WGU - C236 Questions and Answers with Complete Solutions

WGU - C236 Questions and Answers with Complete Solutions What is a Reward System? 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 the process of systematically analyzing positions that result in completed work in organizations. What are the implications of Job Analysis on the compensation system? 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? Work What are 3 job analysis methods available to a company to analyze a job? 1) Traditional Interviews 2) Questionnaires 3) Panel Interview What is involved in the traditional interview? 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? 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? Questionares When creating a job analysis who should you speak with for input? 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? 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? 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? The process of systematically constructing jobs to make them functional, efficient, and motivational Job Title Name by which the job is known within the company Job Specification 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? 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 Grouping of jobs that have similar functions or content What does the Fair Labor Standards Act require of organizations? Organizations determine the "employee status" of each job What does an Independent Contractor have the ability to do? 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 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 Any employee whose pay is reduced based on the hours worked is non-exempt Primary Duties Test 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, Learned Professionals, Creative Professionals, Administrative, Computer, Outside Sales, and High Compensated. How does FSLA require a company to cover compensatory time? Any employee working above 40 hours per week must be paid time and a half for those extra hours. (In the public sector, employers are allowed to grant paid time off instead of overtime pay, referred to as Compensatory Time) How does FSLA monitor Child Labor? FSLA defines the type of work appropriate for children and the ages at which children can work Internal rewards alignment The extent to which an organization's Total Rewards System aligns each employee's rewards with those received by others in the organization What potential problems can happen if there are flaws in a compensation system? Morale, Turnover, & Information Sharing Job-based Approach Assumes that organizations provide rewards based upon the job that a person holds. Individual-based Approach Assumes that rewards should be based upon the characteristics of the person holding a job. Performance-based Approach Assumes that rewards should be based upon the performance or results produced by an employee. In a Job-Based System, what is the fundamental unit for designing the rewards system? The job itself When do pay changes occur in the Job-Based system? In companies using job-based systems, pay changes occur when an employee changes jobs, not when the employee gains additional skills. Using Job Analysis what is all work organized into? Jobs External Reward Positioning How an organization's Rewards compare to the Rewards offered for comparable work in other organizations External equity Employee perceptions regarding the worth of their work conditions and rewards compared to the work conditions and rewards of individuals outside the company Labor-driven Job Market When the demand for a particular set of KSAs (knowledge, skills, and abilities) is high and the supply of these KSAs is low Labor Markets Individuals are the sellers and organizations are the buyers. Prospective employees are offering to sell their time, knowledge, skills, influence, and other ways of creating value. Organizations are looking to buy the time, knowledge, skills, and other forms of value, in exchange for various forms of rewards including compensation, benefits, and intangible rewards Product and Service Markets Organizations compete to create value through the production of goods or the provision of services for customers in exchange for money and loyalty Benchmark Competitors A selection of primary organizations that exemplify the labor and product/service markets in which the organization competes. It creates the standard to which the rewards system is anchored Who should be on the Benchmark Competitor List? list of Benchmark Competitors is not an exhaustive list of all competitors in each market, but rather represents exemplars or representative samples of such competitors Central Tendency Describes what's typical for a set of data, usually measured by the arithmetic mean, median, or mode Benchmark Jobs Jobs that are representative of the type, content, and level of jobs in the organization Reward surveys Aggregations of reward information gathered