Exam 8: Designing Pay Levels, Mix, and Pay

The _____ minimizes the distortion of the central tendency caused by outliers.

Which of the following is an example of a company that uses broad banding?

All of the following are examples of potential anomalies EXCEPT _____.

Identifying pay survey participants by company name is considered price fixing under the Sherman Act.

A company using a skill-based pay system prices the job of lead assembler between $10 and $22 per hour.Survey data showed that the job of assembler averaged $10 per hour and the job of assembly supervisor averaged $22 per hour.The company is using the _____ method of job matching.

Explain the low-high approach in selecting jobs for inclusion in a compensation survey.

Smaller pay ranges may reduce the opportunities for promotion.

What is a market line?

Because employers are raising employee pay at various times during the year,survey data must be updated using a process called _____ or _____.

Which of the following statements is true about market pricers?

The _____ pay strategy emphasizes external competitiveness and deemphasizes internal alignment.

Mark and Steve work as crane operators in a construction company called Asai Corp.Asai uses a skill-based plan that establishes single flat rates for each skill level.Mark performs better than Steve even though Steve has more seniority.Which of the following statements is most likely to be true in this scenario?

The _____ publishes extensive information on various occupations in different geographic areas.It is a major source of publicly available compensation data.

The process of multiplying survey data by some factor judged to reflect the difference between a survey benchmark job and a company job is called _____.

A pure market pricing strategy carried to its extreme tends to ignore internal alignment completely.

A survey conducted in January 2013 found that the median pay effective January 1,2013,for a clerk was $22,000 and that the forecast rate of wage increases in the market for 2013 was 5 percent and another 5 percent for 2014.An employer choosing to follow a lead strategy of 4 percent above the market for the plan year will need to _____.

The final step in determining externally competitive pay levels and structures is the merging of internal and external pressure.

Adjustments to forms of pay occur more often than adjustments to overall pay level.

If the purpose of a survey is to price the entire structure of a job,then benchmark jobs can be selected to include the entire job structure.

What is a survey? What purpose does it serve in terms of compensation?