Question 1

The purpose of pay equity legislation is to eliminate discrimination based on age and culture.

Accepted Answer

The purpose of pay equity legislation is to eliminate discrimination based on gender or sex, specifically ensuring that employees performing work of equal value receive equal pay regardless of gender. Age and culture may be protected under other anti-discrimination laws, but pay equity legislation specifically addresses gender discrimination in pay.

Question 2

What is the term used to describe a diverse group established to ensure the fair and comprehensive representation of the nature and requirements of a job in question for the purposes of determining compensation?

Accepted Answer

A job evaluation committee is typically composed of representatives from various departments or levels within an organization and is responsible for conducting a comprehensive analysis of a job's requirements and responsibilities to determine its appropriate compensation level. This process helps to ensure fair and equitable pay practices across an organization.

Question 3

What is the term used to describe jobs that represent all of the various business units and departments in an organization,jobs that are drawn from all levels of an organization,and jobs that are clear and well known in the industry?

Accepted Answer

Benchmark jobs represent all business units and departments, are drawn from all levels of an organization, and are well known in the industry. Standard jobs may not necessarily represent all units and levels of an organization, equitable jobs refers to fair pay practices, comparable jobs refers to jobs with similar duties and responsibilities, and common jobs is not a commonly used term in this context.

Question 4

According to the textbook,the most important function of a job evaluation committee is which of the following?

Accepted Answer

The most important function of a job evaluation committee is to actually evaluate the worth of each job. While determining pay ranges and job classes are also important functions of the committee, the ultimate goal is to evaluate the value of each job to determine fair and equitable compensation.

Question 5

Which of the following is mentioned in the textbook as a disadvantage associated with using the job classification/grading method in job evaluation?

Accepted Answer

The textbook mentions that one disadvantage of using the job classification/grading method is that considerable judgment is required in applying the class or grade descriptions.

Question 6

According to the textbook,which of the following most commonly uses the classification/grading job evaluation method in order to categorize jobs into groups?

Accepted Answer

The public sector most commonly uses the classification/grading job evaluation method to categorize jobs into groups based on factors such as skill level, education required, and responsibilities. This helps to establish a clear hierarchy and pay structure within the organization. Other sectors may also use this method, but it is most commonly associated with the public sector.

Question 7

Which of the following is comprised of jobs of approximately the same value or importance,as determined by job evaluation?

Accepted Answer

Pay grade refers to jobs of approximately the same value or importance, as determined by job evaluation. Salary grade, wage grade, classification grade, and point grade are all terms commonly used in compensation management, but they may not necessarily connote the same meaning as pay grade.

Question 8

The job evaluation committee typically includes several employees and has the important task of evaluating the worth of each job using which of the following?

Accepted Answer

Compensable factors are the specific dimensions of jobs that are used to determine the relative worth of different jobs. These factors can include things like skill, effort, responsibility, and working conditions. The job evaluation committee uses these factors to evaluate each job and assign it a value based on its relative worth compared to other jobs in the organization.

Question 9

Jeffrey is the newly hired HR professional who is responsible for evaluating compensation practices at the company.To determine if there are issues with internal equity,he has chosen to conduct a job evaluation according to the method popularized by the Hay Group consulting firm; which of the following are the compensable factors that this specific method uses in order to evaluate jobs?

Accepted Answer

The Hay Group job evaluation method uses four compensable factors: Know-how (the sum of every kind of skill, however acquired, necessary for acceptable job performance), Problem Solving (the original, self-starting thinking required for the job), Accountability (the answerability for action and for the consequences of that action), and Working Conditions (the environment in which the work is performed and the extent to which those conditions make the job unpleasant).

Question 10

What are the three stages in establishing pay rates as discussed in the textbook?

Accepted Answer

The three stages in establishing pay rates are job evaluation, conducting salary surveys, and combining job evaluation and salary survey results. These stages help organizations determine the appropriate pay for different jobs within the company and in the broader labor market.

Question 11

Which job evaluation method identifies compensable factors in a job as well as the degree to which each of these factors is present in the job and then calculates a value for each job?

Accepted Answer

The point method of job evaluation identifies the compensable factors in a job, assigns weights to them based on their importance, and then assigns points to each factor based on the degree to which it is present in the job. The total number of points for each job is then used to calculate a value or score, which is used to determine the appropriate level of compensation.

Question 12

According to the textbook,which of the following are the most popular job evaluation methods that can be applied to compensation decisions?

Accepted Answer

The classification and point methods are the most popular job evaluation methods that can be applied to compensation decisions because they are relatively easy to administer and can be used to evaluate a wide range of jobs.

Question 13

When using a job evaluation method,such as the ranking method,which of the following is the eventual result of that approach?

Accepted Answer

The ranking method of job evaluation results in the creation of job hierarchy where jobs are ranked in order of their importance and value to the organization.

Question 14

What does job evaluation determine?

Accepted Answer

Job evaluation is a process of evaluating the relative worth of different jobs within an organization based on different criteria such as skills required, responsibilities, and working conditions. The main purpose of job evaluation is to establish a fair and equitable pay structure within the organization based on the value of the jobs. This means that job evaluation helps to determine the relative worth of jobs, not individuals, and to establish pay differentials based on job content and not individual performance. Therefore, the best choice is E, "The relative worth of jobs within a firm."

Question 15

Which of the following is an example of an informal compensation survey conducted by an employer?

Accepted Answer

Telephone surveys are typically informal in nature and are often conducted by employers themselves to gather information about compensation practices among their peers or competitors. Governmental agency surveys, professional association surveys, industry-wide surveys, and commercial firm surveys are more formal and typically conducted by outside organizations.

Question 16

Most of the pay equity acts in Canada focus on four compensable factors listed below except

Accepted Answer

The answer of Most of the pay equity acts in...

Question 17

The classification/grading method of job evaluation involves categorizing jobs into which of the following?

Accepted Answer

Jobs are categorized into groups in the classification/grading method of job evaluation. This is done to ensure that jobs of similar worth are treated equally in terms of pay and benefits.

Question 18

What is the job evaluation method that intuitively rates each job relative to all other jobs,usually based on some overall factor like "more important" or "of greater value or worth"?

Accepted Answer

The method that intuitively rates each job relative to all other jobs is the ranking method. It involves ordering jobs from highest to lowest based on an overall assessment of their value or worth. While it is simple and easy to use, it doesn't provide a precise measure of the differences between jobs. However, it can be useful in small organizations with a limited number of jobs.

Question 19

The argument that the way in which most compensation surveys are constructed,interpreted,and used leads almost invariably to a situation in which firms set higher wages than they otherwise might is reflective of which of the following terms?

Accepted Answer

The term for this scenario is upward bias, which occurs when compensation surveys lead firms to set higher wages than they would otherwise. This bias can occur due to various factors such as limited survey data or comparing jobs that are not truly equivalent.

Question 20

Which of the following is another way of categorizing jobs when undertaking the job classification/grading method,other than using class descriptions and placing jobs into classes based on their correspondence to these descriptions?

Accepted Answer

Classifying jobs involves creating specific rules for each class and then categorizing jobs according to these rules, which is an alternative to using class descriptions.

Quiz 11: Strategic Pay Plans