CMS 2, Lesson 4

What process indicates to employees what the organization values about their work and how it supports the organization's strategy and success?

(Intro to 4) Job evaluation

What process integrates each job's pay with its relative contributions to the organization and sets pay for new, unique or challenging jobs?

(Intro to 4) Job evaluation

True or False: There is often a one-to-one correspondence with pay rates between internal job value and external market value.

(4.2) False. There is not a one-to-one correspondence with pay rates.

Pay differences and a lack of employment and wage records used to be a source of unrest among workers. What process changed this?

(4.21) Job evaluation

Job evaluation plans should be (flexible/stringent).

(4.21) flexible

Prior to the widespread use of job evaluation, employers in the 1930s and 1940s had irrational pay structures based on decentralized and uncoordinated _______ practices.

(4.21) wage-setting

What are the two primary viewpoints (and sources of conflict) about job evaluation?

(4.3) The issue is whether job evaluation should be viewed as a measurement device, and therefore be valued according to technical standards, or as an administrative procedure that invites discussion and consensus.

One of the assumptions that underlies job evaluation is that job evaluation is linked with the ______ market.

(4.4) external

One of the assumptions that underlies job evaluation is that job evaluation is a measure of ______ and ______.

(4.4) job content, relative value

One of the assumptions that underlies job evaluation is that job evaluation is a ______ device.

(4.4) measurement

One of the assumptions that underlies job evaluation is that job evaluation is a(n) (agreement/negotiation).

(4.4) negotiation

What is a single plan when discussing job evaluation?

(4.5) A single plan is one that uses the same factors to evaluate all job families across the organization.

True or False: Many say that jobs should be evaluated by a single plan.

(4.5) False. Many say that jobs are too varied to be accurately evaluated by a single plan.

What is a multiple plan when discussing job evaluation?

(4.5) Multiple plans use different plans and different factors for different job families.

What is the first major decision that a job analyst must make when beginning a job evaluation?

(4.5) The first major decision that a job analyst must make is to establish the purpose of the evaluation.

What is the second major decision that a job analyst must make when conducting a job evaluation?

(4.5) The second major job evaluation decision that must be made is related to single versus multiple plans.

Should job evaluation be tied to internal alignment?

(4.5) Yes

True or False: Job ranking informs managers and employees what it is about their jobs that is important.

(4.6) False. Job ranking does NOT tell employees and managers what it is about their jobs that is important.

What process of a job evaluation is the simplest, fastest and easiest to understand and to explain to employees?

(4.6) Job ranking

What term describes the process of ordering job descriptions from highest to lowest based on a global definition of relative value or contribution to the organization's success?

(4.6) Job ranking

What is job ranking?

(4.6) Job ranking orders job descriptions from highest to lowest based on a global definition of relative value or contribution to the organization's success.

Job ranking is, initially, the (least/most) expensive method to job evaluation.

(4.6) least

What method of job ranking orders job descriptions alternatively at each extreme?

(4.7) Alternation ranking

What are two common methods of job ranking?

(4.7) Alternation ranking and paired comparison

What is the alternation ranking method of job ranking?

(4.7) Alternation ranking orders job descriptions alternatively at each extreme.

What method of job ranking uses a matrix to compare all possible pairs of jobs?

(4.7) Paired comparison

What is the paired comparison method of job ranking?

(4.7) Paired comparison uses a matrix to compare all possible pairs of jobs.

What are the two major disadvantages of job ranking?

(4.8) 1. The criteria on which jobs are ranked is usually poorly defined. 2. Evaluations can become subjective opinions that are impossible to justify in strategic and work-related terms.

Does job ranking have drawbacks?

(4.8) Yes

Should an evaluator be knowledgeable about every single job being ranked?

(4.8) Yes

The alternation ranking and paired comparison methods are (less/more) reliable than simple ranking.

(4.8) more

What is the classification system of how job evaluation works?

(4.9) In the classification system of job evaluation, a series of classes covers the range of jobs. A job description is then compared to the class descriptions to decide which class is the best fit for that job.

What are the three major types of job evaluation?

(Intro to 4) 1. Classification 2. Point method 3. Ranking

What are the five major actions and decisions related to job evaluation?

(Intro to 4) 1. Establish the purpose of the pay structure. 2. Decide on single or multiple pay plans. 3. Choose among alternative methods of evaluation. 4. Obtain the involvement of relevant stakeholders. 5. Evaluate the usefulness of the results.

What process can reduce disputes and grievances over pay differences among jobs by establishing a workable, agreed-upon structure that reduces the role that chance, favoritism and bias may play in setting pay?

(Intro to 4) Job evaluation

What is the final result of job analysis and job evaluation?

(4.20) A hierarchy of work

Which statements about compensable factors is (are) correct? I. Compensable factors should reflect what the organization values in the work. II. Compensable factors are related to job content. III. Compensable factors are a central part of the point method.

(4.0) I. Compensable factors should reflect what the organization values in the work. II. Compensable factors are related to job content. III. Compensable factors are a central part of the point method.

All the following are the basis for evaluating jobs, EXCEPT: A. The nature of the skills required B. Individual performance on the job C. Market pricing of the job D. Job content E. Strategy and cultural values of the organization

(4.0) B. Individual performance on the job

A systematic procedure designed to aid in establishing pay differential among jobs within a single employer is: A. Apportioning method B. Job evaluation C. Market pricing D. Path data E. Broad banding

(4.0) B. Job evaluation

What five factors is a job evaluation based on?

(4.1) 1. Skills required 2. Job content 3. Value to the organization 4. Organizational culture 5. External markets

What two "forces" are blended to create a job evaluation?

(4.1) External market forces and organizational forces

What term describes the systematic determination of the relative worth of jobs to create a job structure for the organization?

(4.1) Job evaluation

Define the term "job evaluation."

(4.1) Job evaluation is the process of systematically determining the relative worth of jobs to create a job structure for the organization.

Are intraclass comparisons made between jobs when classifying jobs in a job evaluation?

(4.10) Yes

What are the three common characteristics of point plans?

(4.11) 1. Compensable factors 2. Factor degrees numerically scaled 3. Weights reflecting the relative importance of each factor

What system is the most commonly used approach to establishing pay structures in the United States and Europe?

(4.11) Point plans

Which job evaluation method can group a wide range of work together in one system?

(4.12) Classification method

Which job evaluation method involves descriptions that may leave too much room for manipulation?

(4.12) Classification method

Which job evaluation method can become bureaucratic and rule-bound?

(4.12) Point method

Which job evaluation method involves compensable factors that explain the basis for comparison?

(4.12) Point method

Which job evaluation method can become cumbersome as the number of jobs increases.

(4.12) Ranking method

Which job evaluation method is the easiest to explain, fastest and simplest to use?

(4.12) Ranking method

What are the eight steps involved in designing a point plan?

(4.13) 1. Conduct job analysis. 2. Determine compensable factors. 3. Scale the factors. 4. Weight the factors. 5. Select criterion pay structure. 6. Communicate the plan. 7. Apply to nonbenchmark jobs. 8. Develop online software support.

What type of jobs are selected during step 1, job analysis, when designing a point plan?

(4.14) Benchmark jobs

What factors reflect how work adds value to the organization by flowing from the work itself and the strategic direction of the business?

(4.14) Compensable factors

To be useful, compensable factors should have what three characteristics?

(4.14) Compensable factors should be: 1. Based on the strategy and values of the organization 2. Based on the work performed 3. Acceptable to the stakeholders affected by the resulting pay structure

What is the best source of information on where a business should be going and how it is going to get there?

(4.15) The leadership of an organization is the best source of information on where the business should be going and how it is going to get there.

What are the three classic factors that the Hay Guide Chart uses?

(4.17) 1. Accountability 2. Know-how 3. Problem solving

What are the two most common problems that occur when selecting a compensation plan?

(4.17) 1. The number of factors to be included in the plan 2. Small numbers

A wide variety of factors are used in standard existing plans, from which a plan can be adapted, but the factors tend to fall into what four generic groups?

(4.17) 1. Effort required 2. Responsibility 3. Skills required 4. Working conditions

What is the most widely used compensation plan?

(4.17) Hay Guide Chart - Profile Method of Position

What four best practices should one follow when scaling factors in a point plan?

(4.18) 1. Limit the degrees to the number necessary to distinguish among jobs. 2. Use understandable terminology. 3. Anchor degree definitions with benchmark job titles and/or work behaviors. 4. Make it apparent how the degree applies to the job.

Who should be involved in the job evaluation process?

(4.19) Depending on the organization's intentions, the following persons may be involved: - Employees and managers - Committees, task forces or teams that include representatives from key operating functions - Union representatives

According to research, which is more important when completing the job evaluation process?: fairness of the design process or the results?

(4.19) Research suggests that attending to the fairness of the design process and the approach chosen, rather than focusing solely on the results, is likely to achieve employee and management commitment, trust and acceptance of the results.

A job evaluation structure that is based on job content refers to what?

(4.2) A structure based on job content refers to skills required for the job, its duties and responsibilities.

A job evaluation structure that is based on job value refers to what?

(4.2) A structure based on job value refers to the relative contribution of the job to the organization's goals.