Chapter 5

Which of the following is the underlying assumption in the assessment of job content?

Content has intrinsic value outside external market.

Which of the following is a major decision in job evaluation?

Establishing the purpose of evaluation

Each compensable factor degree should be equidistant from the adjacent degrees.

False

Focusing on the end product of the internal alignment process, the pay structure, is more important for acceptance of the results than focusing on the approach chosen.

False

The NEMA plan explicitly states that the compensable factor experience should be correlated with tenure.

False

The policy capturing approach and the committee a priori approach for developing pay structures yield the same pay structure.

False

The primary reason for documenting the views of employees and supervisors on compensable factors is to meet requirements of the Equal Pay Act.

False

A criterion pay structure is a pay structure that can be duplicated with a point evaluation plan.

True

A job structure based upon job value orders jobs on the basis of the relative contribution of the skills, duties, and responsibilities of each job to the organization's goals.

True

A representative sample of benchmark jobs will include the entire domain of work being evaluated and capture the diversity of the work within that domain.

True

Research shows that the weights assigned to compensable factors can affect the resulting pay structure.

True

The most widely used point method job evaluation is the:

Hay Plan

MXB Inc. is a carwash service provider. It orders the jobs in the company on the basis of the least important job to the most important job. In this case, MXB is most likely using a(n):

alternation-ranking method.

Common characteristics of the point method include all of the following EXCEPT:

benchmark factor classes.

A job description is compared to class descriptions in the _____ of job evaluation.

classification method

The job evaluation method that most resembles a bookcase with many shelves is:

classification.

The final step in designing a point plan involves _____.

developing online software support

The exchange value of a job is its _____.

external market value

The _____ method of job evaluation is the most commonly used method in the United States and Europe.

point

When a statistical process is used to duplicate an existing pay structure, it is called:

policy capturing.

All of the following are advantages of the ranking method of job evaluation EXCEPT that:

rankings are easy to defend and justify.

TreeWind Inc. is a bookstore that uses skill and responsibility as its compensable factors. It assigns 20 percent weight to responsibility and 80 percent weight to skill. If the responsibility factor scores a 60 after multiplying the subfactors with their corresponding weights, and if the skill factor has two subfactors that are rated as 4 and 5, what is the total weightage given to the job?

420

Research shows that skills, one of the compensable factors, accounts for _____ percent or more of the variance in job evaluation results.

90

Which of the following is NOT true of the usage of multiple plans versus single job evaluation plans?

A single universal plan is acceptable to employees if the work covered is highly diverse.

Which of the following is a disadvantage of the point method?

It can become bureaucratic and rule-bound.

Which of the following statements is true of a job evaluation plan?

It is developed using benchmark jobs and then applied to nonbenchmark jobs.

In the context of internal alignment, which of the following is the correct sequence?

Job description > Job evaluation > Job structure

Which of the following is NOT a characteristic of a benchmark job?

The pay level is the best in the industry.