CH. 8 - Point Method of Job Eval
11. 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 - ANS -D
\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. - ANS -c
\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. - ANS -a
\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. What 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 - ANS -c
\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 - ANS -d
\Four main categories of compensable factors are used widely in industry. Which of the following
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. - ANS -b
, \In calibrating job evaluation results with the market, we select "key" organizational jobs for
market comparisons. What are these "key" jobs called?
a. benchmark jobs
b. market comparators
c. market calibrators d. compensable jobs - ANS -a
\In exploring solutions to job evaluation problems, what 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. - ANS -c
\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 describes the grouping of these jobs?
a. pay grade
b. range tightness
c. pay range
d. pay structure - ANS -a
\The pay policy line is used to establish which pay structure component? a. midpoint of the pay
range
b. range spreads
c. overlaps between ranges
d. pay grade size - ANS -a
\The 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 - ANS -d
\Two thousand points are distributed between compensable factors, based on the following:
education 750 points, time pressure 350 points, customer contact 500 points, and
communication skills 400 points. Which step in developing a job evaluation system using the
point method recognizes these variations in importance?
a. defining the factors
b. weighting the factors
c.. scaling the factors
d. testing the system - ANS -b
\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
11. 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 - ANS -D
\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. - ANS -c
\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. - ANS -a
\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. What 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 - ANS -c
\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 - ANS -d
\Four main categories of compensable factors are used widely in industry. Which of the following
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. - ANS -b
, \In calibrating job evaluation results with the market, we select "key" organizational jobs for
market comparisons. What are these "key" jobs called?
a. benchmark jobs
b. market comparators
c. market calibrators d. compensable jobs - ANS -a
\In exploring solutions to job evaluation problems, what 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. - ANS -c
\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 describes the grouping of these jobs?
a. pay grade
b. range tightness
c. pay range
d. pay structure - ANS -a
\The pay policy line is used to establish which pay structure component? a. midpoint of the pay
range
b. range spreads
c. overlaps between ranges
d. pay grade size - ANS -a
\The 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 - ANS -d
\Two thousand points are distributed between compensable factors, based on the following:
education 750 points, time pressure 350 points, customer contact 500 points, and
communication skills 400 points. Which step in developing a job evaluation system using the
point method recognizes these variations in importance?
a. defining the factors
b. weighting the factors
c.. scaling the factors
d. testing the system - ANS -b
\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
