Compensation 10th Edition by George Milkovich Test Bank

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Compensation 10th Edition by George Milkovich Test Bank




Compensation 10th Edition by George Milkovich Test Bank


Chapter 06

Person-Based Structures


Multiple Choice Questions

1. The roots of both job analysis and job evaluation can be traced to ____.

A. Frederick Taylor


B. Karl Marx


C. Adam Smith


D. Ronald McFreyer


2. Routine work is also termed ____.

A. transactional work


B. hygiene work


C. tacit work


D. system work


3. In todays organizations, in order to increase competitiveness and success work is analyzed by separating transactional work from:

A. core work.


B. hygiene work.


C. tacit work.


D. system work.


4. Person-based pay systems are best suited for all of the following except:

A. supporting continuous learning.


B. flexibility.


C. transactional work.


D. complex work.


5. The main advantage of skill-based pay plans is:

A. the line of sight is clear.


B. they aid in matching workers to the work flow.


C. they are less expensive than job-based plans.


D. courts view them very favorably.


6. Skill-based pay applications is most common in:

A. education.


B. manufacturing.


C. health care.


D. service industries.


7. The certification process in skill-based pay is analogous to _____ in a job-based analysis.

A. job analysis


B. compensable factors


C. regression analysis


D. factor degrees and weights


8. Compensable factors, skill blocks, and competency sets are all for the purpose of:

A. assessing relative value.


B. collecting work content information.


C. determining what to value.


D. each of the three has a different purpose.


9. Skill blocks are to job evaluation as _____ is to factor degrees and weights.

A. certification process


B. competency sets


C. skill analysis


D. core competencies


10. _____ are to behavioral descriptors as skill analysis is to the certification process.

A. Factor degrees and weights


B. Job analysis


C. Core competencies


D. Competency sets


11. In a multi-skill system, pay increases come with:

A. improved efficiency.


B. tenure and seniority.


C. job assignments.


D. certification of new skills.


12. Which of the following is least likely to be used as a skill-based certification method?

A. Tests


B. College degree


C. Peer review


D. On-the-job demonstration


13. Information such as quality course, shop floor control, tool setup and plant first aid are examples information that might be used to develop a _____ pay structure.

A. job-based


B. classification


C. competencies


D. skill-based


14. _____ is the most important factor affecting perception of fairness of a skill-based plan.

A. The design of the certification process


B. The rate of movement through the skill blocks


C. Extent of alignment with the organizations strategy


D. The time and effort required to learn skill blocks


15. A camper is a person who _____ in a skill-based pay system.

A. tops out in a skill-based pay system


B. is a jack of all trades


C. is an employee who does not want to rotate jobs


D. who moves too quickly from job to job


16. The most important factor determining success of a skill-based pay plan is:

A. its impact on labor costs.


B. how well it aligns with the organization strategy.


C. the stakeholder satisfaction with the plan.


D. its effect on productivity.


17. Skill-based plans tend to work best in organizations using a(n) _____ strategy.

A. innovator


B. defender


C. laissez-faire


D. cost-cutter


18. _________ are the observable behaviors that indicate the level of a competency.

A. Competency sets


B. Core competencies


C. Competency indicators


D. Behavior scale points


19. _____ translate each core competency into action.

A. Competency indicators


B. Multi-functional skills


C. Skill-based structures


D. Competency sets


20. In analyzing a firms competencies under impact and influence, what are direct persuasion, multiple attempts to persuade, and multiple actions to influence?

A. Competency indicators


B. Competency factors


C. Competency sets


D. Core competency scales


21. The growing view of competencies is they are a set of ____.

A. traits


B. skills and knowledge


C. self-concepts and motives


D. behaviors requiring no assumptions


22. Skill-based is to transactional work as competencies are to _____ work.

A. tightly coupled


B. tacit knowledge


C. programmed


D. office and clerical


23. The process of identifying competencies resembles identifying _____ as part of job evaluation.

A. compensable factors


B. job description


C. employee requirement


D. workflow outlay


24. Which of the following is the most important attribute of competency-based structure in a global work environment?

A. Supports the work flow


B. Fair to employees


C. Common basis for communication


D. Supports the organization strategy


25. Which are the two reasons that make competencies a risky foundation for a pay system?

A. Number of stakeholders and lack of a global standard


B. Openness and non-quantifiable nature


C. Vagueness and subjectivity


D. Lack of motivation and abstract objectives


26. The scheme used in the text for classifying competencies consists of three groups. Which of the following is not one of them?

A. Personal characteristics


B. Team dynamics


C. Visionary


D. Organization specific


27. Leadership, customer orientation and functional expertise are examples of which group of competencies?

A. Personal characteristics


B. Visionary


C. Organization specific


D. Team dynamics


28. Competencies are derived from the _____ beliefs about the organization and its strategic intent.

A. executive leaderships


B. stakeholders


C. employees


D. customers


29. Research shows the reliability among rankings of jobs by different people is:

A. 15-36


B. 35-46


C. 55-66


D. 85-96


30. Reliability of job evaluations may be measured by:

A. determining if different evaluators produce similar results.


B. asking the question: What does the evaluation measure?


C. determining hit rates.


D. surveying employee attitudes about the evaluation.


31. Which of the following is not a method for determining validity of job evaluation?

A. Degree of agreement between rankings and rankings of criterion benchmarks


B. Asking the question: What does the evaluation measure?


C. Examining hit rates


D. Degree to which the job evaluation matches an agreed upon pay structure for benchmark jobs


32. An inappropriate way to assess the acceptability of a job evaluation plan and its resulting job structure is to:

A. examine the number of formal appeals.


B. examine the number of requests for reanalysis.


C. conduct employee attitude surveys.


D. examine the number of job offers not accepted.


33. Which of the following is not a method used to apply the job-evaluation plan in a bias-free manner?

A. Include legal advisors while developing a plan.


B. Ensure that the job descriptions are bias-free.


C. Exclude incumbent names from the job evaluation process.


D. Train diverse evaluators.


34. Which of the following regarding skill-based pay is false?

A. Employees have control over their development.


B. Training is a source of complaints.


C. Less supervision is required.


D. Training costs are low.


35. A study of 400 compensation specialists found that:

A. job evaluation data have a larger effect than market data.


B. current pay data have a larger effect than market data.


C. job titles have a larger effect than job evaluation data.


D. market data have a larger effect than job evaluation data.


36. Which of the following is a source of gender bias in job evaluation?

A. Compensable factors related to job content


B. Gender of evaluator


C. Gender of incumbent


D. Race of evaluator


37. Likely disadvantages of person-based pay plans compared to job-based include all of the following except:

A. higher labor costs.


B. a less flexible workforce.


C. higher training costs.


D. a smaller workforce.


38. Managers whose employers use _____ plans focus on placing the right people in the right job.

A. pay-based


B. skill-based plans


C. competency-based


D. job-based


39. A _____ approach controls costs by paying only as much as the work performed is worth, regardless of any greater skills the employee may possess.

A. performance-based


B. competency-based


C. job-based


D. skill-based


40. Which of the following regarding skill-based pay is false?

A. Employees have control over their development.


B. Training is a source of complaints.


C. Less supervision is required.


D. Training costs are low.



True / False Questions

41. Transactional work is typically paid more than tacit work.

True    False


42. Complex work is likely best supported by person-based pay systems.

True    False


43. The majority of skilled-based pay applications are found in hospitals and R & D organizations where teamwork is essential.

True    False


44. Skill-based pay plans can focus on both depth of work and breadth.

True    False


45. Paying employees who are frequently moved from one job to another each day is less complex in a job-based pay than a person-based structure.

True    False


46. One of the main advantages of a skill-based plan is that it facilitates matching people to a changing work flow.

True    False


47. By encouraging employees to take charge of their own development, skill-based plans may give them more control over their work lives.

True    False


48. Research shows that fewer supervisors are required when skill-based plans are used.

True    False


49. Competency-based plans have the potential to clarify new standards and behavioral expectations.

True    False


50. There is far greater uniformity in the use of terms in person-based plans than there is in job-based plans.

True    False


51. Managerial and supervisory analysis provide the data for skill-based pay systems.

True    False


52. Compared to an on-demand review of certifications, scheduling fixed review points makes it easier to budget and control payroll increases.

True    False


53. Skill-based plans are generally well accepted by employees because it is easy to see the connection between the plan, the work, and the size of the paycheck.

True    False


54. A potential disadvantage of skill-based pay is labor costs can be a source of competitive disadvantage.

True    False


55. Skill-based plans become increasingly economical as the majority of employees become certified at the highest pay levels.

True    False


56. Scaled competency indicators are similar to degrees of compensable factors.

True    False


57. The process of identifying compensable factors is similar to the process used to identify compensable factors.

True    False


58. Skill-based pay is used for the same types of jobs as competencies.

True    False


59. As experience with competencies has grown, organizations are placing greater emphasis on business-related descriptions of behaviors.

True    False


60. The main appeal of competencies is the direct link to the organizations strategy.

True    False


61. Advocates of competencies say that by focusing on optimum performance rather than average performance, competencies can help employees maintain their marketability.

True    False


62. Competencies provide guidelines for behavior and keep people focused.

True    False


63. Basing pay on race or gender seems appalling today, but basing pay on someones judgment of another persons integrity is considered the norm nowadays.

True    False


64. In the judgment of the text authors, basing pay on judgments of competencies is not good practice.

True    False


65. Customer orientation is an example of a visionary competency.

True    False


66. Maturity of judgment and respect for others are examples of organization specific competencies.

True    False


67. Since competencies are based upon each organizations mission statement or strategy, core competencies are unique for each company.

True    False


68. Person-based plans often fail to account for whether or not an individual is using a particular skill on a particular day.

True    False


69. In virtually all the studies on job evaluation, job-based evaluation is treated as a measurement device.

True    False


70. Research on person-based pay systems has focused on the reliability and validity of the systems.

True    False


71. Reliability of job evaluations can be improved by using evaluators who are neutral third parties or by employing consumer evaluation committees.

True    False


72. Validity refers to the degree to which the evaluation assesses the relative worth of jobs to the organization.

True    False


73. One approach to both improving and measuring the level of acceptance of job evaluation is to establish a formal appeals process.

True    False


74. Recent research shows that use of on-line job evaluation by independent managers is more reliable than traditional job evaluation committees.

True    False


75. The text argues validity should be expanded to include impact on pay decisions.

True    False


76. Defining the compensable factors and scales to include the content of jobs held predominantly by women is one of the methods to ensure that job evaluation plans are bias-free.

True    False



Short Answer Questions

77. How do modern organizations analyze work processes?





78. Briefly discuss skill-based plans.





79. What is the relevance of certification in a multi-skill system?





80. What are the objectives that may be used to assess a skill-based pay plan?





81. Does skill-based pay systems reduce the requirement for supervision?





82. Which are the major skill-analysis decisions?





83. What are the common certification methods organizations use?





84. How do skill-based plans motivate employees?





85. What is relevance of flexibility in skill-based plans?





86. How are organizations redefining the original definition of competencies?






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