Question 1

What do job evaluations help to ensure?
A) internal equity
B) external equity
C) individual equity
D) comparative equity

Accepted Answer

Job evaluations help to ensure internal equity by systematically assessing the relative value of jobs within an organization to establish fair pay structures.

Question 2

According to the textbook, what is the predominant approach to employee compensation in Canada?
A) competency-based pay
B) pay-for-performance
C) individual contract
D) job-based pay

Accepted Answer

The predominant approach to employee compensation in Canada is job-based pay. This method focuses on the job itself rather than the individual performing it, with pay scales determined by the job's requirements, responsibilities, and the skills needed.

Question 3

Crystal Ball Inc. is a large information technology firm with many levels of management. The company would like to compensate its managers on factors such as knowledge and accountability. Which system would you recommend?
A) market pricing
B) the Hay profile method
C) job classification as implemented in Microsoft
D) work valuation

Accepted Answer

The Hay profile method is designed to evaluate a job's worth based on three key factors: know-how (knowledge), problem-solving (thinking challenges), and accountability. This makes it suitable for a company like Crystal Ball Inc. that wants to compensate managers based on knowledge and accountability.

Question 4

What's a key objective of wage and salary surveys?
A) to help with job evaluations
B) to help achieve gender pay equity
C) to validate performance appraisals
D) to help achieve external equity

Accepted Answer

Wage and salary surveys are primarily conducted to ensure that an organization's pay rates are competitive with the external labor market, achieving external equity.

Question 5

According to the textbook, which job evaluation method is considered the most valid?
A) job ranking
B) the classification method
C) the point method
D) the factor comparison method

Accepted Answer

The point method is considered the most valid job evaluation method because it provides a quantitative analysis of job components, making it more objective and comprehensive compared to other methods.

Question 6

To help achieve internal equity, factors such as skills, effort, responsibilities, and working conditions may be used to assess jobs. What do we call these factors?
A) job specifications
B) job classification factors
C) compensable factors
D) factor comparisons

Accepted Answer

Compensable factors are the criteria used in job evaluation systems to assess the value of jobs based on elements like skills, effort, responsibilities, and working conditions, which help in achieving internal equity by ensuring that jobs requiring similar levels of these factors are compensated similarly.

Question 7

Using the point manual, how is the relative worth of a job determined?
A) by benchmarking jobs contained in the point manual
B) through the wage mix
C) by the number of steps within the pay grade
D) by the total points that have been assigned to that job

Accepted Answer

The relative worth of a job is determined by the total points that have been assigned to that job, as these points reflect the job's value based on various compensable factors such as skills, responsibilities, effort, and working conditions.

Question 8

In developing a wage curve, what are market wage rates plotted against?
A) job evaluation points
B) employee benefits
C) the size of a firm
D) employee wages and salaries

Accepted Answer

Market wage rates are plotted against job evaluation points in a wage curve to establish a relationship between the value of a job and the market rate for that job.

Question 9

Accounting clerks, pay clerks, and junior secretaries are all classed in Grade 2 at Metroland Inc. Which of the following should apply to all these jobs?
A) They should all receive the same wage rate in order to achieve equality.
B) They should be paid within the same pay range.
C) They should be paid similar to Grade 2 jobs at McDonald's.
D) They should be paid at different wage rates because the worth of these jobs to the organization may differ.

Accepted Answer

Since these positions are classified under the same grade at Metroland Inc., it implies that the company has evaluated them to be of similar value, thus warranting a pay within the same range to ensure internal equity.

Question 10

Tiffany works as an IT specialist at Nortel. She is compensated based on such skills as programming and service to clients. It is likely that she is paid under which of the following pay plans?
A) a competency-based pay plan
B) a performance-based pay plan
C) a merit-based pay plan
D) a seniority-based pay plan

Accepted Answer

Tiffany is compensated based on her skills, such as programming and service to clients, which aligns with a competency-based pay plan. This plan rewards employees for the skills, knowledge, and behaviors they bring to the job, rather than for job performance or seniority.

Question 11

Which of the following describes a job evaluation method?
A) a skilled-based system
B) a job ranking system
C) a market evaluation system
D) a comparable worth system

Accepted Answer

A job ranking system is a method of job evaluation that involves arranging jobs in order from highest to lowest, based on their overall value to the organization or their complexity.

Question 12

ABC Corporation uses a job evaluation system that links the value of jobs directly with the goals of the organization. Which job evaluation system is most likely being used by ABC Corporation?
A) work evaluation
B) goal setting
C) point method
D) goal system

Accepted Answer

The answer of ABC Corporation uses a job evaluation system...

Question 13

XYZ Company wants to pay its employees based on their skills that are valued by the company. Which of the following would it most likely use?
A) commission pay
B) stock-based pay
C) profit sharing
D) competency-based pay

Accepted Answer

Competency-based pay is a system where employees are compensated based on the skills, knowledge, and behaviors that are valued by the company, making it the most likely option for XYZ Company if they want to pay employees based on valued skills.

Question 14

Which of the following is a relatively new job evaluation system?
A) job classification system
B) job ranking
C) the point system
D) work evaluation

Accepted Answer

Work evaluation is a relatively new job evaluation system designed to assess jobs in a more holistic and comprehensive manner, incorporating various factors such as skill requirements, responsibilities, and working conditions. Unlike the more traditional methods like job classification, job ranking, and the point system, work evaluation aims to provide a more nuanced and adaptable approach to understanding and valuing different roles within an organization.

Question 15

In geography, the water catchment area or watershed refers to the area that channels or supplies a specific area with its water. Catchment areas divide drainage basins. In wage surveys, what is this catchment area similar to?
A) the labour market
B) the region
C) the recruiting area
D) the supply region

Accepted Answer

The catchment area in wage surveys is similar to the labour market because it refers to the area from which employers draw their employees, analogous to how a geographical catchment area channels water to a specific location.

Question 16

What types of jobs are usually evaluated using the Hay profile method?
A) executive and managerial
B) administrative and technical
C) information technology and manufacturing
D) sales and accounting

Accepted Answer

The Hay profile method is typically used to evaluate executive and managerial positions as it focuses on factors like know-how, problem-solving, and accountability, which are crucial for these roles.

Question 17

Which of the following is a potential problem of wage and salary surveys?
A) The jobs in the surveys may not match those in the organization.
B) They are discriminatory.
C) They exclude key administrative jobs.
D) They do not capture key sectoral data.

Accepted Answer

Jobs in wage and salary surveys may not match exactly with those in the organization, making direct comparisons difficult or inaccurate.

Question 18

Which of the following is job classification often used to help determine pay for?
A) merit bonuses
B) the company's CEO
C) classified university professors' jobs
D) government jobs

Accepted Answer

Government jobs often use job classification systems to determine pay scales and ensure consistency and fairness in compensation.

Question 19

What do we call jobs that are selected to be included in salary surveys?
A) higher-pay jobs
B) equity jobs
C) comparison jobs
D) benchmark jobs

Accepted Answer

Benchmark jobs are those selected for inclusion in salary surveys because they have stable content and are common across different organizations, making them useful for making pay comparisons.

Question 20

What type of jobs do companies normally use to collect wage survey data?
A) key jobs
B) low-rated jobs
C) high-rated jobs
D) strategic jobs

Accepted Answer

Key jobs are typically used for wage survey data because they have stable content across different organizations, making it easier to compare and analyze pay rates accurately.

Quiz 9: Managing Compensation

What do job evaluations help to ensure?

According to the textbook, what is the predominant approach to employee compensation in Canada?

Crystal Ball Inc. is a large information technology firm with many levels of management. The company would like to compensate its managers on factors such as knowledge and accountability. Which system would you recommend?

What's a key objective of wage and salary surveys?

According to the textbook, which job evaluation method is considered the most valid?

To help achieve internal equity, factors such as skills, effort, responsibilities, and working conditions may be used to assess jobs. What do we call these factors?

Using the point manual, how is the relative worth of a job determined?

In developing a wage curve, what are market wage rates plotted against?

Accounting clerks, pay clerks, and junior secretaries are all classed in Grade 2 at Metroland Inc. Which of the following should apply to all these jobs?

Tiffany works as an IT specialist at Nortel. She is compensated based on such skills as programming and service to clients. It is likely that she is paid under which of the following pay plans?

Which of the following describes a job evaluation method?

ABC Corporation uses a job evaluation system that links the value of jobs directly with the goals of the organization. Which job evaluation system is most likely being used by ABC Corporation?

XYZ Company wants to pay its employees based on their skills that are valued by the company. Which of the following would it most likely use?

Which of the following is a relatively new job evaluation system?

In geography, the water catchment area or watershed refers to the area that channels or supplies a specific area with its water. Catchment areas divide drainage basins. In wage surveys, what is this catchment area similar to?

What types of jobs are usually evaluated using the Hay profile method?

Which of the following is a potential problem of wage and salary surveys?

Which of the following is job classification often used to help determine pay for?

What do we call jobs that are selected to be included in salary surveys?

What type of jobs do companies normally use to collect wage survey data?