Question 1

When the jobs within an organization valued appropriately relative to each other this is known as:

Accepted Answer

Internal alignment is the process of setting up a hierarchy of jobs within an organization based on their relative importance and value to the organization. This involves evaluating the skills, qualifications, and responsibilities required for different roles and ensuring they are correctly compensated and recognized for their worth. Equity theory refers to the overall fairness and balance in the distribution of rewards within an organization, while job evaluation and job ranking are specific methods used in the process of internal alignment. External alignment is the process of comparing an organization's pay and benefits to those of other similar organizations.

Question 2

When evaluating an individual's pay,:

Accepted Answer

If an individual's pay rate is red-circled, it indicates that they are being paid above the maximum of their salary range. In such cases, it is important to review the job evaluation process to ensure that it was done correctly and the job is appropriately classified. If not, the salary range may need to be adjusted or the employee might need to be moved to a higher-level position. Therefore, reviewing the job evaluation process is essential.

Question 3

When using market data to determine pay rates, which of the following describes the steps you would most likely take?

Accepted Answer

The correct sequence for using market data to determine pay rates typically starts with conducting a salary survey to gather data on what other organizations are paying for similar jobs. Next, job pricing is completed to establish the value of the job within the organization. Then, the market results for benchmark jobs are plotted to visualize how the organization's pay compares to the market. Finally, a wage curve is determined to adjust the pay structure as needed based on the market data and internal job valuations.

Question 4

The jobs of warehouse technician, supply coordinator, and forklift operator were ranked based on the physical requirements of each position. This would be an example of:

Accepted Answer

The answer of The jobs of warehouse technician, supply coordinator,...

Question 5

When using the point method of job evaluation all of the following are ways to ensure the objectivity of the method EXCEPT:

Accepted Answer

Ranking benchmark jobs based on skill level required is a subjective judgment and may result in bias. Therefore, it does not ensure objectivity in the point method of job evaluation. Instead, the method should be based on a thorough analysis of the job duties and requirements, which can be standardized and objective. The other options listed all contribute to the objectivity of the method.

Question 6

Grouping jobs based on similar tasks, duties, responsibilities and qualifications is known as:

Accepted Answer

Job classification involves grouping jobs based on similar tasks, duties, responsibilities, and qualifications. This is different from job ranking or the point method, which involve evaluating and assigning values to individual jobs based on a set of predetermined criteria. Internal alignment and equity theory are broader concepts that encompass various aspects of compensation and HR practices.

Question 7

Which of the following statements is most accurate regarding wage curves?

Accepted Answer

Both a market wage curve and an organizational wage curve can exist on the same graph, allowing for comparison of the organization's wages to those of the overall market. Option A is incorrect, as a wage curve typically focuses on current salaries and does not necessarily compare them to salaries from the past. Option B is incorrect, as a wage curve typically compares salary levels to a set of benchmark jobs within an organization, rather than between benchmark jobs. Option D is incorrect, as market and organizational wages are typically shown on the same axis, rather than on separate axes. Option E is incorrect, as the shape of a wage curve can vary depending on the data being analyzed, and is not necessarily in the shape of a bell curve.

Question 8

Which of the following statements about the spread, or width or narrowness, of pay ranges is most accurate?

Accepted Answer

Higher level positions in an organization tend to have wider pay ranges due to the greater variation in skills, responsibilities, and performance outcomes associated with these roles. This allows for more flexibility in compensating for experience, impact, and market demand.

Question 9

All of the following are methods of job evaluation EXCEPT:

Accepted Answer

Job pricing is not a method of job evaluation, but rather a process used to set the actual salary or wage for a job. The other options listed (factor comparison, job ranking, point factor, and job classification) are all methods of job evaluation.

Question 10

Pay grades in your organization have been adjusted due to a recent salary survey. The Mechanic I position now has a pay range which starts at $15.00 per hour and has a maximum of $22.00 per hour. Joshua is a Mechanic I who started about a year ago and is making $14.25 therefore he would be considered:

Accepted Answer

Joshua is making less than the minimum of the new pay range for his position, making him "green-circled." This means he is being paid less than the new minimum but is not losing pay because of the adjustment.

Question 11

When trying to convey the total rewards your company provides to its regional salespeople you would include all of the following in your explanation EXCEPT:

Accepted Answer

Social Security is a government program and not typically considered part of an employer's reward package.

Question 12

A store manager, a marketing coordinator, and accounting supervisor positions all require a Bachelor's degree and at least 3 years of experience in the respective fields. Although very different in specific job duties these positions could be:

Accepted Answer

These positions could be broadbanded, meaning they are grouped together based on experience and skill level rather than a specific job title or duties. This allows for more flexibility in compensation and career advancement opportunities.

Question 13

In order to be considered a benchmark job, the job needs to be all of the following EXCEPT:

Accepted Answer

A benchmark job is a job that is considered as a standard for setting pay rates within an organization. It should be well-known, clearly and concisely described, stable over time in regard to responsibilities, and currently paid a fair wage rate. However, it should also have been previously used to set wage rates in the external labor market, as this would undermine its usefulness as a benchmark job.

Question 14

Jeffrey has been a machine operator for about 12 years. He is fully qualified and functions well in his role. The pay range for his position is $11.00 to $17.00. Jeffrey is currently making $13.25. What may be a more appropriate pay rate for Jeffrey, given his experience and performance level?

Accepted Answer

Jeffrey is fully qualified and functions well in his role. The pay range for his position is $11.00 to $17.00. Jeffrey is currently making $13.25. A more appropriate pay rate for Jeffrey, given his experience and performance level, would be $14.00.

Question 15

All of the following statements are accurate in regard to using broadbanding EXCEPT:

Accepted Answer

Using broadbanding actually decreases the number of pay grades, as more jobs are placed within larger bands.

Question 16

All of the following statements about job evaluation are accurate EXCEPT:

Accepted Answer

This statement is not accurate as some job evaluation methods take a quantitative approach to evaluating jobs, such as point factor analysis.

Question 17

Andrew has mastered the shipping label machine so that it prints the labels at a faster output, thereby getting the boxes to the warehouse sooner and on the trucks in a more efficient way. His expertise with this piece of equipment and innovativeness in improving the labeling process earned him a pay increase. Andrew's organization follows:

Accepted Answer

Andrew's pay increase was based on his competency in improving the labeling process, which aligns with competency-based pay. This approach rewards employees for skills and abilities they possess that are essential to the organization's success.

Question 18

Bill has recently completed his Associates degree in Accounting, thereby moving him from an A/R Representative I to a level II position. Due to his degree Bill received a 6% wage adjustment, as do all employees who obtain their degree. Bill's organization follows:

Accepted Answer

Bill's organization follows both skill-based pay (as he received a wage adjustment based on his Associates degree) and knowledge-based pay (as the wage adjustment was based on his increased knowledge and skills).

Question 19

This method of job evaluation is developed by first identifying compensable factors which are needed for the job in order for the company to achieve its goals and then a score is determined for each job based on those factors.

Accepted Answer

The method described is the point method, which involves identifying compensable factors and assigning a score to each factor for each job. This method allows for a more objective evaluation of jobs since specific factors are being evaluated rather than overall job duties or levels of importance.

Question 20

Your organization pays its Marketing Manager a considerably high annual salary compared to other marketing executives in your area. However when compared to marketing executives in your industry your Marketing Manager is paid about the industry average. Which of the following best describes this positions pay policy in the market as well as in the industry?

Accepted Answer

The Marketing Manager's pay policy is leading in the local market (compared to other marketing executives in the area) but following in the industry (compared to marketing executives in the same industry). Therefore, choice C is the best answer.

Quiz 10: Compensating Employees