What Is the Primary Disadvantage of the Job Evaluation System

question 62

Multiple Choice

What is the primary disadvantage of the job evaluation system?

• A) It makes it difficult to slot a new job in the existing pay structure.
• B) There is reduction of compression in wage differentials if increases are given as a percentage of the total points.
• C) Union and management must initially agree on the identification,definition,and point assignments associated with compensable factors.
• D) It supports team-based production,which blurs job boundaries.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the production of a specific product and are a major component of its cost.

Direct Labor

Wages paid to workers directly involved in the production of goods or services, as opposed to administrative or managerial staff.

Manufacturing Overhead

All the indirect costs associated with producing a product, which may include the cost of utilities, depreciation of manufacturing equipment, and salaries of managerial staff.

Conversion Cost

The combined costs of direct labor and manufacturing overheads that are incurred in the process of converting raw materials into finished goods.