Total Compensation Chapter 5 Quiz

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

_____ is the process of systematically determining the relative worth of jobs for the purpose of creating an organization's job structure.

Job evaluation

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

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

Compensable factors are aspects of work that add value to the organizaton.

True

One of the criteria for scaling compensable factors is to ensure that the number of degrees used is necessary to distinguish among jobs.

True

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

True

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

Establishing the purpose of evaluation

Factors are scaled after factor weights have been assigned.

False

Since business strategies may change often, compensable factors should rarely be added or deleted.

False

The most common way of allocating weights to factors is regression modeling.

False

The final step in designing a point plan involves ____.

developing online software support

The exchange value of a job is its ____.

external market value

Research shows that _____ factor(s) account(s) for 98 to 99 percent of the variance in job evaluation plans.

three

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

90

A major decision in job evaluation is to:

choose among alternative approaches

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

classification method

The ____ method of job evaluation uses compensable factors.

point

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

rankings are easy to defend and justify.