Question 1

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. The other components listed (range spreads, overlaps between ranges, pay grade size) are typically determined based on the organization's overall pay structure strategy and may not be directly tied to the pay policy line.

Question 2

Identify and briefly describe the main steps in developing a job evaluation system using the point method.

Accepted Answer

The answer of Identify and briefly describe the main steps...

Question 3

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 for 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 lead to pressure to reclassify borderline jobs or promote people solely for the purpose of getting more money, which may result in unfair treatment of employees and affect morale.

Question 4

After reviewing pay ranges for your organization, you realize a significant number of pay ranges do not overlap or do not connect. For example, the maximum of the pay range for pay grade number 2 is $50,000 and the minimum range for pay grade number 3 is $60,000.00 What is a potential root cause of this issue?
A) Ranges are too narrow and/or there are not enough pay grades.
B) An equal approach method was used to establish pay grades.
C) An equal percentage method was used to establish pay grades.
D) Poor benchmark jobs were used to establish pay grades.

Accepted Answer

Ranges that are too narrow or an insufficient number of pay grades can lead to a lack of overlap or connection between pay ranges, as seen in the example provided.

Question 5

Which of the following is NOT a source of gender bias associated with developing a point method job evaluation process?
A) excessive range in the degree statements
B) excluding factors often associated with female dominated positions
C) biased job descriptions
D) separate job families

Accepted Answer

Excessive range in the degree statements is not a source of gender bias in developing a point method job evaluation process. Gender bias typically arises from excluding factors often associated with female-dominated positions, biased job descriptions, and creating separate job families that may segregate roles traditionally held by one gender. Excessive range in degree statements refers to the breadth of criteria within the evaluation, which does not inherently introduce gender bias.

Question 6

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) broadbanding
C) market 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. Broadbanding refers to the practice of collapsing multiple pay grades into a few broad levels. Market anchor refers to the external market pay rate for a particular job or position. Step progression refers to the gradual increase in pay that employees receive based on their performance or time spent in a job.

Question 7

Which of the following best explains how to establish pay grade sizes using the equal interval 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 equal interval approach involves making the point spreads equal for all pay grades. This means that the difference in pay between each pay grade is the same, regardless of the position's level or value.

Question 8

What does a -1 (negative one) correlation coefficient mean?
A) There is a positive relationship between job evaluation points score and pay levels.
B) There is an inverse relationship between job evaluation points score and pay levels.
C) Your regression equation has a very steep upwards slope.
D) There is very little relationship between job evaluation points score and pay levels.

Accepted Answer

A negative correlation coefficient means there is an inverse relationship between the two variables being measured. In this case, as job evaluation point scores increase, pay levels decrease.

Question 9

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 refers to limited freedom to purchase resources, which is not directly related to decision making. The other three degrees directly address decision making with varying degrees of freedom, making them consistent in construct formation.

Question 10

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 of job evaluation results to market pay rates, essentially showing how a job's value within an organization aligns with its external market value.

Question 11

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 outlier jobs to improve the correlation coefficient is not one of the main steps in exploring solutions to job evaluation problems. The other options (A, B, and D) are all common steps in this process.

Question 12

You have been asked to provide rationale for clustering jobs into so-called pay grades. Which of the following is NOT likely to be included in your rationale?
A) Clustering of organization tends to reduce labour costs.
B) It facilitates the administrative process; one pay range can cover several jobs.
C) Slight changes in job content do not necessarily trigger a review.
D) It accounts for the fact job evaluations are to a large degree subjective in nature.

Accepted Answer

Clustering jobs into pay grades is not primarily aimed at reducing labor costs; rather, it is intended to streamline administrative processes, ensure consistency, and manage job evaluations effectively.

Question 13

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 reflects a common stereotype that caregiving is an innate ability of women, rather than a learned skill. This confuses the job content with stereotypes about gender roles, which is an example of a gender bias problem.

Question 14

Your company determined the following pay range associated with a financial service manager: maximum $100,000; midpoint $90,000, and minimum $80,000. What is the range spread percentage for this job?
A) not enough information provided
B) 20 percent
C) 25 percent
D) 22.22 percent

Accepted Answer

The range spread percentage is calculated as ((Maximum - Minimum) / Minimum) * 100. For this job, it is (($100,000 - $80,000) / $80,000) * 100 = 25 percent.

Question 15

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 16

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 between 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 lead to confusion and inconsistency in determining appropriate pay levels for different jobs. This can undermine the integrity of the job evaluation system, potentially leading to pay inequities and dissatisfaction among employees.

Question 17

After plotting a regression (market line), you determine that the slope is very steep. What possible conclusion can you make from observing the slope of the regression line?
A) The correlation coefficient is approaching -1 (negative one).
B) There is too much spread in job evaluation points between low-value and high-value jobs.
C) There is not sufficient spread in job evaluation points between low-value and high-value jobs.
D) Lower-value jobs appear to be compensated above market rates.

Accepted Answer

A steep slope indicates that a small change in job evaluation points results in a large change in compensation. This suggests that there is not sufficient spread in job evaluation points between low-value and high-value jobs, as even small differences in job evaluation points are resulting in significant differences in compensation.

Question 18

Our textbook identifies four possible pitfalls associated with the point method of job evaluation. Which category of pitfalls would include a situation whereby the factor is poorly defined, creating a situation in which the evaluator is not clear what the factor is designed to pick up?
A) hierarchical grounding
B) factor overlaps
C) gender bias
D) inconsistent construct

Accepted Answer

The inconsistent construct category of pitfalls refers to factors that are poorly defined or not consistently applied. This would include a situation where the factor is not clear, creating confusion for the evaluator.

Question 19

Which of the following is an inevitable outcome of broadbanding?
A) There are increased labour costs, as everyone is paid more for specific jobs.
B) It decreases the level of flexibility within the pay grades.
C) It tends to lead to "skinny" pay grades.
D) Jobs with significantly different scores end up in the same "band."

Accepted Answer

Broadbanding typically involves grouping jobs with similar responsibilities and skill levels into the same pay band. This can result in jobs with significantly different scores or levels of responsibility being placed in the same band.

Question 20

The following are hypothetical points provided to the following jobs:
·heavy-duty mechanic: 900
·human resource specialist: 900
·technician: 900
The organization sees these positions as having equal value from a base pay perspective; hence, there is no difference in pay. What term best describe the grouping of these jobs?
A) pay grade
B) range tightness
C) pay range
D) pay structure

Accepted Answer

A pay grade is a grouping of jobs that have similar value to an organization and are paid at the same base rate. In this scenario, all three jobs have a base pay of 900, indicating that they are part of the same pay grade. "Range tightness" refers to the narrowness or flexibility of a pay range, and "pay range" and "pay structure" refer to the overall system or framework of pay within an organization, which may include multiple pay grades.

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

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

Identify and briefly describe the main steps in developing a job evaluation system using the point method.

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

Which of the following is NOT a source of gender bias associated with developing a point method job evaluation process?

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?

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

What does a -1 (negative one) correlation coefficient mean?

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

What does the market line determine?

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

You have been asked to provide rationale for clustering jobs into so-called pay grades. Which of the following is NOT likely to be included in your rationale?

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?

Your company determined the following pay range associated with a financial service manager: maximum $100,000; midpoint $90,000, and minimum $80,000. What is the range spread percentage for this job?

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

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

After plotting a regression (market line) , you determine that the slope is very steep. What possible conclusion can you make from observing the slope of the regression line?

Our textbook identifies four possible pitfalls associated with the point method of job evaluation. Which category of pitfalls would include a situation whereby the factor is poorly defined, creating a situation in which the evaluator is not clear what the factor is designed to pick up?

Which of the following is an inevitable outcome of broadbanding?