Deck 8: Evaluating Jobs: the Point Method of Job Evaluation

Question 1

Which of the following would be an example of job outputs for a painter?

A) manual dexterity and the ability to mix paint
B) dealing with paint fumes and heights
C) responsible for neatly painted walls and ceilings
D) required to climb ladders and exercise continuous repetitive movement

Answer 1

C

Question 2

The compensable factors that are selected are not likely to be equal in importance to your firm. Which step in developing a job evaluation system using the point method recognizes this variation in importance?

A) Defining the factors
B) Weighting the factors
C) Scaling the factors
D) Testing the system

Answer 2

B

Question 3

A key advantage of the point method is its high degree of precision in measuring jobs.

Answer 3

True

Question 4

The point method of job evaluation contains the following four steps: identify compensable factors;scale the factors;weight the factors;and decide on what to pay.

Question 5

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

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

Question 6

Which of the following is not considered to be an advantage of the point method of job evaluation?

A) its high degree of precision in measuring jobs
B) process is objective and scientific
C) easy to apply with consistency
D) allows jobs to be clustered in pay grades more easily

Question 7

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

Question 8

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

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 9

The midpoint of split pay range serves as a control point to prevent pay increases unless they are based on performance.

Question 10

In developing your job evaluation system,it is important that all the factors have the same number of degrees.

Question 11

Which of the following compensable factors represents the main category of "skill"?

A) dexterity
B) hazards
C) importance of accuracy
D) pressure of work

Question 12

Which of the following approaches assigns responsibility for deriving factor weights to a committee of knowledgeable individuals within the organization?

A) "a priori" method
B) statistical analysis
C) multiple regression
D) virtual teams

Question 13

In some cases,where to establish pay grade boundaries is an arbitrary decision.

Question 14

A pay range should mimic the range of performance or experience within jobs.

Question 15

The first key issue in establishing pay ranges is what width the ranges should be.

Question 16

Assume (a),(b),(c),and (d)represent degree 1,2,3,and 4,respectively,for the formal education factor on your summary rating chart for the point method of job evaluation.Based on the degree definitions which of the following degrees is arranged out of place on the chart?

A) Degree 1: completion of high school
B) Degree 2: one year of post secondary education
C) Degree 3: three year college diploma or university degree
D) Degree 4: completion of grade 9

Question 17

What determines the relative value of a job and,thus,its position on the hierarchy of jobs using the point method of job evaluation?

A) market comparators
B) regression analysis
C) base pay structure
D) point scores of the jobs

Question 18

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

Question 19

Which is not one of the steps in the development of a point method job evaluation plan?

A) identify the compensable factors.
B) analyze the questionnaire data.
C) test the system.
D) scale the factors.

Question 20

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

Question 21

Which of the following is not a source of gender bias?

A) excessive range in the degree statements
B) ignoring factors found in female jobs
C) biased job descriptions
D) separate job families

Question 22

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

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

Question 23

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?

A) pay range
B) broadbands
C) mrket anchor
D) step progression

Question 24

Your firm allows employees to reach the midpoint of their pay range using annual seniority increases. Pay increases beyond the midpoint are based on performance. What type of range movement system is your employer using?

A) just noticeable difference
B) split pay range
C) fixed steps
D) supervisory increments

Question 25

When are benchmark jobs used?

A) In circumstances where appropriate market comparator jobs cannot be found.
B) To test whether the labour market is tight or loose.
C) To calibrate the job evaluation system to the market.
D) As the norm against which to measure employee performance.

Question 26

How can the job evaluation system be tested for reliability?

A) Compare the factor weightings of the different evaluators.
B) Compare the factor choices of the different evaluators.
C) Compare the results of the different evaluators on the different factors.
D) Compare the total point scores of the different evaluators.

Question 27

Which of the following components is not considered part of the base pay structure?

A) merit bonuses
B) pay ranges
C) shift differentials
D) pay grades

Question 28

What is a negative consequence of clustering jobs into pay grades?

A) Pay grades make it difficult to justify and explain pay rates to employees.
B) Pay grades create less stability with the pay system.
C) There may be pressure to reclassify borderline jobs or to promote people to get more money.
D) Similar jobs are grouped into the same grades.

Question 29

What does the correlation coefficient indicate?

A) outlier jobs
B) "goodness of fit" between the point values and market pay rates
C) slope of regression line
D) pay policy line height

Question 30

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

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

Question 31

Which of the following defines a pay grade?

A) a grouping of jobs for pay purposes
B) the minimum and the maximum pay for a job
C) established with job descriptions
D) feedback from a compensation survey

Question 32

Which of the following practices is a threat to the integrity of the job evaluation system?

A) wider pay grades as the system goes up
B) equal dollar differences between the range midpoint and the range minimum, and the range midpoint and the range maximum
C) wider range spreads for higher pay grades
D) excessive overlaps between pay ranges

Question 33

Which of the following best explains how to establish pay grade sizes using the telescopic approach?

A) Look for natural breaks between clusters of jobs when setting up the grades.
B) Increase the grade widths for higher-value jobs but not necessarily by an equal percentage.
C) Reduce the number of pay grades by creating large bands.
D) Make the point spreads equal for all pay grades.

Question 34

In exploring solutions to job evaluation problems,which is not one of the main steps?

A) Check that benchmark jobs are equivalent to market comparator jobs.
B) Determine if the wrong factors have been included in the job evaluation system.
C) Adjust the point totals of the outlier jobs to improve the correlation coefficient.
D) Examine whether jobs have been badly evaluated.

Question 35

Which of the following is not one of the methods that can be used in establishing pay grade sizes?

A) equal interval approach
B) equal increase approach
C) equal percentage approach
D) equal spread approach

Question 36

The belief that "any of the skills needed to work with young children should not be highly rated because care giving comes natural to women" is an example of what type of gender bias problem?

A) ignoring factors found in female jobs
B) confusing job content with stereotypes
C) biased job descriptions
D) differential evaluation of factors

Question 37

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

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 38

This term is used to describe the dollar value of the difference between the maximum and the minimum of the pay range for each pay grade.

A) intergrade differentials
B) grade overlaps
C) range spread
D) quartiles

Question 39

Which is not one of the possible pitfalls of the point method of job evaluation?

A) hierarchical grounding
B) factor overlaps
C) gender bias
D) recency effect

Question 40

What does the market line determine?

A) Whether the firm should lead, lag, or match the market
B) The relationship of job evaluation results to market pay rates
C) The relationship of job evaluation results to a firm's pay grades
D) A pay rate based on a market survey

Question 41

What are the key considerations in establishing pay grades and pay ranges?

Question 42

Briefly describe the main pitfalls in designing a point method system of job evaluation.

Question 43

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

Question 44

What criteria is used to determine movement through the pay range?

Question 45

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