Compensation Exam

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

Fairness is affected through employees' comparisons of their pay to the pay of others in the organization.

True

Fundamental skills include familiarity with company forms and procedures, basic product knowledge, safety, basic computer usage, and so on.

True

How an organization positions its total compensation against its competitors is part of external competitiveness strategic choices.

True

If the objective is to increase customer satisfaction, then incentive programs and merit pay might be used to pay for performance.

True

In a virtuous circle, a pay-for-performance strategy results in the improvement of performance.

True

In some organizations, analyzing work content is now conducted as part of work flow and supply chain analysis.

True

In virtually all the studies on job evaluation, job-based evaluation is treated as a measurement device.

True

Internal alignment is sometimes called internal equity.

True

Internal alignment pertains to the pay rates both for employees doing equal work and for those doing dissimilar work.

True

Job analysis is best done by someone thoroughly familiar with the organization and its jobs and trained in how to do the analysis properly.

True

Labor unions support small pay differentials.

True

Most U.S. firms use merit pay increases.

True

Most firms do not have generic strategies but use a blend of cost and innovation.

True

Most organizations do not engage in any regular updating of job analysis information.

True

Objectives guide the design of pay systems and provide standards for evaluating their effectiveness.

True

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

True

Pay differences among levels in an organization are called differentials.

True

Providing unlimited compensation choices to employees would meet with disapproval from the U.S. Internal Revenue Service.

True

Research shows that the weights assigned to compensable factors can affect the resulting pay structure.

True

Scaled competency indicators are similar to degrees of compensable factors.

True

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

Teachers will feel pay structures are fair even when they are relatively low in the internal structure if they work in a high-paying school district.

True

Technology used in producing goods and services influences the organizational design, the work to be performed, and the skills/knowledge required to perform the work.

True

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

True

The leadership of any organization is the best source of information on where the business should be going and how it is going to get there. Group starts

True

The level at which a job analysis begins influences whether the work is similar or dissimilar.

True

The members of a job evaluation committee usually represent all important constituencies within an organization.

True

The reliability of a job evaluation can be improved by using evaluators who are familiar with the work and trained in the job evaluation process.

True

Traditional job analysis that makes fine distinctions among levels of jobs has been accused of reinforcing rigidity in organizations.

True

Wage legislation affects wage structure at both the minimum and the maximum pay level.

True

When unemployment increases, the proportion of the population covered by health insurance decreases.

True

Work-related documentation helps gain acceptance by employees and managers, is easier to understand, and can withstand a variety of challenges to the pay structure.

True

A study of three different jobs in the United States, China, Hong Kong, and New Zealand found that ratings of the importance and amount of work activities and job requirements were significantly different across countries.

False

All job incumbents can easily complete the Position Analysis Questionnaire as the reading level required for it is relatively low.

False

Base wage is the overtime pay given to employees who are exempt from regulations of the Fair Labor Standards Act.

False

Base wage reflects both the value of the work and individual employee skills and experience.

False

Basing pay on race or gender seems appalling today, but basing pay on someone's judgment of another person's integrity is considered the norm nowadays.

False

Egalitarian pay structures send the message that an organization values differences in work content, individual skills, and contributions to the organization.

False

Exchange value is always higher than use value.

False

In a high-performance system, pay strategy always plays a lead role.

False

Management and HR research has conclusively shown that goal setting and job enrichment produce the largest and most reliable increases in job performance.

False

Pay structures are immune to changes in external factors such as skill shortages.

False

Providing unlimited compensation choices to employees would meet with disapproval from the U.S. Internal Revenue Service.

False

Reducing the number of job titles in an organization is likely to increase the opportunities to reinforce positive employee behavior.

False

Since HR research contains information useful to managers, most managers read research in HR management and compensation journals.

False

Since business strategies may change often, compensable factors should rarely be added or deleted.

False

Skill-based plans become increasingly economical as the majority of employees become certified at the highest pay levels. Group startsTrue or False

False

The Americans With Disabilities Act's essential-elements requirement for hiring and promotion decisions seems to require less detail than what is required for pay decisions.

False

The National Electrical Manufacturers Association plan explicitly states that the compensable factor experience should be correlated with tenure.

False

The degree to which pay influences individual and aggregate motivation among employees is called a sorting effect

False

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

False

The policy capturing approach and the committee a priori approach for developing pay structures yield the same pay structure.

False

The reliability and validity of the quantitative methods of job analysis have significantly reduced the importance of human judgment in job analysis.

False

Transactional work is typically paid more than tacit work.

False

Typical data collected for a job analysis would not include relationships with suppliers and customers.

False

A compensation strategy should reflect an organization's values.

True

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

True

A layered pay structure is more hierarchical than a delayered pay structure and less egalitarian in terms of number of levels.

True

A major challenge in the design of future pay systems is how to better satisfy individual needs and preferences.

True

A potential problem in egalitarian pay structures is that high-performing employees may feel underpaid and quit.

True

A representative sample of benchmark jobs will include the entire domain of work being evaluated and capture the diversity of the work within that domain.

True

ADA regulations state that "essential functions refers to the fundamental job duties of the employment position the individual with a disability holds or desires."

True

An organization defines its strategy through the trade-offs it makes in choosing what to do and what not to do.

True

An organization whose profits or market share is increasing is able to pay larger bonuses and stock awards.

True

As experience with competencies has grown, organizations are placing greater emphasis on business-related descriptions of behaviors.

True

Both external and organization factors shape internal pay structures.

True

By encouraging employees to take charge of their own development, skill-based plans may give them more control over their work lives.

True

Compensation is often a company's largest controllable expense.

True

Compensation systems focusing on competitors' labor costs typically follow a cost-cutter strategy.

True

Consultant surveys are often presented as studies that reveal cause and effect.

True