Exam 7: Building Market-Competitive Compensation Systems

XYZ Inc.pursues a low-cost strategy in its industry and generally needs lower skilled employees.As a result,their management team decided to establish a compensation policy that pays less than the marketplace.In recent years the company became susceptible to labor shortages and high turnover.What kind of pay level policy does XYZ Inc.follow?

This causes compensation survey data to become obsolete fairly quickly.

________ allow compensation professionals to describe the distribution of data based on four groupings.

________ analyses enable compensation professionals to establish pay rates for a set of jobs that are consistent with typical pay rates for jobs in the external market.

Suppose that a compensation professional would like to calculate the median salary.He/she orders four salaries as follows: $20,000,$22,000,$24,000,$26,000.What is the median salary for this data set?

This BLS survey provides the quarterly measure of changes in labor and compensation costs,and is used as the principle economic indicator for the Federal Reserve.

The market ________ policy most closely follows the typical market pay rates because companies pay according to the market pay line.

When examining competitors' compensation offerings this term is used to describe the percentage of employer compensation costs that are applied to compensation and benefits.

How often is the Consumer Price Index calculated for the United States?

Explain the role of compensation surveys.Why is it important to update survey data?

XYZ Company is a world leader in medical device manufacturing.Aiming to continue its market position in this industry,XYZ Company pursues differentiation strategy.As a result,in order to attract and retain best employees,this company compensates its employees higher than almost all competitors.What kind of pay level policy does XYZ Company follow?

Compensation surveys are typically focused on which two factors?

What does it mean when the distribution of data is skewed to the right?

In statistical analysis,this term is used to signify the possible extreme observations.

HR professionals rely on ________ jobs as reference points for setting pay levels.

Market match policies are generally set to which quartile in the salary survey?

Companies pursuing a differentiation strategy are most likely to use which pay level policy?

Which of the following are the three measures of dispersion?

What would Yolanda's salary of $165,000 be considered if the means salary for B42DA,Inc.,is $30,000 and the median salary is $32,000?

The market ________ policy distinguishes a company from competition by compensating employees less than most competitors.