Question Detail

IRP 321 Compensation Management policies Objective Question
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Question

What is a significant danger associated with the Ranking method of job evaluation?
Options
A It is overly complex and time-consuming to implement.
B It tends to create too many distinct pay grades.
C It is susceptible to subjectivity and impressions rather than facts.
Correct Answer
D It often leads to overpaying employees compared to market rates.
Correct Answer

Option C is the correct answer.

Detailed Explanation

Page 24 notes a key drawback of the Ranking method: 'There is the danger of doing the ranking subjectively, that is based on impression as against facts.'

Hint

Consider the simplest method's potential for bias.

Question Info

Course: IRP 321
Topic: Compensation Management policies
Type: Objective
Difficulty: Not specified
Question 58 of 59
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