compensation.
    (Heigene factos (base pay, merit, compensation) were not motivational, but if they weren’t present they would cause dissatisfaction in the workplace, but the motivation factors have a direct relation to employee satisfaction.)
  25. Define Compensation:
    (Refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship. – Includes intangible returns as well though)
  26. What is Bill 198 and how does it relate to compensation:
    (Some companies (enron, etc) did some bad shit regarding compensation for employees and said that they weren’t doing very well and laid off their employees, but the top execs were making a killing of stock options. Bush asked to put a bill forth that would require public companies to ensure that they had good governance when it came to financial reporting. The Canadian response to this was Bill 198. / It makes sure that compensation and financial reporting was done fairly and honestly and these processes must be documented, reviewed and controlled. If they don’t follow the rules, they can end up in jail)
  27. Give one reason why governments are a key stakeholder in compensation:
    (They collect income tax/EI/CPP premiums to fund social programs, and they want to ensure that there are ethics involved with compensation).
  28. Employment equity act attempts to remove barriers for 4 specific groups, who are they:
    (Women, Visible, minorities, disabled, aboriginals)
  29. Why might you revisit a worksite when doing a job analysis, give 2 reasons:
    (To verify that what you saw the first time was correct, and to make sure that you don’t base your findings on only one day of work)
  30. If a pay equity review reveals that women truck drivers have been underpaid by 2 dollars compared to men, what must the company do. Provide more than 1 thing.
    (Match the female truck driver’s wage at the same level [fix the problem and close the gap], and they have to go back to when that wage began and pay retro-actively)
  31. What is an incentive?
    (A factor that motivates employee based on performance. Could be a bonus, merit increase, tim’s card, stock options, etc)
  32. Define the wage gap:
    (The difference between what an average group of men get paid and the average that average women get paid - .71 c)
  33. What are some of the job content data that should be captured during a job analysis? At least 3.
    (Duties, skills, tasks, performance criteria, working conditions – every aspect of a job you can think of would be included)
  34. Define a competitive advantage when it comes to compensation.
    (a better comp strategy than your competition. Eg. A better more total rewards or benefit package.)
  35. Yes or no. Is it legal to reduce a male’s pay if it’s found that a woman doing the same job was making less?
    (no)
  36. Define the ranking method of job evaluation and both an advantage and disadvantage
    (Ranking jobs from most to least valuable. Advantage = quick / Disadvantage = subjective)
  37. Describe a few of the key points of two articles we’ve discussed in comp in the news.
    (Look at the articles)
  38. Yes/no. Is it possible to properly evaluate a job without looking at external market information?
    (No – You can analyze it, but not evaluate it. If you stopped internally, you might have an archaic system you’re using. How would you know if it’s effective without comparing it to the environment?)
  39. Why is top management and union support critical in the conducting of job analysis?
    (Communication from these sources is key for employees to know that it’s about the job, not the employees. Top management wants to know if it’s something that ‘s going to add value / Union helps let employees know that this could result in something good for them. All about communication)
  40. What’s the major difference between job analysis and job evaluation.
    (Job analysis looks at the details of the job – what is done, evaluation is determining the value of the job to the company. Analysis gives you the a-z about the job. Using this enables evaluation people to place value on the elements of the job)
  41. What is the NOC?
    (National Occupational Classification system. Gives information about specific jobs - descriptions of tasks, duties, pay, etc)
  42. A woman with 10 yrs experience claims she’s being paid unfairly compared to a man doing the same job with the same tenure and experience, does he have a claim?
    (Depends on a number of factors like skill level, accreditations, education, performance, etc)
  43. What’s the difference between salary and wage?
    (Wage is hourly, salary is yearly)
  44. Why do companies perform job analyses?
    (Legal defensibility, identifies skills and experience, clarifies promotion factors, helps with training design, job redesign, performance review, helps establish an internally aligned job structure, etc)
  45. If a company set the following 2 corporate goals, how would it affect comp strategies? Broadening our brand and products by selling what we’ve manufactured for 50 years with the newest and brightest sales force in North America.
    (Offer incentives based on sales eg. Commission, provide company car for transportation, paid cell phones for sales purposes, hiring bonuses, etc)

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