Description

INSTANT DOWNLOAD COMPLETE TEST BANK WITH ANSWERS

 

ISBN-10: 1259086879
ISBN-13: 978-1259086878
ISBN-13: 9781259086878

 

Compensation 5th Edition By Jerry Newman, Suny Buffalo – Test Bank

 

Sample  Questions

 

Exam

 

Name___________________________________

 

 

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

 

  • With respect to the criteria used to determine the number of levels of work and differentials, ________ refers to the worth of the work: its relative contribution to the organization objectives.

 

  1. content

 

  1. endowment

 

  1. return

 

  1. contribution

 

  1. value

 

Answer: E

Explanation:      A)

B)

C)

D)

E)

 

  • ________ refer to the pay variances between job levels in an organization.

 

  1. Factor levels

 

  1. Earmarks

 

  1. Job benchmarks

 

  1. Anomalies

 

  1. Differentials

 

 

 

1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

 

 

Answer: E

Explanation:      A)

B)

C)

D)

E)

 

3) ________ refers to the pay relationships between the jobs/skills/competencies within a 3)

single organization.

  1. A) Total cash
  2. B) Internal equity
  3. C) Total alignment
  4. D) External alignment
  5. E) Base pay

 

Answer: B

Explanation:      A)

B)

C)

D)

E)

 

 

 

 

1

 

  • ________ change(s) the value of jobs on the team and hence changes the job structure.

 

  1. Self-management

 

  1. Procedural justice

 

  1. Employee redressal

 

  1. Labour intensity

 

  1. Ergonomic policies

 

Answer: A

Explanation:      A)

B)

C)

D)

E)

 

  • Which of the following is an external factor that influences internal structures?

 

  1. culture and custom

 

  1. cost implication

 

  1. employee acceptance

 

  1. human capital

 

  1. HR policy

 

Answer: A

Explanation:      A)

B)

C)

D)

E)

 

  • A major influence on internal structures, the education, experience, knowledge, abilities, and skills that people possess is referred to as:
    1. labour intensity

 

  1. human capital

 

  1. capital goods

 

  1. capital formation

 

  1. cultural diversity

 

Answer: B

Explanation:      A)

B)

C)

D)

E)

4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

  • An egalitarian pay structure is different from hierarchical pay structure in that:

 

  1. the egalitarian pay structure supports individual performers more than teams.

 

  1. the job structure in an egalitarian pay structure has greater number of levels.

 

  1. the egalitarian pay structure supports equal treatment of employees.

 

  1. the egalitarian pay structure supports a fit that is tailored.

 

  1. the pay differentials between the levels in an egalitarian pay structure are large.

 

Answer: C

Explanation:      A)

B)

C)

D)

E)

 

  • ________ structure is a pay structure for well-defined jobs with relatively small differences in pay.
    1. Tailored

 

  1. Egalitarian

 

  1. Loosely coupled

 

  1. Flexible

 

  1. Adaptive

 

Answer: A

Explanation:      A)

B)

C)

D)

E)

 

  • The array of pay rates for different work or skills within a single organization is referred to as ________.
    1. pay band

 

  1. pay scale

 

  1. total cash

 

  1. pay structure

 

  1. rate board

 

Answer: D

Explanation:      A)

B)

C)

D)

E)

7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9)

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

  • ________ refer to rules and procedures that determine the pay for different jobs within a single organization and that allocate employees to those different jobs.
    1. External labour markets

 

  1. Jurisdictional labour markets

 

  1. Marginal labour markets

 

  1. Internal labour markets

 

  1. Customary labour markets

 

Answer: D

Explanation:      A)

B)

C)

D)

E)

 

  • ________ fairness, and legal compliance are the 3 consequences of an internally aligned pay structure.
    1. Human capital

 

  1. Efficiency

 

  1. Culture

 

  1. Economic pressures

 

  1. Organization factors

 

Answer: B

Explanation:      A)

B)

C)

D)

E)

 

  • ________ is the ability of the employee to see the link between an individual employee’s work and the achievement of organizational objectives.
    1. Marginal productivity

 

  1. Line-of-sight

 

  1. Internal alignment

 

  1. Workflow

 

  1. Job evaluation

 

Answer: B

Explanation:      A)

B)

C)

D)

E)

10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12)

 

 

 

 

 

 

 

 

 

 

 

4

 

  • ________ refers to the fairness of a process by which a decision is reached.

 

  1. Employee redressal

 

  1. Tailored structure

 

  1. Procedural justice

 

  1. Marginal productivity

 

  1. Distributive justice

 

Answer: C

Explanation:      A)

B)

C)

D)

E)

 

  • In the context of internal labour markets, pay for non-entry jobs is heavily influenced by:

 

  1. the wage paid at entry level

 

  1. availability of skills in the external market

 

  1. internal factors of the organization

 

  1. tenure with the organization

 

  1. wages paid by other organizations for similar jobs

 

Answer: C

Explanation:      A)

B)

C)

D)

E)

 

  • The process by which goods and services are delivered to the customer is known as

 

________.

 

  1. procedural justice

 

  1. salary administration

 

  1. pay structure

 

  1. line-of-sight

 

  1. workflow

 

Answer: E

Explanation:      A)

B)

C)

D)

E)

13)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

  • ________ is the shared norms and values that a group of people share in common

 

  1. Biasing

 

  1. Recruiting

 

  1. Cognition

 

  1. Selection

 

  1. Culture

 

Answer: E

Explanation:      A)

B)

C)

D)

E)

 

  • Marginal productivity theory states that:

 

  1. an employee can produce anything of value if the profit margin of a product or service is large enough for the employer to reap.

 

  1. people are concerned about fairness of the reward outcomes exchanged for employee inputs.
  2. both employees and management will act opportunistically to obtain the most favourable exchange possible.
  3. unless an employee can produce something of value from his/her job equal to the value received in wages, it will not be worthwhile for an employer to hire that employee.
  4. people cognitively evaluate potential behaviours in relation to rewards offered in exchange.

 

Answer: D

Explanation:      A)

B)

C)

D)

E)

 

  • Hierarchical pay structure is different from egalitarian pay structure in that:

 

  1. the job structure in a hierarchical pay structure has fewer levels.

 

  1. hierarchical pay structure supports a fit that is loosely coupled.

 

  1. hierarchical pay structure places greater emphasis on individual performance than team performance.

 

  1. the pay differentials between the levels in a hierarchical pay structure are small.

 

  1. hierarchical pay structure encourages employees to expect equal treatment irrespective of performance.

 

Answer: C

Explanation:      A)

B)

C)

D)

E)

16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18)

 

 

 

 

6

 

  • ________ reflects the worth of goods or services an employee produces in a job.

 

  1. Use value

 

  1. Exchange value

 

  1. Differential value

 

  1. Marginal value

 

  1. Workflow value

 

Answer: A

Explanation:      A)

B)

C)

D)

E)

 

  • Delayering is a work design change that involves:

 

  1. creating more number of supervisory jobs

 

  1. creating a union-free workforce

 

  1. cutting down the number of work levels

 

  1. establishing an ergonomic workflow

 

  1. reducing the budget allocated to individual departments

 

Answer: C

Explanation:      A)

B)

C)

D)

E)

 

  • Which of the following is a consequence of an internally aligned pay structure?

 

  1. It increases pay-related work stoppages.

 

  1. It hinders career progression.

 

  1. It increases employees’ experience.

 

  1. It increases pay-related grievances.

 

  1. It increases turnover.

 

Answer: C

Explanation:      A)

B)

C)

D)

E)

19)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 

  • Setting greater pay differentials at the top of the pay structure is based on:

 

  1. tournament theory

 

  1. marginal productivity theory

 

  1. marginal utility theory

 

  1. institutional theory

 

  1. equity theory

 

Answer: A

Explanation:      A)

B)

C)

D)

E)

 

  • Whatever wage the employer and the employee agree upon is called:

 

  1. nominal value

 

  1. use value

 

  1. differential value

 

  1. exchange value

 

  1. marginal value

 

Answer: D

Explanation:      A)

B)

C)

D)

E)

 

  • Internal alignment refers primarily to:

 

  1. the pay relationships of all jobs within the same industry

 

  1. the pay relationships among jobs, skills, and competencies within a single organization

 

  1. the value of the work of one individual compared to that of another individual

 

  1. the pay relationships in a geographic region

 

  1. the strategy of paying above market salaries

 

Answer: B

Explanation:      A)

B)

C)

D)

E)

22)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

  • Research suggests that pay procedures are more likely to be perceived as fair if:

 

  1. they are applied selectively to a few employees

 

  1. there are no appeals procedures

 

  1. employees participate in the process

 

  1. the data used are unverified

 

  1. employees’ wages are very low

 

Answer: C

Explanation:      A)

B)

C)

D)

E)

 

  • With respect to the criteria used to determine the number of levels of work and differentials, ________ refers to the work performed in a job and how it gets done.
    1. content

 

  1. contribution

 

  1. value

 

  1. return

 

  1. procedure

 

Answer: A

Explanation:      A)

B)

C)

D)

E)

 

TRUE/FALSE. Write ‘T’ if the statement is true and ‘F’ if the statement is false.

 

  • A hierarchical pay structure seeks to encourage teamwork by minimizing pay differentials among employees.

 

Answer:       True       False

Explanation:

 

  • A hierarchical pay structure implies a belief that all workers should be treated equally.

 

Answer:       True       False

Explanation:

 

  • A job-based structure looks at the skills, knowledge, or competencies the employee possesses.

 

Answer:       True       False

Explanation:

 

  • In the context of the criteria used to determine the levels of work and pay differentials, value refers to the work performed in a job and how it gets done.

 

Answer:       True       False

Explanation:

25)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27)

 

 

 

 

 

28)

 

 

 

 

29)

 

 

 

 

 

30)

 

 

 

9

 

  • According to tournament theory, the greater the pay differential between an employee’s present salary and his or her boss’s salary, the harder the employee will work.

Answer:   True               False

Explanation:

 

  • The equity theory could support either egalitarian or hierarchical structures.

 

Answer:   True               False

Explanation:

 

  • Egalitarian structures are related to greater performance when the workflow depends more on individual contributions.

 

Answer:       True       False

Explanation:

 

  • Research on tournament theory shows that pay differentials do not affect an employee’s performance.

 

Answer:       True       False

Explanation:

31)

 

 

 

 

 

32)

 

 

 

 

33)

 

 

 

 

 

34)

 

 

35) Equal treatment of employees can result in more knowledgeable employees with more 35)
responsible jobs going unrecognized and unrewarded.
Answer:True False
Explanation:

 

 

  • Aligning the pay structures to fit the organization and the surrounding conditions will seldom lead to competitive advantage for the organization.

 

Answer:       True       False

Explanation:

 

  • Internal alignment is the first pay policy issue in a strategic approach.

 

Answer:       True       False

Explanation:

 

  • Employees judge the fairness or equity of their pay by comparing it to that for other jobs at their own employer but not to that for jobs at other employers.

 

Answer:       True       False

Explanation:

36)

 

 

 

 

 

37)

 

 

 

 

38)

 

 

39) Pay for non-entry jobs is buffered from external forces and is more heavily influenced by 39)
internal factors.
Answer: True False
Explanation:
40) Institutional theory predicts that very few firms are “first movers.” Instead they copy 40)
innovative practices after innovators have learned how to make the practices work.
Answer: True False

Explanation:

 

 

10

 

41) An internal pay structure is defined by the number of levels of work, the pay differentials 41) between the levels, and the criteria used to determine those levels and differentials.

 

Answer:   True               False

Explanation:

 

 

  • Unions, stockholders, and even political groups have a stake in establishing internal pay structures.

 

Answer:   True               False

Explanation:

 

  • Applied to internal structures, procedural justice addresses whether the actual pay differences among employees are acceptable.

 

Answer:       True       False

Explanation:

42)

 

 

 

 

 

43)

 

 

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

 

  • List the external factors that shape internal pay structures.

 

Answer: Economic pressures, government policies, laws, regulations, stakeholders, and cultures and customs.

 

  • What results can an organization expect if they do not utilize an acceptable wage structure?

 

Answer: Writers have long agreed that departures from an acceptable wage structure will result in higher turnover, grievances, and diminished motivation.

 

  • For an organization that is performing worse than its competitors, what may be an outcome of using the Institutional Theory?

Answer: For an organization that is performing worse than its competitors, learning from other organizations, which may involve some imitation, may be quite useful in achieving competitive parity and may represent a significant improvement for that organization.

 

  • Bring out the difference between procedural justice and distributive justice.

 

Answer: Procedural justice refers to the process by which a decision is reached. Distributive justice refers to the fairness of the decision outcome.

 

  • When are pay procedures more likely to be perceived as fair?

 

Answer: Pay procedures are more likely to be perceived as fair if (1) they are consistently applied to all employees, (2) employees participate in the process (although recent research suggests an exception when wages are very low), (3) appeals procedures are included, and (4) the data used are accurate.

 

 

 

 

 

 

 

 

 

 

 

11

 

  • How does line-of-sight play a role in influencing employees’ behaviour?

 

Answer: Internal pay structures influence employees’ behaviour by providing pay increases for promotions, more challenging work, and greater responsibility as employees move up in the structure. The criteria or rationale on which the structure is based should make clear the relationship between each job and the organization’s objectives. This is an example of line-of-sight. Employees should be able to “see” or understand links between their work, the work of others, and the organization’s objectives. Internal alignment in pay structures helps create that line-of-sight.

 

  • What is human capital?

 

Answer: Human capital is the education, experience, knowledge, abilities, and skills that people possess.

 

  • Bring out the difference between a job structure based on content and another based on value.

 

Answer: A structure based on content typically ranks jobs based on skills required, complexity of tasks, and/or responsibility. By contrast, a structure based on the value of the work focuses on the relative contribution of the skills, tasks, and responsibilities of a job to the organization’s goals.

 

 

  • What does it mean to fit or tailor the pay structure to be internally aligned?

 

Answer: Two strategic choices are involved when tailoring or fitting the pay structure to be internally aligned: (1) how tailored to organization design and workflow to make the structure and (2) how to distribute pay throughout the levels in the structure.

 

  • How do internal pay structures influence employees’ behaviour?

 

Answer: Internal pay structures influence employees’ behaviour by providing pay increases for promotions, more challenging work, and greater responsibility as employees move up in the structure.

 

  • What are the factors that define an internal pay structure?

 

Answer: An internal pay structure is defined by (1) the number of levels of work, (2) the pay differentials between the levels, and (3) the criteria used to determine those levels and differentials.

 

  • How do external stakeholders influence an internal pay structure?

 

Answer: Unions, stockholders, and even political groups have a stake in establishing internal pay structures. Unions are the most obvious case. Most unions seek smaller pay differences among jobs as well as seniority-based promotions in order to promote solidarity among members. At a minimum, unions seek to ensure that the interests of their members are well represented in decisions about structures.

 

  • What does a person-based structure focus on?

 

Answer: A person-based structure focuses on the employee: the skills, knowledge, or competencies the employee possesses, whether or not they are used on the particular job the employee is doing.

 

 

Exam

 

Name___________________________________

 

 

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following is the first step in the design of a point plan for job evaluation? 1)
A) determine factor weights
B) establish plan for non-benchmark jobs
C) determine compensable factors
D) prepare a communication manual
E) conduct job analysis
Answer: E
Explanation: A)
B)
C)
D)
E)
2) ________ is the process of systematically determining the relative worth of jobs to create 2)
a job structure for the organization.
A) Job description
B) Job evaluation
C) Job structuring
D) Job processing
E) Factor weighting
Answer: B
Explanation: A)
B)
C)
D)
E)
3) Which of the following is the first step in the process of determining an internal job 3)
structure?
A) assessing value
B) determining compensable factors
C) job evaluation
D) job analysis
E) factor weighting
Answer: D
Explanation: A)
B)
C)
D)
E)

 

 

 

 

 

 

1

 

  • ________ grades the highest- and lowest-valued jobs first, then the next highest- and lowest-valued jobs, repeating the process until all jobs have been graded.
    1. Paired comparison method

 

  1. Classification method

 

  1. Alternation ranking method

 

  1. Simple ranking method

 

  1. Point method

 

Answer: C

Explanation:      A)

B)

C)

D)

E)

 

  • An internal job structure based on ________ refers to the skills required for the job, its duties, and its responsibilities.
    1. compensable factors

 

  1. external market rates

 

  1. job value

 

  1. job content

 

  1. point methods

 

Answer: D

Explanation:      A)

B)

C)

D)

E)

 

  • Point plans represent a significant change from ranking and classification methods in that:
    1. they cannot be applied to non-benchmark jobs

 

  1. they do not involve conducting job analysis

 

  1. they make explicit the criteria for evaluating jobs

 

  1. they assign the task of evaluation to a single employee

 

  1. they list jobs from highest to lowest based on a global definition of value

 

Answer: C

Explanation:      A)

B)

C)

D)

E)

4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6)

 

 

 

 

 

 

 

 

 

 

 

2

 

  • To select compensable factors, an organization:

 

  1. asks what it is about the work that adds value

 

  1. conducts a gap analysis

 

  1. requires that all staff conduct a self-evaluation

 

  1. interviews all staff to determine what is important to them

 

  1. completes a cultural assessment

 

Answer: A

Explanation:      A)

B)

C)

D)

E)

 

  • Which of the following is true about compensable factors?

 

  1. Differences in factors that are not based on the work itself diminishes the likelihood of challenges arising.

 

  1. Documentation supporting the choice of factors for different jobs provides the rationale why work is paid differently or the same.
  2. The compensable factors used to slot jobs into the pay structure should not be differentiated based on their importance.
  3. They should remain constant during major shifts in business strategies.

 

  1. The compensable factors used to slot jobs into the pay structure should be acceptable by employees; not stakeholders.

 

Answer: B

Explanation:      A)

B)

C)

D)

E)

 

  • ________ is the hierarchy of all jobs based on value to the organization which provides the basis for the pay structure.
    1. Factor degree

 

  1. Job structure

 

  1. Job description

 

  1. Job process

 

  1. Work culture

 

Answer: B

Explanation:      A)

B)

C)

D)

E)

7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9)

 

 

 

 

 

 

 

 

3

 

  • An internal job structure based on ________ refers to the relative contribution of the skills, duties, and responsibilities of a job to the organization’s goals.
    1. job value

 

  1. external market rates

 

  1. point methods

 

  1. compensable factors

 

  1. job content

 

Answer: A

Explanation:      A)

B)

C)

D)

E)

 

  • The ________ lists all jobs across columns and down rows of a matrix, analyzing the two jobs in each cell and indicating which is of greater value, then ranking jobs based on the total number of times each is ranked as being of greater value.

 

  1. point method

 

  1. alternation ranking method

 

  1. classification method

 

  1. paired comparison method

 

  1. repeat point method

 

Answer: D

Explanation:      A)

B)

C)

D)

E)

 

  • Which of the following methods of job evaluation is the fastest, simplest, and easiest to explain to employees?
    1. classification

 

  1. absolution

 

  1. ranking

 

  1. point method

 

  1. benchmarking

 

Answer: C

Explanation:      A)

B)

C)

D)

E)

10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12)

 

 

 

 

 

 

 

 

 

 

4

 

  • Which of the following is a criterion used in scaling factors?

 

  1. ensure the degree is separated from the job

 

  1. use sophisticated terminology in order to be perceived as important

 

  1. have no more than five degrees per factor

 

  1. ensure the use of more than five degrees per factor

 

  1. limit degrees to those necessary to distinguish between jobs

 

Answer: E

Explanation:      A)

B)

C)

D)

E)

 

  • To be useful, compensable factors should be:

 

  1. constant during major shifts in business strategies

 

  1. based on the strategy but not the values of the organization

 

  1. acceptable to the stakeholders affected by the resulting pay structure

 

  1. standardized across all employers

 

  1. based on the strategy of the organization’s competitors

 

Answer: C

Explanation:      A)

B)

C)

D)

E)

 

  • In a point plan process, which of the following steps follows immediately after the design of the job evaluation plan is complete?
    1. apply the plan to non-benchmark jobs

 

  1. prepare a manual to communicate the plan

 

  1. conduct job analysis

 

  1. determine compensable factors

 

  1. perform job description

 

Answer: B

Explanation:      A)

B)

C)

D)

E)

13)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

  • ________ is a job evaluation method that assigns a number to each job, based on compensable factors that are numerically scaled and weighted.
    1. Simple ranking method

 

  1. Paired comparison method

 

  1. Classification method

 

  1. Alternation ranking method

 

  1. Point method

 

Answer: E

Explanation:      A)

B)

C)

D)

E)

 

  • Which of the following is a characteristic of a benchmark job?

 

  1. Its contents fluctuate frequently.

 

  1. It employs a reasonable proportion of the workforce.

 

  1. It is unique to a particular employer.

 

  1. It is the highest paid job in the industry.

 

  1. Its contents are little known.

 

Answer: B

Explanation:      A)

B)

C)

D)

E)

 

  • Which of the following is true about job evaluation?

 

  1. Employers design a single evaluation plan for all types of work.

 

  1. It is seldom developed using benchmark jobs.

 

  1. Typically, an employer evaluates all jobs in the organization at the same time.

 

  1. It isolates each job’s pay from its relative contribution to the organization.

 

  1. It is used to establish an internally aligned pay structure.

 

Answer: E

Explanation:      A)

B)

C)

D)

E)

16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

  • Which of the following is a disadvantage of point method of job evaluation?

 

  1. It cannot be applied to non-benchmark jobs.

 

  1. It can become bureaucratic and rule-bound.

 

  1. Basis for comparisons is not called out.

 

  1. It compensable factors are not aligned with the organization’s strategy.

 

  1. Compensable factors do not communicate what is valued.

 

Answer: B

Explanation:      A)

B)

C)

D)

E)

 

  • Which of the following job evaluation methods has compensable factors, weights reflecting the relative importance of each factor, and factor degrees numerically scaled?
    1. competency-based plan

 

  1. paired comparison method

 

  1. classification

 

  1. point method

 

  1. ranking

 

Answer: D

Explanation:      A)

B)

C)

D)

E)

 

  • ________ are characteristics of a particular work that an organization values, that help it pursue its strategy, and that achieve its objectives.
    1. Compensable factors

 

  1. Factor degrees

 

  1. Factor weights

 

  1. Pursuable features

 

  1. Job benchmarks

 

Answer: A

Explanation:      A)

B)

C)

D)

E)

19)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21)

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 

  • Which of the following is the final step involved in the design of a point plan for job evaluation?
    1. determine compensable factors

 

  1. communicate the plan and train users

 

  1. prepare a communication manual

 

  1. apply plan to non-benchmark jobs

 

  1. conduct job analysis

 

Answer: D

Explanation:      A)

B)

C)

D)

E)

 

  • Which of the following job evaluation methods is based on job class descriptions into which jobs are categorized?
    1. paired comparison method

 

  1. classification method

 

  1. point method

 

  1. simple ranking method

 

  1. alternation ranking method

 

Answer: B

Explanation:      A)

B)

C)

D)

E)

 

  • ________ reflect differences in importance attached to each factor by the employer.

 

  1. Factor degrees

 

  1. Factor weights

 

  1. Value chains

 

  1. Factor scales

 

  1. Factor levels

 

Answer: B

Explanation:      A)

B)

C)

D)

E)

22)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24)

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

  • Which of the following is an advantage of the ranking method of evaluation?

 

  1. It frees the process of evaluation from subjectivity.

 

  1. It does not require the evaluator to know about all jobs under study.

 

  1. It is best suited for a rapidly growing organization.

 

  1. It is fast, simple, and easy to explain.

 

  1. It makes the criteria for evaluating jobs explicit.

 

Answer: D

Explanation:      A)

B)

C)

D)

E)

 

TRUE/FALSE. Write ‘T’ if the statement is true and ‘F’ if the statement is false.

 

  • Organizations commonly have a single structure derived through multiple approaches that apply to different functional groups or units.

 

Answer:       True       False

Explanation:

 

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

 

Answer:   True               False

Explanation:

 

  • A job structure based on job content refers to the skills required for the job, its duties, and its responsibilities.

 

Answer:   True               False

Explanation:

 

  • The contents of a benchmark job are not stable; they vary frequently.

 

Answer:       True       False

Explanation:

25)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26)

 

 

 

 

 

27)

 

 

 

 

 

28)

 

 

 

 

 

29)

 

 

30) Writing class descriptions is easiest when jobs from several job families are covered by a 30) single plan.

 

Answer:       True       False

Explanation:

 

 

  • To be sure that all relevant aspects of work are included in the evaluation, an organization may start with a sample of benchmark jobs.

 

Answer:   True               False

Explanation:

 

  • Alternation ranking and paired comparison methods are more reliable than simple ranking.

 

Answer:   True               False

Explanation:

31)

 

 

 

 

 

32)

 

 

9

 

  • Typically, employers evaluate all jobs in the organization at one time.

 

Answer:       True       False

Explanation:

 

  • In point method of evaluation, compensable factors do not communicate what is valued.

 

Answer:       True       False

Explanation:

 

  • The last step involved in the point method of job evaluation is determining the compensable factors.

 

Answer:       True       False

Explanation:

 

  • The last step involved in the point method of job evaluation is determining the compensable factors.

 

Answer:       True       False

Explanation:

 

  • Job content matters, but it is not the only basis for setting pay.

 

Answer:   True               False

Explanation:

 

  • Ranking tells employees specifically what in their jobs is important.

 

Answer:       True       False

Explanation:

 

  • Compensable factors must be consistent with the organization’s strategy and values.

 

Answer:   True               False

Explanation:

 

  • The same job evaluation plan that has been developed using benchmark jobs must be applied to non-benchmark jobs.

 

Answer:   True               False

Explanation:

 

  • The last step involved in the point method of job evaluation is determining the compensable factors.

 

Answer:       True       False

Explanation:

33)

 

 

 

 

34)

 

 

 

 

35)

 

 

 

 

 

36)

 

 

 

 

 

37)

 

 

 

 

38)

 

 

 

 

39)

 

 

 

 

40)

 

 

 

 

 

41)

 

 

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

 

  • Establish the difference between a job structure based on job content and one based on job value.

 

Answer: A structure based on job content refers to the skills required for the job, its duties, and its responsibilities. A structure based on job value refers to the relative contribution of the skills, duties, and responsibilities of a job to the organization’s goals.

 

 

 

 

10

 

  • Describe the two common ways of ranking.

 

Answer: Two ways of ranking are common: alternation ranking and paired comparison. The alternation ranking method orders job descriptions alternately at each extreme. Agreement is reached among evaluators on which jobs are the most and least valuable, then the next most and least valuable, and so on, until all jobs have been ordered. The paired comparison method uses a matrix to compare all possible pairs of jobs. The higher-ranked job is entered in the cell of the matrix. When all comparisons have been completed, the job most frequently judged “more valuable” becomes the highest-ranked job, and so on.

 

  • Mention some major decisions in job evaluation. Answer: Some major decisions in job evaluation are:

 

  • Establishing purpose of evaluation

 

  • Deciding whether to use single or multiple plans

 

  • Choosing among alternative approaches

 

  • Obtaining involvement of relevant stakeholders

 

  • Evaluating plan’s usefulness

 

  • Use a book-shelf analogy to explain the classification job evaluation method.

 

Answer: Picture a bookcase with many shelves. Each shelf is labelled with a paragraph describing the kinds of books on that shelf and, perhaps, one or two representative titles.

 

  • What is a factor degree?

 

Answer: A factor degree is the description of several different degrees or levels of a compensable factor in jobs; a different number of points is associated with each degree/level.

 

  • What are the characteristics of a benchmark job?

 

Answer: A benchmark job has the following characteristics:

 

  • Its contents are well known and relatively stable over time.

 

  • The job is common to a number of employers; i.e., it is not unique to a particular employer.

 

  • A reasonable proportion of the workforce is employed in this job.

 

  • What are the characteristics of an internally aligned pay structure?

 

Answer: An internally aligned pay structure supports organizational strategy, supports the workflow, is fair to employees, and directs their behaviour toward organization objectives.

 

  • What are the most common job evaluation methods?

 

Answer: Ranking, classification, and point method are the most common job evaluation methods.

 

  • Mention a disadvantage of ranking.

 

Answer: It becomes cumbersome as number of jobs increases.

 

 

 

 

 

 

11

 

  • List the steps involved in the design of a point plan.

 

Answer: The six steps involved in the design of a point plan are:

 

  1. Conduct job analysis.

 

  1. Determine compensable factors.

 

  1. Scale the factors.

 

  1. Weight the factors according to importance.

 

  1. Communicate the plan and train users; prepare manual.

 

  1. Apply to non-benchmark jobs.

 

  • Describe the role of a union in the job evaluation process.

 

Answer: Organizations with unions often find it advantageous to include union representation as a source of ideas and to help promote acceptance of the results. However, some union leaders believe that philosophical differences prevent their active participation. They take the position that collective bargaining yields more equitable results. As a result, the extent of union participation varies.

 

 

  • List two ways of ranking job descriptions.

 

Answer: Alternation ranking and paired comparison.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12

 

Answer Key

 

Testname: C5

 

 

 

  • E
  • B
  • D
  • C
  • D
  • C
  • A
  • B
  • B
  • A
  • D
  • C
  • E
  • C
  • B
  • E
  • B
  • E
  • B
  • D
  • A
  • D
  • B
  • B
  • D
  • FALSE
  • TRUE
  • TRUE
  • FALSE
  • FALSE
  • TRUE
  • TRUE
  • FALSE
  • FALSE
  • FALSE
  • FALSE
  • TRUE
  • FALSE
  • TRUE
  • TRUE
  • FALSE
  • A structure based on job content refers to the skills required for the job, its duties, and its responsibilities.

 

A structure based on job value refers to the relative contribution of the skills, duties, and responsibilities of a job to the organization’s goals.

 

 

 

 

 

 

 

 

13

 

Answer Key

 

Testname: C5

 

 

 

  • Two ways of ranking are common: alternation ranking and paired comparison. The alternation ranking method orders job descriptions alternately at each extreme. Agreement is reached among evaluators on which jobs are the most and least valuable, then the next most and least valuable, and so on, until all jobs have been ordered. The paired comparison method uses a matrix to compare all possible pairs of jobs. The higher-ranked job is entered in the cell of the matrix. When all comparisons have been completed, the job most frequently judged “more valuable” becomes the highest-ranked job, and so on.

 

  • Some major decisions in job evaluation are:

 

  • Establishing purpose of evaluation

 

  • Deciding whether to use single or multiple plans

 

  • Choosing among alternative approaches

 

  • Obtaining involvement of relevant stakeholders

 

  • Evaluating plan’s usefulness

 

  • Picture a bookcase with many shelves. Each shelf is labelled with a paragraph describing the kinds of books on that shelf and, perhaps, one or two representative titles.
  • A factor degree is the description of several different degrees or levels of a compensable factor in jobs; a different number of points is associated with each degree/level.
  • A benchmark job has the following characteristics:

 

  • Its contents are well known and relatively stable over time.

 

  • The job is common to a number of employers; i.e., it is not unique to a particular employer.

 

  • A reasonable proportion of the workforce is employed in this job.

 

  • An internally aligned pay structure supports organizational strategy, supports the workflow, is fair to employees, and directs their behaviour toward organization objectives.

 

  • Ranking, classification, and point method are the most common job evaluation methods.

 

  • It becomes cumbersome as number of jobs increases.

 

  • The six steps involved in the design of a point plan are:

 

  1. Conduct job analysis.

 

  1. Determine compensable factors.

 

  1. Scale the factors.

 

  1. Weight the factors according to importance.

 

  1. Communicate the plan and train users; prepare manual.

 

  1. Apply to non-benchmark jobs.

 

  • Organizations with unions often find it advantageous to include union representation as a source of ideas and to help promote acceptance of the results. However, some union leaders believe that philosophical differences prevent their active participation. They take the position that collective bargaining yields more equitable results. As a result, the extent of union participation varies.

 

  • Alternation ranking and paired comparison.

 

 

 

 

 

 

14

  • Economic pressures, government policies, laws, regulations, stakeholders, and cultures and customs.

 

  • Writers have long agreed that departures from an acceptable wage structure will result in higher turnover,

 

grievances, and diminished motivation.

 

  • For an organization that is performing worse than its competitors, learning from other organizations, which may involve some imitation, may be quite useful in achieving competitive parity and may represent a significant improvement for that organization.

 

 

13

 

Answer Key

 

Testname: C3

 

 

 

  • Procedural justice refers to the process by which a decision is reached. Distributive justice refers to the fairness of the decision outcome.
  • Pay procedures are more likely to be perceived as fair if (1) they are consistently applied to all employees,

 

(2) employees participate in the process (although recent research suggests an exception when wages are very low), (3) appeals procedures are included, and (4) the data used are accurate.

 

  • Internal pay structures influence employees’ behaviour by providing pay increases for promotions, more challenging work, and greater responsibility as employees move up in the structure. The criteria or rationale on which the structure is based should make clear the relationship between each job and the organization’s objectives. This is an example of line-of-sight. Employees should be able to “see” or understand links between their work, the work of others, and the organization’s objectives. Internal alignment in pay structures helps create that line-of-sight.

 

  • Human capital is the education, experience, knowledge, abilities, and skills that people possess.

 

  • A structure based on content typically ranks jobs based on skills required, complexity of tasks, and/or responsibility. By contrast, a structure based on the value of the work focuses on the relative contribution of the skills, tasks, and responsibilities of a job to the organization’s goals.

 

  • Two strategic choices are involved when tailoring or fitting the pay structure to be internally aligned: (1) how tailored to organization design and workflow to make the structure and (2) how to distribute pay throughout the levels in the structure.

 

  • Internal pay structures influence employees’ behaviour by providing pay increases for promotions, more challenging work, and greater responsibility as employees move up in the structure.
  • An internal pay structure is defined by (1) the number of levels of work, (2) the pay differentials between the levels, and (3) the criteria used to determine those levels and differentials.
  • Unions, stockholders, and even political groups have a stake in establishing internal pay structures. Unions are the most obvious case. Most unions seek smaller pay differences among jobs as well as seniority-based promotions in order to promote solidarity among members. At a minimum, unions seek to ensure that the interests of their members are well represented in decisions about structures.

 

  • A person-based structure focuses on the employee: the skills, knowledge, or competencies the employee possesses, whether or not they are used on the particular job the employee is doing.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14