Compensation :: Chapter Five

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

ADVANTAGES: The job evaluation is fast, the job evaluation process is inexpensive, the job evaluation process is not complex DISADVSNTAGE: Rankings are easy to defend and justify (this is not true)

Which of the following methods requires evaluators to agree on which jobs are the most and least valuable, then the next most and least valued, and so on until all the jobs have been ordered?

Alternation ranking method

In the point method, the second step in designing a plan is to:

DETERMINE COMPENSABLE FACTORS

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

DOES INCLUDE: numerically scaled factor degrees, factor weights, and compensable factors

The final step in designing a point plan involves _____.

Developing online software support

A major decision in job evaluation is to:

Establishing the purpose of the plan Deciding on a single vs. multiple plans Choose among alternative methods Obtain involvement of relevant stakeholders Evaluate the usefulness of the results

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

Establishing the purpose of the plan Deciding on a single vs. multiple plans Choose among alternative methods Obtain involvement of relevant stakeholders Evaluate the usefulness of the results

_____ are more likely to conduct job evaluations of senior management jobs.

compensation managers

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

content has intrinsic value outside external marketplace

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

point

The _____ method of job evaluation uses compensable factors.

point

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

policy capturing

Most factor scales have _____ degrees.

4-8

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

90%

The most widely used point method job evaluation is the:

Hay plan

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

It can become bureaucratic and rule-bound

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

Job description leads to job evaluation which leads to job structure

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

TRUE: Employers rarely evaluate all jobs in the organization at one time TRUE: Many employers design different job evaluation plans for different types of work TRUE: Typically, a related group of jobs is used for job evaluations FALSE: A single universal plan is acceptable to employees if the work covered is highly diverse

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

classification

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

classification

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

developed using benchmark jobs, then is applied to non-benchmark jobs

The exchange value of a job is its _____.

external market value

According to a WorldatWork survey, the primary method of job evaluation is _____.

market-pricing

In the context of the point method of job evaluation, _____ are those characteristics in the work that an organization values; that help it pursue its strategy and achieve its objectives.

Compensable factors

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

job evaluation

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

three