Test Bank For Strategic Compensation 9th Edition by Martocchio

Test Bank for Strategic Compensation 9th Edition by Martocchio
Test Bank for Strategic Compensation 9th Edition by

Martocchio
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Strategic Compensation, 9e (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
Skill: Concept
AACSB: Analytical Thinking
LO: 6.1: Explain the concept of internal consistency.
2) Which of the following 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
Skill: Concept
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
Skill: Concept
1
Copyright © 2017 Pearson Education, Inc.
4) Which is the fundamental principle of internally consistent compensation systems?
A) Pay rates should mirror pay rate differences among the competition.
B) Jobs that require higher qualifications should be paid more than jobs that require lower
qualifications.
C) All jobs should be valued equally because every job directly contributes to competitive
advantage.
D) All jobs should be valued according to need.
Answer: B
Skill: Concept
5) Who leads the process of analyzing jobs?

A) compensation generalists
B) HR specialists
C) HR generalists
D) compensation specialists
Answer: B
Skill: Concept
6) ________ is a descriptive process.

Answer: Job analysis
Difficulty: Easy
Skill: Concept
7) 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.
Skill: Concept
2
8) Explain two possible limitations associated with establishing internally consistent
compensation systems.
Answer: There may be limitations; however, that hamper agility for companies that strive to
differentiate themselves from their competition. For example, internally consistent pay systems
may reduce a company's flexibility to respond to changes in competitors' pay practices because
job analysis leads to structured job descriptions and job structures. In addition, job evaluation
establishes the relative worth of jobs within the company. Responding to the competition may
require employees to engage in duties that extend beyond what's written in their job descriptions
whenever competitive pressures demand. In the process, the definitions of jobs become more
fluid, which makes equity assessments more difficult.
Another potential limitation of internally consistent compensation structures is the resultant

bureaucracy. Companies that establish job hierarchies tend to create narrowly defined jobs that
lead to greater numbers of jobs and staffing levels. Such structures promote heavy compensation
burdens. Employees' core compensation depends on the jobs they perform, how well they
perform their jobs, or the skills they possess. Employee benefits, however, represent fixed costs
that typically do not vary with employees' job performance or their skills. Employing a larger
number of workers to staff a multitude of narrowly defined jobs contributes substantially to
exorbitant fixed costs for employee benefits.
Difficulty: Difficult
Skill: Concept
9) 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
Skill: Concept
LO: 6.2: Summarize the practice of job analysis.
3
10) 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
Skill: Concept
AACSB: Application of Knowledge
11) Which 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
Skill: Concept
12) A job analysis method is ________ if it accurately assesses each job's duties.
A) reliable
B) complete
C) valid
D) market-based
Answer: C
Skill: Concept
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
Skill: Concept
4
14) This section concisely summarizes the job with two to four descriptive statements.
A) job summary
B) job duties
C) job titles
D) job preview
Answer: A
Skill: Concept
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 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
Skill: Concept
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
Skill: Concept
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
Skill: Concept
5
18) ________ are the social context or physical environment where work will be performed.
Answer: Working conditions
Skill: Concept
19) In an auto manufacturing company, installing a windshield on the assembly line represents a
________.
Answer: job task
Skill: Concept
20) A ________ is a collection of tasks constituting the total work assignment of a single worker.
Answer: position
Difficulty: Easy
Skill: Concept
21) 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
Skill: Concept
22) According to the EEOC, ________ refers to a present competence to perform an observable
behavior.
Answer: ability
Difficulty: Easy
Skill: Concept
23) ________ information describes physical and social factors that influence the nature of work.
Answer: Work context
Skill: Concept
6
24) ________ describe preferences for work environments and outcomes.
Answer: Interests
Skill: Concept
25) ________ skills information describes developed capacities that facilitate learning or the
more rapid acquisition of knowledge.
Answer: Basic
Difficulty: Easy
Skill: Concept
26) Summarize the five main activities of job analysis work.

Answer: First, determine a job analysis program. A company must decide between using an
established system and developing its own system tailored to specific requirements. Both
established and custom job analysis programs vary in the method of gathering data. The most
typical methods for collecting job analysis information are questionnaires, interviews,
observation, and participation. Administrative costs often represent a major consideration in
selecting a job analysis method.
Second, select and train analysts. Job analysts generally must be able to collect job-related
information through various methods, relate to a wide variety of employees, analyze the
information, and write clearly and succinctly. A task force of representatives from throughout the
company ideally conducts the analysis, and HR staff members coordinate it. Although some
companies rely on HR professionals to coordinate and conduct job analysis, many use teams to
represent varying perspectives on work because virtually all employees interact with coworkers
and supervisors.
Third, direct job analyst orientation. Before analysts start specific job analysis techniques, they
must analyze the context in which employees perform their work to better understand
influencing factors. In addition, analysts should obtain and review such internal information as
organizational charts, listings of job titles, classifications of each position to be analyzed, job
incumbent names and pay rates, and any instructional booklets or handbooks for operating
equipment. Job analysts may also find pertinent job information in such external sources as The
Standard Occupational Classification System, trade associations, professional societies, and
trade unions.
Fourth, conduct the study, focusing on data collection and sources of data. Once analysts have
gathered and made sense of these preliminary data, they can begin gathering and recording
information for each job in the company. Analysts should carefully choose the method of data
collection and the sources of data. The most common methods are questionnaires and
observation.
7
Fifth, summarize the results by writing job descriptions. Job descriptions summarize a job's
purpose and list its tasks, duties, and responsibilities, as well as the skills, knowledge, and
abilities necessary to perform the job at a minimum level. Effective job descriptions generally
explain:
• What the employee must do to perform the job

• How the employee performs the job
• Why the employee performs the job in terms of its contribution to the functioning of the
company
• Supervisory responsibilities, if any
• Contacts (and purpose of these contacts) with other employees inside or outside the company
• The skills, knowledge, and abilities the employee should have or must have to perform the
job duties
• The physical and social conditions under which the employee must perform the job
Job descriptions usually contain four sections:

• Job title
• Job summary
• Job duties
• Worker specifications
Skill: Concept
27) Which of the following two are considered job evaluation techniques?
A) market-based and appeals-based
B) compensable content and job-based
C) market-based and job content
D) compensable content and job content
Answer: C
Skill: Concept
LO: 6.3: Describe the practice of job evaluation.
28) Valid and reliable job evaluations result from which two conditions?
A) consistent results; using multiple collection methods
B) consistent results; data obtained under similar conditions
C) data from multiple sources; using multiple collection methods
D) data from multiple sources; data obtained under similar conditions
Answer: C
Skill: Concept
8
29) 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
Skill: Concept
30) 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
Skill: Concept
31) Which of the following is one of the four "universal compensable factors"?
A) cognitive ability
B) personality
C) effort
D) motivation
Answer: C
Skill: Concept
32) Market-based job evaluation uses which approach to collect data to determine prevailing pay
rates?
A) behavioral observation
B) interviews
C) self-assessment
D) surveys
Answer: D
Skill: Concept
LO: 6.4: Summarize various job evaluation techniques.
9
33) 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. Which 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
Skill: Concept
34) Which type of jobs provides 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
Skill: Concept
35) George owns a small public relations firm and customer courtesy is considered to be the
most important factor in all of the jobs. Which job-content evaluation approach is George likely
to use?
A) alternation ranking
B) simple ranking plans
C) paired comparison
D) classification plans
Answer: B
Difficulty: Easy
Skill: Concept
10
36) 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
Skill: Concept
37) Which 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
Skill: Concept
38) Sarah works at a federal government agency. Her pay rate is determined by her GS level and
work seniority. Which 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
Skill: Concept
39) Which of the following type of job evaluation plans is used when the company chooses to
assign job pay rates that are neither too low nor too high relative to the market?
A) market-based
B) internally consistent
C) job-based
D) hybrid
Answer: A
Difficulty: Easy
Skill: Concept
11
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
Skill: Concept
41) What are the considerations for choosing between a single versus multiple job evaluation
methods?
Answer: Compensation professionals must determine whether a single job evaluation technique
is sufficiently broad to assess a diverse set of jobs. In particular, the decision is prompted by such
questions as, "Can we use the same compensable factors to evaluate a forklift operator's job and
the plant manager's job?" If the answer is yes, then a single job evaluation technique is
appropriate. If not, then more than one job evaluation approach should be employed. It is not
reasonable to expect that a single job evaluation technique, based on one set of compensable
factors, can adequately assess diverse sets of jobs (i.e., operative, clerical, administrative,
managerial, professional, technical, and executive). A carpenter's job is clearly distinct from a
certified public accountant's position because manual dexterity is an important compensable
factor that describes carpentry work and is not nearly as central to an accounting position.
Skill: Concept
42) Narrowly defined jobs can create which type of problem?

A) bureaucracy
B) excessive flexibility
C) extremely small pay differentials based on job worth differences
D) difficulty in conducting a job evaluation.
Answer: A
Skill: Concept
LO: 6.5: Explain how internally consistent compensation systems and competitive strategy
relate to each other.
12
Test Bank for Strategic Compensation 9th Edition by Martocchio
43) Developing internally consistent job structures affects the competitive strategy of a company.
Which of the following is a potential constraint on competitive strategy?
A) reducing a company's rigidity to respond to moves by the competition
B) potentially causing the definition of jobs to become less fluid
C) leading to less routinization
D) potentially creating far more bureaucratization within an organization
Answer: D
Skill: Concept
44) 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 result in bureaucracy.
Answer: B
Skill: Concept
13
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5) Who leads the process of analyzing jobs?

6) ________ is a descriptive process.

7) Compare and contrast job analysis and job evaluation.

Another potential limitation of internally consistent compensation structures is the resultant

26) Summarize the five main activities of job analysis work.

• What the employee must do to perform the job

Job descriptions usually contain four sections:

37) Which type of organizations use classification plans most prevalently?

42) Narrowly defined jobs can create which type of problem?

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