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Base pay administration and pay for
performance Questions and Correct
Answers/ Latest Update / Already Graded
3 types of base pay
Ans: 1. Salary
2. Hourly
3. Piece rate
What are the two job evaluation methods?
Ans: 1. Market pricing
2. Job content
What is job evaluation
Ans: A systematic method and process for determining and
comparing the relative value of one job to others
What is the market data approach to job evaluation?
Ans: - Job descriptions are used to match survey data
- Benchmark jobs are arranged into a hierarchy based on an
analysis of market data
All rights reserved © 2025/ 2026 |
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- Jobs with no market data or slide it in using job contact to
determine relative worth
What is the job content approach to job evaluation
Ans: Relative internal value is determined between jobs based
in the nature and level of work
Some jobs are priced as anchor points
Why is job hierarchy important?
Ans: Because it helps establish a relationship between various
jobs, allowing groupings of similar jobs
Helps compensation professionals, determine how various jobs
can be classified within the organization
Also creates the foundation of a base pay system
Why is job hierarchy used?
Ans: Do you determine and ensure internal and/ or external
equity, among both positions and groups of positions
What is a base pay structure?
All rights reserved © 2025/ 2026 |
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Ans: A management tool that reflects the collection and
organization of internal and external compensation data to
support job values. It consist of a series of pay ranges that
represent jobs of similar internal, and or external worth.
What are the three objectives of a base pay structure?
Ans: 1. Create alignment between work and rewards.
2. Help achieve organizational objectives; affective
compensation tools for supporting the organization.
3. Reflect the companies desired position with respect to
competitive pay at a certain point in time.
What are the two types of base pay structures?
Ans: 1. Market data emphasis. (Market based approach)
2. Job content emphasis (point factor)
What is the market based approach?
Ans: Uses external comparisons to create a pay structure.
Involves completing a market pricing analysis of benchmark
jobs, creating a market based job, hierarchy, and assigning
benchmark and non-benchmark jobs to the pay structure.
All rights reserved © 2025/ 2026 |
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What are the characteristics of market pricing and sliding?
Ans: 1. Simple to administer.
2. Easy to understand.
3. No job evaluation points.
4. Responsive to market changes.
What is the point factor approach?
Ans: Involves assigning a point value to specific jobs in the
company.
What are the two approaches that can be used to develop a point
system pay structure?
Ans: 1. Continuum approach.
2. Pay structure approach.
What is the continuum approach?
Ans: Internal equity is the priority
No job grades - develop a base pay policy line by regressing job
evaluation points with competitive market rates for each
benchmark job.
Each point value will have its own salary range
All rights reserved © 2025/ 2026 |
Base pay administration and pay for
performance Questions and Correct
Answers/ Latest Update / Already Graded
3 types of base pay
Ans: 1. Salary
2. Hourly
3. Piece rate
What are the two job evaluation methods?
Ans: 1. Market pricing
2. Job content
What is job evaluation
Ans: A systematic method and process for determining and
comparing the relative value of one job to others
What is the market data approach to job evaluation?
Ans: - Job descriptions are used to match survey data
- Benchmark jobs are arranged into a hierarchy based on an
analysis of market data
All rights reserved © 2025/ 2026 |
, Page |2
- Jobs with no market data or slide it in using job contact to
determine relative worth
What is the job content approach to job evaluation
Ans: Relative internal value is determined between jobs based
in the nature and level of work
Some jobs are priced as anchor points
Why is job hierarchy important?
Ans: Because it helps establish a relationship between various
jobs, allowing groupings of similar jobs
Helps compensation professionals, determine how various jobs
can be classified within the organization
Also creates the foundation of a base pay system
Why is job hierarchy used?
Ans: Do you determine and ensure internal and/ or external
equity, among both positions and groups of positions
What is a base pay structure?
All rights reserved © 2025/ 2026 |
, Page |3
Ans: A management tool that reflects the collection and
organization of internal and external compensation data to
support job values. It consist of a series of pay ranges that
represent jobs of similar internal, and or external worth.
What are the three objectives of a base pay structure?
Ans: 1. Create alignment between work and rewards.
2. Help achieve organizational objectives; affective
compensation tools for supporting the organization.
3. Reflect the companies desired position with respect to
competitive pay at a certain point in time.
What are the two types of base pay structures?
Ans: 1. Market data emphasis. (Market based approach)
2. Job content emphasis (point factor)
What is the market based approach?
Ans: Uses external comparisons to create a pay structure.
Involves completing a market pricing analysis of benchmark
jobs, creating a market based job, hierarchy, and assigning
benchmark and non-benchmark jobs to the pay structure.
All rights reserved © 2025/ 2026 |
, Page |4
What are the characteristics of market pricing and sliding?
Ans: 1. Simple to administer.
2. Easy to understand.
3. No job evaluation points.
4. Responsive to market changes.
What is the point factor approach?
Ans: Involves assigning a point value to specific jobs in the
company.
What are the two approaches that can be used to develop a point
system pay structure?
Ans: 1. Continuum approach.
2. Pay structure approach.
What is the continuum approach?
Ans: Internal equity is the priority
No job grades - develop a base pay policy line by regressing job
evaluation points with competitive market rates for each
benchmark job.
Each point value will have its own salary range
All rights reserved © 2025/ 2026 |
