aPHRi Exam Dumps - Associate Professional in Human Resources - International

A market-based job evaluation assesses salary levels by comparing them to external market factors, such as industry salary surveys, to ensure competitive compensation. This approach aligns an organization’s pay practices with external market standards.

Explanation of Other Options:

A. Ranking: Compares jobs internally within an organization.

B. Pay grade: Groups jobs into pay bands but doesn't assess external market factors.

D. Content-based: Focuses on job responsibilities and skills rather than external factors.

ï‚· Definition of Flat Rate Compensation:

Flat rate compensation involves paying employees a uniform rate for the same type of work, regardless of seniority, performance, or additional factors.

ï‚· Why Same Rate for Same Work is Correct:

This system ensures consistency and simplicity in compensation, often applied in standardized roles where tasks are uniform and performance differentiation is minimal.

ï‚· Eliminating Incorrect Options:

A. Based on seniority: Seniority-based pay typically involves incremental increases over time.

B. Based on performance: Flat rate pay is not performance-based.

D. At an appropriate rate for employment skills: Flat rate pay disregards skill variations.

ï‚· International HR References:

ILO Equal Remuneration Convention (No. 100): Advocates for equal pay for equal work, aligning with flat rate principles.

A compensation philosophy serves as the foundation for designing and administering a pay system. It defines the organization's stance on pay competitiveness, equity, and structure relative to the market.

Explanation of Other Options:

A. Corporate budget strategy: Guides overall financial planning, not specific to pay systems.

B. Accounting policy: Focuses on financial reporting and compliance, unrelated to pay system design.

D. Sales incentive strategy: Targets specific performance bonuses, not the entire pay system.