SPHR · Question #1
An HR director has been hired by a high-technology business that has been growing at a rapid rate. There are 300 professional employees in manufacturing and 80 in clerical and laboratory support…
The correct answer is C. Prepare job descriptions. Before any compensation structure can be created, it is essential to define each role clearly. Job descriptions are the foundation of compensation design because they allow for accurate job evaluations, benchmarking, and internal equity assessments. Without them, you cannot…
Question
An HR director has been hired by a high-technology business that has been growing at a rapid rate. There are 300 professional employees in manufacturing and 80 in clerical and laboratory support. There has been no formal human resource function in the past, with each department head controlling the hiring, salary adjustments, and other details. There are no established working hours except for non-exempt employees and the work environment is very informal in dress and supervisory relationships. The president wants the new director to identify the key areas of importance. Which of the following should be done first if the president indicated a desire to establish a formal pay program?
Options
- AConduct wage surveys
- BEstablish bonus policies
- CPrepare job descriptions
- DDevelop a point factor job evaluation rating system
How the community answered
(25 responses)- A4% (1)
- B8% (2)
- C84% (21)
- D4% (1)
Explanation
Before any compensation structure can be created, it is essential to define each role clearly. Job descriptions are the foundation of compensation design because they allow for accurate job evaluations, benchmarking, and internal equity assessments. Without them, you cannot determine market value or job classification reliably. Extract from HRCI-aligned HR knowledge (Total Rewards domain): The SPHR exam framework stresses the importance of "defining job roles as the foundation for compensation and performance systems." Formal pay programs begin with role clarity--job descriptions drive internal equity, job evaluations, and external market comparisons.
Topics
Community Discussion
No community discussion yet for this question.