Question 1

Which of the following is not a source of gender bias?
A) excessive range in the degree statements
B) ignoring factors found in female jobs
C) biased job descriptions
D) separate job families

Accepted Answer

Excessive range in the degree statements may not necessarily lead to gender bias. However, ignoring factors found in female jobs, biased job descriptions, and separate job families are all sources of gender bias.

Question 2

The pay policy line is used to establish which of the following pay structure components?
A) midpoint of the pay range
B) range spreads
C) overlaps between ranges
D) pay grade size

Accepted Answer

The pay policy line is used to establish the midpoint of the pay range. It is the line that represents the company's approach in paying employees and determines the relationship between job value and pay. It helps the company to maintain consistency and fairness in compensating employees. The range spreads, overlaps between ranges, and pay grade size are components that are determined based on the pay policy line.

Question 3

Which of the following terms refers to the actual minimum and maximum pay rate,in dollar terms,for all the jobs that fall in a particular pay grade?
A) pay range
B) broadbands
C) mrket anchor
D) step progression

Accepted Answer

Pay range refers to the actual minimum and maximum pay rate, in dollar terms, for all the jobs that fall in a particular pay grade. Broadbands refer to a wider range of pay grades with more flexibility in pay rates. Market anchor refers to the external market rate used to anchor the pay structure. Step progression refers to the incremental increase in pay within a pay grade.

Question 4

Your firm allows employees to reach the midpoint of their pay range using annual seniority increases. Pay increases beyond the midpoint are based on performance. What type of range movement system is your employer using?
A) just noticeable difference
B) split pay range
C) fixed steps
D) supervisory increments

Accepted Answer

The answer of Your firm allows employees to reach the...

Question 5

When are benchmark jobs used?
A) In circumstances where appropriate market comparator jobs cannot be found.
B) To test whether the labour market is tight or loose.
C) To calibrate the job evaluation system to the market.
D) As the norm against which to measure employee performance.

Accepted Answer

Benchmark jobs are used to calibrate the job evaluation system to the market by comparing the job value to similar jobs in the external market. It helps in determining the pay structure and ensuring that it is competitive and fair.

Question 6

How can the job evaluation system be tested for reliability?
A) Compare the factor weightings of the different evaluators.
B) Compare the factor choices of the different evaluators.
C) Compare the results of the different evaluators on the different factors.
D) Compare the total point scores of the different evaluators.

Accepted Answer

Comparing the results of the different evaluators on the different factors will test the consistency or reliability of the job evaluation system. It will show if the evaluators are assigning similar scores to the same factors, which is essential for the job evaluation to be reliable. Comparing the factor weightings may not be useful as it assumes all factors are equal in terms of importance, which may not be the case. Comparing the factor choices may not be useful as well if the evaluators are using different job analysis data or interpret the factors differently. Comparing total point scores may be affected by different interpretations of factor scores or scoring biases.

Question 7

Which of the following components is not considered part of the base pay structure?
A) merit bonuses
B) pay ranges
C) shift differentials
D) pay grades

Accepted Answer

Merit bonuses are not considered part of the base pay structure, as they are typically awarded in addition to base pay as a reward for exceptional performance or achievement. The other options - pay ranges, shift differentials, and pay grades - are all components of the base pay structure.

Question 8

What is a negative consequence of clustering jobs into pay grades?
A) Pay grades make it difficult to justify and explain pay rates to employees.
B) Pay grades create less stability with the pay system.
C) There may be pressure to reclassify borderline jobs or to promote people to get more money.
D) Similar jobs are grouped into the same grades.

Accepted Answer

Clustering jobs into pay grades may create pressure to reclassify borderline jobs or promote people to higher pay grades in order to increase their salary, rather than being based on job performance or skills. This can lead to dissatisfaction among employees who are not promoted or whose job classifications are not changed, creating tension and low morale within the workplace.

Question 9

What does the correlation coefficient indicate?
A) outlier jobs
B) "goodness of fit" between the point values and market pay rates
C) slope of regression line
D) pay policy line height

Accepted Answer

The correlation coefficient indicates how well the point values in a data set fit with the market pay rates. It does not indicate outlier jobs, the slope of the regression line, or pay policy line height. Therefore, the best choice is B.

Question 10

Which of the following is not a test used to determine the validity of the job evaluation system?
A) reliability
B) calibrating to the market
C) estimating total compensation costs
D) feedback surveys

Accepted Answer

The answer of Which of the following is not a...

Question 11

Which of the following defines a pay grade?
A) a grouping of jobs for pay purposes
B) the minimum and the maximum pay for a job
C) established with job descriptions
D) feedback from a compensation survey

Accepted Answer

A pay grade is a grouping of jobs that have similar responsibilities and require similar skills and experience for pay purposes.

Question 12

Which of the following practices is a threat to the integrity of the job evaluation system?
A) wider pay grades as the system goes up
B) equal dollar differences between the range midpoint and the range minimum, and the range midpoint and the range maximum
C) wider range spreads for higher pay grades
D) excessive overlaps between pay ranges

Accepted Answer

Excessive overlaps between pay ranges can result in employees at different levels or job roles being paid similarly, which can lead to dissatisfaction and low morale among employees who feel that their compensation is inequitable compared to their job responsibilities and qualifications. This can ultimately threaten the integrity of the job evaluation system. Wider pay grades, equal dollar differences, and wider range spreads are all legitimate practices in job evaluation and compensation systems.

Question 13

Which of the following best explains how to establish pay grade sizes using the telescopic approach?
A) Look for natural breaks between clusters of jobs when setting up the grades.
B) Increase the grade widths for higher-value jobs but not necessarily by an equal percentage.
C) Reduce the number of pay grades by creating large bands.
D) Make the point spreads equal for all pay grades.

Accepted Answer

The telescopic approach involves increasing the grade widths for higher-value jobs, allowing for more flexibility and differentiation at higher levels.

Question 14

In exploring solutions to job evaluation problems,which is not one of the main steps?
A) Check that benchmark jobs are equivalent to market comparator jobs.
B) Determine if the wrong factors have been included in the job evaluation system.
C) Adjust the point totals of the outlier jobs to improve the correlation coefficient.
D) Examine whether jobs have been badly evaluated.

Accepted Answer

Adjusting the point totals of the outlier jobs to improve the correlation coefficient is not one of the main steps in exploring solutions to job evaluation problems. The other three options (A, B, and D) are all common steps that organizations may take when reviewing their job evaluation systems.

Question 15

Which of the following is not one of the methods that can be used in establishing pay grade sizes?
A) equal interval approach
B) equal increase approach
C) equal percentage approach
D) equal spread approach

Accepted Answer

The equal spread approach is one of the methods that can be used in establishing pay grade sizes. The other three methods are the equal interval approach, the equal increase approach, and the equal percentage approach.

Question 16

The belief that "any of the skills needed to work with young children should not be highly rated because care giving comes natural to women" is an example of what type of gender bias problem?
A) ignoring factors found in female jobs
B) confusing job content with stereotypes
C) biased job descriptions
D) differential evaluation of factors

Accepted Answer

This statement assumes that caring for young children is a natural skill for women, leading to the stereotype that caregiving is a feminine trait. Therefore, it is an example of confusing job content with stereotypes.

Question 17

Considering the factor of "decision-making" which of the following degree statements is an example of inconsistent construct formation?
A) Degree 1: There is no freedom to make decisions at this level.
B) Degree 2: There is usually restricted freedom to make decisions.
C) Degree 3: There is usually limited freedom to purchase resources.
D) Degree 4: There is usually some freedom to make decisions.

Accepted Answer

Degree 3 statement is inconsistent with the construct of decision-making as it refers to purchasing resources rather than making decisions. The other options all refer to degrees of freedom in decision-making.

Question 18

This term is used to describe the dollar value of the difference between the maximum and the minimum of the pay range for each pay grade.
A) intergrade differentials
B) grade overlaps
C) range spread
D) quartiles

Accepted Answer

The term "range spread" refers to the difference between the maximum and minimum of the pay range for each pay grade. Option A ("intergrade differentials") is not a commonly used term in compensation, and options B ("grade overlaps") and D ("quartiles") do not accurately describe the concept of range spread.

Question 19

Which is not one of the possible pitfalls of the point method of job evaluation?
A) hierarchical grounding
B) factor overlaps
C) gender bias
D) recency effect

Accepted Answer

The recency effect is not typically associated with the point method of job evaluation. The other options, such as hierarchical grounding, factor overlaps, and gender bias, are potential pitfalls of this method.

Question 20

What does the market line determine?
A) Whether the firm should lead, lag, or match the market
B) The relationship of job evaluation results to market pay rates
C) The relationship of job evaluation results to a firm's pay grades
D) A pay rate based on a market survey

Accepted Answer

The market line determines the relationship between job evaluation results and market pay rates, helping organizations align their pay structures with the market.

Quiz 8: Evaluating Jobs: the Point Method of Job Evaluation

Which of the following is not a source of gender bias?

The pay policy line is used to establish which of the following pay structure components?

Which of the following terms refers to the actual minimum and maximum pay rate,in dollar terms,for all the jobs that fall in a particular pay grade?

Your firm allows employees to reach the midpoint of their pay range using annual seniority increases. Pay increases beyond the midpoint are based on performance. What type of range movement system is your employer using?

When are benchmark jobs used?

How can the job evaluation system be tested for reliability?

Which of the following components is not considered part of the base pay structure?

What is a negative consequence of clustering jobs into pay grades?

What does the correlation coefficient indicate?

Which of the following is not a test used to determine the validity of the job evaluation system?

Which of the following defines a pay grade?

Which of the following practices is a threat to the integrity of the job evaluation system?

Which of the following best explains how to establish pay grade sizes using the telescopic approach?

In exploring solutions to job evaluation problems,which is not one of the main steps?

Which of the following is not one of the methods that can be used in establishing pay grade sizes?

The belief that "any of the skills needed to work with young children should not be highly rated because care giving comes natural to women" is an example of what type of gender bias problem?

Considering the factor of "decision-making" which of the following degree statements is an example of inconsistent construct formation?

This term is used to describe the dollar value of the difference between the maximum and the minimum of the pay range for each pay grade.

Which is not one of the possible pitfalls of the point method of job evaluation?

What does the market line determine?