Compensation Exam
Defining the compensable factors and scales to include the content of jobs held predominantly by women is one of the methods to ensure that job evaluation plans are bias-free.
True
Fairness is affected through employees' comparisons of their pay to the pay of others in the organization.
True
Fundamental skills include familiarity with company forms and procedures, basic product knowledge, safety, basic computer usage, and so on.
True
How an organization positions its total compensation against its competitors is part of external competitiveness strategic choices.
True
If the objective is to increase customer satisfaction, then incentive programs and merit pay might be used to pay for performance.
True
In a virtuous circle, a pay-for-performance strategy results in the improvement of performance.
True
In some organizations, analyzing work content is now conducted as part of work flow and supply chain analysis.
True
In virtually all the studies on job evaluation, job-based evaluation is treated as a measurement device.
True
Internal alignment is sometimes called internal equity.
True
Internal alignment pertains to the pay rates both for employees doing equal work and for those doing dissimilar work.
True
Job analysis is best done by someone thoroughly familiar with the organization and its jobs and trained in how to do the analysis properly.
True
Labor unions support small pay differentials.
True
Most U.S. firms use merit pay increases.
True
Most firms do not have generic strategies but use a blend of cost and innovation.
True
Most organizations do not engage in any regular updating of job analysis information.
True
Objectives guide the design of pay systems and provide standards for evaluating their effectiveness.
True
Paired-comparison and alternate-ranking methods may be more reliable than simple ranking.
True
Pay differences among levels in an organization are called differentials.
True
Providing unlimited compensation choices to employees would meet with disapproval from the U.S. Internal Revenue Service.
True
Research shows that the weights assigned to compensable factors can affect the resulting pay structure.
True
Scaled competency indicators are similar to degrees of compensable factors.
True
Skill-based plans are generally well accepted by employees because it is easy to see the connection between the plan, the work, and the size of the paycheck.
True
Teachers will feel pay structures are fair even when they are relatively low in the internal structure if they work in a high-paying school district.
True
Technology used in producing goods and services influences the organizational design, the work to be performed, and the skills/knowledge required to perform the work.
True
The final result of the job analysis-job description-job evaluation process is a hierarchy of work.
True
The leadership of any organization is the best source of information on where the business should be going and how it is going to get there. Group starts
True
The level at which a job analysis begins influences whether the work is similar or dissimilar.
True
The members of a job evaluation committee usually represent all important constituencies within an organization.
True
The reliability of a job evaluation can be improved by using evaluators who are familiar with the work and trained in the job evaluation process.
True
Traditional job analysis that makes fine distinctions among levels of jobs has been accused of reinforcing rigidity in organizations.
True
Wage legislation affects wage structure at both the minimum and the maximum pay level.
True
When unemployment increases, the proportion of the population covered by health insurance decreases.
True
Work-related documentation helps gain acceptance by employees and managers, is easier to understand, and can withstand a variety of challenges to the pay structure.
True
A study of three different jobs in the United States, China, Hong Kong, and New Zealand found that ratings of the importance and amount of work activities and job requirements were significantly different across countries.
False
All job incumbents can easily complete the Position Analysis Questionnaire as the reading level required for it is relatively low.
False
Base wage is the overtime pay given to employees who are exempt from regulations of the Fair Labor Standards Act.
False
Base wage reflects both the value of the work and individual employee skills and experience.
False
Basing pay on race or gender seems appalling today, but basing pay on someone's judgment of another person's integrity is considered the norm nowadays.
False
Egalitarian pay structures send the message that an organization values differences in work content, individual skills, and contributions to the organization.
False
Exchange value is always higher than use value.
False
In a high-performance system, pay strategy always plays a lead role.
False
Management and HR research has conclusively shown that goal setting and job enrichment produce the largest and most reliable increases in job performance.
False
Pay structures are immune to changes in external factors such as skill shortages.
False
Providing unlimited compensation choices to employees would meet with disapproval from the U.S. Internal Revenue Service.
False
Reducing the number of job titles in an organization is likely to increase the opportunities to reinforce positive employee behavior.
False
Since HR research contains information useful to managers, most managers read research in HR management and compensation journals.
False
Since business strategies may change often, compensable factors should rarely be added or deleted.
False
Skill-based plans become increasingly economical as the majority of employees become certified at the highest pay levels. Group startsTrue or False
False
The Americans With Disabilities Act's essential-elements requirement for hiring and promotion decisions seems to require less detail than what is required for pay decisions.
False
The National Electrical Manufacturers Association plan explicitly states that the compensable factor experience should be correlated with tenure.
False
The degree to which pay influences individual and aggregate motivation among employees is called a sorting effect
False
The most common way of allocating weights to factors is regression modeling.
False
The policy capturing approach and the committee a priori approach for developing pay structures yield the same pay structure.
False
The reliability and validity of the quantitative methods of job analysis have significantly reduced the importance of human judgment in job analysis.
False
Transactional work is typically paid more than tacit work.
False
Typical data collected for a job analysis would not include relationships with suppliers and customers.
False
A compensation strategy should reflect an organization's values.
True
A criterion pay structure is a pay structure that can be duplicated with a point plan.
True
A layered pay structure is more hierarchical than a delayered pay structure and less egalitarian in terms of number of levels.
True
A major challenge in the design of future pay systems is how to better satisfy individual needs and preferences.
True
A potential problem in egalitarian pay structures is that high-performing employees may feel underpaid and quit.
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
ADA regulations state that "essential functions refers to the fundamental job duties of the employment position the individual with a disability holds or desires."
True
An organization defines its strategy through the trade-offs it makes in choosing what to do and what not to do.
True
An organization whose profits or market share is increasing is able to pay larger bonuses and stock awards.
True
As experience with competencies has grown, organizations are placing greater emphasis on business-related descriptions of behaviors.
True
Both external and organization factors shape internal pay structures.
True
By encouraging employees to take charge of their own development, skill-based plans may give them more control over their work lives.
True
Compensation is often a company's largest controllable expense.
True
Compensation systems focusing on competitors' labor costs typically follow a cost-cutter strategy.
True
Consultant surveys are often presented as studies that reveal cause and effect.
True