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Job Evaluation and Compensation Management
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Job Evaluation and Compensation Management
Job Evaluation and Compensation Management
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1
Question
What is the definition of job evaluation in human resource management?
Page 1
Answer
Systematic process to determine the relative worth of jobs within an organization for establishing a fair wage and salary structure.
2
Question
What does internal equity mean in the context of job evaluation?
Page 1
Answer
Employees compensated according to job value, not personal characteristics or performance.
3
Question
What job-related factors does job evaluation assess?
Page 1
Answer
Skills required, level of responsibility, effort involved, working conditions, degree of complexity.
4
Question
How does job evaluation contribute to organizational efficiency?
Page 1
Answer
Enhances job satisfaction, motivation, morale by ensuring fair, transparent pay decisions.
5
Question
According to Knowles and Thompson, what discrepancy does job evaluation eliminate?
Page 2
Answer
Paying high wages to jobs not requiring great skill, effort, responsibility.
6
Question
What is the first objective of job evaluation?
Page 2
Answer
Secure complete, accurate, impersonal descriptions of each distinct job.
7
Question
How does job evaluation ensure internal equity?
Page 3
Answer
Compares jobs on skill, effort, responsibility, working conditions to prevent inequalities.
8
Question
What is the basis for wage and salary structure from job evaluation?
Page 3
Answer
Scientific foundation grouping jobs into grades with assigned pay scales.
9
Question
How does job evaluation improve employee motivation?
Page 4
Answer
Fair compensation based on job roles increases satisfaction, morale, performance.
10
Question
What is a key limitation of job evaluation?
Page 4
Answer
Subjective due to human judgment in factors, weights, rankings.
11
Question
Why does job evaluation not consider individual performance?
Page 5
Answer
Assesses job role value, ignoring efficiency, experience, skills acquired.
12
Question
What makes job evaluation time-consuming and costly?
Page 5
Answer
Detailed job analysis, descriptions, method selection, expert committees, updates.
13
Question
What is the first step in the job evaluation process?
Page 7
Answer
Identify the purpose, such as pay structure design or equity assurance.
14
Question
What is step 2 in job evaluation?
Page 7
Answer
Select appropriate method like ranking, classification, or point factor.
15
Question
What are the five basic steps of the job evaluation process?
Page 6
Answer
1. Identify purpose. 2. Select method. 3. Gather info. 4. Analyze. 5. Determine pay.
16
Question
What is the first pre-requisite for effective job evaluation?
Page 8
Answer
Determining clear job system and design to differentiate roles.
17
Question
Why involve trade unions in job evaluation?
Page 9
Answer
Enhances transparency, prevents disputes, ensures acceptance in bargaining.
18
Question
What ensures simplicity in job evaluation system?
Page 9
Answer
Easy to understand criteria, methods for employee acceptance.
19
Question
Why conduct market surveys before job evaluation?
Page 9
Answer
Align internal values with external rates for competitiveness.
20
Question
What is the job ranking method?
Page 12
Answer
Simplest method ranking jobs highest to lowest on overall value.
21
Question
What characterizes the job classification method?
Page 12
Answer
Groups jobs into predefined classes/grades by responsibility, skill, complexity.
22
Question
How does market pricing method work?
Page 13
Answer
Sets salaries based on external market surveys and competitor data.
23
Question
Describe the point factor method.
Page 14
Answer
Quantitative: breaks jobs into factors (skill, effort, etc.), assigns points for ranking.
24
Question
What is the factor comparison method?
Page 14
Answer
Hybrid: ranks benchmark jobs by factors, assigns monetary values, compares others.
25
Question
How do job ranking and point factor methods differ?
Page 12
Answer
Ranking: subjective whole-job, simple. Point factor: objective factors/points, complex.
26
Question
What is wage and salary administration?
Page 15
Answer
Formulation, implementation, maintenance of fair compensation system including pay, incentives, benefits.
27
Question
What role does wage administration play in talent attraction?
Page 16
Answer
Competitive pay aligned with standards draws skilled professionals, reduces turnover.
28
Question
How does wage administration ensure equity?
Page 17
Answer
Comparable pay for similar jobs/responsibilities, minimizes bias, discrimination.
29
Question
What is basic wage in compensation?
Page 18
Answer
Fixed amount for job duties, base for other calculations like HRA, PF.
30
Question
What are allowances in wage administration?
Page 18
Answer
Additional payments for personal/work expenses like DA, HRA, transport.