Practice Quiz

SPHR Human Resources

Category - Rewards

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Which of the following statements about the point factor method of job evaluation is true?
  1. Point factor systems do not establish levels of performance within each compensable factor, since that would constitute making the error of evaluating the person instead of the position.
  2. There is a greater likelihood of rater subjectivity with point factor methods of job evaluation than with whole job methods, since point factor systems require the evaluator to make more judgments.
  3. The product of a completed job evaluation will generate information that will be helpful to establishing a job worth hierarchy.
  4. While point factor systems address evaluative information about different compensable factors, they do not address the relative importance of each compensable factor.
Explanation
Answer - C - The information that is generated through the job evaluation process will provide information that is helpful to establishing a job worth hierarchy.

Key Takeaway: Option A is not the best choice, since point factor systems do establish levels of performance within each compensable factor. The potential for rater subjectivity is lower with the point factor job evaluation method than it is with the whole job methods of job evaluation. The point factor systems also do address the relative importance of each compensable factor.
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