Which of the following is not one of the basic steps in point method job evaluation | Boyer Stafford

A set of compensable factors are identified as determining the worth of jobs.

Typically the compensable factors include the major categories of:

  1. Skill
  2. Responsibilities
  3. Effort
  4. Working Conditions

These factors can then be further defined.

  1. Skill
    1. Experience
    2. Education
    3. Ability
  2. Responsibilities
    1. Fiscal
    2. Supervisory
  3. Effort
    1. Mental
    2. Physical
  4. Working Conditions
    1. Location
    2. Hazards
    3. Extremes in Environment

The point method is an extension of the factor comparison method.

Each factor is then divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job.

Jobs are then grouped by total point score and assigned to wage/salary grades so that similarly rated jobs would be placed in the same wage/salary grade.

Advantages Disadvantages
  • The value of the job is expressed in monetary terms.
  • Can be applied to a wide range of jobs.
  • Can be applied to newly created jobs.
  • The pay for each factor is based on judgments that are subjective.
  • The standard used for determining the pay for each factor may have built-in biases that would affect certain groups of employees (females or minorities).


  1. Factors Use well defined factors.
  2. Biases Examine the Factor points for inherent biases against females and minorities.


After ranking, the jobs should be grouped to determine the appropriate salary levels.


InteractivePoint-Method Program (https://hr-software.net/cgi/JobEvaluation.cgi)
Free web-based job evaluation point-method software.

Ch 7.
1. Which of the following processes is used to determine the relative importance of the employees job to the organization and the placing of those jobs in the same hierarchy level?

A. Job analysis
B. Market analysis
C. Performance appraisal
D. Job evaluation

A. Job evaluation

2. Which process is looked upon as the process of gathering data and information about the characteristics required for specific jobs?

A. Job analysis
B. Job evaluation
C. Job description
D. Job specification

A: A Job analysis

3. As a human resource professional, you have been asked by your organization to develop a Job description for the heavy duty mechanics role. What are you likely NOT to include in the job description?

A. Some statement describing the conditions under which mechanic will work under
B. The appropriate pay grades, ranges and future pay increases scales
C. The level of skill certification required for the role
D. The fact that the mechanic will be working under the supervision of a senior technician


4. Which of the following concepts best explains why a compensation specialist is likely to earn more money for working for a Human Resources consulting firm than for a food distribution company?

A. Pay equity
B. Pay differentials
C. Relative value
D. Labour supply


5. Which of the following is NOT a valid purpose for conducting job evaluation?

A. To control employee performance
B. To control wage costs
C. To create equitable pay structure
D. To create perceptions of equitable pay among those covered by the system

6. What do Job specifications focus on?

A. Job activities
B. Reporting structure
C. Employee qualifications
D. Performance


7. Which of the following statements is an example of a job specification?

A. Arranging meetings and scheduling out of town travel
B. Possessing a valid drivers licence
C. Answering telephones and personal inquiries
D reporting to the head of the department


8. Since your company is newly
Created, you do not have any Job descriptions. Which of the following methods of the job analysis will
You need to use?

A. Interviews
B. Questionnaires
C. Functional
D. Observation


9. Carlos decides to use a time-and-motion study to gather information about a particular job. What kind of job analysis method is Carlos using?

A. Observations
B. Interviews
C. Questionnaires
D. Functional job analysis


10. One of the shortcomings associated with job analysis in dynamic work environments is the potential for obsolete data to be used for a variety of human resource decisions. What proactive steps would you recommend to an organization facing this issue?

A. Update job descriptions systematically.
B. Stop conducting job analysis
C. Contract out most of your human resource functions
D. Allow each manager in the organization to create actual job descriptions


11. Which of the following is NOT one of the methods of job evaluation discussed in the text?

A. Ranking method
B. Forced distribution method
C. Factor comparison method
D. Statistical / policy capturing method


12. Which term is used to describe key characteristics of jobs that are valued by organizations and differentiate jobs from one another?

A. Core job dimensions
B. Job facts
C. Compensable factors
D. Benchmarks


13. Organizations need to answer a series of questions in order to conduct job evaluations effectively. What question would a job evaluation process NOT address?

A. Who conducts the job evaluation?
B. Which jobs should be changed?
C. What appeal mechanisms are to be established
D. How should Job evaluation results be applied?


14. Which of the following is NOT a valid reason to re-evaluate jobs?

A. Labour market conditions change significantly
B. The strategy of the organization changes
C. A new performance system is implemented. D. There is a high level of appeals


15. Which of the following procedures is NOT required under the Ontario Pay Equity Act?

A. Identify Job classes by gender
B. Collecting Job information
C. Comparing jobs using gender neutral system
D. Checking for performance appraisal biased


16. Which of the following practices can NOT be used to achieved pay equity?

A. Pay levels for male comparator jobs that will be lowered.
B. All positions in a job class will
Receive the same adjustments in dollar terms
C. Each female job class must receive a yearly adjust until pay equity is achieved
D. Inequitable female job classes with the lowest job rate must receiver a greater adjustment


Ch 8.
Which of the following is NOT a component of the point method of job evaluation?

A. Compensable factors
B. Total points
C. Factor degrees
D. Competencies.


2. Four main categories of
Compensable factors are used widely in industry. Which of the following factors could be included in the skill

A. John is often exposed to chemicals
B. Marie needs to solve a variety
Of problems at work
C. Dwayne is held accountable for error rates
D. Dolores often has to be able to lift 25 kg boxes.


3. Under the point method scheme of job evaluation l, what is the main characteristic that distinguishes one job from another thereby making a job more valuable to an organization?

A. Market comparators
B. Regression Analysis
C. A base structure
D. Point scores
Of the Jobs


4. Which of the following compensable factors would you like to include under the main category of, “working conditions”?

A. Requirements associated with being exposed to health hazards
B. Requirements associated with educational levels
C. Requirements associated being responsible unable for the safety of coworkers
D. Requirements associated with having to produce certain levels of output.


5. 2,000 points are distributed between compensable factors,
Based on the following: education 750 points, time pressure 350 points, customer contact 500 points, and communication skills 400 points. Which step in developing a job evaluation system using the point method recognizes the variations in importance?

A. Defining factors
B weighting the factors
C. Scaling the factors
D. Testing the system.


6. Which of the following is NOT a test used to determine the validity to the job evaluation system?

A. Reliability
B. Calibrating to the market
C. Estimating total Compensation costs
D. Feedback surveys


7. What does the market line determine?

A. Whether the firm should lead, lag or match the market
B. The relationship of job evaluation results to market pay rates
C. The relationship of job evaluation results to a firm’s pay grades
D. A pay rate based on a market survey


8. Which of the following is NOT a source of gender bias associated with developing a point method job evaluation process?

A. Excessive range in the degree statements
B. Excluding factors often associated with female dominated positions
C. Biased job descriptions
D. Separate job families


9. The following are hypothetical points proceed to the following jobs:
- heavy duty mechanic:
-human resource specialist: 900
-technician: 900

The organization see these positions as having equal value from a base pay perspective;
Hence there is no difference in pay. What term best describes the grouping of these jobs?

A. Pay grade
B. Range tightness
C. Pay range
D. Pay structure

A. Pay grade

10. Which of the following terms refers to the actual minimum and maximum pay rate, in dollar terms for all the jobs that fall in a particular pay grade?

A. Pay range
B. Broadband isn’t
C. Market anchor
D. Step progression


11. What is a negative consequence of clustering jobs into pay grades?

A. Pay grades make it difficult to satisfy and explain pay rates to employees.
B. Pay grades create less stability for the pay system
C. There may be pressure to reclassify borderline jobs to promote people
To get more money.
D. Similar jobs are grouped into the same grades


12. Which of the following best explains how to establish a pay grade sizes using the equal interval approach?

A. Look for natural breaks between clusters of jobs when setting up the trades
B. Increase the grade widths for higher-value jobs but not necessarily by an equal percent age
C. Reduce the number of pay grades by creating large bands.
D. Make the point spreads equal for all pay grades


13. your company determined the following pay range associated
With a financial service manager: maximum $100,000; midpoint $90,000, and minimum $80,000. What is the range spread percentage for this job?

A. Not enough information provided
B. 20 percent
C. 25 percent
D. 22.22 percent


Chapter 9: Evaluating the Market

1. Which of the following best explains why current employees do not seem to reduce wages for existing employees in the short term when the supply for a particular set of skills far outstrips the demand?

A. Because of the wage compression phenomenon
B. Because of the negative impact
On the morale
C. Because labour budgets tend to be determined on an annual basis
D. Because fewer potential employees tend to put upwards pressure on wages


2. Typically, employees working in the natural resource sector tend to experience long periods of layoffs, while at the same time, they are paid higher compensation compared to other sectors that are less cyclical in nature. Which of the following terms best describes this phenomenon?

A. The supply / demand equilibrium
B. The union effect
C. Compensation differential
D. Wage compensation


3. Which of the following characteristics is NOT typically considered in the selection of market comparator firms?

A. The type of product or service the firm provides
B. Whether the firm Has achieved pay equity
C. Whether the firm is union or non-union
D. The geographic area over which it operates


4. What are three of the main “third-party” sources of compensation data?

A. Statistics Canada, trade journals, government agencies
B. Private agencies, trade journals and government agencies
C. Government agencies, industry groups and consulting firms
D. Consulting firms, boards of trade and publishers


5. What are two main disadvantages associated with using informal in-house surveys?

A. Complexity and cost
B. Cost and reliability issues
C. Cost and speed
D. Reliability and validity issues


6. Which of the following survey sources raises concerns amount HR professionals about the validity of their data?

A. Industry groups
B. formal in-house
C. Free websites
D. Consultants


7. Which of the following topics would typically NOT be included in a survey questions ask by most consultants in the process of populating their compensation databases?

A. Number of employees
B. Criteria associated with movements within pay range
C. Base pay, performance pay, and indirect pay. D. Turnover rates


8. Which of the following steps should be classified as the last
Step in conducting a compensation survey?

A. Identifying the jobs to be surveyed
B. Determining the information to be collected about each job
C. Determining which employees are to be surveyed.
D. Determining the method of data collection


9. Which of the following is NOT a main step in conducting a proper compensation survey?

A. Identify jobs to be surveyed
B. Identify employees to be surveyed
C. Determine the information needed
D. Determining how you will collect data


10. Although very costly to use on a significant scale, which method of data collection provides the best quality of information?

A. Internet surveys
B. Personal interviews
C. Telephone interviews
D. Questionnaires


11. Which of the following is NOT a procedure used to analyze and interpret survey data?

A. Central tendency
B. Dispersion
C. Compa-ratio
D. Data aging


12. Which of the following statements refer to compa-ratio?

A. It is calculated by averaging the pay ranges in the quartiles.
B. It is measured of pay dispersion across employers
C. It is derived by dividing mean base pay by the midpoint of the pay range.
D. It is a calculation based on average base pay for each job.

13. What does a compa-ratio of
Greater than 1 mean?

A. Employees, on average, are being paid above the midpoint not at that firm.
B. The majority of employees are in the first pay quartile
C. The firm is paying their employees in the bottom half of the pay range
D. The firm has only a minority of their employees in the top pay bracket.


Which one of the following is not a method of job evaluation?

Personal observation method is not a method of job evaluation.

What are the 4 job evaluation methods?

Four primary methods of job evaluations used to set compensation levels are point factor, factor comparison, job ranking and job classification.

What is the point method of job evaluation?

The point method evaluates jobs by comparing compensable factors - elements of job content like skill, effort or responsibility that can be used to assess a job's value to the organization. Each factor is defined and assigned a range of points based on the factor's relative importance to the organization.

What are the steps of job evaluation?

10 steps to developing a successful job evaluation.
Outlining the job. ... .
Selecting a job evaluation method. ... .
Ranking method. ... .
Classification method. ... .
Hay or point method. ... .
Decide what factors you most value. ... .
Assess the job in terms of these factors. ... .
Rank this job relative to the other jobs in your organisation..