Compensation Management Chapter 5

A job description is compared to class descriptions. This describes the _____ method of job evaluation.

classification

The job evaluation method that most resembles a bookcase is:

classification.

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

determine compensable factors.

The first major decision in job evaluation is to:

establish purpose of evaluation.

The number of job evaluation plans an organization uses depends upon the:

level of detail to make pay decisions.

The _____ method of job evaluation uses compensable factors.

point

The ______ method of job evaluation is the most commonly used method in the U.S. and Europe.

point

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

policy capturing.

A small organization is most likely to use _____ for job evaluation.

ranking method

All of the following are advantages of the ranking method of job evaluation except:

rankings are easy to defend and justify.

The best single compensable factor for creating a job structure, is:

skill.

By answering the question, "How does this job add value?" job evaluation best:

supports organization strategy.

The primary usefulness of job evaluation is:

that it provides a framework for exchange of views.

The statement above is an example of _____ of job evaluation.

the point method

Most factor scales have between _____ degrees.

4-8

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

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

Which of the following is not an appropriate basis for evaluating the worth of jobs to an organization?

A. Worker performance

Compensable factors refer to:

B. what to value in jobs.

Which of the following would not be used as a criterion pay structure?

Federal government rates based on the minimum wages.

Which of the following is not a factor indicating a pay structure is aligned?

Fits the external labor market

The most widely used point method job evaluation is the:

Hay plan.

Which of the following is the correct sequence?

Job description > Job evaluation > Job structure

Which of the following is not a generic compensable factor used to determine equal work in the Equal Pay Act?

Knowledge

Which of the following is not a characteristic of a benchmark job?

The pay level is the best in the industry.

A compensable factor of working conditions has a weight of 15%. If working conditions has a degree rating of 3, how many points does it receive?

45

There are 5 jobs in job family A, 7 jobs in job family B, and 6 jobs in job family C. Knowledge is a compensable factor for all job families. How many degrees for knowledge is the minimum for job family C?

6

A compensable factor of effort has a weight 30% and has two sub-factors, physical and mental. Mental has a degree rating of 4. How many points does the mental effort receive?

60

Research shows that the compensable factor skill accounts for _____ percent of the variance in job evaluation results

90

The most widely used job evaluation plan among large organizations is the:

C. Hay Guide Chart method.

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

C. Job evaluation

A company changes its strategy to be more "lean" and efficient, which may include some resizing in terms of employee strength. What should the company do about the compensable factor "scope of responsibility" that is measured by the number of subordinates?

Change the factor name to "depth of responsibility" and measure it the same.

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

Compensable factors

Exchange value of a job is its _____

D. external market value.

Which of the following compensable factors can be used in both the Hay plan and the generic factors of the Equal Pay Act?

Working conditions

The U. S. federal government's pay structure is based upon _____ job evaluation system.

a classification

The breadth of work is likely to be narrowest in:

an executive search firm.

All the following are true of compensable factors except:

are common within an industry type.

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

benchmark factor classes.