1301 Study Guide - Quiz Guide: Petty Cash, Inventory Turnover, Financial Ratio

QUESTION 1

1. What is the method to establish pay grade widths in which the point spreads are equal for all pay grades?

   a. pay grade bandwidth approach
   b. equal interval approach
   c. equal increase approach
   d. equal percentage approach

1 points   

QUESTION 2

1. Which variable may be considered an advantage associated with the "a priori" method in determining factor weights?

   a. It simple and easily understood.
   b. It assumes pay structures used for benchmarking are correct.
   c. It emphasizes current pay scales.
   d. It forces committee members to work together.

1 points   

QUESTION 3

1. The point method of job evaluation has many benefits, but it does have some drawbacks. From the list below, what would be considered a drawback of the point method?

   a. creates too large of a hierarchy of jobs
   b. creates a large number of appeals
   c. regression line is very rarely applied to the pay system
   d. appears scientifically objective but in reality it is very subjective

1 points   

QUESTION 4

1. You have been provided with the following information about a certain pay range: minimum $50,000; mid-point $55,000; and maximum $60,000. What is the range spread and the range spread percentage?

   a. $10,000 and 20%
   b. $5,000 and 83.33%
   c. $5,000 and 20%
   d. $10,000 and 8.33%

1 points   

QUESTION 5

1. Which step in developing a job evaluation system using the point method allows you to quantify the extent to which each factor is present in a job?

   a. defining the factors
   b. weighting the factors
   c. scaling the factors
   d. testing the system

1 points   

QUESTION 6

1. A company decides to include "customer contact" as a compensable factor in their job evaluation system. What conclusion can you draw from this?

   a. The organization does not value "customer contact" above all other compensable factors.
   b. The organization wants to avoid customer complaints.
   c. "Customer contact" would be explicitly linked to performance bonuses.
   d. "Customer contact" is central to the execution of the company's strategy.

1 points   

QUESTION 7

1. Which of the following should be avoided when using the point method of job evaluation?

   a. benchmarking
   b. factor overlap
   c. equal interval approach
   d. enlargement of pay grid

1 points   

QUESTION 8

1. A "match the market" pay strategy means all jobs in the organization will actually match the market.

    True

    False

1 points   

QUESTION 9

1. Considering the factor of "supervisory responsibility," which degree statement is an example of inconsistent construct formation?

   a. Degree 1: no supervisory responsibilities
   b. Degree 2: responsible for supervision of one to three subordinates
   c. Degree 3: responsible for supervision of four to nine subordinates
   d. Degree 4: responsible for development of annual operating budget

1 points   

QUESTION 10

1. In a point method of job evaluation, large pay range overlaps are preferred.

    True

    False

1 points   

QUESTION 11

1. Which term refers to the differences between the range midpoints of adjacent pay grades in a pay structure expressed by dollars?

   a. range spread
   b. broadbands
   c. split pay range
   d. intergrade differentials

1 points   

QUESTION 12

1. Which of the following best defines a benchmark job?

   a. It is a job in the firm's job evaluation system for which there is a good match in the labour market data.
   b. It is a job in the market data that matches a pay overlap.
   c. It is the job in the organization that has a regression line equal to (1) on the pay policy line.
   d. It is the job that is adjusted to the market line for the intended pay level.

1 points   

QUESTION 13

1. Mille, a human resource compensation specialist, determines that the correlation coefficient is nearly –1 (negative one) after calculating a straight regression line. What conclusion can Mille make based on this nearly perfect correlation coefficient?

   a. The lower the job evaluation points, the lower the pay
   b. The higher job evaluation points, the higher the pay.
   c. The higher the job evaluation points, the lower the pay.
   d. The nearly –1 (negative one) correlation coefficient implies that no change in the pay system is required.

1 points   

QUESTION 14

1. Your task is to persuade an executive to design a job evaluation system using the point method. What would be the focal point of your argument?

   a. The point method has a high degree of accuracy in measuring jobs.
   b. The point method includes performance management.
   c. The point method is simple to use.
   d. The point method is the only system recognized by employment equity legislation.

1 points   

QUESTION 15

1. The terms job evaluation and job analysis are interchangeable.

    True

    False

1 points   

QUESTION 16

1. One of the greatest benefits of using a point method of job evaluation is that it is statistically scientific.

    True

    False

1 points   

QUESTION 17

1. Which statement best defines range spread?

   a. It is the difference between the first and last pay broadband
   b. It is the difference between the range midpoints of adjacent pay grades in a pay structure, expressed in dollars.
   c. It is calculated by dividing the intergrade differential (expressed in dollars) of each pay grade by the midpoint (in dollars) of the previous pay grade
   d. It is the difference between the maximum and the minimum pay level, in dollars, for a given pay range.

1 points   

QUESTION 18

1. In order to establish a midpoint of the pay range you must first convert the market line into a pay line policy.

    True

    False

1 points   

QUESTION 19

1. Which of the following takes place once the job evaluation system has been finalized?

   a. compensable factors are weighed
   b. all jobs are scored
   c. factor degrees are analyzed
   d. factor weightings are measured

1 points   

QUESTION 20

1. What is a disadvantage of having very narrow pay grades?

   a. The only way for an employee to significantly increase their wages is through a promotion.
   b. It makes seniority systems redundant.
   c. The reliability of the pay grade is low.
   d. The internal stability of the pay grade is low.