Chapter 5

Question 1

Which of the following is not a purpose of job evaluation?
A) Helps answer the question, How does this job add value?
B) Helps set pay for new or unique jobs.
C) Ensures competitive pay levels.
D) Reduces grievances and disputes.

Answer 1

C) Ensures competitive pay levels

Question 2

A compensable factor of skill has a weight of 40% with equal weight for physical and mental subfactors. If physical has a degree rating of 4, how many points does it receive? 
  A) 4 
  B) 20 
  C) 40 
  D) 80

Answer 2

D) 80

Question 3

Which of the following jobs would be the best benchmark job? 
  A) supervisor 
  B) assistant to the CEO 
  C) vice-president of marketing 
  D) floater at Starbucks

Answer 3

A) supervisor

Question 4

When selecting compensable factors, firms should ask “What about the work adds value?”
A) TRUE
B) FALSE

Answer 4

A) TRUE

Question 5

The job evaluation method that makes explicit the criteria for evaluating jobs is \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 
  A) market pricing 
  B) ranking 
  C) the point method 
  D) classification

Answer 5

C) the point method

Question 6

Useful compensable factors should be all of the following except \_\_\_\_\_\_\_\_\_\_\_ 
  A) based on the organization strategy 
  B) acceptable to stakeholder 
  C) be derived from job evaluation 
  D) be based on the work performed

Answer 6

C) be derived from job evaluation

Question 7

Research shows that time and effort devoted to participation in the evaluation process pays off in terms of increased acceptance and understanding.
A) TRUE
B) FALSE

Answer 7

B) FALSE

Question 8

The decision-making process rather than the job evaluation instrument has the greater influence on pay outcomes.
A) TRUE
B) FALSE

Answer 8

A) TRUE

Question 9

When scaling compensable factors, degrees are anchored by _____________
A) Examples from benchmark jobs
B) ratings of the job evaluation committee
C) values determined from market pay surveys
D) Fair Labor Standards Guidelines

Answer 9

A) Examples from benchmark jobs

Question 10

The primary purpose of a job evaluation manual is to provide documentation so plan developers can defend their decisions against discrimination charges.
A) TRUE
B) FALSE

Answer 10

B) FALSE–so that other people can apply the plan

Question 11

The next to last major step in designing a point plan is to:
A) communicate the plan and train users.
B) apply to nonbenchmark job
C) scale the factors
D) select the criterion pay structure

Answer 11

B) apply to nonbenchmark job

Question 12

What are characteristics of a benchmark job?

Answer 12

1. Contents are well known and relatively stable
2. Job is common across many employers
3. A reasonable proportion of the work force is employed in this job

Question 13

What are the three job evaluation methods?

Answer 13

Ranking, Classification and point method

Question 14

What are the 3 characteristics of point methods?

Answer 14

1. Compensable factors
2. Factor degrees numerically scaled
3. weights reflecting the relative importance of each factor.

Question 15

What is the most commonly used job evaluation approach in the United States?

Answer 15

point method

Question 16

What are the 8 steps in designing a point plan?

Answer 16

1. Conduct job analysis
2. Determine compensable factors
3. Scale the factors
4. Weight the factors according to importance
5. Select criterion pay structure
6. Communicate the plan and train users
7. Apply to nonbenchmark jobs
8. Develop online software support

Question 17

What are compensable factors?

Answer 17

characteristics in the work that the organization values

Question 18

What 3 characteristics make compensable factors useful?

Answer 18

1. They are based on the strategy and values of the organization
2. They are based on the work performed
3. They are acceptable to the stakeholders affected by the resulting pay structure

Question 19

How many degrees do most factor scales consist of?

Answer 19

4-8