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Student name:__________
TRUE/FALSE – Write ‘T’ if the statement is true and ‘F’ if the statement is false.
1) A job structure based upon job value orders jobs on the basis of the relative contribution
of the skills, duties, and responsibilities of each job to the organization’s goals.
⊚ true
⊚ false
2) A representative sample of benchmark jobs will include the entire domain of work being
evaluated and capture the diversity of the work within that domain.
⊚ true
⊚ false
3) The number of job evaluation plans required depends only upon the number of
employees in the organization.
⊚ true
⊚ false
4) Paired-comparison and alternate-ranking methods may be more reliable than simple
ranking.
⊚ true
⊚ false
5) A disadvantage of the ranking method is that the criteria on which the jobs are ranked are
usually poorly defined.
⊚ true
⊚ false
6) Point plans represent a significant change from ranking and classification methods in that
they make explicit the criteria for evaluating jobs: compensable factors.
⊚ true
⊚ false
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7) The leadership of any organization is the best source of information on where the
business should be going and how it is going to get there.
⊚ true
⊚ false
8) Work-related documentation helps gain acceptance by employees and managers, is easier
to understand, and can withstand a variety of challenges to the pay structure.
⊚ true
⊚ false
9) Since business strategies may change often, compensable factors should rarely be added
or deleted.
⊚ true
⊚ false
10) The primary reason for documenting the views of employees and supervisors on
compensable factors is to meet the requirements of the Equal Pay Act.
⊚ true
⊚ false
11) The National Electrical Manufacturers Association plan explicitly states that the
compensable factor experience should be correlated with tenure.
⊚ true
⊚ false
12) Each compensable factor degree should be equidistant from its adjacent degrees.
⊚ true
⊚ false
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13) One of the criteria for scaling compensable factors is to ensure that the number of degrees
used is necessary to distinguish among jobs.
⊚ true
⊚ false
14) The work of many people now requires that they figure out what to do in a given
situation instead of simply invoking a canned routine.
⊚ true
⊚ false
15) The most common way of allocating weights to factors is regression modeling.
⊚ true
⊚ false
16) A criterion pay structure is a pay structure that can be duplicated with a point plan.
⊚ true
⊚ false
17) The policy capturing approach and the committee a priori approach for developing pay
structures yield the same pay structure.
⊚ true
⊚ false
18) Research shows that the weights assigned to compensable factors can affect the resulting
pay structure.
⊚ true
⊚ false
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19) The members of a job evaluation committee usually represent all important
constituencies within an organization.
⊚ true
⊚ false
20) The final result of the job analysis–job description–job evaluation process is a hierarchy
of work.
⊚ true
⊚ false
MULTIPLE CHOICE – Choose the one alternative that best completes the statement or
answers the question.
21) ________ is the process of systematically determining the relative worth of jobs to create
a job structure for an organization.
A) Performance evaluation
B) Job restructuring
C) Job evaluation
D) Point factor evaluation
22) Which of the following is the underlying assumption in the assessment of job content?
A) Content has intrinsic value outside the external market.
B) Content has no artistic value.
C) Stakeholders are the best judge for assessing the quality of content.
D) Content can be determined with or without the external market.
23) The exchange value of a job is its
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A) content value.
B) performance value.
C) internal market value.
D) external market value.
24) Which of the following statements is true of a job evaluation plan?
A) It is developed using benchmark jobs and then applied to nonbenchmark jobs.
B) It excludes the pay decisions made by a company.
C) It provides the impetus to increase job levels and titles.
D) It is always carried out separately for major domains of work.
25) A major decision in job evaluation is to:
A) choose which stakeholders to eliminate in the process.
B) figure out how to eliminate the use of multiple plans.
C) choose among alternative approaches.
D) figure out how to eliminate the use of single plans.
26) Which of the following is a job evaluation method that can group a wide range of work
together in one system but leave too much room for manipulation?
A) Ranking
B) Point
C) Scaling
D) Classification
27) In the context of internal alignment, which of the following is the correct sequence?
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A) Job description > Pay structure > Job evaluation
B) Job evaluation > Job description > Job structure
C) Pay structure > Job description > Job evaluation > Job analysis
D) Job description > Job evaluation > Job structure
28) Which of the following is NOT true of the usage of multiple plans versus single job
evaluation plans?
A) Employers rarely evaluate all jobs in an organization at one time.
B) Many employers design different evaluation plans for different types of work.
C) Typically, a related group of jobs is used for evaluation.
D) A single universal plan is acceptable to employees if the work covered is highly
diverse.
29) Which of the following is a characteristic of benchmark jobs?
A) They are unique to specific employers.
B) They have unstable pay differentials.
C) They employ a reasonable proportion of the workforce.
D) Their contents are obscure and change over time.
30) MXB, Inc. is a carwash service provider. It orders the jobs in the company on the basis of
the least important job to the most important job. In this case, MXB is most likely using the:
A) alternation-ranking method.
B) paired-comparison method.
C) classification method.
D) point method.
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31) TreeWind, Inc. is a bookstore that uses skill and responsibility as its compensable factors.
It assigns 20 percent weight to responsibility and 80 percent weight to skill. If the responsibility
factor gets a score of 60 after multiplying the subfactors with their corresponding weights and if
the skill factor has two subfactors that are rated as 4 and 5, what is the total weightage given to
the job?
A) 40
B) 120
C) 420
D) 990
32) KayDen Corp., a small organization with 15 employees, conducts job evaluation using
the least expensive method for the first time. In this case, KayDen is most likely to have used the
A) classification method.
B) point method.
C) ranking method.
D) Hay plan.
33) Which of the following is a disadvantage of the ranking method of job evaluation?
A) It fails to tell employees what is important about their jobs.
B) It is initially more expensive than other job evaluation methods.
C) It consumes more time than other job evaluation methods.
D) It is difficult to explain to employees.
34) In the context of job evaluation methods, two common ways of ranking are alternation
ranking and
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A) scaling.
B) paired comparison.
C) policy capturing.
D) classification.
35) The job evaluation method that most resembles a bookcase with many shelves is:
A) ranking.
B) the Hay plan.
C) the point method.
D) classification.
36) A job description is compared to class descriptions in the ________ of job evaluation.
A) Position Analysis Questionnaire method
B) point method
C) Hay Group Guide Chart—Profile MethodSM
D) classification method
37) The ________ method of job evaluation uses compensable factors.
A) classification
B) Position Analysis Questionnaire
C) point
D) ranking
38) In the context of job evaluation methods, which of the following is a common way of
ranking?
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A) Paired comparison
B) Interval scaling
C) Factor weights
D) Compensable factors
39) The ________ method of job evaluation is the most commonly used method in the United
States and Europe.
A) ranking
B) factor comparison
C) classification
D) point
40) In the point method, the second step in designing a plan is to:
A) conduct job analysis.
B) scale the factors.
C) determine the compensable factors.
D) prepare a job evaluation manual.
41) In the context of the point method of job evaluation, ________ are job attributes that
provide the basis for evaluating the relative growth of jobs inside an organization.
A) competitive skills
B) compensable factors
C) core competencies
D) benchmark factors
42) Which of the following is a disadvantage of the point method?
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A) It can leave too much room for manipulation.
B) It can become bureaucratic and rule-bound.
C) It does not allow for comparisons.
D) It does not communicate what is valued.
43) Which of the following methods requires evaluators to agree on which jobs are the most
and least valuable, then the next most and least valued, and so on, until all the jobs have been
ordered?
A) The alternation-ranking method
B) The classification method
C) The point method
D) The paired-comparison method
44) The final step in designing a point plan involves
A) developing online software support.
B) selecting compensable factors.
C) communicating the plan and training users.
D) scaling the factors.
45) The most widely used point method job evaluation is the:
A) Hay Group plan.
B) Equal Pay Act generic plan.
C) factor comparison plan.
D) Position Analysis Questionnaire plan.
46) ________ refers to determining the intervals on a measurement instrument.
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A) Scaling
B) Policy capturing
C) Alternation ranking
D) Classification
47) Research shows that ________ factor(s) account(s) for 98 to 99 percent of the variance in
job evaluation plans.
A) one
B) two
C) three
D) four
48) Most factor scales have ________ degrees.
A) six to nine
B) four to eight
C) three to seven
D) two to four
49) When compensable factor importance weights are inferred using statistical methods, it is
called:
A) policy capturing.
B) committee a priori judgment approach.
C) factor analysis.
D) regression analysis.
50) ________ are more likely to conduct job evaluations of senior management jobs.
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A) Compensation analysts
B) Compensation managers
C) Peers
D) Junior incumbents
SHORT ANSWER. Write the word or phrase that best completes each statement or
answers the question.
51) What are the major decisions in a job evaluation process?
52) What are the characteristics of a benchmark job?
53) What are the two aspect of diversity in work?
54) Discuss the two common methods of ranking.
55) What are the steps in designing a point plan?
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Answer Key
Test name: chapter 5
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