COMP EXAM 2!!!!!

There is far less uniformity in the use of terms in person-based plans than there is in job-based plans.

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

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

The final result of the job analysis-job description-job evaluation process is a hierarchy of work.

True

In the context of job evaluation methods, which of the following is a common way of ranking? A) Paired comparison B) Interval scaling C) Factor weights D) Compensable factors

A) Paired comparison

Scaled competency indicators are similar to degrees of compensable factors.

True

The work of many people now requires that they figure out what to do in a given situation instead of simply invoking a canned routine.

True

Leadership, customer orientation, and functional expertise are examples of which group of competencies? A) Personal characteristics B) Visionary C) Organization specific D) Team dynamics

C) Organization specific

The National Electrical Manufacturers Association plan explicitly states that the compensable factor experience should be correlated with tenure.

False

The number of job evaluation plans required depends only upon the number of employees in the organization.

False

Which of the following is an assumption held by the labor supply model about the behavior of potential employees? A) The number of job seekers is low. B) Job seekers are unaware of job openings. C) Job seekers do not face barriers to mobility. D) Job seekers often lie on their résumés.

C) Job seekers do not face barriers to mobility.

The roots of job-based pay structures are traced to A) Frederick Taylor. B) Karl Marx. C) Adam Smith. D) Ronald McFreyer.

A) Frederick Taylor.

Which of the following is least likely to be used in establishing skill-based certification methods? A) Tests B) College degree C) Peer review D) On-the-job demonstration

B) College degree

Which of the following labor demand theories states that work with negative characteristics requires higher pay to attract or retain workers? A) Job competition B) Compensating differentials C) Efficiency wage D) Sorting and signaling

B) Compensating differentials

________ are more likely to conduct job evaluations of senior management jobs. A) Compensation analysts B) Compensation managers C) Peers D) Junior incumbents

B) Compensation managers

Which of the following is an advantage of the skill-based structure? A) Pay based on value of work performed B) Continuous learning flexibility C) Cost control via certification D) Lateral movement

B) Continuous learning flexibility

_______ is the additional output associated with the employment of one additional human resource unit, with other production factors held constant. A) Productivity B) The marginal product of labor C) Incremental productivity D) The marginal revenue of labor

B) The marginal product of labor

The most widely used point method job evaluation is the: A) Hay Group plan. B) Equal Pay Act generic plan. C) factor comparison plan. D) Position Analysis Questionnaire plan.

A) Hay Group plan.

Skill-based plans become increasingly economical as the majority of employees become certified at the highest pay levels.

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 the requirements of the Equal Pay Act.

False

________ are the observable behaviors that indicate the level of competency within each competency set. A) Competency generators B) Core competencies C) Competency indicators D) Behavior scale points

C) Competency indicators

A camper is an employee who ________ in a skill-based pay system. A) tops out B) is a jack-of-all-trades C) does not want to rotate jobs D) moves too quickly from job to job

C) does not want to rotate jobs

In virtually all the studies on job evaluation, job-based evaluation is treated as a measurement device.

True

Person-based plans have the potential to clarify new standards and behavioral expectations.

True

________ is an example of a bourse. A) The stated starting wage of a job in an ad B) The total compensation for a top athlete C) The price of a product on Amazon D) The price of a box of cereal at a grocery store

B) The total compensation for a top athlete

While competencies hone in on information about specific tasks, skill- and job-based systems take the opposite approach.

False

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

Communication and employee involvement are crucial for acceptance of resulting pay structures.

True

Which of the following is the underlying assumption in the assessment of job content? A) Content has intrinsic value outside the external market. B) Content has no artistic value. C) Stakeholders are the best judge for assessing the quality of content. D) Content can be determined with or without the external market.

A) Content has intrinsic value outside the external market.

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? A) The alternation-ranking method B) The classification method C) The point method D) The paired-comparison method

A) The alternation-ranking method

The pay-mix policy alternative in which the percentage of benefits is likely to be the highest is known as a A) work/life balance policy. B) security policy. C) performance-driven policy. D) market match policy.

A) work/life balance policy.

According to Frito-Lay's list of competencies for managerial work, the behavior of modeling, teaching, and coaching company values is linked to the ________ competency dimension. A) leading for results B) doing it the right way C) leveraging technical and business systems D) building workforce effectiveness

B) doing it the right way

All of the following are advantages of a lead pay-level policy EXCEPT A) reduced vacancy rates. B) higher turnover rates. C) reduced absenteeism. D) better-quality employees.

B) higher turnover rates.

The majority of applications of skill-based pay have been in: A) education industries. B) manufacturing industries. C) health-care industries. D) service industries.

B) manufacturing industries.

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 gets a score of 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? A) 40 B) 120 C) 420 D) 990

C) 420

Which of the following is true of the marginal revenue product model? A) It explains differences in workers' responses to offers. B) It helps separate the contributions of labor from those of other resources. C) It fails to tell managers how many people to hire. D) It oversimplifies business conditions in the real world.

D) It oversimplifies business conditions in the real world.

The ________ method of job evaluation is the most commonly used method in the United States and Europe. A) ranking B) factor comparison C) classification D) point

D) point

Paired-comparison and alternate-ranking methods may be more reliable than simple ranking.

True

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

True

Skill-based pay plans can focus on both the depth and breadth 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.

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

Wages tend to be the lowest in which of the following industries? A) Education and health care B) Technology-intensive industries C) Professional services D) Pharmaceuticals

A) Education and health care

________ refers to determining the intervals on a measurement instrument. A) Scaling B) Policy capturing C) Alternation ranking D) Classification

A) Scaling

The final step in designing a point plan involves A) developing online software support. B) selecting compensable factors. C) communicating the plan and training users. D) scaling the factors.

A) developing online software support.

Competencies are derived from the ________ beliefs about the organization and its strategic intent. A) executive leadership's B) stakeholders' C) competitors' D) customers'

A) executive leadership's

The pay-level policy that is most likely to reduce pay dissatisfaction is a(n) A) lead policy. B) employer of choice policy. C) lag policy. D) match policy.

A) lead policy.

_______ focuses attention on the competitive positions reflected in the pay relationships among organizations. A) Labor demand B) External competitiveness C) Utility theory D) Pay satisfaction

B) External competitiveness

Which of the following is a disadvantage of the point method? A) It can leave too much room for manipulation. B) It can become bureaucratic and rule-bound. C) It does not allow for comparisons. D) It does not communicate what is valued.

B) It can become bureaucratic and rule-bound.

Most factor scales have ________ degrees. A) six to nine B) four to eight C) three to seven D) two to four

B) four to eight

A major decision in job evaluation is to: A) choose which stakeholders to eliminate in the process. B) figure out how to eliminate the use of multiple plans. C) choose among alternative approaches. D) figure out how to eliminate the use of single plans.

C) choose among alternative approaches.

In the point method, the second step in designing a plan is to: A) conduct job analysis. B) scale the factors. C) determine the compensable factors. D) prepare a job evaluation manual.

C) determine the compensable factors.

Compensable factors, skill blocks, and competency sets are used for: A) assessing relative value. B) collecting work content information. C) determining what to value. D) completely different purposes.

C) determining what to value.

Most studies report that when different people rank-order jobs, the correlations are between: A) .15 and .36. B) .35 and .46. C) .55 and .66. D) .85 and .96.

D) .85 and .96.

Lisa is a manager at Trell, Inc. When she hires her employees, she focuses on finding the right job for the right person. Which of the following pay plans is her employer most likely using? A) A skill-based pay plan B) A competency-based pay plan C) An aptitude-based pay plan D) A job-based pay plan

D) A job-based pay plan

Which of the following is NOT true of the usage of multiple plans versus single job evaluation plans? A) Employers rarely evaluate all jobs in an organization at one time. B) Many employers design different evaluation plans for different types of work. C) Typically, a related group of jobs is used for evaluation. D) A single universal plan is acceptable to employees if the work covered is highly diverse.

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

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

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

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

_____ theory is based on the premise that higher earnings flow to those who improve their potential productivity by investing in themselves. A) Human capital B) Labor market C) The efficiency-wage D) The compensating differentials

A) Human capital

Which of the following is a disadvantage of the ranking method of job evaluation? A) It fails to tell employees what is important about their jobs. B) It is initially more expensive than other job evaluation methods. C) It consumes more time than other job evaluation methods. D) It is difficult to explain to employees.

A) It fails to tell employees what is important about their jobs.

Which of the following is NOT true of the relationship between employer size and its ability to pay? A) Talented individuals have a lower marginal value in a larger organization. B) Talented people can influence more people and decisions. C) The influence of talented people leads to more profits. D) Talented people prefer to work in larger organizations.

A) Talented individuals have a lower marginal value in a larger organization.

KayDen Corp., a small organization with 15 employees, conducts job evaluation using the least expensive method for the first time. In this case, KayDen is most likely to have used the A) classification method. B) point method. C) ranking method. D) Hay plan.

C) ranking method.

Research shows that ________ factor(s) account(s) for 98 to 99 percent of the variance in job evaluation plans. A) one B) two C) three D) four

C) three

In the context of types of markets, which of the following statements is true? A) In both the bourse and the quoted market, employers are the sellers. B) Ads that list a job opening's starting wage are examples of bourse markets. C) Graduating students usually find themselves in a bourse market. D) Bourse markets allow haggling over terms and conditions until an agreement is reached.

D) Bourse markets allow haggling over terms and conditions until an agreement is reached.

Which of the following is a job evaluation method that can group a wide range of work together in one system but leave too much room for manipulation? A) Ranking B) Point C) Scaling D) Classification

D) Classification

Point plans represent a significant change from ranking and classification methods in that they make explicit the criteria for evaluating jobs: compensable factors.

True

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

True

A disadvantage of the ranking method is that the criteria on which the jobs are ranked are usually poorly defined.

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

As experience with competencies has grown, organizations are placing greater emphasis on business-related descriptions of behaviors.

True

By encouraging employees to take charge of their own development, skill-based plans may give them more control over their work lives.

True

Compared to an on-demand review of certifications, scheduling fixed review points makes it easier to budget and control payroll increases.

True

Core competencies are often linked to mission statements that express an organization's philosophy, values, business strategies, and plans.

True

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

Fundamental skills include familiarity with company forms and procedures, basic product knowledge, safety, basic computer usage, and so on.

True

Validity refers to the degree to which an evaluation assesses the relative worth of jobs to an organization.

True

The ________ method of job evaluation uses compensable factors. A) classification B) Position Analysis Questionnaire C) point D) ranking

C) point

Routine work is also termed A) transactional work. B) hygiene work. C) tacit work. D) system work.

A) transactional work.

________ translate each core competency into action. A) Competency indicators B) Multifunctional skills C) Skill-based structures D) Competency sets

D) Competency sets

________ are often linked to mission statements that express an organization's philosophy, values, business strategies, and plans. A) Job-based systems B) Bureaucratic systems C) Skill-based systems D) Core competencies

D) Core competencies

____ refers to the average of the array of rates paid by an employer. A) Revenue margin B) Remuneration C) Compensation D) Pay level

D) Pay level

Which of the following is linked to high pay levels? A) Increased absenteeism B) Poorly performing employees C) Reduced vacancy rates D) Higher training time

C) Reduced vacancy rates

Who among the following is most likely to be working for a company that uses a competency-based pay plan? A) Julia, who focuses on getting promoted to get a pay increase B) Faiza, a manager who focuses on choosing the employees best suited for job roles C) Juan, a manager who focuses on controlling costs through budgets and work assignments D) Carlos, who focuses on obtaining certifications in her field to get a pay increase

D) Carlos, who focuses on obtaining certifications in her field to get a pay increase

Transactional work is typically paid more than tacit work.

False

Which of the following statements is true of a job evaluation plan? A) It is developed using benchmark jobs and then applied to nonbenchmark jobs. B) It excludes the pay decisions made by a company. C) It provides the impetus to increase job levels and titles. D) It is always carried out separately for major domains of work.

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

Who among the following is examining the validity of a job evaluation? A) Keira, who is measuring the degree to which the job evaluation plan matches an agreed-upon pay structure for benchmark jobs B) Laila, who is measuring the effectiveness of a formal appeals process C) Keith, who is surveying employee attitudes about the job evaluation plan D) Rita, who is requesting the management for a reanalysis and a reevaluation of the required skills as she feels her job has been evaluated incorrectly

A) Keira, who is measuring the degree to which the job evaluation plan matches an agreed-upon pay structure for benchmark jobs

________ is a crucial factor that affects the perception of fairness of a skill-based plan. A) The design of the certification process B) The number of compensable factors C) The extent of alignment with an organization's strategy D) The number of weights and factor degrees

A) The design of the certification process

If Company A raises its pay rate by one dollar per hour to hire additional workers and competitors immediately match the increase, what will be the most likely result? A) The labor costs for Company A will increase, but it will be unable to hire additional workers. B) Company A will hire the needed workers at a higher wage rate. C) Competitors of Company A will lose employees to Company A. D) Company A will hire higher quality workers.

A) The labor costs for Company A will increase, but it will be unable to hire additional workers.

A small lawn care company has two mowers and four employees. If it hires another employee and the factors of production remain the same, how will the productivity of the fifth employee compare to that of the current four employees? A) The productivity will reduce. B) The productivity will increase. C) The productivity will remain the same. D) There is not enough information to determine productivity.

A) The productivity will reduce.

Which of the following is the reason why skill-based pay plans have maximum flexibility? A) They pay employees for the highest level of skill they have achieved regardless of the work they perform. B) They focus on placing the right people in the right job. C) They only pay as much as the work performed is worth, regardless of any greater skills the employee may possess. D) They encourage employees to focus on how to get promoted rather than on how to get the required competencies.

A) They pay employees for the highest level of skill they have achieved regardless of the work they perform.

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 the: A) alternation-ranking method. B) paired-comparison method. C) classification method. D) point method

A) alternation-ranking method.

The process of identifying competencies in person-based structures resembles identifying ________ as part of job evaluation in job-based structures. A) compensable factors B) job descriptions C) employee requirements D) work flow outlays

A) compensable factors

The organization specific group for classifying competencies generally includes A) customer orientation. B) personal integrity. C) flexibility. D) maturity of judgement.

A) customer orientation.

The reliability of job evaluation techniques is measured by: A) determining if different evaluators produce the same results. B) asking the question "What does the evaluation measure?" C) determining hit rates. D) surveying employee attitudes about the evaluation.

A) determining if different evaluators produce the same results.

When compensable factor importance weights are inferred using statistical methods, it is called: A) policy capturing. B) committee a priori judgment approach. C) factor analysis. D) regression analysis.

A) policy capturing.

An employee's focus in a job-based approach is to A) seek promotions to earn more pay. B) acquire skills. C) acquire competencies. D) utilize skills efficiently.

A) seek promotions to earn more pay.

puts a lid on the maximum pay level an employer can set. A) Government legislation B) The product market C) The labor market D) Labor market competition

B) The product market

Which of the following is an advantage of skill-based pay plans? A) They guarantee a low rate of employee turnover. B) They aid in deploying workers in a way that better matches the work flow. C) They are less expensive than job-based plans. D) They are viewed more favorably by courts than any other type of pay plans.

B) They aid in deploying workers in a way that better matches the work flow.

In the context of the point method of job evaluation, ________ are job attributes that provide the basis for evaluating the relative growth of jobs inside an organization. A) competitive skills B) compensable factors C) core competencies D) benchmark factors

B) compensable factors

In the context of job evaluation methods, two common ways of ranking are alternation ranking and A) scaling. B) paired comparison. C) policy capturing. D) classification.

B) paired comparison.

Evidence shows that in manufacturing, ________ is positively correlated with hourly wage level. A) turnover B) productivity C) a job description D) total cost

B) productivity

Among pay-mix alternatives, the percentage of base pay is highest in a A) work/life balance policy. B) security or commitment policy. C) performance-driven policy. D) market match policy.

B) security or commitment policy.

________ is the process of systematically determining the relative worth of jobs to create a job structure for an organization. A) Performance evaluation B) Job restructuring C) Job evaluation D) Point factor evaluation

C) Job evaluation

Which of the following statements is true of pay level? A) Pay level is the same across all organizations for the same job. B) The higher the pay level relative to what competitors pay, the lower the relative costs to provide similar products or services. C) Pay level is directly proportional to labor costs. D) Pay level is independent of the number of employees in an organization.

C) Pay level is directly proportional to labor costs.

In which of the following conditions would product market competitors' data be given more weight than data from labor market competitors? A) Labor costs are a small share of total costs. B) Employee skills are generic across all product markets. C) Product demand is responsive to price changes. D) The supply of labor is not responsive to changes in pay.

C) Product demand is responsive to price changes.

Which of the following is an example of the demand side of labor? A) The level of pay applicants will accept B) The qualifications of applicants C) The pay level offered by an employer D) The locations of potential employees

C) The pay level offered by an employer

Which of the following is a characteristic of benchmark jobs? A) They are unique to specific employers. B) They have unstable pay differentials. C) They employ a reasonable proportion of the workforce. D) Their contents are obscure and change over time.

C) They employ a reasonable proportion of the workforce.

Which of the following reasons makes competencies a risky foundation for a pay system? A) The number of stakeholders and the lack of a global standard B) Openness and nonquantifiable nature C) Vagueness and subjectivity D) Lack of motivation and objectivity

C) Vagueness and subjectivity

Employers continue to hire until the marginal revenue of the last hire equals his or her wage rate. This is based on the first labor market theory assumption that: A) markets are competitive. B) pay rates reflect all costs of employment. C) employers seek to maximize profits. D) workers are homogeneous and interchangeable.

C) employers seek to maximize profits.

A ________ approach controls costs by paying only as much as the work performed is worth, regardless of any greater skills the employee may possess. A) performance-based B) competency-based C) job-based D) skill-based

C) job-based

The estimates of competitors' pay rates will be incorrect and the pay level and pay mix inappropriately established if: A) employees demand for an increase in wages. B) the marginal revenue generated is low. C) markets are incorrectly defined. D) the cost for procuring labor is high.

C) markets are incorrectly defined.

Druk, Inc. is a consulting firm with 10 employees. Each new client generates $10,000 in revenue. If the company hires another employee who brings in five new clients and all other factors of production are constant, which of the following statements is true? A) Druk will break even if it hires a 12th employee for a wage of $50,000. B) Druk needs to pay $10,000 as wage to the 11th employee to break even. C) Druk will break even if it hires a 13th employee for a wage of $10,000. D) Druk needs to pay $50,000 as wage to the 11th employee to break even.

D) Druk needs to pay $50,000 as wage to the 11th employee to break even.

In the context of internal alignment, which of the following is the correct sequence? A) Job description > Pay structure > Job evaluation B) Job evaluation > Job description > Job structure C) Pay structure > Job description > Job evaluation > Job analysis D) Job description > Job evaluation > Job structure

D) Job description > Job evaluation > Job structure

Which of the following is an example of a quoted-price market? A) Streetcash, a website that allows buyers to negotiate product prices with sellers B) Vidwom, a website that allows buyers to bid for items sold by other users C) Gramspot, a website where cars are auctioned by sellers for charity D) Nile, a website that allows sellers to sell their products for a fixed price

D) Nile, a website that allows sellers to sell their products for a fixed price

______ is an external competitiveness policy that offers employees substantial options among their pay forms. A) A merit bonus B) A merit increase C) Total compensation D) Shared choice

D) Shared choice

Employees in a multi-skill system earn pay increases: A) by increasing their productivity. B) based on job content. C) based on job assignments. D) by acquiring new knowledge.

D) by acquiring new knowledge.

A job description is compared to class descriptions in the ________ of job evaluation. A) Position Analysis Questionnaire method B) point method C) Hay Group Guide Chart—Profile MethodSM D) classification method

D) classification method

The job evaluation method that most resembles a bookcase with many shelves is: A) ranking. B) the Hay plan. C) the point method. D) classification.

D) classification.

Skill-based plans tend to work best in organizations using a(n) ________ strategy. A) innovator B) defender C) laissez-faire D) cost-cutter

D) cost-cutter

The exchange value of a job is its A) content value. B) performance value. C) internal market value. D) external market value.

D) external market value.

Managers whose employers use ________ plans focus on placing the right people in the right job. A) person-based B) skill-based C) competency-based D) job-based

D) job-based

In a hiring situation, considering that other potential costs will not change in the short run, the level of demand that maximizes profits is that level at which the ________ of the last hire is equal to the ________ for that hire. A) demand factor; supply factor B) marginal output; market price C) incremental output; marginal output D) marginal revenue; wage rate

D) marginal revenue; wage rate

A study of 400 compensation specialists revealed that: A) job evaluation data had a larger effect on pay decisions than market data. B) current pay data had a larger effect on pay decisions than market data. C) job titles had a larger effect on pay decisions than job evaluation data. D) market data had a substantially larger effect on pay decisions than job evaluation data.

D) market data had a substantially larger effect on pay decisions than job evaluation data.

Advocates of competencies say that by focusing on optimum performance rather than average performance, competencies can help employees maintain their marketability.

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