Additional Case 10.2
O'Donnell International is updating its job-based compensation system with a primary goal of achieving internal equity. Sean is responsible for gathering and organizing information concerning the tasks and duties of specific jobs. Susie is to determine the prerequisites for the successful accomplishment of each job analyzed. Jeff will work with three line managers to determine the compensable factors for specific lower-level jobs. The HR director, the president, and two VPs will review the information on management jobs in order to determine the compensable factors in each before putting all jobs at the firm into a job hierarchy.
-Refer to Additional Case 10.2.What is the best way to address O'Donnell's key concern?
A) Conducting a market survey
B) Referring to the Hay system
C) Conducting a job evaluation
D) Initiating a TQM program

Question

Additional Case 10.2 
O'Donnell International is updating its job-based compensation system with a primary goal of achieving internal equity. Sean is responsible for gathering and organizing information concerning the tasks and duties of specific jobs. Susie is to determine the prerequisites for the successful accomplishment of each job analyzed. Jeff will work with three line managers to determine the compensable factors for specific lower-level jobs. The HR director, the president, and two VPs will review the information on management jobs in order to determine the compensable factors in each before putting all jobs at the firm into a job hierarchy.
-Refer to Additional Case 10.2.What is the best way to address O'Donnell's key concern?
A) Conducting a market survey
B) Referring to the Hay system
C) Conducting a job evaluation
D) Initiating a TQM program

Quizplus · Accepted Answer

O'Donnell International's primary goal is to achieve internal equity in their job-based compensation system. Conducting a job evaluation is the best way to determine the relative worth of different jobs within the organization in order to establish a pay structure that aligns with the organization's objectives. By organizing and analyzing data regarding job duties, prerequisites for successful job performance, and compensable factors, the company can ensure that they are compensating employees fairly for the work they do. A market survey or referring to the Hay system may be useful in developing a compensation strategy, but they are not the best way to address the company's key concern of achieving internal equity. Initiating a TQM program is also unrelated to addressing the compensation system concern.