MNGT 433 CH 5

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

Job evaluation

_____ are those characteristics in the work that an organization values; that help it pursue its strategy and achieve its objectives.

Compensable factors

What are the steps in designing a point plan?

Conduct job analysis, Determine compensable factors, Scale the factors, Weight the factors according to importance, Communicate the plan, train users; prepare manual, and Apply to nonbenchmark jobs

How does job evaluation aid in the process of establishing an internally aligned pay structure?

Supports organization strategy, Supports work flow, Is fair to employees, and Motivates behavior toward organization objectives

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

The pay level is the best in the industry.

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 alternate ranking is that they are more reliable than simple ranking.

True

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

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

Which of the following is not an appropriate basis for evaluating the worth of jobs to an organization?

Worker performance

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

determine compensable factors.

What are the major decisions in a job evaluation process?

establish purpose of evaluation, decide whether to use single or multiple plans, choose among alternatives, obtain involvement of stakeholders, evaluate usefulness

The first major decision in job evaluation is to:

establish purpose of evaluation.

Exchange value of a job is its _____

external market value.

A small organization is most likely to use _____ for job evaluation.

ranking method

All of the following are advantages of the ranking method of job evaluation except:

rankings are easy to defend and justify.

By answering the question, "How does this job add value?" job evaluation best:

supports organization strategy.

Compensable factors refer to:

what to value in jobs.


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