PHR practice question 3 of 25

Your organization is using the whole job ranking technique as part of its non-quantitative job evaluation. Which one of the following best describes the whole job ranking technique?

Full set: 165 questions
Answer options
A: Jobs are ranked from lowest to highest according to the importance that each job holds. Correct answer
B: Jobs are reviewed based on the entire performance of the organization in each category.
C: Jobs are categorized into broad categories or levels.
D: New jobs are categorized into an existing hierarchy of jobs within the organization.
Correct Answer:
A. Jobs are ranked from lowest to highest according to the importance that each job holds.
Explanation

The whole job ranking technique is a non-quantitative job evaluation method. It involves having a committee of experts compare jobs based on their overall worth or contribution to the organization. Each job is considered as a whole rather than being broken down into compensable factors. The process results in a simple ordered list of jobs, ranked from lowest to highest or most important to least important. While straightforward, its subjectivity is a primary limitation. It is most suitable for smaller organizations with a limited number of jobs.

Why Incorrect

B. This describes an organizational performance review or a balanced scorecard approach, not a method for evaluating the relative worth of individual jobs.
C. This describes the job classification or grading method, where jobs are sorted into predefined classes or grades based on common characteristics.
D. This describes the process of "slotting" a new job into an existing pay structure, which occurs after a job evaluation method has been used.

References

1. Martocchio, J. J. (2017). Strategic Compensation: A Human Resource Management Approach (9th ed.). Pearson. (Chapter 6, "Job Evaluation," describes job ranking as a job content evaluation technique).

2. Bussin, M. H. R. (2011). The Remuneration Handbook for Africa: A practical and informative handbook for managing reward and recognition in Africa. Knowres Publishing. (Section on "Non-quantitative job evaluation methods," pp. 102-103, details the whole job ranking method).

3. Henderson, R. I. (2006). Compensation Management in a Knowledge-Based World (10th ed.). Pearson Prentice Hall. (Chapter 9, "Job Evaluation," pp. 258-259, explains the ranking method of job evaluation).

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