MGT 461 Chapter 5&6 TEST 2

Which of the following is an advantage of skill-based pay plans?

They aid in deploying workers in a way that better matches the work flow.

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 is the reason why skill-based pay plans have maximum flexibility?

They pay employees for the highest level of skill they have achieved regardless of the work they perform.

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

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

A major decision in job evaluation is to:

choose among alternative approaches.

The job evaluation method that most resembles a bookcase with many shelves is:

classification

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

classification method

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 factors

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

compensable factors

Skill-based plans tend to work best in organizations using a(n) _____ strategy.

cost - cutter

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

determine the 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

A camper is an employee who _____ in a skill-based pay system.

does not want to rotate jobs

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

executive leadership's

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

factor degrees and weights

A _____ approach controls costs by paying only as much as the work performed is worth, regardless of any greater skills the employee may possess.

job-based

Managers whose employers use _____ plans focus on placing the right people in the right job.

job-based

The majority of applications of skill-based pay have been in:

manufacturing industries.

A study of 400 compensation specialists revealed that:

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

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

policy capturing

All of the following are advantages of the ranking method of job evaluation EXCEPT that:

rankings are easy to defend and justify.

In today's organizations, in order to increase competitiveness and success, work is analyzed by separating transactional work from:

tacit work

Routine work is also termed _____.

transactional work

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

.85 and .96

Most factor scales have _____ degrees.

4 - 8

Tree Wind Inc. is a bookstore that uses skill and responsibility as its compensable factors. It assigns 20 percent weight to responsibility and 80 percent weight to skill. If the responsibility factor scores a 60 after multiplying the sub factors with their corresponding weights, and if the skill factor has two sub factors that are rated as 4 and 5, what is the total weightage given to the job?

420

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

The roots of job-based pay structures is traced to _____.

Frederick Taylor

The most widely used point method job evaluation is the:

Hay Plan

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

It can become bureaucratic and rule-bound

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

Job Evaluation

In the context of internal alignment, which of the following is the correct sequence?

Job description > Job evaluation > Job structure

_____ approach controls costs by paying only as much as the work performed is worth, regardless of any greater skills the employee may possess.

Job-based

Lisa is a manager at Trell Inc. When she hires her employees, she focuses on finding the right job for the right person. Which of the following pay plans is her employer most likely using?

Job-based pay plan

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

According to a World at Work survey, the primary method of job evaluation is _____.

Market pricing

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

Organization specific

The _____ method of job evaluation is the most commonly used method in the United States and Europe.

Point

The _____ method of job evaluation uses compensable factors.

Point

Kay Den Corp., a small organization with 15 employees, conducts job evaluation using the least expensive method for the first time. In this case, Kay Den is most likely to have used the _____.

Ranking Method

The scheme used in the text for classifying competencies consists of three groups. Which of the following is NOT one of them?

Team dynamics

The scheme used in the text for classifying competencies consists of three groups. Which of the following is NOT one of them?

Team dynamics

____ is a crucial factor that affects the perception of fairness of a skill-based plan.

The design of the certification process

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

The pay level is the best in the industry.

Employees in a multi-skill system earn pay increases:

by acquiring new knowledge

The exchange value of a job is its _____.

External market value

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 is NOT true of the usage of multiple plans versus single job evaluation plans?

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

Who among the following is most likely to be working for a company that uses a competency-based pay plan?

Carlos, who focuses on obtaining certifications in her field to get a pay increase

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

College degree

_____ are more likely to conduct job evaluations of senior management jobs.

Compensation managers

_____ are the observable behaviors that indicate the level of competency.

Competency indicators

_____ translate each core competency into action.

Competency sets

Which of the following is the underlying assumption in the assessment of job content?

Content has intrinsic value outside external market.

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

Establishing the purpose of evaluation

Which of the following reasons makes competencies a risky foundation for a pay system?

Vagueness and subjectivity

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.