Question 1

Which of the following is NOT a test used to determine the validity of the job evaluation system?

Accepted Answer

A)  reliability 
B)  calibrating to the market 
C)  estimating total compensation costs 
D)  feedback surveys 
A)  reliability 
B)  calibrating to the market 
C)  estimating total compensation costs 
D)  feedback surveys D

Question 2

The two methods for deriving factor weightings are statistical analysis and expert judgment.

Accepted Answer

A) True 
 B)False  True

Question 3

Your company determined the following pay range associated with a financial service manager: maximum $100,000; midpoint $90,000, and minimum $80,000. What is the range spread percentage for this job?

Accepted Answer

A)  not enough information provided 
B)  20 percent 
C)  25 percent 
D)  22.22 percent 
A)  not enough information provided 
B)  20 percent 
C)  25 percent 
D)  22.22 percent C

Question 4

Which of the following approaches for deriving factor weights tends to be seen as being rather complex and difficult to understand?

Accepted Answer

A)  the "a priori" method 
B)  the statistical analysis method 
C)  the testing and functional method 
D)  the benchmark scallion method 
A)  the "a priori" method 
B)  the statistical analysis method 
C)  the testing and functional method 
D)  the benchmark scallion method

Question 5

One possible solution to excessive pay scale overlaps is to ensure that the maximum pay in a lower scale is less than the midpoint of the next higher pay scale

Accepted Answer

A) True 
 B)False

Question 6

What does a -1 (negative one) correlation coefficient mean?

Accepted Answer

A)  There is a positive relationship between job evaluation points score and pay levels. 
B)  There is an inverse relationship between job evaluation points score and pay levels. 
C)  Your regression equation has a very steep upwards slope. 
D)  There is very little relationship between job evaluation points score and pay levels. 
A)  There is a positive relationship between job evaluation points score and pay levels. 
B)  There is an inverse relationship between job evaluation points score and pay levels. 
C)  Your regression equation has a very steep upwards slope. 
D)  There is very little relationship between job evaluation points score and pay levels.

Question 7

You have been asked to provide rationale for clustering jobs into so-called pay grades. Which of the following is NOT likely to be included in your rationale?

Accepted Answer

A)  Clustering of organization tends to reduce labour costs. 
B)  It facilitates the administrative process; one pay range can cover several jobs. 
C)  Slight changes in job content do not necessarily trigger a review. 
D)  It accounts for the fact job evaluations are to a large degree subjective in nature. 
A)  Clustering of organization tends to reduce labour costs. 
B)  It facilitates the administrative process; one pay range can cover several jobs. 
C)  Slight changes in job content do not necessarily trigger a review. 
D)  It accounts for the fact job evaluations are to a large degree subjective in nature.

Question 8

The following are hypothetical points provided to the following jobs:
·heavy-duty mechanic: 900
·human resource specialist: 900
·technician: 900
The organization sees these positions as having equal value from a base pay perspective; hence, there is no difference in pay. What term best describe the grouping of these jobs?

Accepted Answer

A)  pay grade 
B)  range tightness 
C)  pay range 
D)  pay structure 
A)  pay grade 
B)  range tightness 
C)  pay range 
D)  pay structure

Question 9

Under pay equity legislation, organizations need to evaluate three out of the four main categories of compensable factors in evaluating jobs.

Accepted Answer

A) True 
 B)False

Question 10

In establishing criteria for movement within a pay range, the three most commonly used are experience, performance, and market rates.

Accepted Answer

A) True 
 B)False

Question 11

Considering the factor of "decision making," which of the following degree statements is an example of inconsistent construct formation?

Accepted Answer

A)  Degree 1: There is no freedom to make decisions at this level. 
B)  Degree 2: There is usually restricted freedom to make decisions. 
C)  Degree 3: There is usually limited freedom to purchase resources. 
D)  Degree 4: There is usually some freedom to make decisions. 
A)  Degree 1: There is no freedom to make decisions at this level. 
B)  Degree 2: There is usually restricted freedom to make decisions. 
C)  Degree 3: There is usually limited freedom to purchase resources. 
D)  Degree 4: There is usually some freedom to make decisions.

Question 12

The pay policy line is used to establish which of the following pay structure components?

Accepted Answer

A)  midpoint of the pay range 
B)  range spreads 
C)  overlaps between ranges 
D)  pay grade size 
A)  midpoint of the pay range 
B)  range spreads 
C)  overlaps between ranges 
D)  pay grade size

Question 13

Which of the following terms refers to the actual minimum and maximum pay rate, in dollar terms, for all the jobs that fall in a particular pay grade?

Accepted Answer

A)  pay range 
B)  broadbanding 
C)  market anchor 
D)  step progression 
A)  pay range 
B)  broadbanding 
C)  market anchor 
D)  step progression

Question 14

Which of the following is NOT a component of the point method of job evaluation?

Accepted Answer

A)  compensable factors 
B)  total points 
C)  factor degrees 
D)  competencies 
A)  compensable factors 
B)  total points 
C)  factor degrees 
D)  competencies

Question 15

After plotting a regression (market line), you determine that the slope is very steep. What possible conclusion can you make from observing the slope of the regression line?

Accepted Answer

A)  The correlation coefficient is approaching -1 (negative one). 
B)  There is too much spread in job evaluation points between low-value and high-value jobs. 
C)  There is not sufficient spread in job evaluation points between low-value and high-value jobs. 
D)  Lower-value jobs appear to be compensated above market rates. 
A)  The correlation coefficient is approaching -1 (negative one). 
B)  There is too much spread in job evaluation points between low-value and high-value jobs. 
C)  There is not sufficient spread in job evaluation points between low-value and high-value jobs. 
D)  Lower-value jobs appear to be compensated above market rates.

Question 16

Identify and briefly describe the main steps in developing a job evaluation system using the point method.

Accepted Answer

The main steps in developing a point met

Question 17

Which of the following statements is true regarding how many factors and different job evaluation systems, by law, should be used?

Accepted Answer

A)  The broader the group of jobs to be covered with a single job evaluation system, the greater the number of factors that will be needed. 
B)  Pay equity law requires a single plan be used for all jobs in a unionized company. 
C)  A valid point system could operate with less than seven factors. 
D)  If the organization is not unionized, Ontario legislation requires the use of different plans for blue-collar and white-collar jobs. 
A)  The broader the group of jobs to be covered with a single job evaluation system, the greater the number of factors that will be needed. 
B)  Pay equity law requires a single plan be used for all jobs in a unionized company. 
C)  A valid point system could operate with less than seven factors. 
D)  If the organization is not unionized, Ontario legislation requires the use of different plans for blue-collar and white-collar jobs.

Question 18

The primary drawback associated with using the point method of job evaluation is that it provides an illusion of a scientific process when in fact the method relies significantly on the judgment of evaluators in selecting appropriate weights

Accepted Answer

A) True 
 B)False

Question 19

Discuss the advantages and disadvantages of the point method of job evaluation.

Accepted Answer

The advantages of this system include a

Question 20

Reliability of the job evaluation system means that the system will produce the same results even if different evaluators are used.

Accepted Answer

A) True 
 B)False

Which of the following is NOT a test used to determine the validity of the job evaluation system?

The two methods for deriving factor weightings are statistical analysis and expert judgment.

Your company determined the following pay range associated with a financial service manager: maximum $100,000; midpoint $90,000, and minimum $80,000. What is the range spread percentage for this job?

Which of the following approaches for deriving factor weights tends to be seen as being rather complex and difficult to understand?

One possible solution to excessive pay scale overlaps is to ensure that the maximum pay in a lower scale is less than the midpoint of the next higher pay scale

What does a -1 (negative one) correlation coefficient mean?

You have been asked to provide rationale for clustering jobs into so-called pay grades. Which of the following is NOT likely to be included in your rationale?

Under pay equity legislation, organizations need to evaluate three out of the four main categories of compensable factors in evaluating jobs.

In establishing criteria for movement within a pay range, the three most commonly used are experience, performance, and market rates.

Considering the factor of "decision making," which of the following degree statements is an example of inconsistent construct formation?

The pay policy line is used to establish which of the following pay structure components?

Which of the following terms refers to the actual minimum and maximum pay rate, in dollar terms, for all the jobs that fall in a particular pay grade?

Which of the following is NOT a component of the point method of job evaluation?

After plotting a regression (market line), you determine that the slope is very steep. What possible conclusion can you make from observing the slope of the regression line?

Identify and briefly describe the main steps in developing a job evaluation system using the point method.

Which of the following statements is true regarding how many factors and different job evaluation systems, by law, should be used?

The primary drawback associated with using the point method of job evaluation is that it provides an illusion of a scientific process when in fact the method relies significantly on the judgment of evaluators in selecting appropriate weights

Discuss the advantages and disadvantages of the point method of job evaluation.

Reliability of the job evaluation system means that the system will produce the same results even if different evaluators are used.

A Road Map to Effective Compensation

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: The Job Evaluation Process

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters

Exam 8: Evaluating Jobs: The Point Method of Job Evaluation

Which of the following is NOT a test used to determine the validity of the job evaluation system?

The two methods for deriving factor weightings are statistical analysis and expert judgment.

Your company determined the following pay range associated with a financial service manager: maximum $100,000; midpoint $90,000, and minimum $80,000. What is the range spread percentage for this job?

Which of the following approaches for deriving factor weights tends to be seen as being rather complex and difficult to understand?

One possible solution to excessive pay scale overlaps is to ensure that the maximum pay in a lower scale is less than the midpoint of the next higher pay scale

What does a -1 (negative one) correlation coefficient mean?

You have been asked to provide rationale for clustering jobs into so-called pay grades. Which of the following is NOT likely to be included in your rationale?

Under pay equity legislation, organizations need to evaluate three out of the four main categories of compensable factors in evaluating jobs.

In establishing criteria for movement within a pay range, the three most commonly used are experience, performance, and market rates.

Considering the factor of "decision making," which of the following degree statements is an example of inconsistent construct formation?

The pay policy line is used to establish which of the following pay structure components?

Which of the following terms refers to the actual minimum and maximum pay rate, in dollar terms, for all the jobs that fall in a particular pay grade?

Which of the following is NOT a component of the point method of job evaluation?

After plotting a regression (market line), you determine that the slope is very steep. What possible conclusion can you make from observing the slope of the regression line?

Identify and briefly describe the main steps in developing a job evaluation system using the point method.

Which of the following statements is true regarding how many factors and different job evaluation systems, by law, should be used?

The primary drawback associated with using the point method of job evaluation is that it provides an illusion of a scientific process when in fact the method relies significantly on the judgment of evaluators in selecting appropriate weights

Discuss the advantages and disadvantages of the point method of job evaluation.

Reliability of the job evaluation system means that the system will produce the same results even if different evaluators are used.

A Road Map to Effective Compensation

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: The Job Evaluation Process

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters