Question 1

Which of the following is the first important decision involved in determining pay levels and designing pay structures?

Accepted Answer

A) constructing an internal pay policy line that reflects external pay policy 
B) specifying the employer's external pay policy 
C) designing the survey 
D) defining the purpose of the compensation survey 
E) choosing relevant market competitors to survey 
A) constructing an internal pay policy line that reflects external pay policy 
B) specifying the employer's external pay policy 
C) designing the survey 
D) defining the purpose of the compensation survey 
E) choosing relevant market competitors to survey

Question 2

What is market pricing?

Accepted Answer

Market pricing is an approach

Question 3

reflects the cash value of the job plus bonuses paid to incumbents; it excludes stock options.

Accepted Answer

A) Total compensation 
B) Incentive 
C) Benefit 
D) Base cash 
E) Total cash 
A) Total compensation 
B) Incentive 
C) Benefit 
D) Base cash 
E) Total cash

Question 4

What are the advantages and disadvantages of using broadbanding?

Accepted Answer

Broadbanding encourages employees to mov

Question 5

Discuss the process of trending survey data.

Accepted Answer

Competitors' pay rates are constantly ch

Question 6

Grades and ranges offer managers the flexibility to deal with pressures from external markets and within the organization.

Accepted Answer

A) True 
 B)False

Question 7

Trending is a process by which jobs considered substantially equal for pay purposes are grouped together.

Accepted Answer

A) True 
 B)False

Question 8

What is survey levelling?

Accepted Answer

Survey levelling is a process

Question 9

Which of the following is true about pay grades?

Accepted Answer

A) Pay grades are easy to design. 
B) Jobs within a single pay grade may have different pay ranges. 
C) Pay grades restrict an organization's ability to move people between jobs. 
D) Pay grades are created by grouping jobs considered substantially equal. 
E) Pay grades makes the pay structure inflexible. 
A) Pay grades are easy to design. 
B) Jobs within a single pay grade may have different pay ranges. 
C) Pay grades restrict an organization's ability to move people between jobs. 
D) Pay grades are created by grouping jobs considered substantially equal. 
E) Pay grades makes the pay structure inflexible.

Question 10

Apart from base pay and bonus, includes stock-based incentives too.

Accepted Answer

A) benefit 
B) total compensation 
C) fringe 
D) nominal compensation 
E) total cash 
A) benefit 
B) total compensation 
C) fringe 
D) nominal compensation 
E) total cash

Question 11

The mix of different forms of pay and their relative importance makes up the _.

Accepted Answer

A) pay level 
B) pay package 
C) base pay 
D) pay band 
E) pay grade 
A) pay level 
B) pay package 
C) base pay 
D) pay band 
E) pay grade

Question 12

Variation is:

Accepted Answer

A) expressed as a percentage above the minimum of a pay range. 
B) the distribution of rates around a measure of central tendency. 
C) a data point that falls outside the majority of the data points. 
D) the grouping of jobs considered substantially equal for pay purposes. 
E) the value obtained by adding the base wages of all employees in a survey. 
A) expressed as a percentage above the minimum of a pay range. 
B) the distribution of rates around a measure of central tendency. 
C) a data point that falls outside the majority of the data points. 
D) the grouping of jobs considered substantially equal for pay purposes. 
E) the value obtained by adding the base wages of all employees in a survey.

Question 13

Pay ranges fail to recognize individual differences in performance.

Accepted Answer

A) True 
 B)False

Question 14

Pay rates from market data used in pricing broad bands are known as:

Accepted Answer

A) pay grades 
B) reference rates 
C) pay ranges 
D) anomalies 
E) product rates 
A) pay grades 
B) reference rates 
C) pay ranges 
D) anomalies 
E) product rates

Question 15

Which of the following is true of hiring a third-party consultant instead of managing the survey internally?

Accepted Answer

A) It makes the process inefficient due to the lack of expertise. 
B) It introduces subjectivity into the process. 
C) It may trade off some power over the decisions that determine the quality of the data. 
D) It reduces the company's expenses. 
E) It helps the company gain a greater control in assessing the usefulness of the data. 
A) It makes the process inefficient due to the lack of expertise. 
B) It introduces subjectivity into the process. 
C) It may trade off some power over the decisions that determine the quality of the data. 
D) It reduces the company's expenses. 
E) It helps the company gain a greater control in assessing the usefulness of the data.

Question 16

What are the two steps in broadbanding?

Accepted Answer

The two steps in broadbanding

Question 17

A pay range includes a minimum, a midpoint, and a maximum.

Accepted Answer

A) True 
 B)False

Question 18

When data from a survey is adjusted to represent pay at the current or future date when the pay decisions will be implemented, it is known as:

Accepted Answer

A) frequency distributing 
B) survey normalizing 
C) survey levelling 
D) survey restructuring 
E) aging/trending survey data 
A) frequency distributing 
B) survey normalizing 
C) survey levelling 
D) survey restructuring 
E) aging/trending survey data

Question 19

One of the important questions asked while designing a compensation survey is: "Who should be involved in the survey design?"

Accepted Answer

A) True 
 B)False

Question 20

What needs to be considered before designing a survey?

Accepted Answer

What infor

Which of the following is the first important decision involved in determining pay levels and designing pay structures?

What is market pricing?

reflects the cash value of the job plus bonuses paid to incumbents; it excludes stock options.

What are the advantages and disadvantages of using broadbanding?

Discuss the process of trending survey data.

Grades and ranges offer managers the flexibility to deal with pressures from external markets and within the organization.

Trending is a process by which jobs considered substantially equal for pay purposes are grouped together.

What is survey levelling?

Which of the following is true about pay grades?

Apart from base pay and bonus, includes stock-based incentives too.

The mix of different forms of pay and their relative importance makes up the _.

Variation is:

Pay ranges fail to recognize individual differences in performance.

Pay rates from market data used in pricing broad bands are known as:

Which of the following is true of hiring a third-party consultant instead of managing the survey internally?

What are the two steps in broadbanding?

A pay range includes a minimum, a midpoint, and a maximum.

When data from a survey is adjusted to represent pay at the current or future date when the pay decisions will be implemented, it is known as:

One of the important questions asked while designing a compensation survey is: "Who should be involved in the survey design?"

What needs to be considered before designing a survey?

The Pay Model

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Defining Competitiveness

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters

Exam 8: Designing Pay Levels, Pay Mix, and Pay Structures

Which of the following is the first important decision involved in determining pay levels and designing pay structures?

What is market pricing?

reflects the cash value of the job plus bonuses paid to incumbents; it excludes stock options.

What are the advantages and disadvantages of using broadbanding?

Discuss the process of trending survey data.

Grades and ranges offer managers the flexibility to deal with pressures from external markets and within the organization.

Trending is a process by which jobs considered substantially equal for pay purposes are grouped together.

What is survey levelling?

Which of the following is true about pay grades?

Apart from base pay and bonus, includes stock-based incentives too.

The mix of different forms of pay and their relative importance makes up the _.

Variation is:

Pay ranges fail to recognize individual differences in performance.

Pay rates from market data used in pricing broad bands are known as:

Which of the following is true of hiring a third-party consultant instead of managing the survey internally?

What are the two steps in broadbanding?

A pay range includes a minimum, a midpoint, and a maximum.

When data from a survey is adjusted to represent pay at the current or future date when the pay decisions will be implemented, it is known as:

One of the important questions asked while designing a compensation survey is: "Who should be involved in the survey design?"

What needs to be considered before designing a survey?

The Pay Model

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Defining Competitiveness

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters