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Compensation Management Hr434

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HR 434 Take Home Exam #1 Due Sunday night of week #4 Name: Mack A. Anderson

1. (10 points) What changes are occurring in the workforce relative to the kinds of work employees are performing?

The workforce has changed a lot, technology has taken over which reduce the mean for manufacturing work. One of the changes is self check-out stands at Wal-mart. Prior to the computerization and robotization of manufacturing, the allocation of 40% of revenues for labor costs was a good ballpark figure. In-terms meant for every $1.00 is generated by manufacturing company, 40 cent went for base pay and benefits for the workforce.

2. (10 points) Discuss what is meant by the term exempt employee and the various exemption criteria established for identifying this group of workers.

Exempt employees are your senior management and they receive a fixed salary. Salary employees does not get paid overtime. Non-exempt employees are your hourly wages. Hourly wages employees get overtime pay.

3. (10 points) Briefly describe the three major classes of society and their seven subsets.

Upper-class. The ultra-rich, their income is over $1million a year and they live a care free life. The wealthy, income will range from $250,000 to$1,000,000.

Middle-class. The upper-middle class earns between $100-250,000 a year. Middle class persons earn from $60-100,000 a year. Lower middle class persons earn from $35-60,000 a year.

Lower-class. The working poor have incomes ranging from $19-35,000. These persons are typically on food stamps, and require government assistance for housing and medical care. The poverty class earns less than $19,000.

4. (10 points) Why is it necessary to perform a job analysis? Job analysis is a process to establish and document the detail list of employment procedures such as training, selection, compensation, and performance appraisal.

Job analysis includes training with the list of job required knowledge, skills, and abilities. Organization design and staffing help review and identify what levels of management can be eliminated, where jobs can be combined, and where technology can improve efficiency. Compensation, performance review, Safety and health, affirmative action planning, hiring the handicapped and Organization Chart are parts of the job analysis.

5. (10 points) What is meant by internal equity? What is the relationship between internal equity and job evaluation?

Internal equity is the ranking of all jobs to each other relative to their value to the organization.

The relationship between job evaluation and internal equity is exemplified by a company deciding that a job is so important that it is ranked higher, in relation to other jobs.

6. (10 points) Define a compensable factor and give a few examples.

Compensable factors are paid for, measurable qualities, features, requirements, or constructs that are common to many different kinds of jobs. Because there factors normally do not represent identifiable job activities, specific observable behaviors, or measureable outputs, they are synthetic in design. The factor that has been developed by the pioneers have been known as universal compensable factors.

Skill- The experience, training and the ability required to perform a job under consideration.

Efforts- Measurement of the physical or mental exertion needed to performance of a job.

Responsibility- This is where the employer depends on the employee to perform the job as expected.

Working condition- This includes the surrounding hazards and the physical conditions of the job.

7. (10 points) What is the role of a job evaluation committee in job evaluation and who should be included in the committee?

The role of a job evaluation committee is: 1) To rank and rate jobs. 2) Select a job evaluation method. 3) Choose benchmark jobs in order to adequately describe a wide span of responsibilities, duties, and work requirements.

The committee should consist of 3 to 10 individual. Take in consideration, the fewer the members, the easier the process. The job evaluation committee should have one to three permanent members with at least one of them being from the human resources office and/or the compensation department. Also there should be rotating members representing the unit whose jobs are being evaluated.

8. (5 points) Explain the reason for the trend towards broad generic job descriptions versus narrow specific job descriptions. Narrower job description is better for the employee knowing what his or her duties responsibilities are. Broad job descriptions work in favor of the firms, because this gives them more flexibility in assigning work. The generic job description allows them to re-evaluate the job description they choose.

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