41. What type of business is most likely to have a high revenue-to-labor-cost ratio?
A. A capital-intensive business
B. A newly formed business
C. A labor-intensive business
D. A diversified business
Labor market comparisons may be more important when the costs of recruiting replacements are high.
42. _____ comparisons may be more important when attracting and retaining qualified employees is difficult, and when the costs of recruiting replacements is high.
A. Labor market
B. International
C. Product market
D. Commodity market
Labor market comparisons may be more important when (1) attracting and retaining qualified employees is difficult and (2) the costs of recruiting replacements are high.
43. Key, or benchmark, jobs have all of the following characteristics EXCEPT:
A. relatively stable content.
B. are common to many organizations.
C. are jobs on which it is possible to obtain market pay survey data.
D. have many incumbents within the organization.
Key jobs are benchmark jobs, used in pay surveys that have relatively stable content and are common to many organizations. Therefore, it is possible to obtain market pay survey data on them.
44. _____ are the different pay rates various employees may get for the same job.
A. Wage differentials
B. Key proximities
C. Compensable factors
D. Rate ranges
The use of rate ranges permits a company to recognize differences in employee performance, seniority, training, and so forth in setting individual pay.
45. In developing a job evaluation system, compensable factors:
A. are generally statistically derived.
B. are the characteristics of jobs that a firm values and chooses to pay for.
C. usually vary significantly across job-evaluation systems.
D. describe all aspects of the jobs being evaluated.
A job evaluation system is composed of compensable factors and a weighting scheme based on the importance of each compensable factor to the organization.
46. An example of a typical compensable factor is:
A. social status.
B. working conditions.
C. longevity.
D. gender.
Compensable factors are the characteristics of jobs that an organization values and chooses to pay for.
47. Which of the following HR activities provides basic descriptive information on job attributes and the job itself?
A. Market survey
B. Job analysis
C. Recruitment
D. Strategic planning
Job analysis provides basic descriptive information on job attributes, and the job evaluation process assigns values to these compensable factors.
48. The job evaluation process includes all of the following EXCEPT:
A. compensable factors.
B. a weighting scheme.
C. pay ranges.
D. scores (ratings).
Rate ranges include pay ranges. It is used for setting the midpoint of pay ranges for either jobs or pay grades.
49. Weighting factors based on expert judgment refers to:
A. pay policy weights.
B. empirical weights.
C. a priori weights.
D. ex post weights.
In the point-factor system, weights can be generated in two ways. Assigning priori weights is one of the ways.
50. Which pay-setting approach places the highest relative emphasis on external comparisons?
A. Basing pay on market surveys that cover as many key jobs as possible.
B. Deriving pay rates for all jobs based on the number of job evaluation points.
C. Grouping jobs into a smaller number of pay grades.
D. Basing pay on skills employees have acquired.
The approach with the greatest emphasis on external comparisons, market survey data, is achieved by directly basing pay on market surveys that cover as many key jobs as possible.