T4 Questions and Answers

job evaluation

competency-based

market pricing

skill-based

Pay for knowledge systems involve basing pay on the capabilities of individuals, and job-based pay is based on the characteristics of the job.

Pay for knowledge systems are applied to managerial employees, and job-based pay is applied to operational-level employees.

Pay for knowledge systems are more widely used by Canadian firms than job-based pay systems,

Pay for knowledge systems involve low training costs and are easier to administer than job-based pay systems,

There is little empirical evidence supporting the validity of competency-based pay models.

Competency-based pay models are usually associated with operational level roles.

Pay for knowledge requires very detailed job descriptions for every role in an organization.

Pay for knowledge fits well with classical management styles, requiring employee flexibility in skill sets.

Output is easy to measure.

Output is very stable.

Output cannot be controlled by the individual employee.

Output is easy to price in terms of its value to the employer.

Communication objectives

Sphere of experience

Evaluation methods

Senior management values