Deck 13: Base Wage and Salary Systems

Question 1

The first step in a job evaluation is to gather information on the jobs being evaluated.

Answer 1

True

Question 2

The most reliable and least expensive method of surveying wage data is the personal interview.

Answer 2

False

Question 3

In the job ranking method,the evaluator ranks jobs from the simplest to the most difficult.

Answer 3

True

Question 4

In the point method of performance evaluation,after the point scale has been agreed on,point values are derived for key jobs by examining the job specifications.

Question 5

Job evaluation is a systematic determination of the value of each job in relation to other jobs outside the organization.

Question 6

Ideally,in an organization's compensation system,the job evaluation process should ensure external equity,while wage surveys should ensure internal equity.

Question 7

It is generally recognized that skill-based pay systems work well in unionized organizations.

Question 8

The factor comparison method is similar to the point method with the exception that the factor comparison method involves a monetary scale.

Question 9

The job classification method is also called job grading.

Question 10

Broadbanding decreases the actual number of pay grades and increases the range in compensation for the remaining pay grades.

Question 11

The intent of the total rewards approach is to place more emphasis on lower-cost rewards and provide a flexible and broad array of rewards.

Question 12

Most wage and salary systems establish pay ranges for jobs based on the relative worth of the job to the organization.

Question 13

Wage and salary surveys are used for "pricing the job" after the relative worth has been determined using one of the methods of evaluating the relative worth of the job.

Question 14

There is a universal set of compensable factors that can be used by all organizations when developing methods for determining the value of its jobs.

Question 15

The minimum of a pay grade's range places a ceiling on the rate that can be paid.

Question 16

Base wages and salaries are the hourly,weekly or monthly pay that employees receive in exchange for their work.

Question 17

The job classification and ranking methods of evaluating the worth of jobs are both examples of qualitative or nonquantitative methods.

Question 18

When one uses the point method of job evaluation,all jobs in the organization must be examined and evaluated.

Question 19

The most widely acknowledged shortcoming of wage and salary surveys is that it is difficult to find jobs that are directly comparable.

Question 20

A skill-based pay system pays individuals for the specific skills that are shown to be required by a comprehensive job analysis.

Question 21

Which of the following is an advantage of the point method of job evaluation?

A)Because it can usually be done in hours,it is relatively inexpensive.
B)It is usually easier to develop than the factor comparison method.
C)The system is easy to keep current as jobs change.
D)It is tied to external market wage rates.

Question 22

Which of the following is a disadvantage of the factor comparison method of job evaluation?

A)It is brief and nonspecific.
B)It requires significant interaction and decision making by the different parties involved in conducting the job evaluations.
C)It is not easily adapted to changes in the jobs being evaluated.
D)Because of its qualitative nature,it is difficult to assign monetary values to jobs.

Question 23

Ordinarily,the largest portion of an employee's total compensation (according to time periods)consists of:

A)deferred bonuses.
B)base wages or salary.
C)benefits package.
D)incentive allocations.

Question 24

The primary objective of a base wage and salary system is to establish an equitable compensation for employees:

A)leaving aside issues of changing conditions and their effects upon jobs.
B)overcoming the bias of job value differences.
C)depending on their jobs and levels of performance.
D)according to benchmarks of national union activists.

Question 25

The primary method for determining the relative worth of jobs to the organization is termed job:

A)evaluation.
B)description.
C)specification.
D)analysis.

Question 26

Characteristics of jobs that the organization deems important-to the extent that it is willing to pay for them is termed:

A)compensable factors.
B)job classifications.
C)point values.
D)job rankings.

Question 27

What is the most reliable and most expensive method of surveying wage data?

A)Telephone interviews
B)Personal interviews
C)Mailed questionnaires
D)Controlled experimentation

Question 28

A major disadvantage of the point method of job evaluation is that:

A)it is relatively difficult to explain to employees.
B)it is relatively time-consuming and costly to develop.
C)job evaluators may abuse the system.
D)the method is highly subjective.

Question 29

Which of the following is a disadvantage of the job classification method of job evaluation?

A)Susceptibility to abuse by evaluators due to generalities.
B)It is relatively difficult to explain to employees.
C)It is limited to smaller organizations where employees are very familiar with various jobs.
D)It assumes equal intervals between the rankings,and this is usually not true.

Question 30

Which of the following is true about the job ranking method?

A)It is the simplest and most often used job evaluation technique.
B)This method produces an ordering of jobs.
C)In this method,the evaluator ranks jobs from the most difficult to the simplest.
D)It indicates the relative degree of difference among the jobs.

Question 31

A graphical depiction of the relationship between the relative worth of jobs and their wage rates is termed:

A)comparable worth.
B)pay compatibility index.
C)wage and salary curve.
D)job value regression.

Question 32

The following guidelines should be followed when conducting wage and salary surveys EXCEPT:

A)assess the participating companies for comparability.
B)compare more than base wage or salary.
C)ignore variations in job descriptions.
D)correlate survey data with adjustment periods.

Question 33

In the _____ method of job evaluation,job subfactors are used to describe compensable factors in more detail.

A)job ranking
B)job classification
C)point
D)factor comparison

Question 34

Which of the following is a potential use of job evaluations?

A)To provide a basis for a simple,variable wage structure.
B)To reduce pay grievances by reducing their scope.
C)To provide a means of comparing jobs and pay rates within the organization itself.
D)To provide an agreed-on means of classifying old jobs.

Question 35

Another name for degree statements is:

A)averaging statements.
B)standard declarations.
C)balancing remarks.
D)profile statements.

Question 36

Establishing pay ranges involves determining the relative worth of the different jobs to the organization,ensuring:

A)individual equity.
B)employee equity.
C)internal equity.
D)external equity.

Question 37

The factor comparison method of job evaluation concludes with linking each compensable factor to a:

A)working condition.
B)key job.
C)monetary scale.
D)mental requirement.

Question 38

The _____ method of determining job value is objective and quantitative.

A)ranking
B)job classification
C)point
D)factor comparison

Question 39

Which of the following is an advantage of the job ranking method of job evaluation?

A)Highly subjective
B)Equal intervals between the rankings
C)Adaptable to any sized organization
D)Easily explained

Question 40

A good rule of thumb when doing a wage survey in conjunction with either the point or factor comparison method is that a minimum of _____ percent of the jobs in an organization should be surveyed to make a fair evaluation of the organization's pay system.

A)5
B)50
C)20
D)30

Question 41

List the possible topics to be included in a wage survey.

Question 42

Describe broadbanding.

Question 43

Which of the following is true about broadbanding?

A)It works especially well in organizations that are slow moving and undergoing intermittent change.
B)Under this system,employees are reluctant to take a lateral move or a downgrade.
C)It is not effective in eliminating many of the frequent barriers to communication and development.
D)Managers have more autonomy in setting pay rates.

Question 44

An organization's compensation system should produce a base wage/salary structure that is:

A)regressively equitable.
B)externally equitable.
C)characterized by many "green circled jobs".
D)characterized by many "red circled jobs".

Question 45

Which of the following is true about pay grades and ranges?

A)One approach for establishing pay grades and ranges is to have a relatively large number of grades with identical rates of pay for all jobs within each grade.
B)The minimum of a pay grade's range places a ceiling on the rate that can be paid.
C)The maximum of a pay grade's range places a floor on the rate that can be paid to any employee whose job is classified in that grade.
D)In establishing pay grades and ranges,one method is to have a small number of grades with a relatively narrow dollar range for each grade.

Question 46

Distinguish between skill-based pay and competency-based pay.

Question 47

Skill-based pay is also referred to as:

A)competency-based pay systems.
B)knowledge-based pay systems.
C)compulsory pay.
D)pay for succession potential.

Question 48

Broadbanding:

A)reduces the number of pay grades in a salary system.
B)increases the number of pay grades in a salary system.
C)is the result of job evaluation using the point method.
D)is generally one of the by-products of implementing a skill-based pay structure.

Question 49

Market-based pay systems focus on:

A)external equity.
B)complex internal job evaluations.
C)traditional pay ranges.
D)psychological contracts.

Question 50

What are degree statements?

Question 51

Jobs that are grouped together in classes to make the wage structure simpler than it otherwise would be are called:

A)wage curves.
B)pay ranges.
C)pay grades.
D)green circles.

Question 52

What is the primary objective of any wage and salary system?

Question 53

Describe the point method of job evaluation.

Question 54

Which of the following is NOT a benefit of a skill-based pay system?

A)Considering the reality of the market to fairly price jobs.
B)Helping to maintain commitment when promotions are not possible.
C)Decreasing labor costs.
D)Improving understanding of the company's operation.

Question 55

A large number of potential uses of job evaluations were discussed in your text.Comment on five of the potential uses.

Question 56

Which of the following is true about the total rewards approach?

A)The basic idea of total rewards is to consider just pay and benefits when developing a strategy to attract,motivate,and retain employees.
B)The idea is to be able to effectively engage a more comparable workforce.
C)Its intent is to place more emphasis on lower-cost rewards and provide a flexible and broad array of rewards.
D)It is easy to quantify the adoption of the concept since many aspects of the concept have been around for a long time.

Question 57

What is the job ranking method?

Question 58

What is the purpose of wage and salary surveys?

Question 59

The _____ pay system rewards employees based on knowledge,skills,and behaviors that result in performance.

A)skill-based
B)market-based
C)broadbanding
D)competency-based