BASE PAY ADMINISTRATION AND
PAY FOR PERFORMANCE GR4 C4
UPDATED QUESTIONS AND
VERIFIED ANSWERS
3 types of base pay - ANSWERS--1. Salary
2. Hourly
3. Piece rate
What are the two job evaluation methods? - ANSWERS--1. Market pricing
2. Job content
What is job evaluation - ANSWERS--A systematic method and process for
determining and comparing the relative value of one job to others
What is the market data approach to job evaluation? - ANSWERS--- Job descriptions
are used to match survey data
- Benchmark jobs are arranged into a hierarchy based on an analysis of market data
- Jobs with no market data or slide it in using job contact to determine relative worth
, What is the job content approach to job evaluation - ANSWERS--Relative internal
value is determined between jobs based in the nature and level of work
Some jobs are priced as anchor points
Why is job hierarchy important? - ANSWERS--Because it helps establish a
relationship between various jobs, allowing groupings of similar jobs
Helps compensation professionals, determine how various jobs can be classified
within the organization
Also creates the foundation of a base pay system
Why is job hierarchy used? - ANSWERS--Do you determine and ensure internal and/
or external equity, among both positions and groups of positions
What is a base pay structure? - ANSWERS--A management tool that reflects the
collection and organization of internal and external compensation data to support job
values. It consist of a series of pay ranges that represent jobs of similar internal, and
or external worth.
What are the three objectives of a base pay structure? - ANSWERS--1. Create
alignment between work and rewards.
2. Help achieve organizational objectives; affective compensation tools for
supporting the organization.
3. Reflect the companies desired position with respect to competitive pay at a certain
point in time.
What are the two types of base pay structures? - ANSWERS--1. Market data
emphasis. (Market based approach)
2. Job content emphasis (point factor)
What is the market based approach? - ANSWERS--Uses external comparisons to
create a pay structure. Involves completing a market pricing analysis of benchmark
jobs, creating a market based job, hierarchy, and assigning benchmark and non-
benchmark jobs to the pay structure.
What are the characteristics of market pricing and sliding? - ANSWERS--1. Simple to
administer.
2. Easy to understand.
3. No job evaluation points.
4. Responsive to market changes.
What is the point factor approach? - ANSWERS--Involves assigning a point value to
specific jobs in the company.
What are the two approaches that can be used to develop a point system pay
structure? - ANSWERS--1. Continuum approach.
2. Pay structure approach.
What is the continuum approach? - ANSWERS--Internal equity is the priority
No job grades - develop a base pay policy line by regressing job evaluation points
with competitive market rates for each benchmark job.
PAY FOR PERFORMANCE GR4 C4
UPDATED QUESTIONS AND
VERIFIED ANSWERS
3 types of base pay - ANSWERS--1. Salary
2. Hourly
3. Piece rate
What are the two job evaluation methods? - ANSWERS--1. Market pricing
2. Job content
What is job evaluation - ANSWERS--A systematic method and process for
determining and comparing the relative value of one job to others
What is the market data approach to job evaluation? - ANSWERS--- Job descriptions
are used to match survey data
- Benchmark jobs are arranged into a hierarchy based on an analysis of market data
- Jobs with no market data or slide it in using job contact to determine relative worth
, What is the job content approach to job evaluation - ANSWERS--Relative internal
value is determined between jobs based in the nature and level of work
Some jobs are priced as anchor points
Why is job hierarchy important? - ANSWERS--Because it helps establish a
relationship between various jobs, allowing groupings of similar jobs
Helps compensation professionals, determine how various jobs can be classified
within the organization
Also creates the foundation of a base pay system
Why is job hierarchy used? - ANSWERS--Do you determine and ensure internal and/
or external equity, among both positions and groups of positions
What is a base pay structure? - ANSWERS--A management tool that reflects the
collection and organization of internal and external compensation data to support job
values. It consist of a series of pay ranges that represent jobs of similar internal, and
or external worth.
What are the three objectives of a base pay structure? - ANSWERS--1. Create
alignment between work and rewards.
2. Help achieve organizational objectives; affective compensation tools for
supporting the organization.
3. Reflect the companies desired position with respect to competitive pay at a certain
point in time.
What are the two types of base pay structures? - ANSWERS--1. Market data
emphasis. (Market based approach)
2. Job content emphasis (point factor)
What is the market based approach? - ANSWERS--Uses external comparisons to
create a pay structure. Involves completing a market pricing analysis of benchmark
jobs, creating a market based job, hierarchy, and assigning benchmark and non-
benchmark jobs to the pay structure.
What are the characteristics of market pricing and sliding? - ANSWERS--1. Simple to
administer.
2. Easy to understand.
3. No job evaluation points.
4. Responsive to market changes.
What is the point factor approach? - ANSWERS--Involves assigning a point value to
specific jobs in the company.
What are the two approaches that can be used to develop a point system pay
structure? - ANSWERS--1. Continuum approach.
2. Pay structure approach.
What is the continuum approach? - ANSWERS--Internal equity is the priority
No job grades - develop a base pay policy line by regressing job evaluation points
with competitive market rates for each benchmark job.
