AND VERIFIED ANSWERS COMPREHENSIVE STUDY GUIDE
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What is a Reward System? - (correct answer) Reward Systems are also
mechanisms for exchanging value between two parties. Employees create value for the
organization through their work, and organizations provide value for employees through
the reward systems.
Define Job Analysis - (correct answer) the process of systematically analyzing
positions that result in completed work in organizations.
What are the implications of Job Analysis on the compensation system? - (correct
answer) 1) Job Analysis, provides a process for understanding how work is organized
and serves as the basis for most reward systems.
2) Job Analysis will detail the knowledge, skill, and ability requirement for a job, which
will have a direct connection to the reward strategy for that particular job.
3) the job analysis defined the nature of the work which serves as an important
determinant of Fair Labor Standards Act status (exempt vs. non-exempt).
4) Job Analysis provides an understanding of the nature of the work performance which
is vital for determining the likely effectiveness of performance-based pay systems.
What does an employee contribute to the organization to create value? - (correct
answer) Work
What are 3 job analysis methods available to a company to analyze a job? - (correct
answer) 1) Traditional Interviews
2) Questionnaires
3) Panel Interview
What is involved in the traditional interview? - (correct answer) The job analyst asks
the job incumbent preset questions about the content, skills needed, and time spent on
activities in the job.
How is the panel interview used to analyze a job? - (correct answer) Multiple job
incumbents (and sometimes multiple job analysts) all meet together to analyze the job.
In panel interviews, the job incumbents themselves explore the agreement and
contradictions in their responses.
What analysis method does an organization use to overcome some of the limitations of
interview methods? - (correct answer) Questionares
When creating a job analysis who should you speak with for input? - (correct answer)
In small organizations, the information may be gathered from every incumbent of a
given job. As the number of job incumbents per job increases, organizations typically try
, to make the process more efficient by choosing a subset of the job incumbents to be
involved in the process.
Why is it necessary to gain buy in for a job analysis to create a value-added analysis? -
(correct answer) It is important to involve people from all levels in the organization, not
only to increase the quality of the information, but also to obtain buy-in from those who
will be using it for reward decisions.
What is the goal of a job analysis? - (correct answer) Understand the work involved
and how it creates value (The goal is not to evaluate the performance of any particular
employee in performing that work)
Define job design and state what is its purpose? - (correct answer) The process of
systematically constructing jobs to make them functional, efficient, and motivational
Job Title - (correct answer) Name by which the job is known within the company
Job Specification - (correct answer) Translates the TDRs into the Knowledge, Skills,
Abilities, and Other (KSAOs) that an employee needs to perform the job at a
satisfactory level
What is included in the bulk of the job description? - (correct answer) Written
documents that serve as the primary source of information about jobs for many uses
within the organization, and these descriptions play a key role in the design and
implementation of total reward systems.
Job Family - (correct answer) Grouping of jobs that have similar functions or content
What does the Fair Labor Standards Act require of organizations? - (correct answer)
Organizations determine the "employee status" of each job
What does an Independent Contractor have the ability to do? - (correct answer)
Have the ability to set their own hours and work processes, and they work and are paid
on a project basis with the opportunity for profit or loss
Salary Level Test - (correct answer) Any employee paid less than $35,568 per year
(or $684 per week) is non-exempt and covered by the FLSA for purposes of paying
overtime
Salary Basis Test - (correct answer) Any employee whose pay is reduced based on
the hours worked is non-exempt
Primary Duties Test - (correct answer) If an employee has significant discretion and
exercises independent judgment, that employee is classified as exempt from FLSA
provisions. The tests of duties are broken into exemption criteria for Executives,