Compensation 13Th Edition By Barry Gerhart - Test Bank

Compensation 13Th Edition By Barry Gerhart – Test Bank

 

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Sample Questions Are Posted Below

 

Compensation, 13e (Gerhart)

Chapter 5   Job-Based Structures and Job Evaluation

 

1) ________ is the process of systematically determining the relative worth of jobs to create a job structure for an organization.

1. A) Performance evaluation
2. B) Job restructuring
3. C) Job evaluation
4. D) Point factor evaluation

 

Answer:  C

Difficulty: 1 Easy

Topic:  Job-Based Structures: Job Evaluation

Accessibility:  Keyboard Navigation

 

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

1. A) Content has intrinsic value outside the external market.
2. B) Content has no artistic value.
3. C) Stakeholders are the best judge for assessing the quality of content.
4. D) Content can be determined with or without the external market.

 

Answer:  A

Difficulty: 1 Easy

Topic:  Defining Job Evaluation: Content, Value, and External Market Links

Accessibility:  Keyboard Navigation

 

3) The exchange value of a job is its

1. A) content value.
2. B) performance value.
3. C) internal market value.
4. D) external market value.

 

Answer:  D

Difficulty: 1 Easy

Topic:  Defining Job Evaluation: Content, Value, and External Market Links

Accessibility:  Keyboard Navigation

 

 

 

4) Which of the following statements is true of a job evaluation plan?

1. A) It is developed using benchmark jobs and then applied to nonbenchmark jobs.
2. B) It excludes the pay decisions made by a company.
3. C) It provides the impetus to increase job levels and titles.
4. D) It is always carried out separately for major domains of work.

 

Answer:  A

Difficulty: 2 Medium

Topic:  “How-To”: Major Decisions

Accessibility:  Keyboard Navigation

 

5) A major decision in job evaluation is to:

1. A) choose which stakeholders to eliminate in the process.
2. B) figure out how to eliminate the use of multiple plans.
3. C) choose among alternative approaches.
4. D) figure out how to eliminate the use of single plans.

 

Answer:  C

Difficulty: 1 Easy

Topic:  “How-To”: Major Decisions

Accessibility:  Keyboard Navigation

 

6) Which of the following is a job evaluation method that can group a wide range of work together in one system but leave too much room for manipulation?

1. A) Ranking
2. B) Point
3. C) Scaling
4. D) Classification

 

Answer:  D

Difficulty: 1 Easy

Topic:  “How-To”: Major Decisions

Accessibility:  Keyboard Navigation

 

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

1. A) Job description > Pay structure > Job evaluation
2. B) Job evaluation > Job description > Job structure
3. C) Pay structure > Job description > Job evaluation > Job analysis
4. D) Job description > Job evaluation > Job structure

 

Answer:  D

Difficulty: 1 Easy

Topic:  “How-To”: Major Decisions

Accessibility:  Keyboard Navigation

 

 

 

8) Which of the following is NOT true of the usage of multiple plans versus single job evaluation plans?

1. A) Employers rarely evaluate all jobs in an organization at one time.
2. B) Many employers design different evaluation plans for different types of work.
3. C) Typically, a related group of jobs is used for evaluation.
4. D) A single universal plan is acceptable to employees if the work covered is highly diverse.

 

Answer:  D

Difficulty: 2 Medium

Topic:  “How-To”: Major Decisions

Accessibility:  Keyboard Navigation

 

9) Which of the following is a characteristic of benchmark jobs?

1. A) They are unique to specific employers.
2. B) They have unstable pay differentials.
3. C) They employ a reasonable proportion of the workforce.
4. D) Their contents are obscure and change over time.

 

Answer:  C

Difficulty: 2 Medium

Topic:  “How-To”: Major Decisions

Accessibility:  Keyboard Navigation

 

10) 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 the:

1. A) alternation-ranking method.
2. B) paired-comparison method.
3. C) classification method.
4. D) point method.

 

Answer:  A

Difficulty: 3 Hard

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

 

 

11) TreeWind, 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 gets a score of 60 after multiplying the subfactors with their corresponding weights and if the skill factor has two subfactors that are rated as 4 and 5, what is the total weightage given to the job?

1. A) 40
2. B) 120
3. C) 420
4. D) 990

 

Answer:  C

Difficulty: 3 Hard

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

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

1. A) classification method.
2. B) point method.
3. C) ranking method.
4. D) Hay plan.

 

Answer:  C

Difficulty: 3 Hard

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

13) Which of the following is a disadvantage of the ranking method of job evaluation?

1. A) It fails to tell employees what is important about their jobs.
2. B) It is initially more expensive than other job evaluation methods.
3. C) It consumes more time than other job evaluation methods.
4. D) It is difficult to explain to employees.

 

Answer:  A

Difficulty: 2 Medium

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

 

 

14) In the context of job evaluation methods, two common ways of ranking are alternation ranking and

1. A) scaling.
2. B) paired comparison.
3. C) policy capturing.
4. D) classification.

 

Answer:  B

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

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

1. A) ranking.
2. B) the Hay plan.
3. C) the point method.
4. D) classification.

 

Answer:  D

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

16) A job description is compared to class descriptions in the ________ of job evaluation.

1. A) Position Analysis Questionnaire method
2. B) point method
3. C) Hay Group Guide Chart—Profile MethodSM
4. D) classification method

 

Answer:  D

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

17) The ________ method of job evaluation uses compensable factors.

1. A) classification
2. B) Position Analysis Questionnaire
3. C) point
4. D) ranking

 

Answer:  C

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

 

 

18) In the context of job evaluation methods, which of the following is a common way of ranking?

1. A) Paired comparison
2. B) Interval scaling
3. C) Factor weights
4. D) Compensable factors

 

Answer:  A

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

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

1. A) ranking
2. B) factor comparison
3. C) classification
4. D) point

 

Answer:  D

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

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

1. A) conduct job analysis.
2. B) scale the factors.
3. C) determine the compensable factors.
4. D) prepare a job evaluation manual.

 

Answer:  C

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

21) In the context of the point method of job evaluation, ________ are job attributes that provide the basis for evaluating the relative growth of jobs inside an organization.

1. A) competitive skills
2. B) compensable factors
3. C) core competencies
4. D) benchmark factors

 

Answer:  B

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

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

1. A) It can leave too much room for manipulation.
2. B) It can become bureaucratic and rule-bound.
3. C) It does not allow for comparisons.
4. D) It does not communicate what is valued.

 

Answer:  B

Difficulty: 2 Medium

Topic:  “How-To”: Major Decisions

Accessibility:  Keyboard Navigation

 

23) 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?

1. A) The alternation-ranking method
2. B) The classification method
3. C) The point method
4. D) The paired-comparison method

 

Answer:  A

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

24) The final step in designing a point plan involves

1. A) developing online software support.
2. B) selecting compensable factors.
3. C) communicating the plan and training users.
4. D) scaling the factors.

 

Answer:  A

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

25) The most widely used point method job evaluation is the:

1. A) Hay Group plan.
2. B) Equal Pay Act generic plan.
3. C) factor comparison plan.
4. D) Position Analysis Questionnaire plan.

 

Answer:  A

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

 

 

26) ________ refers to determining the intervals on a measurement instrument.

1. A) Scaling
2. B) Policy capturing
3. C) Alternation ranking
4. D) Classification

 

Answer:  A

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

27) Research shows that ________ factor(s) account(s) for 98 to 99 percent of the variance in job evaluation plans.

1. A) one
2. B) two
3. C) three
4. D) four

 

Answer:  C

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

28) Most factor scales have ________ degrees.

1. A) six to nine
2. B) four to eight
3. C) three to seven
4. D) two to four

 

Answer:  B

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

29) When compensable factor importance weights are inferred using statistical methods, it is called:

1. A) policy capturing.
2. B) committee a priori judgment approach.
3. C) factor analysis.
4. D) regression analysis.

 

Answer:  A

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

30) ________ are more likely to conduct job evaluations of senior management jobs.

1. A) Compensation analysts
2. B) Compensation managers
3. C) Peers
4. D) Junior incumbents

 

Answer:  B

Difficulty: 1 Easy

Topic:  Who Should Be Involved?

Accessibility:  Keyboard Navigation

 

31) A job structure based upon job value orders jobs on the basis of the relative contribution of the skills, duties, and responsibilities of each job to the organization’s goals.

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Defining Job Evaluation: Content, Value, and External Market Links

Accessibility:  Keyboard Navigation

 

32) 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.

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  “How-To”: Major Decisions

Accessibility:  Keyboard Navigation

 

33) The number of job evaluation plans required depends only upon the number of employees in the organization.

 

Answer:  FALSE

Difficulty: 1 Easy

Topic:  “How-To”: Major Decisions

Accessibility:  Keyboard Navigation

 

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

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

 

 

35) A disadvantage of the ranking method is that the criteria on which the jobs are ranked are usually poorly defined.

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

36) Point plans represent a significant change from ranking and classification methods in that they make explicit the criteria for evaluating jobs: compensable factors.

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

37) 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.

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

38) 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.

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

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

 

Answer:  FALSE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

 

 

40) The primary reason for documenting the views of employees and supervisors on compensable factors is to meet the requirements of the Equal Pay Act.

 

Answer:  FALSE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

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

 

Answer:  FALSE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

42) Each compensable factor degree should be equidistant from its adjacent degrees.

 

Answer:  FALSE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

43) One of the criteria for scaling compensable factors is to ensure that the number of degrees used is necessary to distinguish among jobs.

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

44) The work of many people now requires that they figure out what to do in a given situation instead of simply invoking a canned routine.

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Balancing Chaos and Control

Accessibility:  Keyboard Navigation

 

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

 

Answer:  FALSE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

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

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

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

 

Answer:  FALSE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

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

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

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

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Who Should Be Involved?

Accessibility:  Keyboard Navigation

 

50) The final result of the job analysis–job description–job evaluation process is a hierarchy of work.

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  The Final Result: Structure

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51) What are the major decisions in a job evaluation process?

 

Answer:  The major decisions in the job evaluation process are as follows:

 

• Establish the purpose
• Decide on single versus multiple plans
• Choose among alternative methods
• Obtain involvement of relevant stakeholders
• Evaluate the usefulness of the results

Difficulty: 1 Easy

Topic:  “How-To”: Major Decisions

Accessibility:  Keyboard Navigation

 

52) 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 across a number of different employers. It is not unique to a particular employer.
• A reasonable proportion of the work force is employed in this job.

Difficulty: 2 Medium

Topic:  “How-To”: Major Decisions

Accessibility:  Keyboard Navigation

 

53) What are the two aspect of diversity in work?

 

Answer:  Diversity in work can be thought of in terms of depth (vertically) and breadth (horizontally). The depth of work in most organizations probably ranges from strategic leadership jobs to the filing and mail distribution tasks in entry-level office jobs. Horizontally, the breadth of work depends on the nature of business. Relatively similar work can be found in specialty consulting firms. The breadth of work performed in some multinational conglomerates such as General Electric mirrors the occupations in the entire nation.

Difficulty: 2 Medium

Topic:  “How-To”: Major Decisions

Accessibility:  Keyboard Navigation

 

 

 

54) Discuss the two common methods of ranking.

 

Answer:  The two common ways of ranking are alternation ranking and paired comparison. Alternation ranking 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 valued, and so on, until all the jobs have been ordered. The paired comparison method uses a matrix to compare all possible pairs of jobs. When all comparisons have been completed, the job most frequently judged “more valuable” becomes the highest-ranked job, and so on.

Difficulty: 2 Medium

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation

 

55) What are the steps in designing a point plan?

 

Answer:  There are eight steps in the design of a point plan.

 

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.

Difficulty: 1 Easy

Topic:  Job Evaluation Methods

Accessibility:  Keyboard Navigation