MGT 461 - Exam 2

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 factor

The process of identifying competencies in person-based structures resembles identifying _____ as part of job evaluation in job-based structures

compensable factors

Reliability of job evaluation techniques is measured by:

determining if different evaluators produce the same results.

Compensable factors, skill blocks, and competency sets are used for

determining what to value.

The final step in designing a point plan involves _____

developing online software support

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

establish purpose

Competencies are derived from the _____ beliefs about the organization and its strategic intent

executive leadership's

The exchange value of a job is its _____

external market value

The certification processes in skill-based pay is analogous to the _____ in a job-based analysis

factor degrees and weights

The certification processes in skill-based pay is analogous to the _____ in a job-based analysis.

factor degrees and weights

An advantage of the ranking method is that the basis for comparison is called out.

false

Focusing on the end product of the internal alignment process, the pay structure, is more important for acceptance of the results than focusing on the approach chosen.

false

Recent research shows that the use of online job evaluation by independent managers is more reliable than traditional job evaluation committees

false

The most common way of allocating weights to factors is regression modeling.

false

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

false

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

job evaluation

A study of 400 compensation specialists revealed that:

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

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

market pricing

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

policy capturing

Most studies report that when different people rank-order jobs, the correlations are between

.85 and .96

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

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

Which of the following is least likely to be used in establishing skill-based certification methods?

College degree

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

False

Focusing on the end product of the internal alignment process, the pay structure, is more important for acceptance of the results than focusing on the approach chosen.

False

The NEMA plan explicitly states that the compensable factor experience should be correlated with tenure.

False

The primary reason for documenting the views of employees and supervisors on compensable factors is to meet requirements of the Equal Pay Act.

False

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

It can become bureaucratic and rule-bound.

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

It is developed using benchmark jobs and then applied to nonbenchmark jobs

Who among the following is examining the validity of a job evaluation?

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

Leadership, customer orientation, and functional expertise are examples of which group of competencies?

Organization specific

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

Which of the following is most likely to be a disadvantage of skill-based pay plans?

They are expensive in the long run as the majority of employees become certified at the highest pay levels

Which of the following sentences regarding skill-based structure is FALSE?

Training costs are the lowest in comparison to all other pay plans.

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

True

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

True

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

True

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

True

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 a(n):

alternation-ranking method

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

benchmark factor classes

Employees in a multiskill system earn pay increases

by acquiring new knowledge

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

classification method

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 _____

ranking method

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

three

Routine work is also termed _____.

transaction work

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

true

A potential disadvantage of skill-based pay is that labor costs can be a source of competitive disadvantage

true

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

true

Competencies provide guidelines for behavior and keep people focused.

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

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

true

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

true

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

true

The main appeal of competencies is the direct link to the organization's strategy.

true