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

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

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ExamName___________________________________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 weightsB)establish plan for non-benchmark jobsC)determine compensable factorsD)prepare a communication manualE)conduct job analysisAnswer:EExplanation:A)B)C)D)E)2)________ is the process of systematically determining the relative worth of jobs to createa job structure for the organization.2)A)Job descriptionB)Job evaluationC)Job structuringD)Job processingE)Factor weightingAnswer:BExplanation:A)B)C)D)E)3)Which of the following is the first step in the process of determining an internal jobstructure?3)A)assessing valueB)determining compensable factorsC)job evaluationD)job analysisE)factor weightingAnswer:DExplanation:A)B)C)D)E)1
4)________ grades the highest- and lowest-valued jobs first, then the next highest- andlowest-valued jobs, repeating the process until all jobs have been graded.4)A)Paired comparison methodB)Classification methodC)Alternation ranking methodD)Simple ranking methodE)Point methodAnswer:CExplanation:A)B)C)D)E)5)An internal job structure based on ________ refers to the skills required for the job, itsduties, and its responsibilities.5)A)compensable factorsB)external market ratesC)job valueD)job contentE)point methodsAnswer:DExplanation:A)B)C)D)E)6)Point plans represent a significant change from ranking and classification methods inthat:6)A)they cannot be applied to non-benchmark jobsB)they do not involve conducting job analysisC)they make explicit the criteria for evaluating jobsD)they assign the task of evaluation to a single employeeE)they list jobs from highest to lowest based on a global definition of valueAnswer:CExplanation:A)B)C)D)E)2
7)To select compensable factors, an organization:7)A)asks what it is about the work that adds valueB)conducts a gap analysisC)requires that all staff conduct a self-evaluationD)interviews all staff to determine what is important to themE)completes a cultural assessmentAnswer:AExplanation:A)B)C)D)E)8)Which of the following is true about compensable factors?8)A)Differences in factors that are not based on the work itself diminishes the likelihoodof challenges arising.B)Documentation supporting the choice of factors for different jobs provides therationale why work is paid differently or the same.C)The compensable factors used to slot jobs into the pay structure should not bedifferentiated based on their importance.D)They should remain constant during major shifts in business strategies.E)The compensable factors used to slot jobs into the pay structure should beacceptable by employees; not stakeholders.Answer:BExplanation:A)B)C)D)E)9)________ is the hierarchy of all jobs based on value to the organization which providesthe basis for the pay structure.9)A)Factor degreeB)Job structureC)Job descriptionD)Job processE)Work cultureAnswer:BExplanation:A)B)C)D)E)3
10)An internal job structure based on ________ refers to the relative contribution of theskills, duties, and responsibilities of a job to the organization’s goals.10)A)job valueB)external market ratesC)point methodsD)compensable factorsE)job contentAnswer:AExplanation:A)B)C)D)E)11)The ________ lists all jobs across columns and down rows of a matrix, analyzing thetwo jobs in each cell and indicating which is of greater value, then ranking jobs based onthe total number of times each is ranked as being of greater value.11)A)point methodB)alternation ranking methodC)classification methodD)paired comparison methodE)repeat point methodAnswer:DExplanation:A)B)C)D)E)12)Which of the following methods of job evaluation is the fastest, simplest, and easiest toexplain to employees?12)A)classificationB)absolutionC)rankingD)point methodE)benchmarkingAnswer:CExplanation:A)B)C)D)E)4
13)Which of the following is a criterion used in scaling factors?13)A)ensure the degree is separated from the jobB)use sophisticated terminology in order to be perceived as importantC)have no more than five degrees per factorD)ensure the use of more than five degrees per factorE)limit degrees to those necessary to distinguish between jobsAnswer:EExplanation:A)B)C)D)E)14)To be useful, compensable factors should be:14)A)constant during major shifts in business strategiesB)based on the strategy but not the values of the organizationC)acceptable to the stakeholders affected by the resulting pay structureD)standardized across all employersE)based on the strategy of the organization’s competitorsAnswer:CExplanation:A)B)C)D)E)15)In a point plan process, which of the following steps follows immediately after thedesign of the job evaluation plan is complete?15)A)apply the plan to non-benchmark jobsB)prepare a manual to communicate the planC)conduct job analysisD)determine compensable factorsE)perform job descriptionAnswer:BExplanation:A)B)C)D)E)5
16)________ is a job evaluation method that assigns a number to each job, based oncompensable factors that are numerically scaled and weighted.16)A)Simple ranking methodB)Paired comparison methodC)Classification methodD)Alternation ranking methodE)Point methodAnswer:EExplanation:A)B)C)D)E)17)Which of the following is a characteristic of a benchmark job?17)A)Its contents fluctuate frequently.B)It employs a reasonable proportion of the workforce.C)It is unique to a particular employer.D)It is the highest paid job in the industry.E)Its contents are little known.Answer:BExplanation:A)B)C)D)E)18)Which of the following is true about job evaluation?18)A)Employers design a single evaluation plan for all types of work.B)It is seldom developed using benchmark jobs.C)Typically, an employer evaluates all jobs in the organization at the same time.D)It isolates each job’s pay from its relative contribution to the organization.E)It is used to establish an internally aligned pay structure.Answer:EExplanation:A)B)C)D)E)6
19)Which of the following is a disadvantage of point method of job evaluation?19)A)It cannot be applied to non-benchmark jobs.B)It can become bureaucratic and rule-bound.C)Basis for comparisons is not called out.D)It compensable factors are not aligned with the organization’s strategy.E)Compensable factors do not communicate what is valued.Answer:BExplanation:A)B)C)D)E)20)Which of the following job evaluation methods has compensable factors, weightsreflecting the relative importance of each factor, and factor degrees numerically scaled?20)A)competency-based planB)paired comparison methodC)classificationD)point methodE)rankingAnswer:DExplanation:A)B)C)D)E)21)________ are characteristics of a particular work that an organization values, that help itpursue its strategy, and that achieve its objectives.21)A)Compensable factorsB)Factor degreesC)Factor weightsD)Pursuable featuresE)Job benchmarksAnswer:AExplanation:A)B)C)D)E)7
22)Which of the following is the final step involved in the design of a point plan for jobevaluation?22)A)determine compensable factorsB)communicate the plan and train usersC)prepare a communication manualD)apply plan to non-benchmark jobsE)conduct job analysisAnswer:DExplanation:A)B)C)D)E)23)Which of the following job evaluation methods is based on job class descriptions intowhich jobs are categorized?23)A)paired comparison methodB)classification methodC)point methodD)simple ranking methodE)alternation ranking methodAnswer:BExplanation:A)B)C)D)E)24)________ reflect differences in importance attached to each factor by the employer.24)A)Factor degreesB)Factor weightsC)Value chainsD)Factor scalesE)Factor levelsAnswer:BExplanation:A)B)C)D)E)8
25)Which of the following is an advantage of the ranking method of evaluation?25)A)It frees the process of evaluation from subjectivity.B)It does not require the evaluator to know about all jobs under study.C)It is best suited for a rapidly growing organization.D)It is fast, simple, and easy to explain.E)It makes the criteria for evaluating jobs explicit.Answer:DExplanation:A)B)C)D)E)TRUE/FALSE. Write ‘T’ if the statement is true and ‘F’ if the statement is false.26)Organizations commonly have a single structure derived through multiple approachesthat apply to different functional groups or units.26)Answer:TrueFalseExplanation:27)The final result of the job analysis-job description-job evaluation process is a jobstructure, a hierarchy of work.27)Answer:TrueFalseExplanation:28)A job structure based on job content refers to the skills required for the job, its duties,and its responsibilities.28)Answer:TrueFalseExplanation:29)The contents of a benchmark job are not stable; they vary frequently.29)Answer:TrueFalseExplanation:30)Writing class descriptions is easiest when jobs from several job families are covered by asingle plan.30)Answer:TrueFalseExplanation:31)To be sure that all relevant aspects of work are included in the evaluation, anorganization may start with a sample of benchmark jobs.31)Answer:TrueFalseExplanation:32)Alternation ranking and paired comparison methods are more reliable than simpleranking.32)Answer:TrueFalseExplanation:9
33)Typically, employers evaluate all jobs in the organization at one time.33)Answer:TrueFalseExplanation:34)In point method of evaluation, compensable factors do not communicate what is valued.34)Answer:TrueFalseExplanation:35)The last step involved in the point method of job evaluation is determining thecompensable factors.35)Answer:TrueFalseExplanation:36)The last step involved in the point method of job evaluation is determining thecompensable factors.36)Answer:TrueFalseExplanation:37)Job content matters, but it is not the only basis for setting pay.37)Answer:TrueFalseExplanation:38)Ranking tells employees specifically what in their jobs is important.38)Answer:TrueFalseExplanation:39)Compensable factors must be consistent with the organization’s strategy and values.39)Answer:TrueFalseExplanation:40)The same job evaluation plan that has been developed using benchmark jobs must beapplied to non-benchmark jobs.40)Answer:TrueFalseExplanation:41)The last step involved in the point method of job evaluation is determining thecompensable factors.41)Answer:TrueFalseExplanation:ESSAY. Write your answer in the space provided or on a separate sheet of paper.42)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 itsresponsibilities. 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
43)Describe the two common ways of ranking.Answer:Two ways of ranking are common: alternation ranking and paired comparison. The alternationranking method orders job descriptions alternately at each extreme. Agreement is reachedamong evaluators on which jobs are the most and least valuable, then the next most and leastvaluable, and so on, until all jobs have been ordered. The paired comparison method uses amatrix to compare all possible pairs of jobs. The higher-ranked job is entered in the cell of thematrix. When all comparisons have been completed, the job most frequently judged “morevaluable” becomes the highest-ranked job, and so on.44)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 usefulness45)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 thekinds of books on that shelf and, perhaps, one or two representative titles.46)What is a factor degree?Answer:A factor degree is the description of several different degrees or levels of a compensable factorin jobs; a different number of points is associated with each degree/level.47)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.48)What are the characteristics of an internally aligned pay structure?Answer:An internally aligned pay structure supports organizational strategy, supports the workflow, isfair to employees, and directs their behaviour toward organization objectives.49)What are the most common job evaluation methods?Answer:Ranking, classification, and point method are the most common job evaluation methods.50)Mention a disadvantage of ranking.Answer:It becomes cumbersome as number of jobs increases.11
51)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.2. Determine compensable factors.3. Scale the factors.4. Weight the factors according to importance.5. Communicate the plan and train users; prepare manual.6. Apply to non-benchmark jobs.52)Describe the role of a union in the job evaluation process.Answer:Organizations with unions often find it advantageous to include union representation as asource of ideas and to help promote acceptance of the results. However, some union leadersbelieve that philosophical differences prevent their active participation. They take the positionthat collective bargaining yields more equitable results. As a result, the extent of unionparticipation varies.53)List two ways of ranking job descriptions.Answer:Alternation ranking and paired comparison.12
Answer KeyTestname: C51)E2)B3)D4)C5)D6)C7)A8)B9)B10)A11)D12)C13)E14)C15)B16)E17)B18)E19)B20)D21)A22)D23)B24)B25)D26)FALSE27)TRUE28)TRUE29)FALSE30)FALSE31)TRUE32)TRUE33)FALSE34)FALSE35)FALSE36)FALSE37)TRUE38)FALSE39)TRUE40)TRUE41)FALSE42)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 ofa job to the organization’s goals.13
Answer KeyTestname: C543)Two ways of ranking are common: alternation ranking and paired comparison. The alternation rankingmethod orders job descriptions alternately at each extreme. Agreement is reached among evaluators onwhich jobs are the most and least valuable, then the next most and least valuable, and so on, until all jobshave been ordered. The paired comparison method uses a matrix to compare all possible pairs of jobs. Thehigher-ranked job is entered in the cell of the matrix. When all comparisons have been completed, the jobmost frequently judged “more valuable” becomes the highest-ranked job, and so on.44)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 usefulness45)Picture a bookcase with many shelves. Each shelf is labelled with a paragraph describing the kinds ofbooks on that shelf and, perhaps, one or two representative titles.46)A factor degree is the description of several different degrees or levels of a compensable factor in jobs; adifferent number of points is associated with each degree/level.47)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.48)An internally aligned pay structure supports organizational strategy, supports the workflow, is fair toemployees, and directs their behaviour toward organization objectives.49)Ranking, classification, and point method are the most common job evaluation methods.50)It becomes cumbersome as number of jobs increases.51)The six steps involved in the design of a point plan are:1. Conduct job analysis.2. Determine compensable factors.3. Scale the factors.4. Weight the factors according to importance.5. Communicate the plan and train users; prepare manual.6. Apply to non-benchmark jobs.52)Organizations with unions often find it advantageous to include union representation as a source of ideasand to help promote acceptance of the results. However, some union leaders believe that philosophicaldifferences prevent their active participation. They take the position that collective bargaining yields moreequitable results. As a result, the extent of union participation varies.53)Alternation ranking and paired comparison.14