Compensation Final Exam 2026/2027 |
Complete Revision Notes & Test Prep
3 Key Factors for Determining Pay - correct answer-1- The relative importance of
the employee's job to the organization
2- The value placed on that job by the labour market
3- Performance of the employee doing that job
Job Evaluation - correct answer-Key Objectives:
- Ensure that all jobs in the organization are compensated equitably and are
perceived by organizational members as being compensated equitably
- Ensure that jobs are not underpaid, and not overpaid
Outputs:
- Hierarchy of jobs, where all jobs of a similar value to the organization, however
different they may be from one another in other respects, are located at the same
level on the jobs hierarchy
- Jobs hierarchy provides the foundation for the development of pay grades and
pay ranges
Job Analysis - correct answer-- Process of collecting information on which job
descriptions are based
,Job Description - correct answer-- Summary of the duties, responsibilities, and
reporting relationships pertaining to a particular job
Job Specifications - correct answer-- Employee qualifications deemed necessary
to successfully perform the duties for a given job
Methods of Job Analysis - correct answer-- Observations
- Interviews
- Questionnaires
- Functional Job Analysis
Open-Ended Questionnaire - correct answer-- Asks the respondent a series of
questions, such as the purpose and main duties of the job
Close-Ended Questionnaire - correct answer-- Asks the respondent to select from
a list the phrases that best describe the job
Point-Analysis Questionnaire (PAQ) - correct answer-1- Information input
describes the sources of information an employee uses on the job
2- Mental processes describe the types of reasoning, decision-making, planning,
and information-processing activities being used
3- Work output includes items that assess physical activities and the use of tools
in the work process
4- Relationships with other persons describes the extent to which the job involves
working with other people
5- Job context items examine the physical and social environment of the job
,6- Other job characteristics covers other conditions of work not covered by the
first five dimensions
Functional Job Analysis - correct answer-- Who performs what
- To whom or what
- With what tools, equipment, or processes
- To achieve what purpose or outcome
- Would get the info from everyone
- Would summarize the "average"- meets expectations level
- Wouldn't state only the high performer because that could create unrealistic
expectations
Identifying Job Families - correct answer-Many organizations will find that all of
their jobs can actually be slotted into eight job families or less:
1- Executives
2- Managers
3- Professionals
4- Technical Staff
5- Sales Staff
6- Production / Operations Workers
7- Trades
8- Support staff
Pitfalls of Job Analysis - correct answer-- Risk of analyzing the jobholder instead of
the job
, - Some jobholders may perform only a portion of the intended job duties
Job Evaluation Methods - correct answer-1- Ranking
2- Classification
3- Statistical
4- Factor
5- Point
Straight Ranking - correct answer-- Relative values of different jobs are
determined by knowledgeable individuals
- Involves asking a group of "judges" (e.g., managers, human resource specialists)
to examine a set of job descriptions and to rank jobs according to their overall
worth to the organization
Ranking: Paired Comparison - correct answer-- Every job is compared with every
other job, providing a basis for a ranking of jobs
- The number of times each job is ranked above another job is recorded, and
these pair rankings are used as the basis for ranking the entire set of jobs
Classification/Grading - correct answer-- Use of generic grade descriptions for
various classes of jobs to assign pay grades to specific jobs
- Establishes and defines general classes of jobs (e.g., managerial, professional,
technical, clerical) and then creates series of grade descriptions for each class
- Different grades possess different levels of knowledge and skills, complexity of
duties, supervision, and other key characteristics
- Organizations compare jobs using these grade descriptions within the
appropriate job class and then select the pay grade that best matches them
Complete Revision Notes & Test Prep
3 Key Factors for Determining Pay - correct answer-1- The relative importance of
the employee's job to the organization
2- The value placed on that job by the labour market
3- Performance of the employee doing that job
Job Evaluation - correct answer-Key Objectives:
- Ensure that all jobs in the organization are compensated equitably and are
perceived by organizational members as being compensated equitably
- Ensure that jobs are not underpaid, and not overpaid
Outputs:
- Hierarchy of jobs, where all jobs of a similar value to the organization, however
different they may be from one another in other respects, are located at the same
level on the jobs hierarchy
- Jobs hierarchy provides the foundation for the development of pay grades and
pay ranges
Job Analysis - correct answer-- Process of collecting information on which job
descriptions are based
,Job Description - correct answer-- Summary of the duties, responsibilities, and
reporting relationships pertaining to a particular job
Job Specifications - correct answer-- Employee qualifications deemed necessary
to successfully perform the duties for a given job
Methods of Job Analysis - correct answer-- Observations
- Interviews
- Questionnaires
- Functional Job Analysis
Open-Ended Questionnaire - correct answer-- Asks the respondent a series of
questions, such as the purpose and main duties of the job
Close-Ended Questionnaire - correct answer-- Asks the respondent to select from
a list the phrases that best describe the job
Point-Analysis Questionnaire (PAQ) - correct answer-1- Information input
describes the sources of information an employee uses on the job
2- Mental processes describe the types of reasoning, decision-making, planning,
and information-processing activities being used
3- Work output includes items that assess physical activities and the use of tools
in the work process
4- Relationships with other persons describes the extent to which the job involves
working with other people
5- Job context items examine the physical and social environment of the job
,6- Other job characteristics covers other conditions of work not covered by the
first five dimensions
Functional Job Analysis - correct answer-- Who performs what
- To whom or what
- With what tools, equipment, or processes
- To achieve what purpose or outcome
- Would get the info from everyone
- Would summarize the "average"- meets expectations level
- Wouldn't state only the high performer because that could create unrealistic
expectations
Identifying Job Families - correct answer-Many organizations will find that all of
their jobs can actually be slotted into eight job families or less:
1- Executives
2- Managers
3- Professionals
4- Technical Staff
5- Sales Staff
6- Production / Operations Workers
7- Trades
8- Support staff
Pitfalls of Job Analysis - correct answer-- Risk of analyzing the jobholder instead of
the job
, - Some jobholders may perform only a portion of the intended job duties
Job Evaluation Methods - correct answer-1- Ranking
2- Classification
3- Statistical
4- Factor
5- Point
Straight Ranking - correct answer-- Relative values of different jobs are
determined by knowledgeable individuals
- Involves asking a group of "judges" (e.g., managers, human resource specialists)
to examine a set of job descriptions and to rank jobs according to their overall
worth to the organization
Ranking: Paired Comparison - correct answer-- Every job is compared with every
other job, providing a basis for a ranking of jobs
- The number of times each job is ranked above another job is recorded, and
these pair rankings are used as the basis for ranking the entire set of jobs
Classification/Grading - correct answer-- Use of generic grade descriptions for
various classes of jobs to assign pay grades to specific jobs
- Establishes and defines general classes of jobs (e.g., managerial, professional,
technical, clerical) and then creates series of grade descriptions for each class
- Different grades possess different levels of knowledge and skills, complexity of
duties, supervision, and other key characteristics
- Organizations compare jobs using these grade descriptions within the
appropriate job class and then select the pay grade that best matches them
