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Strategic Compensation, 7e (Martocchio)

Chapter 6 Building Internally Consistent Compensation Systems

1) This clearly defines the relative value of each job among all jobs within a company.
A) internally consistent compensation system
B) generalized work activities
C) intra-organizational job markers
D) market comparison standards
Answer: A
Difficulty: Moderate
Type: Concept
Learning Obj: 1

2) This describes job duties, tasks, and relevant factors needed to perform a job adequately.
A) job content
B) job structure
C) job summary
D) job context
Answer: A
Difficulty: Moderate
Type: Concept
Learning Obj: 1

3) This is the systematic process for recognizing differences in the relative worth among a set of
jobs and for establishing pay differentials accordingly.
A) job analysis
B) job content
C) job evaluation
D) job-relatedness
Answer: C
Difficulty: Moderate
Type: Concept
Learning Obj: 1

4) These two are job evaluation techniques.


A) market-based & appeals-based
B) compensable content & job-based
C) market-based & job content
D) compensable content & job content
Answer: C
Difficulty: Moderate
Type: Concept
Learning Obj: 2

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5) This is a systematic process for gathering, documenting, and analyzing information in order to
describe jobs.
A) job characterization
B) job description
C) job evaluation
D) job analysis
Answer: D
Difficulty: Difficult
Type: Concept
Learning Obj: 2

6) One of the essential skills that software development engineers must have is the proficiency in
at least one of the modern computer programming languages such as Java or C++. This must be
indicated in which part of the job analysis description?
A) working conditions
B) job evaluation
C) worker requirement
D) job content
Answer: C
Difficulty: Moderate
Type: Application
Learning Obj: 2

7) Which unit in the job analysis process is the smallest?


A) task
B) element
C) job
D) family
Answer: B
Difficulty: Moderate
Type: Concept
Learning Obj: 2

8) In the job analysis process this term represents a group of positions that are identical with
respect to their major tasks.
A) job
B) element
C) job family
D) occupation
Answer: A
Difficulty: Moderate
Type: Concept
Learning Obj: 2

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9) This unit of analysis is a group of jobs, found at more than one business, in which a common
set of tasks are performed.
A) job family
B) occupation
C) position
D) job group
Answer: B
Difficulty: Moderate
Type: Concept
Learning Obj: 2

10) What source is generally able to provide the most extensive and detailed information about
how job duties are performed?
A) job analysts
B) supervisors
C) job incumbents
D) benchmark jobs
Answer: C
Difficulty: Moderate
Type: Concept
Learning Obj: 2

11) Valid and reliable job evaluations result from which two conditions?
A) The results are consistent; using multiple collection methods.
B) The results are consistent; data was taken under similar conditions.
C) data from multiple sources; using multiple collection methods
D) data from multiple sources; data was taken under similar conditions
Answer: C
Difficulty: Difficult
Type: Concept
Learning Obj: 2

12) A job analysis method is this if it yields the kind of information that it was designed to
provide and accurately assesses each job's duties.
A) reliable
B) complete
C) valid
D) market-based
Answer: C
Difficulty: Moderate
Type: Concept
Learning Obj: 2

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13) These indicate the name of each job within a company's job structure.
A) job specifications
B) job summaries
C) position headings
D) job titles
Answer: D
Difficulty: Moderate
Type: Concept
Learning Obj: 3

14) This overview concisely summarizes the job with two to four descriptive statements.
A) job summary
B) job duties
C) job titles
D) job preview
Answer: A
Difficulty: Moderate
Type: Concept
Learning Obj: 3

15) What was the main effect created by the revisions to the ADA regulations passed in 2008?
A) Costs will be contained much more than in the past.
B) There are more hurdles for individuals seeking protection under the ADA to pass through in
order to weed out false claims.
C) It is now easier for an individual seeking protection under the ADA to establish that he or she
has a disability within the meaning of the ADA.
D) Companies may no longer perform job analyses to see if they comply with the Americans
with Disabilities Act.
Answer: C
Difficulty: Difficult
Type: Concept
Learning Obj: 3

16) Generalized work activities, organizational context, and work context are requirements under
which O*NET category?
A) experience
B) occupation
C) requirements
D) labor market characteristics
Answer: B
Difficulty: Moderate
Type: Concept
Learning Obj: 4

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17) Abilities, interests and work styles are elements for which O*NET category?
A) occupation
B) experience
C) worker characteristics
D) worker requirements
Answer: C
Difficulty: Moderate
Type: Concept
Learning Obj: 4

18) These are the salient job characteristics that are the general basis for job evaluations and are
used to establish relative pay rates.
A) job descriptions
B) compensable factors
C) occupation descriptions
D) ranking plans
Answer: B
Difficulty: Moderate
Type: Concept
Learning Obj: 5

19) Universal compensable factors are derived from which federal Act?
A) Fair Labor Standards Act
B) Civil Rights Act of 1963
C) Equal Pay Act
D) Americans with Disabilities Act
Answer: C
Difficulty: Difficult
Type: Concept
Learning Obj: 5

20) Which of the following are the four "universal compensable factors"?
A) cognitive ability, effort, responsibility, working conditions
B) cognitive ability, effort, skill, responsibility
C) skill, effort, responsibility, working conditions
D) skill, effort, cognitive ability, working conditions
Answer: C
Difficulty: Moderate
Type: Concept
Learning Obj: 5

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21) Market-based job evaluation uses which method to collect data to determine prevailing pay
rates?
A) observations
B) interviews
C) questionnaires
D) surveys
Answer: D
Difficulty: Moderate
Type: Concept
Learning Obj: 6

22) A human resource manager of a company decides to change the current job-content valuation
technique by using a quantitative methodology. He thinks that the old approach fails to balance
internal and external considerations while evaluating jobs. What type of job evaluation technique
do you suggest for this HR manager?
A) job-content evaluation
B) market-based evaluation
C) point method
D) simple ranking plan
Answer: C
Difficulty: Moderate
Type: Application
Learning Obj: 6

23) What type of jobs provide reference points to judge against other jobs within a company?
A) standardized jobs
B) high-value jobs
C) benchmark jobs
D) hierarchical jobs
Answer: C
Difficulty: Easy
Type: Concept
Learning Obj: 6

24) George owns a small manufacturing plant that produces customized printed circuit boards.
There are about 15 jobs to rate. What type of job-content evaluation approach do you suggest to
George?
A) alternation ranking
B) simple ranking plans
C) paired comparison
D) classification plans
Answer: B
Difficulty: Easy
Type: Application
Learning Obj: 6

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25) Which job evaluation method entails ordering jobs on the basis of extremes?
A) paired comparison
B) alternation ranking
C) classification
D) factor comparison
Answer: B
Difficulty: Moderate
Type: Concept
Learning Obj: 6

26) What type of organizations use classification plans most prevalently?


A) private sector organizations
B) non-profit organizations
C) multi-national organizations
D) public sector organizations
Answer: D
Difficulty: Difficult
Type: Concept
Learning Obj: 6

27) Sarah works at a federal government agency. Her pay rate is determined by her GS level and
work seniority. What type of job-content evaluation approach was used to categorize her job?
A) alternation ranking
B) simple ranking plans
C) paired comparison
D) classification plans
Answer: D
Difficulty: Moderate
Type: Application
Learning Obj: 6

28) The federal GS classification system is divided into how many classifications?
A) 15
B) 10
C) 6
D) 21
Answer: A
Difficulty: Easy
Type: Concept
Learning Obj: 6

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29) Developing internally consistent job structures affects the competitive strategy of a company.
Which of the following is a potential constraint on competitive strategy?
A) Internally consistent structures potentially reduce a company's rigidity to respond to moves by
the competition.
B) Internally consistent job structures potentially cause the definition of jobs to become less
fluid.
C) Internally consistent job structures lead to less routinization.
D) Internally consistent job structures potentially create far more bureaucratization within an
organization.
Answer: D
Difficulty: Difficult
Type: Critical Thinking
Learning Obj: 8

30) Which of the following is NOT true for internally consistent compensation systems?
A) jobs that require higher qualifications, and more responsibilities should be paid more than
jobs that require lower qualifications and fewer responsibilities
B) internally consistent compensation systems are created through job analysis and job
evaluation
C) internally consistent compensation systems may increase a company's flexibility to respond to
changes in competitor's pay practices
D) internally consistent compensation structures is the resultant bureaucracy
Answer: B
Difficulty: Moderate
Type: Synthesis
Learning Obj: 1, 8

31) ________ are the social context or physical environment where work will be performed.
Answer: Working conditions
Difficulty: Moderate
Type: Concept
Learning Obj: 2

32) In an auto manufacturing company installing a windshield on the assembly line represents a
________.
Answer: job task
Difficulty: Difficult
Type: Application
Learning Obj: 2

33) A ________ is a collection of tasks constituting the total work assignment of a single worker.
Answer: position
Difficulty: Easy
Type: Concept
Learning Obj: 2

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34) A reliable ________ yields consistent results under similar conditions when multiple analysts
reach the same conclusion about the major duties that comprise a position.
Answer: job analysis
Difficulty: Difficult
Type: Concept
Learning Obj: 2

35) According to the EEOC, ________ refers to a present competence to perform an observable
behavior.
Answer: ability
Difficulty: Easy
Type: Concept
Learning Obj: 3

36) ________ refers to a body of information applied directly to the performance of a function.
Answer: Knowledge
Difficulty: Easy
Type: Concept
Learning Obj: 3

37) ________ information describes physical and social factors that influence the nature of work.
Answer: Work context
Difficulty: Difficult
Type: Concept
Learning Obj: 4

38) ________ describe preferences for work environments and outcomes.


Answer: Interests
Difficulty: Moderate
Type: Concept
Learning Obj: 4

39) ________ skills information describes developed capacities that facilitate learning or the
more rapid acquisition of knowledge.
Answer: Basic
Difficulty: Easy
Type: Concept
Learning Obj: 4

40) The ________ ranking method orders jobs by extremes, as committee members determine
most and least valuable jobs until all jobs have been evaluated.
Answer: alternation
Difficulty: Moderate
Type: Concept
Learning Obj: 6

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41) Why must a job analysis be reliable and valid? What can a compensation professional do to
ensure that a job analysis is reliable and valid?
Answer: A reliable job analysis is one that yields consistent results under similar conditions. A
valid job analysis method accurately assesses each job's duties. Having a job analysis method
that is both reliable and valid is essential to building an internally consistent compensation
system. A poorly chosen method may lead to inadequate or excessive pay rates. Although there is
no "best" approach to job analysis, compensation professionals who use more than one data
collection method and collect data from more than one source can significantly improve the
likelihood of reliability and validity.
Difficulty: Moderate
Type: Critical Thinking
Learning Obj: 2

42) After completing the job analysis, your boss has asked you to conduct a job evaluation of the
various positions in the company. Detail the steps you would take in accomplishing this task.
Answer: The first step is to determine whether a single job evaluation technique is sufficiently
broad to assess a diverse set of jobs. It is not reasonable to expect that a single job evaluation
technique, based on a single set of compensable factors, can adequately assess diverse sets of
jobs.

The second step is to choose the job evaluation committee. This committee will review job
descriptions and analyses and evaluate jobs. The size of the organization may warrant the use of
more than one committee. Choosing a consensus of employees will help to minimize the biases
of individual job evaluators.

The third step is to train employees to conduct job evaluations. Employees who have an
understanding of the process will have a vested interest in finding valid results.

The fourth step is to document the job evaluation plan. For the employer, this step will specify
job- and business-related criteria against which jobs are evaluated. For employees, this step
allows them to understand how their jobs were evaluated and the outcome of the process.

The fifth step is to communicate the process to the employees. This will increase the
understanding of the process as well as give employees the opportunity to respond to what they
believe are either unsatisfactory procedures or outcomes of the job evaluation procedures.

Finally, a company should set up an appeals process that will provide a check on the system.
Difficulty: Moderate
Type: Application
Learning Obj: 5

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43) Compare and contrast job analysis and job evaluation.
Answer: Job analysis is a systematic process for gathering, documenting, and analyzing
information in order to describe jobs. Job analysis describes job content, worker requirements,
and working conditions. Job evaluation is used to systematically recognize differences in the
relative worth among a set of jobs and establish pay differentials accordingly. HR professionals
create internally consistent job structures through job analysis and job evaluation. Job analysis is
a descriptive procedure, however job evaluation reflects value judgments. Through job analysis
HR specialists write job descriptions that describe job duties and minimum qualifications
required of individuals to perform their jobs. Job evaluation reflects the values and priorities that
management places on various positions.
Difficulty: Moderate
Type: Synthesis
Learning Obj: 1, 2, 5

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