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.