FAstcat Phase 1 Solution
Transcript of FAstcat Phase 1 Solution
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COMPENSATING EMPLOYEES
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SEMESTER RECAP
Context SHRM
Legal environment International
Procuring Planning Recruiting Selection
Utilizing & Maximizing Training Appraisal
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Compensation Defined
The package of quantifiable rewards anemployee receives for his/her labors.
Three components: Base compensation Pay incentives Indirect compensation
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TODAYS TOPIC
Compensation
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EQUITY THEORY
People compare theiroutcome/input ratio to
that of others Conclusions
Ratios are equal(equity exists)
Ratios are unequal(inequity exists)
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RESPONSES TO EQUITY/INEQUITY
Equity: Maintenance
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RESPONSES TO EQUITY/INEQUITY
Equity: Maintenance Inequity:
Change Inputs Change Outcomes Quit
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Traditional Approach toCompensation
Objective of traditional approaches tocompensation is to achieve both internal &
external equity Internal equity is accomplished through jobevaluation Systematic process of assessing the value of each job
in relation to other jobs in the organization Results in a hierarchy of jobs ranked in order of theirrelative worth
External equity through market analysis
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The Traditional Approach to Compensation
Job Analysis
Job DocumentationPrepare to
Job Rating Survey
Conduct
Create Job SurveyWorth Hierarchy
AnalyzeMarket Data
ReconcileInternal and External
Considerations
Develop PayStructure
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Three Job Rating M ethods
Method Procedure Advantages DisadvantagesRanking (paired comparison) Rank-order whole Simplest method; -Subjective
jobs for worth or inexpensive, easily -not very reliable
compare pairs of understandable. - doesnt measure jobs. differences between jobs.
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Three Job Rating M ethods
Method Procedure Advantages DisadvantagesRanking (paired comparison) Rank-order whole Simplest method; Only general rating of
jobs for worth or inexpensive, easily - not very reliablecompare pairs of understandable. doesnt measure
jobs. differences between jobs.
Classification Compare job de- Simple, easy to Ambiguous, overlappingscriptions to grade use for large num- grade descriptionsdescriptions. ber of jobs; one
rating scale.
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Grade Description Pay
5 Cook existing menu items following recipeSupervise kitchen helpPrepare payrollEnsure quality of food and adherence to standards
$14.00-$19.00
3 Greet customers and organize tablesTake orders from customersBring food to tablesAssist with food preparation
Help with delivery
$10.00-$12.00
1 Use dishwashing equipmentUse chemicals to clean premisesUse vacuum cleaner, mop, waxer
Clean and set up tablesPerform routine kitchen chores
$8.25-$9.00
Job Classification for Restaurant
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Grade Jobs # Positions
5 Assistant ManagerLead CookOffice Manager
221
3 ServerHostessCashier
4544
1 Kitchen HelperDishwasherJanitorBusser
Security Guard
2326
2
Job Classification for Restaurant
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Three Job Rating M ethods
Method Procedure Advantages DisadvantagesRanking (paired comparison) Rank-order whole Simplest method; Only general rating of
jobs for worth of inexpensive, easily - not very reliablecompare pairs of understandable. doesnt measure
jobs. differences between jobs.
Classification Compare job de- Simple, easy to Ambiguous, overlappingscriptions to grade use for large num- grade descriptionsdescriptions. ber of jobs; one
rating scale.
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Three Job Rating M ethodsMethod Procedure Advantages DisadvantagesRanking (paired comparison) Rank-order whole Simplest method; Only general rating of
jobs for worth of inexpensive, easily - not very reliablecompare pairs of understandable. doesnt measure
jobs. differences between jobs.
Classification Compare job de- Simple, easy to Ambiguous, overlapping
scriptions to grade use for large num- grade descriptionsdescriptions. ber of jobs; one
rating scale.
Point factor Reduce general More specific and Time-consuming process factors to sub- larger number of more difficult to under-
factors: give each factors; off-the- stand; greater opportun-factor weights and shelf plans available ity to disagree.
points; use points more preciseto determine measurements.grades.
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Point Factor Method
1 Identify specific characteristics (factors)of jobs that will be measured
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M ajor F actors of the H ay Plan
Know-How Problem Solving AccountabilitySum total of every kind Original, self -starting thinking Answerability for action
kind of skill, however required by the job for analyzing, and for the consequen-acquired, required for evaluating, creating, reasoning. ces of the action; theacceptable job perfor- Problem solving has two sub- measured effect of themance. Know-how has factors: the job. Accountabilitythree subfactors: has three subfactors:
(1) Practical procedures, (1) The thinking environment (1) Freedom to actspecialized techni- in which problems are (personal control).ques. solved.
(2) Ability to integrate (2) The thinking challenge of (2) The impact of theand harmonize the the problem. job on end results
diversified functions (direct, indirect).of management.
(3) Interpersonal skills. (3) Magnitude - generaldollar size of areasmost affected by job.
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Point Factor Method
1 Identify specific characteristics (factors)of jobs that will be measured
2 Weigh the factors3 Score each job on each factor using factor
scales and degree statements
Statement of the degree to which the factor is present in the jobScoring system
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Degree Statements for the F actorPhysical Requirements
Factor: Physical Requirements This factor appraises the physical effort required by a job, including its intensity and
degree of continuity. Analysis of this factor may be incorrect unless a sufficiently
broad view of the work is considered.
Degree1. Light work involving a minimum of physical effort.
Requires only intermittent sitting, standing, and walking.2. Repetitive work of a mechanical nature. Small amount of lifting and
carrying. Occasional difficult working positions. Almost continuous sittingor considerable moving around.
3. Continuous standing or walking, or difficult working positions. Workingwith average weight or heavy materials and supplies. Fast manipulative skillin almost continuous use of machine or office equipment on paced work.
Th T di i lA h C i
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The Traditional Approach to Compensation
Job Analysis
Job DocumentationPrepare to
Job Rating Survey
Conduct
Create Job SurveyWorth Hierarchy
AnalyzeMarket Data
ReconcileInternal and External
Considerations
Develop PayStructure
Th T di i lA h C i
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The Traditional Approach to Compensation
Job Analysis
Job DocumentationPrepare to
Job Rating Survey
Conduct
Create Job SurveyWorth Hierarchy
AnalyzeMarket Data
ReconcileInternal and External
Considerations
Develop PayStructure
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Market Pricing
Identify benchmark positions What type?
Select information sources Public Consulting firm Self-administered survey
Choose comparators What are your options? How do you choose?
Th T diti lA ht C ti
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The Traditional Approach to Compensation
Job Analysis
Job DocumentationPrepare to
Job Rating Survey
Conduct
Create Job SurveyWorth Hierarchy
AnalyzeMarket Data
ReconcileInternal and External
Considerations
Develop PayStructure
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Develop Pay Structure
Pay level relative to market Performance vs. membership?
Single rate Time progression Time progression and merit Productivity Salary Range
Job vs. Individual Pay Mix
Fixed vs. variable
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Emerging Approaches toCompensation
Broadbanding replaces traditional narrow salary ranges to fewer wider bands +consistent w/flatter organizations, empowerment, teamwork -cost control is difficult most appropriate for higher level positions
Team based pay
Advantages? Disadvantages?
Skill-based pay
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Skill-based Pay
Advantages? motivation, flexibility, reduced absenteeism and
turnover costs (can cover), flatter Disadvantages?
Labor costs; Rusty skills, loss of labor specialization
When? Expertise and innovation are sources of CA Technology changes frequently Upward mobility is limited Developmental opportunities are present