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.Which of the following,if true,best supports the use of market data rather than internal job evaluations to determine the value of jobs at O'Donnell?
A) Turnover at O'Donnell is relatively low.
B) Most jobs at O'Donnell are typical for the industry.
C) The organizational structure at O'Donnell is flat.
D) Most lower-level positions at O'Donnell are exempt.

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.Which of the following,if true,best supports the use of market data rather than internal job evaluations to determine the value of jobs at O'Donnell?
A) Turnover at O'Donnell is relatively low.
B) Most jobs at O'Donnell are typical for the industry.
C) The organizational structure at O'Donnell is flat.
D) Most lower-level positions at O'Donnell are exempt.

Quizplus · Accepted Answer

If most jobs at O'Donnell are typical for the industry, it would make sense to use market data to determine the value of jobs rather than relying solely on internal job evaluations. This would ensure that O'Donnell's compensation system is competitive with other companies in the industry and would help retain and attract employees. Turnover rates, organizational structure, and exempt status of lower-level positions do not necessarily impact the decision to use market data over internal job evaluations.