Question 1

Which of the following measures can be used to assess the central tendency of pay?

Accepted Answer

A)  dispersion 
B)  standard deviation 
C)  quartiles and deciles 
D)  mean 
A)  dispersion 
B)  standard deviation 
C)  quartiles and deciles 
D)  mean

Question 2

What critical assumption underpins labour market compensation surveys that may serve to illustrate the need for pay equity legislation?

Accepted Answer

A)  Usage of compensation surveys assumes that the market values jobs in a fair manner. 
B)  The market demand and supply of labour tends to operate at an equilibrium in the short term. 
C)  Calibration of the pay system will insure a near-perfect labour price. 
D)  Targeting a compa-ratio of 1 eliminates the need for pay equity legislation. 
A)  Usage of compensation surveys assumes that the market values jobs in a fair manner. 
B)  The market demand and supply of labour tends to operate at an equilibrium in the short term. 
C)  Calibration of the pay system will insure a near-perfect labour price. 
D)  Targeting a compa-ratio of 1 eliminates the need for pay equity legislation.

Question 3

Which of the following identifies two crucial dimensions of the labour market?

Accepted Answer

A)  occupational grouping and geographic scope 
B)  unemployment rate and turnover in the area 
C)  availability of labour and types of legislation 
D)  education levels and experience ratings 
A)  occupational grouping and geographic scope 
B)  unemployment rate and turnover in the area 
C)  availability of labour and types of legislation 
D)  education levels and experience ratings

Question 4

According to the text, sources of compensation market data include government agencies, trade journals, and compensation consultants.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following situations is an indication that the pay level for a particular job in your firm is inappropriate?

Accepted Answer

A)  excessively high employee turnover 
B)  internal equity conflicts with market data 
C)  a 1.07 compa-ratio 
D)  a high dispersion between your rate and the highest-paying firms 
A)  excessively high employee turnover 
B)  internal equity conflicts with market data 
C)  a 1.07 compa-ratio 
D)  a high dispersion between your rate and the highest-paying firms

Question 6

A very large interquartile quotient tends to indicate that all jobs in the sample are equivalent.

Accepted Answer

A) True 
 B)False

Question 7

Our textbook identifies two in-house methods that may be used to collect compensation data. Which of the following is classified as a so-called "in-house" source?

Accepted Answer

A)  formal surveys 
B)  government agencies 
C)  consultants 
D)  industry groups 
A)  formal surveys 
B)  government agencies 
C)  consultants 
D)  industry groups

Question 8

Briefly discuss some of the limitations of compensation surveys.

Accepted Answer

Compensation surveys are essential tools

Question 9

Although very costly to use on a significant scale, which method of data collection provides the best quality of information?

Accepted Answer

A)  internet surveys 
B)  personal interviews 
C)  telephone interviews 
D)  questionnaires 
A)  internet surveys 
B)  personal interviews 
C)  telephone interviews 
D)  questionnaires

Question 10

Which of the following best explains why current employers do not seem to reduce wages for existing employees in the short term when the supply for a particular set of skills far outstrips the demand?

Accepted Answer

A)  because of the wage compression phenomenon 
B)  because of the negative impact on morale 
C)  because labour budgets tend to be determined on an annual basis 
D)  because fewer potential employees tend to put upwards pressure on wages 
A)  because of the wage compression phenomenon 
B)  because of the negative impact on morale 
C)  because labour budgets tend to be determined on an annual basis 
D)  because fewer potential employees tend to put upwards pressure on wages

Question 11

What are three of the main "third-party" sources of compensation data?

Accepted Answer

A)  Statistics Canada, trade journals, and government agencies 
B)  private agencies, trade journals, and government agencies 
C)  government agencies, industry groups, and consulting firms 
D)  consulting firms, boards of trade, and publishers 
A)  Statistics Canada, trade journals, and government agencies 
B)  private agencies, trade journals, and government agencies 
C)  government agencies, industry groups, and consulting firms 
D)  consulting firms, boards of trade, and publishers

Question 12

What does a compa-ratio of greater than 1 mean?

Accepted Answer

A)  Employees, on average, are being paid above the midpoint at that firm. 
B)  The majority of employees are in the first pay quartile. 
C)  The firm is paying their employees in the bottom half of the pay range. 
D)  The firm has only a minority of their employees in the top pay bracket. 
A)  Employees, on average, are being paid above the midpoint at that firm. 
B)  The majority of employees are in the first pay quartile. 
C)  The firm is paying their employees in the bottom half of the pay range. 
D)  The firm has only a minority of their employees in the top pay bracket.

Question 13

Which of the following is NOT considered a general pattern in compensation levels?

Accepted Answer

A)  Union employees receive more compensation than comparable non-union employees. 
B)  Male employees earn more than female employees on average. 
C)  Resource sector employees earn more than those in the service sector. 
D)  The wage gap between public-sector organizations and private-sector firms is narrow for top-level employees. 
A)  Union employees receive more compensation than comparable non-union employees. 
B)  Male employees earn more than female employees on average. 
C)  Resource sector employees earn more than those in the service sector. 
D)  The wage gap between public-sector organizations and private-sector firms is narrow for top-level employees.

Question 14

As a human resource specialist, you recommend an international scope when defining the relevant labour market for a nuclear physicist to be responsible for the safety of a Canadian nuclear reactor. Which of the following variables is likely to be informing your decision?

Accepted Answer

A)  the level of job specialization 
B)  the international nature of the industry 
C)  the highly visible nature of the role 
D)  the level of responsibility and high profile nature of the role 
A)  the level of job specialization 
B)  the international nature of the industry 
C)  the highly visible nature of the role 
D)  the level of responsibility and high profile nature of the role

Question 15

Which of the following statements refers to compa-ratio?

Accepted Answer

A)  It is calculated by averaging the pay ranges in the quartiles. 
B)  It is a measure of pay dispersion across employers. 
C)  It is derived by dividing mean base pay by the midpoint of the pay range. 
D)  It is a calculation based on average base pay for each job. 
A)  It is calculated by averaging the pay ranges in the quartiles. 
B)  It is a measure of pay dispersion across employers. 
C)  It is derived by dividing mean base pay by the midpoint of the pay range. 
D)  It is a calculation based on average base pay for each job.

Question 16

What are two main disadvantages associated with using informal in-house surveys?

Accepted Answer

A)  complexity and cost 
B)  cost and reliability issues 
C)  cost and speed 
D)  reliability and validity issues 
A)  complexity and cost 
B)  cost and reliability issues 
C)  cost and speed 
D)  reliability and validity issues

Question 17

Discuss some of the advantages and disadvantages of in-house surveys.

Accepted Answer

Advantages of in-house surveys include:

Question 18

What is the main challenge facing organizations that use the "simple mean" to assess central tendency?

Accepted Answer

A)  It is not easily understood by users. 
B)  It tends to be very accurate, particularly if the data points are skewed by a few outliers. 
C)  It weighs all employers proportionally, based on the number of employees in each company. 
D)  Its conclusions may be skewed by a few outlier data points and the numbers of employees in each organization performing a specific role. 
A)  It is not easily understood by users. 
B)  It tends to be very accurate, particularly if the data points are skewed by a few outliers. 
C)  It weighs all employers proportionally, based on the number of employees in each company. 
D)  Its conclusions may be skewed by a few outlier data points and the numbers of employees in each organization performing a specific role.

Question 19

Identify and briefly describe the four main steps in conducting a compensation survey.

Accepted Answer

The first step is to identify the jobs t

Question 20

Which of the following is NOT a main step in conducting a proper compensation survey?

Accepted Answer

A)  identifying jobs to be surveyed 
B)  identifying employees to be surveyed 
C)  determining the information needed 
D)  determining how you will collect the data 
A)  identifying jobs to be surveyed 
B)  identifying employees to be surveyed 
C)  determining the information needed 
D)  determining how you will collect the data

Which of the following measures can be used to assess the central tendency of pay?

What critical assumption underpins labour market compensation surveys that may serve to illustrate the need for pay equity legislation?

Which of the following identifies two crucial dimensions of the labour market?

According to the text, sources of compensation market data include government agencies, trade journals, and compensation consultants.

Which of the following situations is an indication that the pay level for a particular job in your firm is inappropriate?

A very large interquartile quotient tends to indicate that all jobs in the sample are equivalent.

Our textbook identifies two in-house methods that may be used to collect compensation data. Which of the following is classified as a so-called "in-house" source?

Briefly discuss some of the limitations of compensation surveys.

Although very costly to use on a significant scale, which method of data collection provides the best quality of information?

Which of the following best explains why current employers do not seem to reduce wages for existing employees in the short term when the supply for a particular set of skills far outstrips the demand?

What are three of the main "third-party" sources of compensation data?

What does a compa-ratio of greater than 1 mean?

Which of the following is NOT considered a general pattern in compensation levels?

As a human resource specialist, you recommend an international scope when defining the relevant labour market for a nuclear physicist to be responsible for the safety of a Canadian nuclear reactor. Which of the following variables is likely to be informing your decision?

Which of the following statements refers to compa-ratio?

What are two main disadvantages associated with using informal in-house surveys?

Discuss some of the advantages and disadvantages of in-house surveys.

What is the main challenge facing organizations that use the "simple mean" to assess central tendency?

Identify and briefly describe the four main steps in conducting a compensation survey.

Which of the following is NOT a main step in conducting a proper compensation survey?

A Road Map to Effective Compensation

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: The Job Evaluation Process

Evaluating Jobs: The Point Method of Job Evaluation

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

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Exam 9: Evaluating the Market

Which of the following measures can be used to assess the central tendency of pay?

What critical assumption underpins labour market compensation surveys that may serve to illustrate the need for pay equity legislation?

Which of the following identifies two crucial dimensions of the labour market?

According to the text, sources of compensation market data include government agencies, trade journals, and compensation consultants.

Which of the following situations is an indication that the pay level for a particular job in your firm is inappropriate?

A very large interquartile quotient tends to indicate that all jobs in the sample are equivalent.

Our textbook identifies two in-house methods that may be used to collect compensation data. Which of the following is classified as a so-called "in-house" source?

Briefly discuss some of the limitations of compensation surveys.

Although very costly to use on a significant scale, which method of data collection provides the best quality of information?

Which of the following best explains why current employers do not seem to reduce wages for existing employees in the short term when the supply for a particular set of skills far outstrips the demand?

What are three of the main "third-party" sources of compensation data?

What does a compa-ratio of greater than 1 mean?

Which of the following is NOT considered a general pattern in compensation levels?

As a human resource specialist, you recommend an international scope when defining the relevant labour market for a nuclear physicist to be responsible for the safety of a Canadian nuclear reactor. Which of the following variables is likely to be informing your decision?

Which of the following statements refers to compa-ratio?

What are two main disadvantages associated with using informal in-house surveys?

Discuss some of the advantages and disadvantages of in-house surveys.

What is the main challenge facing organizations that use the "simple mean" to assess central tendency?

Identify and briefly describe the four main steps in conducting a compensation survey.

Which of the following is NOT a main step in conducting a proper compensation survey?

A Road Map to Effective Compensation

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: The Job Evaluation Process

Evaluating Jobs: The Point Method of Job Evaluation

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters