Question 1

Absolute pay levels primarily affect such employee needs as:
A)esteem needs
B)physiological needs only
C)security needs only
D)both physiological and security needs
E)belonging needs

Accepted Answer

Absolute pay levels primarily affect both physiological and security needs. Physiological needs are related to basic needs such as food, shelter and clothing, which are directly influenced by pay. Similarly, security needs also depend on the level of pay received, as it determines the employee's ability to meet their financial obligations and maintain a sense of stability and security. Esteem needs and belonging needs are more influenced by factors such as recognition, respect from colleagues, and opportunities for social interaction, which are not solely determined by pay levels.

Question 2

Perceived fairness of job rankings within an organization is referred to as:
A)external equity
B)internal equity
C)labour harmony
D)unionization
E)turnover

Accepted Answer

Internal equity refers to the perception of fairness in how jobs are ranked within an organization, taking into account factors such as skill level, responsibility, and experience. This relates to how employees perceive their relative value to the company compared to their coworkers, and can impact morale and job satisfaction. External equity refers to how an organization's pay and benefits compare to those of other companies in the industry. Labour harmony, unionization, and turnover are all related to broader issues of employee relations and are not specifically about job rankings.

Question 3

The reason that the point system has become the major job evaluation method is because of:
A)the fact that it provides the best information regarding job values
B)the Charter of Rights and Freedoms
C)the Human Rights Act
D)the ease with which it can be developed and applied
E)its relative inexpensiveness when compared to other systems

Accepted Answer

The answer of The reason that the point system has...

Question 4

A form of job evaluation that assigns jobs to predetermined job classifications according to their relative worth to the organization is known as the __________ method.
A)job ranking
B)job grading
C)point system
D)job description
E)administrative

Accepted Answer

The job grading method involves assigning jobs to predetermined job classifications based on their relative worth to the organization. It typically involves establishing a set of job grades or levels, each with its own set of pay ranges and job titles. This method is often used in larger organizations with more complex job structures. The other options (A, C, D, E) refer to different job evaluation methods, but they do not involve predetermined job classifications.

Question 5

External equity in job evaluation may be defined as:
A)perceived fairness of a pay system relative to others within the organization
B)a situation where job descriptions match those of other similar organizations within a specific area
C)perceived fairness in pay relative to what other employers are paying for the same type of work
D)being treated as an equal regardless of personal characteristics when being evaluated for a job
E)the fact that an employee is still seen as equal to others even outside the job

Accepted Answer

External equity refers to the fairness of an organization's pay compared to what other employers are paying for similar work. It's about ensuring that an organization's pay is competitive and attracts and retains top talent. Choices A, B, D, and E are not relevant to the definition of external equity in job evaluation.

Question 6

In pricing jobs,the appropriate pay level for any job reflects:
A)the job's relative worth only
B)the job's absolute worth only
C)the intrinsic value of the employee occupying the job
D)what a manager determines to be appropriate
E)both the job's relative and absolute worth

Accepted Answer

The appropriate pay level for any job reflects both the job's relative worth (in comparison to other jobs within the organization) and its absolute worth (in comparison to similar jobs in the external labor market). In order to determine pay levels, organizations usually conduct job evaluations to assess the relative worth of different jobs, and then use pay surveys to benchmark their pay levels against those of similar jobs in the external labor market. The intrinsic value of the employee occupying the job is not a factor in determining pay levels, as pay should be based on the job itself, rather than the individual employee. Similarly, while a manager's input may be considered, pay levels should not be based solely on their determination of what is appropriate, as this may be subjective and lead to pay inequities.

Question 7

In order to ensure that a company's pay system is in line with government legislation,which of the following measures are suggested?
A)review the philosophy and rationale of the current job evaluation plan
B)all of the choices
C)review recruiting and promotional decisions
D)examine the differential between the earnings of male and female employees
E)review human resource planning techniques and procedures

Accepted Answer

All of the choices are important measures to ensure that a company's pay system is in line with government legislation. Reviewing the philosophy and rationale of the current job evaluation plan ensures that there is no bias in the process. Reviewing recruiting and promotional decisions can help identify any disparities in hiring and advancement opportunities. Examining the pay differential between male and female employees is important in ensuring that there is no gender pay discrimination. Reviewing human resource planning techniques and procedures helps ensure that the company has clear and consistent policies for pay and compensation.

Question 8

While flat wage rates are easier to administer they can obstruct rewarding employees.One way organizations avoid such problems is by utilizing:
A)individual rates
B)rate ranges
C)random wages
D)not rewarding exceptional performance
E)allowing employees to set their own wage rates

Accepted Answer

Rate ranges allow organizations to reward employees based on performance, experience, and other factors, thus avoiding the limitations of flat wage rates.

Question 9

When a company increases employee compensation,this has the effect on the wage-trend line of:
A)moving it to the right
B)moving it upwards
C)moving it downwards
D)reversing the direction of its slope
E)moving it to the left

Accepted Answer

Increasing employee compensation means that the average wage level has gone up. This leads to the wage-trend line shifting upwards as it reflects the changing trend in wages.

Question 10

If,for a particular job class,the average hourly wage rate is $13,but a less average employee can be paid $11 and an exceptional employee $15,then this is an example compensation policy utilizing __________ within job classes.
A)flat rates
B)disbursed rates
C)modified rates
D)rate ranges
E)employee non-evaluated rates

Accepted Answer

This is an example of a compensation policy utilizing rate ranges within job classes, where there is a range of pay for a particular job class instead of a single flat rate. The range in this case is from $11 to $15, with the average rate being $13. This allows for flexibility in determining employee pay based on their level of performance or experience, while still maintaining a clear range of acceptable pay rates for the job class.

Question 11

What makes the issue of equal pay for work of equal value a difficult concept to deal with?
A)it only covers women in the marketplace and ignores other protected classes
B)generally a company will not know how much it pays its female versus male employees
C)the concept (and laws)do not clearly define "equal value" and how it can be measured
D)it conflicts with equal pay for equal work laws
E)it relates only to certain groups of people as specified by the federal government

Accepted Answer

The concept of "equal value" is difficult to define and measure, which makes it challenging to implement in practice. This can lead to disagreements and lawsuits over what constitutes equal value for different jobs.

Question 12

Through the dots that represent key jobs on a scattergram,a __________ is drawn as close to as many points as possible.
A)wage-trend line
B)Scatterline
C)pay rate line
D)pay-point line
E)job evaluation curve

Accepted Answer

A wage-trend line is drawn through the dots on a scattergram to represent the relationship between job value and pay rate, aligning as closely as possible to the data points.

Question 13

New pay concepts such as skill or knowledge-based pay require that human resource departments do all of the following EXCEPT:
A)identify the tasks that have to be performed
B)identify skills required to complete tasks
C)price skills for pay rates
D)ideally,provide incentives for continuous horizontal and vertical learning
E)be prepared to significantly enlarge the workforce

Accepted Answer

New pay concepts such as skill or knowledge-based pay do not necessarily require an enlargement of the workforce. Instead, they require a focus on identifying tasks, required skills, and pricing those skills for appropriate pay rates, as well as providing incentives for continuous learning.

Question 14

No matter what pay rate methods are used to set wages and salaries,they must all be tempered by a variety of challenges including which of the following?
A)organizational policies
B)union power
C)level of productivity
D)prevailing wage rates
E)all of the choices

Accepted Answer

All of the choices listed (organizational policies, union power, level of productivity, and prevailing wage rates) can have an impact on determining wages and salaries. It is important to consider all of these factors when setting pay rates in order to ensure fairness and competitiveness in the labor market.

Question 15

Companies utilize a variety of methods to set pay rates.Which factors can challenge organizational plans and policies concerning wages and salaries?
A)child labour laws
B)production bonuses
C)scatterlines
D)government regulations
E)the British North-America Act

Accepted Answer

Government regulations can challenge organizational plans and policies concerning wages and salaries as there may be laws or regulations related to minimum wage, equal pay, or overtime pay that companies must comply with. Other factors such as competition in the labor market, cost of living, and the company's financial performance can also affect their ability to set pay rates. Choices A, B, C, and E are not relevant to the topic of factors that challenge organizational plans and policies concerning wages and salaries.

Question 16

There are several new approaches to paying employees which include:
A)skills or knowledge based pay and employee stock ownership plans
B)variable pay and piecework
C)profit sharing and skills or knowledge based pay
D)variable pay and skills or knowledge based pay
E)piecework and profit sharing

Accepted Answer

Variable pay and skills or knowledge based pay are the most effective approaches towards paying employees. Variable pay considers the quality and quantity of work, which motivates employees to work more efficiently. On the other hand, skills or knowledge based pay motivates employees to develop new skills and become more knowledgeable to receive higher pay. These approaches not only increase employee satisfaction but also improve the overall performance of the organization.

Question 17

A systematic procedure to determine the relative worth or value of jobs is called:
A)job evaluation
B)job analysis
C)job standard measurement
D)performance evaluation
E)job intrinsic valuation determination

Accepted Answer

Job evaluation is the systematic process of determining the relative worth or value of jobs within an organization. This is done by analyzing and comparing job duties, responsibilities, and requirements to establish a hierarchy of job positions and determine appropriate compensation levels. Job analysis involves gathering detailed information about job tasks and requirements, but it is not the same as job evaluation. Job standard measurement, performance evaluation, and job intrinsic valuation determination are not commonly used terms in the context of job evaluation.

Question 18

Compensation systems are intended to do all of the following EXCEPT:
A)satisfy employees
B)tie rewards to the achievement of company objectives
C)reimburse employees for their work
D)motivate employees
E)replace performance appraisals

Accepted Answer

Compensation systems may influence or be influenced by performance appraisals, but they are not intended to replace them. The other choices are all valid purposes of compensation systems.

Question 19

In obtaining wage and salary information,regardless of the source,it is always most important to ensure that:
A)the information is printed and not simply verbal
B)the information is in both English and French
C)the information is legally valid under the Human Rights Act
D)the information offers comparisons between similar jobs and not just similar titles
E)the information is in accordance with salaries as laid out in the Employment Equity Act

Accepted Answer

It is important to ensure that wage and salary information offers comparisons between similar jobs and not just similar titles, as jobs with similar titles may have vastly different responsibilities and therefore pay differently. This will provide a more accurate representation of salary expectations.

Question 20

A job evaluation system where jobs in an organization are placed subjectively on a scale in accordance to their importance in comparison with other jobs is called:
A)job grading
B)job progression ladder scaling
C)job ranking
D)job factoring
E)job description comparison technique

Accepted Answer

Job ranking is a job evaluation system where jobs are ranked or placed in order of their importance or worth to the organization relative to the other jobs. It is a subjective method of job evaluation that is easy to understand and relatively quick and inexpensive to use. However, it does not provide a precise measure of the relative worth of different jobs, and it can be difficult to rank jobs that are very different from one another.

Quiz 9: Compensation Management

Absolute pay levels primarily affect such employee needs as:

Perceived fairness of job rankings within an organization is referred to as:

The reason that the point system has become the major job evaluation method is because of:

A form of job evaluation that assigns jobs to predetermined job classifications according to their relative worth to the organization is known as the __________ method.

External equity in job evaluation may be defined as:

In pricing jobs,the appropriate pay level for any job reflects:

In order to ensure that a company's pay system is in line with government legislation,which of the following measures are suggested?

While flat wage rates are easier to administer they can obstruct rewarding employees.One way organizations avoid such problems is by utilizing:

When a company increases employee compensation,this has the effect on the wage-trend line of:

If,for a particular job class,the average hourly wage rate is $13,but a less average employee can be paid $11 and an exceptional employee $15,then this is an example compensation policy utilizing __________ within job classes.

What makes the issue of equal pay for work of equal value a difficult concept to deal with?

Through the dots that represent key jobs on a scattergram,a __________ is drawn as close to as many points as possible.

New pay concepts such as skill or knowledge-based pay require that human resource departments do all of the following EXCEPT:

No matter what pay rate methods are used to set wages and salaries,they must all be tempered by a variety of challenges including which of the following?

Companies utilize a variety of methods to set pay rates.Which factors can challenge organizational plans and policies concerning wages and salaries?

There are several new approaches to paying employees which include:

A systematic procedure to determine the relative worth or value of jobs is called:

Compensation systems are intended to do all of the following EXCEPT:

In obtaining wage and salary information,regardless of the source,it is always most important to ensure that:

A job evaluation system where jobs in an organization are placed subjectively on a scale in accordance to their importance in comparison with other jobs is called: