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SHRM-CP PEOPLE Questions - Part 22
1. When developing a pay structure, which data set should the HR practitioner use during the development process?
A) Average of low-paying Β and high-paying positions
B) Compiled job analysis, job documentation, and job evaluation
C) Overall points or values used during job evaluation
D) Information gathered from surveys, local markets, and like institutions
2. Under which circumstances should a market-based job evaluation be used?
A) When an organization is positioning against its compensation philosophy
B) In larger organizations where a hierarchy of positions is being established
C) When using generic job characteristics to reflect skill and responsibility
D) In smaller organizations where jobs are grouped by job families
3. Which is an advantage of using the point-factor method in job evaluation?
A) Reduces administration, thus is Β less time-consuming
B) Easier for employees to Β understand
C) Relies on some degree of judgment by evaluators
D) Provides documentation and an audit trail
4. Which type of survey should an HR professional use to collect information on base pay, incentive plans, and benefits?
A) Competitiveness
B) Global
C) Remuneration
D) Marketplace
5. Which is an advantage of using the point-factor method in job evaluation?
A) Reduces administration, thus is Β less time-consuming
B) Relies on some degree of judgment by evaluators
C) Provides documentation and an audit trail
D) Easier for employees to Β understand
A) Average of low-paying Β and high-paying positions
B) Compiled job analysis, job documentation, and job evaluation
C) Overall points or values used during job evaluation
D) Information gathered from surveys, local markets, and like institutions
2. Under which circumstances should a market-based job evaluation be used?
A) When an organization is positioning against its compensation philosophy
B) In larger organizations where a hierarchy of positions is being established
C) When using generic job characteristics to reflect skill and responsibility
D) In smaller organizations where jobs are grouped by job families
3. Which is an advantage of using the point-factor method in job evaluation?
A) Reduces administration, thus is Β less time-consuming
B) Easier for employees to Β understand
C) Relies on some degree of judgment by evaluators
D) Provides documentation and an audit trail
4. Which type of survey should an HR professional use to collect information on base pay, incentive plans, and benefits?
A) Competitiveness
B) Global
C) Remuneration
D) Marketplace
5. Which is an advantage of using the point-factor method in job evaluation?
A) Reduces administration, thus is Β less time-consuming
B) Relies on some degree of judgment by evaluators
C) Provides documentation and an audit trail
D) Easier for employees to Β understand
1. Right Answer: B
Explanation: Once the job analysis, job documentation, and job evaluation are completed and other relevant information is collected, an organization uses all the data to develop its pay structure. Information gathered from surveys, local markets, and like institutions may assist with information gathering for benchmarking the position but Β only a part of the overall data collection for creating a pay structure. An organization should look at all positions, not just low- or high-paying positions. Job evaluation is only one aspect of developing a pay structure.
2. Right Answer: A
Explanation: A compensation and benefits specialist conducted a salary data survey last year but did not have time to benchmark the results to the organization's pay structure. What action should the specialist take at this point in time? Completely redo the survey from the beginning. Weight the data compared to other survey data. Age the data to make it current. Level the data to determine relevance. When data is aged, older wage survey data is changed to reflect the movement of salaries in the market since the survey was conducted. If the data is aged, it is still usable.
3. Right Answer: D
Explanation: The correct answer is the most distinguishable feature of the point-factor method; it is the most systematic and analytical method and it includes documentation of the process. Other job evaluation methods do not have this.
4. Right Answer: C
Explanation: Remuneration surveys, the global terminology for compensation and benefit surveys, are used to collect information on prevailing market compensation and benefit practices. This type of survey allows an organization to check its remuneration structures against global and local trends.
5. Right Answer: C
Explanation: The correct answer is the most distinguishable feature of the point-factor method; it is the most systematic and analytical method and it includes documentation of the process. Other job evaluation methods do not have this.
Explanation: Once the job analysis, job documentation, and job evaluation are completed and other relevant information is collected, an organization uses all the data to develop its pay structure. Information gathered from surveys, local markets, and like institutions may assist with information gathering for benchmarking the position but Β only a part of the overall data collection for creating a pay structure. An organization should look at all positions, not just low- or high-paying positions. Job evaluation is only one aspect of developing a pay structure.
2. Right Answer: A
Explanation: A compensation and benefits specialist conducted a salary data survey last year but did not have time to benchmark the results to the organization's pay structure. What action should the specialist take at this point in time? Completely redo the survey from the beginning. Weight the data compared to other survey data. Age the data to make it current. Level the data to determine relevance. When data is aged, older wage survey data is changed to reflect the movement of salaries in the market since the survey was conducted. If the data is aged, it is still usable.
3. Right Answer: D
Explanation: The correct answer is the most distinguishable feature of the point-factor method; it is the most systematic and analytical method and it includes documentation of the process. Other job evaluation methods do not have this.
4. Right Answer: C
Explanation: Remuneration surveys, the global terminology for compensation and benefit surveys, are used to collect information on prevailing market compensation and benefit practices. This type of survey allows an organization to check its remuneration structures against global and local trends.
5. Right Answer: C
Explanation: The correct answer is the most distinguishable feature of the point-factor method; it is the most systematic and analytical method and it includes documentation of the process. Other job evaluation methods do not have this.
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