Comp 2

A job evaluation method that can group a wide range of work together in 1 system but may leave too much room for manipulation

Classification

NOT a common way that an organization may choose to define competencies?

Factors related to the cost-cutting goals of the company

A disadvantage of the classification method is that it may become cumbersome as the number of jobs increases

False

Which of the following is a characteristic of benchmark jobs?

They employ a reasonable proportion of the workforce.

The objective of external competitiveness is to base internal pay structure on external market rates

True

An example of the demand side of labor..

Pay level offered by employer

An employer offering higher base pay with low bonuses is a likely signal that the organization is seeking risk-taking employees

False

The supply of labor will impact the effectiveness of a lag-pay-level policy

True

What is linked to high pay levels

Reduced vacancy rates

On average, which of these do you think is likely to have the biggest impact on an employee’s performance?

Ability

What type of pay for performance plan is the most prevalent?

Merit Pay

Whats the average yearly merit pay increase

3%

Merit pay is a permanent wage increase based on employee performance

True

A problem with incentive pay plans is that workers may end up focusing exclusively on behaviors that are rewarded.

True

________ is employees beliefs that higher job performance will be rewarded by the organization

Instrumentality

This is true of merit pay…

Merit programs are commonly designed to pay different amounts depending on the level of performance.