Deck 5: Job-Based Structures and Job Evaluation

Question 1

All of the following is true regarding "compensationitis" except it is __________

A) contagious.
B) a social disease.
C) involves asking strangers about how they are paid
D) a way of understanding how different organization values work.

Answer 1

B

Question 2

The number of job evaluation plans an organization uses depends upon the:

A) number of employees.
B) number of departments or verticals.
C) depth of work.
D) level of detail to make pay decisions.

Answer 2

D

Question 3

( p.137)The assumption that value cannot be determined without reference to the external market is most closely related to which of the following aspects of job evaluation?

A) Measurement.
B) External market link.
C) Negotiation.
D) Assessment of job content.

Answer 3

B

Question 4

Which of the following is not an appropriate basis for evaluating the worth of jobs to an organization?

A) Worker performance
B) External market
C) Skills required
D) Organizational culture

Question 5

The second major decision in job evaluation is to:

A) obtain involvement of relevant stakeholders.
B) select single or multiple plans.
C) choose among alternative approaches.
D) establish purpose of evaluation.

Question 6

Exchange value of a job is its _____

A) job content value.
B) relative job value.
C) internal market value.
D) external market value.

Question 7

Which of the following is not a factor indicating a pay structure is aligned?

A) Fits the external labor market
B) Supports organization strategy
C) Is fair to employees
D) Motivates behavior toward organization objectives

Question 8

According to a WorldatWork survey,the primary method of job evaluation is _________

A) ranking
B) market pricing
C) point method
D) classification

Question 9

_____ is the process of systematically determining the relative worth of jobs for the purpose of creating an organization's job structure.

A) Performance evaluation
B) Job analysis
C) Job evaluation
D) Point factor evaluation

Question 10

The breadth of work is likely to be narrowest in:

A) an executive search firm.
B) a hospital.
C) a small manufacturing company.
D) a university.

Question 11

The primary usefulness of job evaluation is:

A) that it acts as a measurement tool for job performance.
B) that it provides a framework for exchange of views.
C) that it acts as a the basis of any bargaining agreement.
D) that it provides the basis to assess competitive strength(s).

Question 12

All of the following are advantages of the ranking method of job evaluation except:

A) rankings are easy to defend and justify.
B) the evaluation process is fast.
C) the evaluation process is inexpensive.
D) the evaluation process is not complex.

Question 13

A small organization is most likely to use _____ for job evaluation.

A) classification
B) the point method
C) ranking method
D) the Hay plan

Question 14

Views of job evaluation include all except __________

A) negotiation
B) measurement
C) legal mandate
D) external market link

Question 15

The beginning of job evaluation is most closely associated with

A) negotiation
B) measurement
C) legal mandate
D) external market link

Question 16

Which of the following is not a characteristic of a benchmark job?

A) It is not unique to a particular employer.
B) A reasonable proportion of the work force is employed in this job.
C) The pay level is the best in the industry.
D) The content of the job relatively stable over time.

Question 17

By answering the question,"How does this job add value?" job evaluation best:

A) supports work flow.
B) supports organization strategy.
C) reduces disputes over pay differences.
D) motivates behavior toward organizational objectives.

Question 18

Which of the following is the correct sequence?

A) Job description > Job evaluation > Pay structure
B) Job evaluation > Job description > Job structure
C) Job analysis > Job description > Job evaluation > Pay structure
D) Job description > Job evaluation > Job structure

Question 19

Which of the following is not true of usage of multiple plans versus single job evaluation plans?

A) Employers rarely evaluate all jobs in the organization at one time.
B) Many employers design different evaluation plans for different types of work.
C) Typically, a related group of jobs is used for evaluation.
D) A single universal plan is acceptable to employees if the work covered is highly diverse.

Question 20

The first major decision in job evaluation is to:

A) obtain involvement of relevant stakeholders.
B) select single or multiple plans.
C) choose among alternative approaches.
D) establish purpose of evaluation.

Question 21

The final step in designing a point plan is ______

A) develop online software
B) select compensable factors
C) communicate the plan and train users
D) apply to nonbenchmark jobs

Question 22

The most widely used point method job evaluation is the:

A) Hay plan.
B) Equal Pay Act generic plan.
C) factor comparison plan.
D) position analysis questionnaire plan.

Question 23

The job evaluation method that most resembles a bookcase is:

A) ranking.
B) the Hay plan.
C) point method.
D) classification.

Question 24

A company changes its strategy to be more "lean" and efficient,which may include some resizing in terms of employee strength.What should the company do about the compensable factor "scope of responsibility" that is measured by the number of subordinates?

A) Nothing, since the factor has no effect on strategy.
B) Change the factor name to "depth of responsibility" and measure it the same.
C) Remove the factor.
D) Reduce the weight of the factor.

Question 25

In the point method,the second step in designing the plan is to:

A) conduct job analysis.
B) scale the factors.
C) determine compensable factors.
D) prepare job evaluation manual.

Question 26

The U.S.federal government's pay structure is based upon _____ job evaluation system.

A) a ranking
B) a classification
C) the point
D) the Hay plan

Question 27

The example,"scaling of a compensable factor," is most likely related to:

A) level of authority.
B) responsibility.
C) decision making.
D) power.

Question 28

The ______ method of job evaluation is the most commonly used method in the U.S.and Europe.

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

Question 29

The _____ method of job evaluation uses compensable factors.

A) classification
B) position analysis questionnaire
C) point
D) ranking

Question 30

The following statement is an example of _____ of job evaluation. The effectiveness of the majority of the position's decisions can be measured within:
__ 1.One day; __ 2.One week; __ 3.One month; __ 4.Six months; __ 5.One year; __ 6.More than one year

A) ranking method
B) classification method
C) the Hay plan
D) the point method

Question 31

A job description is compared to class descriptions.This describes the _____ method of job evaluation.

A) position analysis questionnaire
B) point
C) Hay Guide Chart-Profile
D) classification

Question 32

All the following are true of compensable factors except:

A) reinforce an organization's culture.
B) support the business direction.
C) represent the nature of work.
D) are common within an industry type.

Question 33

The point method is an example of:

A) determination of a compensable factor.
B) scaling of a compensable factor.
C) weighting a compensable factor.
D) a performance evaluation.

Question 34

Research shows that __ factor(s)account(s)for 98-99% of the variance in job evaluation plans.

A) one
B) two
C) three
D) four

Question 35

Which of the following is not a generic compensable factor used to determine equal work in the Equal Pay Act?

A) Skill
B) Working conditions
C) Knowledge
D) Effort

Question 36

Common characteristics of the point method include all of the following except:

A) benchmark factor classes.
B) numerically scaled factor degrees.
C) factor weights.
D) compensable factors.

Question 37

_____ are those characteristics in the work that an organization values; that help it pursue its strategy and achieve its objectives.

A) Competitive skills
B) Compensable factors
C) Core competencies
D) Benchmark factors

Question 38

The best single compensable factor for creating a job structure,is:

A) problem solving.
B) accountability.
C) responsibility.
D) skill.

Question 39

Research shows that the compensable factor skill accounts for _____ percent of the variance in job evaluation results.

A) 90
B) 70
C) 55
D) 42

Question 40

Which of the following compensable factors generic factors of the Equal Pay Act and National Electrical Manufacturers Association (NEMA)is most similar to the Hay plan Factor Know How?

A) Skill
B) Effort
C) Responsibility
D) Working conditions

Question 41

In the classification method,total points for each job determines its position in the structure.

Question 42

Which of the following would not be used as a criterion pay structure?

A) Market rates for current jobs.
B) Union-negotiated rates.
C) Rates for job held predominately by males.
D) Federal government rates based on the minimum wages.

Question 43

There are 5 jobs in job family A,7 jobs in job family B,and 6 jobs in job family

A) 5
B) 12
C) 6
C) Knowledge is a compensable factor for all job families. How many degrees for knowledge is the minimum for job family B?
D) 7

Question 44

When an organization changes its strategy and goals,job evaluation helps workers understand what is important in their work.

Question 45

For managers,the most important issue regarding job evaluation is the statistical validity of job evaluation.

Question 46

A compensable factor of effort has a weight 30% and has two sub-factors,physical and mental.Mental has a degree rating of 4.How many points does the mental effort receive?

A) 120
B) 60
C) 40
D) 45

Question 47

_________ typically conduct job evaluation of senior management jobs.

A) Compensation analyst
B) Compensation manager
C) External consultant
D) Senior management

Question 48

A pay structure can be directly translated into pay rates from job evaluation based upon either job content or job value.

Question 49

A compensable factor of effort has a weight of 30% with equal weight for physical and mental subfactors.If physical has a degree rating of 4,how many points does it receive?

A) 4
B) 15
C) 30
D) 60

Question 50

A shortcoming of the Hay plan is its use is limited to a narrow range of jobs and job families.

Question 51

An advantage of the Position Analysis Questionnaire for job evaluation is that it can be applied to a wide depth and breadth of work.

Question 52

When a statistical process is used to duplicate an existing pay structure,it is called:

A) policy capturing.
B) committee a priori judgment approach.
C) factor analysis.
D) regression analysis.

Question 53

A disadvantage of the classification method is that the basis for comparison is not called out.

Question 54

Point plans represent a significant change from ranking and classification methods in that they make explicit the criteria for evaluating jobs: compensable factors.

Question 55

A compensable factor of working conditions has a weight of 15%.If working conditions has a degree rating of 3,how many points does it receive?

A) 3
B) 15
C) 30
D) 45

Question 56

Job evaluation should include benchmark jobs of all work domains.

Question 57

A job structure based upon job value orders jobs on the relative contribution of job content to the organization's goals.

Question 58

An advantage of paired comparison and alternate ranking is that they are more reliable than simple ranking.

Question 59

The number of job evaluation plans required depends upon the number of employees in the organization.

Question 60

Most factor scales have between _____ degrees.

A) 6-9
B) 4-8
C) 3-7
D) 2-4

Question 61

Research shows that weights assigned to compensable factors have affect the resulting pay structure.

Question 62

The most common way of allocating weights to factors is by regression modeling.

Question 63

Acceptance of compensable factors by top management is most important since they are responsible for company profit.

Question 64

Compensable factors based upon the work itself provide the best rationale for pay differences.

Question 65

Compensable factors and weights are derived using all the jobs in the job family to which the pay structure will be applied.

Question 66

After factor weights have been assigned,factors can be scaled.

Question 67

The NEMA plan explicitly states that the compensable factor experience should be correlated with tenure.

Question 68

The Hay plan is primarily used with professional and managerial jobs.

Question 69

The primary reason for documenting employee and supervisor views of compensable factors is to meet requirements of the Equal Pay Act.

Question 70

The factor problem solving in the Hay plan is very similar to the generic factor of responsibility.

Question 71

Since business strategies may change often,compensable factors should rarely be added or deleted.

Question 72

Effort is one of the generic compensable factors used to define equal work in the Equal Pay Act.

Question 73

Compensable factors should reflect an organization's sources of competitive advantage.

Question 74

Focusing on the end product of the internal alignment process,the pay structure,is more important for acceptance than focusing on the approach chosen.

Question 75

Each compensable factor degree should be equidistant from the adjacent degrees.

Question 76

A criterion pay structure is a pay structure to be duplicated with a point evaluation plan.

Question 77

Using policy capturing and the committee a priori approach for developing pay structures yield the same pay structure.

Question 78

One way of evaluating a managerial job's multinational responsibilities would be to rate the percent of time spent on multinational issues.

Question 79

Compensable factors are aspects of work that add value to the organization.

Question 80

The primary criterion for scaling compensable factors is to use the number of degrees necessary to distinguish among jobs.