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Under a typical skill-based pay system,companies hire employees at above-market rates.

A) True
B) False

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Broadbanding:


A) reduces the number of pay grades in a salary system.
B) results in narrow categories or groups of jobs.
C) introduces unnecessary distinctions among jobs.
D) prevents the overlapping of pay ranges between two salary bands.

E) A) and C)
F) A) and B)

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The job classification and ranking methods of evaluating the worth of jobs are both examples of qualitative or nonquantitative techniques.

A) True
B) False

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Which of the following is true about the job ranking method?


A) It is the most often used job evaluation technique.
B) It produces an ordering of jobs.
C) It evaluates jobs against a predetermined scale or class.
D) It is used to indicate the relative degree of difference among jobs.

E) B) and C)
F) A) and C)

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Averno Inc.wants to create a flexible base wage/salary structure.Which of the following will be true if the company decided to use the broadbanding approach?


A) Managers will find it difficult to move employees around in the organization.
B) Employees will become reluctant to take a lateral move or a downgrade along the pay structure.
C) Unnecessary distinctions among jobs will be created.
D) Managers will have autonomy in setting pay rates.

E) B) and C)
F) None of the above

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In the point method of job evaluation,after the point scale has been agreed on,point values are derived for key jobs by examining the job descriptions.

A) True
B) False

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The most widely acknowledged shortcoming of wage and salary surveys is that it is difficult to find jobs that are directly comparable.

A) True
B) False

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Ideally,the job evaluation process in an organization should ensure external equity,while wage surveys should ensure internal equity.

A) True
B) False

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Which of the following is a disadvantage of the factor comparison method of job evaluation?


A) It disregards external market wage rates.
B) It is complicated because it breaks down compensable factors into subfactors.
C) It is not easily adapted to changes in the jobs being evaluated.
D) It fails evaluate jobs on a component basis.

E) None of the above
F) A) and C)

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Noba Products Inc.has decided to take the total rewards approach to designing a base wage/salary structure.Which of the following will be true of Noba Products Inc?


A) The company will rely only on pay and benefits when developing a strategy to motivate employees.
B) The company will not be able to effectively engage a diverse workforce.
C) The company will place more emphasis on lower-cost rewards rather than compensation and benefits.
D) The company will provide a limited array of rewards to its employees.

E) C) and D)
F) B) and D)

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Which of the following is an advantage of the job ranking method of job evaluation?


A) It is objective in nature.
B) It evaluates jobs against a predetermined scale.
C) It is easily adaptable to large organizations.
D) It is easy to explain.

E) None of the above
F) C) and D)

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Base wages and salaries are the hourly,weekly,or monthly pay that employees receive in exchange for their work.

A) True
B) False

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What are degree statements?

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Degree statements are written ...

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Which of the following is a potential use of job evaluations?


A) To eliminate the need to compare jobs and pay rates with those of other organizations
B) To reduce pay grievances by reducing their scope
C) To develop a pay structure based on seniority alone
D) To appraise the performance of employees holding the jobs

E) A) and B)
F) C) and D)

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In a market-based pay system,demonstrable characteristics of a person,including knowledge,skills,and behaviors,that enable performance are used as the base for deciding compensation.

A) True
B) False

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Wage and salary surveys are used to collect comparative information on the policies,practices,and methods of wage payment from selected organizations in a particular type of industry.

A) True
B) False

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What is the purpose of wage and salary surveys?

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Wage and salary surveys are used to coll...

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Describe broadbanding.What are its advantages?

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Broadbanding is a base-pay technique tha...

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The human resource department at Blue Artic Inc.is planning a new base wage and salary structure for the company.Discuss the policy issues the human resource department needs to consider in developing and implementing a base wage and salary structure.

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JF Software Inc.has decided to use the factor comparison technique for job evaluation.This method will require evaluators in the organization to conclude the evaluation by linking each compensable factor to a:


A) social grid.
B) growth matrix.
C) monetary scale.
D) point scale.

E) A) and C)
F) B) and C)

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