Comp & Benefits Chapter 5

________ ________ is the process of systematically determining the relative worth of jobs to create a job structure for the organization.

Job evaluation

Which job evaluation approach is most commonly used in the United States & Europe? a. classification b. paired comparisons c. ranking d. point plans

d

Which method of job evaluation has compensable factors whose degrees are numerically scaled and whose relative importance is weighed in the determination of job structure? a. market pricing b. ranking method c. classification d. point method

d

The statistical approach used to determine the weight for each factor and the factor scales that will reproduce, as closely as possible, the chosen criterion pay structure is often labeled ________ ________ to differentiate it from the committee a priori judgement approach.

policy capturing

Ranking

It is quick, simple, and easy to explain

Internal alignment based on value

It organizes jobs based on the relative contribution of the skills, duties, and responsibilities of each job to the organization's goals

T/F: Tradition does not influence whether or not the compensable factors used to slot jobs into the pay structure are accepted.

False

Steps involved in the determination of an internally aligned job structure

1. job analysis 2. job description 3. job evaluation

Classification

A wide range of work can be grouped together in a single system

Accountability compensable factors by Hay Group Method

Freedom to act and impact

The statistical approach used to determine the weight for each factor and the factor scales that will reproduce, as closely as possible, the chosen criterion pay structure is often labeled ________ _________ to differentiate it from the committee to a priori judgement approach.

policy capturing

Drawbacks of point

It can become bureaucratic and bound by regulations

Problem solving compensable factors by Hay Group method

Environment and challenge

Advantages of classification

A wide range of work can be grouped together in a single system

Advantages of ranking

It is quick, simple, and easy to explain

Identify a true statement about involvement in the design of an organization's internal structure. a. nonmanagerial employees are allowed to be a part of the process only in an advisory capacity b. union representatives form the most integral part of the design team c. only managerial employees participate in the process d. committees, task forces, or teams that include representatives from key operating functions are often involved

d

In the point method of job evaluation, defining, scaling, and weighting the compensable factors is based on: a. the ranking of jobs that is derived by comparing all possible pairs of jobs b. the extent of the proximity between class descriptions and job descriptions c. the mapping of jobs to external pay structures d. the content of benchmark jobs

d

The final result of the job analysis-job description-job evaluation process is a: a. competency-based system b. cash balance plan c. best-pay practice d. hierarchy of work

d

Steps conducted after job analysis while designing a point plan

1. Determination of compensable factors 2. Scaling of compensable factors 3. Weighing of compensable factors according to importance 4. Selection of criterion pay structure 5. Communication of the plan and training users 6. Application of the plan to nonbenchmark jobs

The steps that are conducted after job analysis while designing a point plan

1. Determination of compensable factors 2. Scaling of compensable factors 3. Weighing of compensable factors according to importance 4. Selection of criterion pay structure 5. Communication of the plan and training users 6. Application of the plan to nonbenchmark jobs

Alternation ranking

Evaluators reach a consensus on which jobs are the most and least valuable, followed by the next most and least valued, and so on, until all the jobs have been arranged in order

Paired comparison

Evaluators use a matrix to compare every possible coupling of jobs

Drawbacks of classification

It can leave excessive room for manipulation

T/F: Flexible and balanced guidelines are necessary to ensure efficient job evaluation?

True

Some researchers believe that job evaluation can be judged according to technical standards if it can be made sufficiently: a. numerical b. flexible c. specific d. subjective

a

Drawbacks of ranking

It becomes cumbersome as the number of jobs increases

Internal alignment based on content

It organizes jobs based on the required skills and the associated duties and responsibilities

Point

The basis for comparison is determined by compensable factors

Advantages of point

The basis for comparisons is determined by compensable factors

Identify a drawback of the ranking method of job evaluation. a. evaluations become subjective opinions that are impossible to justify in strategic and work-related terms b. the criteria on which the jobs are ranked are usually very rigidly defined c. evaluations require high investments initially d. the writing of class descriptions is a long and tedious task, and the descriptions themselves are subject to manipulation

a

The compensable factors used in the designing of a point plan are based on: a. the strategic direction of business and the contribution of the work to the strategy b. the ranks obtained for each job using either alternation ranking or paired comparison c. the relationship between job content and external market rates d. the range of jobs in an organization and the job descriptions

a

What is the challenge called small numbers that is faced while deciding the number of compensable factors to be used while designing a point plan? a. the tendency to use a factor present in even a single job in the benchmark sample for the entire work domain b. the difficulty of generating a plan using the minimum possible number of factors c. the illusion that different factors focus on divergent aspects of the job and do not overlap d. the need to use undefined degrees such as plus and minus around factors scales

a

Why is a manual prepared after a job evaluation point plan is designed? a. to permit users who were not involved in the plan's development to apply the plan as its developers intended b. to identify benchmark jobs to which the plan can be applied c. to compare the organization's internal pay structure with external market rates for similar jobs d. to develop software support to aid in online evaluation

a

Characteristics in the work that the organization values, and those that help it pursue its strategy and achieve its objectives are called ________ ________.

compensable factors

T/F: Organizations commonly use an established approach to derive a single internal structure that can be applied to different functional groups or units.

False - organizations commonly have multiple approaches that apply to different functional groups or units

T/F: Union representatives who actively participate in the design of internal structure believe that collective bargaining yields more equitable results.

False - some union leaders believe that philosophical differences prevent their active participation in the design of internal structure. They believe collective bargaining yields more equitable results

A drawback of the ranking method of job evaluation is that evaluators using this method must: a. match as many of their organization's jobs as possible to jobs described in external pay surveys b. know about every single job under study c. write detailed class descriptions d. scale compensable factors to reflect the degree to which they are present in each job

b

Identify the criteria that have been suggested for scaling compensable factors in the point method of job evaluation. (Select all that apply) a. make it apparent how the degree applies to the job b. anchor degree definitions with benchmark-job titles and/or work behaviors c. weight the factors according to importance d. ensure that the number of degrees is necessary to distinguish among jobs e. use understandable terminology f. make each degree equidistant from the adjacent degrees

a, b, d, e

Identify the aspects of job content whose values depend on their relationship to market wages. (Select all that apply) a. customer contacts b. motivational levels c. skills required d. personal ethics

a, c

Which of the following is a likely consequence of differences in compensable factors being based on the work itself? a. the chances of accusations of pay discrimination being raised are reduced b. the number of factors that need to be included in the plan is reduced c. the chances of a hierarchy of work being established are reduced d. the number of instances of double counting the value of a factor is reduced

a

Identify the generic groups into which the compensable factors used in existing, standardized point plans usually fall. (Select all that apply) a. skills required b. working conditions c. responsibility d. effort required e. contacts f. work ethics

a, b, c, d

Identify the true statements about the appeals or review procedures for handling cases of incorrect job evaluation or employee grievances about internal structure. (Select all that apply) a. they usually require approval by higher levels of management on completion b. in the past, they were conducted by peers c. they may be similar to formal grievance procedures d. at the present time, they are mostly handled by the compensation manager

a, c

In the _________ method of job evaluation, a series of well-described classes covers the range of jobs in an organization, and a job description is compared to the class descriptions to decide which class is the best fit for that job.

classification

Identify a common example of a characteristic that is usually present in a limited number of jobs but is made into a compensable factor and applied to all jobs. a. accountability b. unpleasant working conditions c. problem solving d. required knowledge and skills

b

Identify a true statement about the application of a point plan to nonbenchmark jobs. a. it can be done by managers even if they are not trained in applying the plan b. it can be done by people who were not necessarily involved in the design process c. jobs whose work content has changed cannot be reevaluated using an existing point plan d. new positions cannot be evaluated using an existing point plan

b

Krypton Tech Inc., a technology company, produces high-end gadgets by studying global trends in customer demands and working closely with suppliers. Identify an important compensable factor for this company. a. product innovation b. market domination c. customer relations d. cost containment

a

Why is it important to maintain some documentation to support the choice of compensable factors while developing a point plan? (Select all that apply) a. it eliminates the illusion of validity b. it can withstand a variety of challenges to the pay structure c. it is easier to understand d. it helps gain acceptance by employees and managers e. it makes the process cost effective

b, c, d

Identify the characteristics of a benchmark job. (Select all that apply) a. its pay tends to reflect external economic factors rather than an organization's culture and traditions b. its contents are well known and relatively stable over time c. it is unique to individual employers d. it employs a reasonable proportion of the work force

b, d

Which of the following are true of the perspective of researchers who make pay decisions based on job evaluation? (Select all that apply) a. they believe that job evaluation allows the exchange of views b. they view job evaluation as a method that helps pay differences among jobs get accepted c. they prefer to judge job evaluation according to technical standards d. they stress the statistical importance of job evaluation

a, b

In a survey of approximately 1,000 members of WorldatWork, _________ was selected by the majority as the primary method of job evaluation. a. ranking b. market pricing c. classification d. point method

b

Job evaluation supports the organization's strategy by: a. linking each job's pay with its relative contributions to the organization b. identifying the way in which the job adds value c. using different plans to assess different types of work d. creating a network of bonuses to motivate employees

b

Identify types of jobs for which early point plans, such as the National Metal Trades Association (NMTA) plan and the National Electrical Manufacturers Association (NEMA) plan, were developed. (Select all that apply) a. professional jobs b. office jobs c. manufacturing jobs d. managerial jobs

b, c

A company identifies skill as a compensable factor and allocates 45% of the total value of factors to it. Skill has three subfactors: specialized knowledge, planning and coordination skills, and communication skills, with five degrees each. In his job evaluation, an employee receives five degrees of knowledge, four degrees of planning and coordination skill, and three degrees of communication skill. The total number of points that the employee receives for skill is: a. 90 b. 360 c. 180 d. 540

c

An organization may use a sample of ________, or key jobs, to ensure that a job evaluation includes all relevant aspects of work. a. exempt jobs b. conventional jobs c. benchmark jobs d. entry jobs

c

Even organizations that rely primarily on market pricing probably also use job evaluation because: a. market pricing is bureaucratic and rule-bound b. obtaining reliable data from market surveys is very difficult c. matching all jobs to market survey jobs directly is usually impossible d. market pricing becomes cumbersome as the number of jobs increases

c

In the point method of job evaluation, different factor weights indicate differences in: a. importance attached to each factor while assuming that it is independent of other factors b. the external market value of factors c. the traditional value of factors d. importance attached to each factor by the employer

d