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

Question 1

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.

Answer 1

A

Question 2

Under the point method scheme of job evaluation, what is the main characteristic that distinguishes one job from another thereby making a job more valuable to an organization?

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

Answer 2

D

Question 3

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

Answer 3

False

Question 4

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

Question 5

Two key advantages of the point method are its high degree of precision in measuring jobs and the availability of "out-of-the-box" solutions developed by consulting firms.

Question 6

Which of the following compensable factors would you include under the main category of "working conditions"?

A) requirements associated with being exposed to health hazards
B) requirements associated with educational levels
C) requirements associated being responsible for the safety of coworkers
D) requirements associated with having to produce certain levels of output

Question 7

Your company is considering using the point method of job evaluation and asks you for feedback. Which of the following should be a source of concern in using the point method?

A) It has a high degree of precision in measuring jobs.
B) The process is objective and scientific.
C) It is easy to apply with consistency.
D) Jobs can be more easily clustered in pay grades.

Question 8

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

Question 9

Pay grade number 1 has a maximum pay of $35,000, while pay grade number 2 has a maximum pay of $45,000. The intergrade differential in this case is $10,000.00.

Question 10

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

Question 11

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

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

Question 12

Assume that options (a), (b), (c), and (d) below 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 13

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) responsibility for neatly painted walls and ceilings
D) required to climb ladders and exercise continuous repetitive movement

Question 14

The final step in developing a job evaluation system using a point method requires that the job hierarchy scheme meet certain criteria, including validity and market fit.

Question 15

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

Question 16

Four main categories of compensable factors are used widely in industry. Which of the following factors could be included in the skill category?

A) John is often exposed to chemicals.
B) Marie needs to solve a variety of problems at work.
C) Dwayne is held accountable for error rates.
D) Dolores often has to be able to lift 25 kg boxes.

Question 17

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

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

After several evaluators apply the job evaluation system to a heavy-duty mechanic job, you find significant discrepancies in the weights associated with each compensable factor. Which of the following is NOT likely to be a reason for the discrepancies?

A) factor definition being used by the evaluators
B) job information provided to the evaluators
C) evaluators using the wrong benchmarks
D) degree of definition provided to the evaluators

Question 20

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 21

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 22

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

Question 23

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 for 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 24

After reviewing pay ranges for your organization, you realize a significant number of pay ranges do not overlap or do not connect. For example, the maximum of the pay range for pay grade number 2 is $50,000 and the minimum range for pay grade number 3 is $60,000.00 What is a potential root cause of this issue?

A) Ranges are too narrow and/or there are not enough pay grades.
B) An equal approach method was used to establish pay grades.
C) An equal percentage method was used to establish pay grades.
D) Poor benchmark jobs were used to establish pay grades.

Question 25

Which of the following is NOT a source of gender bias associated with developing a point method job evaluation process?

A) excessive range in the degree statements
B) excluding factors often associated with female dominated positions
C) biased job descriptions
D) separate job families

Question 26

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) broadbanding
C) market anchor
D) step progression

Question 27

Which of the following best explains how to establish pay grade sizes using the equal interval 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 28

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

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 29

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 30

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 31

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 32

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?

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 33

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 34

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?

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

Question 35

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 36

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 between the range midpoint and the range maximum
C) wider range spreads for higher pay grades
D) excessive overlaps between pay ranges

Question 37

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?

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 38

Our textbook identifies four possible pitfalls associated with the point method of job evaluation. Which category of pitfalls would include a situation whereby the factor is poorly defined, creating a situation in which the evaluator is not clear what the factor is designed to pick up?

A) hierarchical grounding
B) factor overlaps
C) gender bias
D) inconsistent construct

Question 39

Which of the following is an inevitable outcome of broadbanding?

A) There are increased labour costs, as everyone is paid more for specific jobs.
B) It decreases the level of flexibility within the pay grades.
C) It tends to lead to "skinny" pay grades.
D) Jobs with significantly different scores end up in the same "band."

Question 40

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?

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

Question 41

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

Question 42

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

Question 43

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

Question 44

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