Compensation Ch 5

Most factor scales have between

4-8 degrees

Research shows that the compensable factor skill accounts for

90 percent of the variance in job evaluation results

Out of the following organizations (an executive search firm, a hospital, a small manufacturing company, a university), which is likely to have the narrowest breadth of work?

An executive search firm.

A disadvantage of the classification method is that the basis for comparison is not called out

False

A shortcoming of the Hay plan is its use is limited to a narrow range of jobs and job families

False

In the classification method, total points for each job determines its position in the structure

False

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

False

used to determine equal work in the Equal Pay Act skill, working conditions, effort.

Generic compensable factors

The most widely used point method job evaluation is the

Hay plan

A job structure based upon job value orders jobs on the relative contribution of job content to the organization's goals

True

An advantage of paired comparison and alternative ranking is that they are more reliable than simple ranking

True

An advantage of the position analysis questionnaire for job evaluation is that it can be applied to a wide depth and breadth of work

True

Compensable factors are aspects of work that add value to the organization

True

Compensable factors based upon the work itself provide the best rationale for pay differences

True

One way of evaluating a manager job's multinational responsibilities would be to rate the percent of time spent on multinational issues

True

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

True

The primary criterion for scaling compensable factors is to use the number of degrees necessary to distinguish among jobs

True

When an organization changes its strategy and goals, job evaluation helps workers understand what is important in their work

True

Exchange value of a job is

its external market value

Correct sequence of activities:

job description, job evaluation, job structure

A small organization is most likely to use the ranking method for

job evaluation

The job evaluation method that most resembles a bookcase is

classification

The U.S. federal government's pay structure is based upon a

classification job evaluation system

The point method of job evaluation uses

compensable factors

Bases for evaluating the worth of jobs to an organization:

external market, skills required, organizational culture.

Characteristics of a benchmark job:

it is not unique to a particular employer, a reasonable portion of the work force is employed in this job, and the content of the job is relatively stable over time.

Common characteristics of the point method include:

numerically scaled factor degrees, factor weights, and compensable factors

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

policy capturing

Factors that indicate a pay structure is aligned:

supports organization strategy, is fair to employees, and motivates behavior toward organization objectives.

Job evaluation is the process of

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

The primary usefulness of job evaluation is

that it provides a framework for exchange of views

The point method of job evaluation is the most commonly used method in

the U.S. and Europe

Advantages of the ranking method of job evaluation include

the evaluation process is fast, the evaluation process is inexpensive, and the evaluation process is not complex

The number of job evaluation plans an organization uses depends upon

the level of detail to make pay decisions

Compensable factors are

those characteristics in the work that an organization values that help it pursue its strategy and achieve its objectives

The first major decision in job evaluation is

to establish purpose of evaluation

The best single compensable factor for creating a job structure is

skill.