Question 1

_____ measures reveal competitors' use of performance-based cash payments.

Accepted Answer

A) Base cash pay 
B) Short-term incentive pay 
C) Total cash 
D) Long-term incentive pay 
A) Base cash pay 
B) Short-term incentive pay 
C) Total cash 
D) Long-term incentive pay

Question 2

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 _____.

Accepted Answer

A) updating 
B) point factor adjustment 
C) lead/lag policy adjustment 
D) survey leveling 
A) updating 
B) point factor adjustment 
C) lead/lag policy adjustment 
D) survey leveling

Question 3

Which of the following is true regarding the Employment Cost Index (ECI)?

Accepted Answer

A) It is published by the Department of Commerce. 
B) It is an excellent source of competitor labor costs. 
C) It measures annual changes in employer compensation costs. 
D) It allows comparison of changes in its average costs to an all-industry average. 
A) It is published by the Department of Commerce. 
B) It is an excellent source of competitor labor costs. 
C) It measures annual changes in employer compensation costs. 
D) It allows comparison of changes in its average costs to an all-industry average.

Question 4

Turnover and organizational revenues are examples of survey data collected to gather competitive intelligence.

Accepted Answer

A) True 
 B)False

Question 5

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?

Accepted Answer

A) Mark will be paid more than Steve as his performance is higher. 
B) Steve will be paid more than Mark as he has more seniority. 
C) Both Mark and Steve will be paid the same amount. 
D) Steve will be given more incentives than Mark. 
A) Mark will be paid more than Steve as his performance is higher. 
B) Steve will be paid more than Mark as he has more seniority. 
C) Both Mark and Steve will be paid the same amount. 
D) Steve will be given more incentives than Mark.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) weighted mean 
B) mean 
C) mode 
D) median 
A) weighted mean 
B) mean 
C) mode 
D) median

Question 8

The second major decision in pay-level determination is to _____.

Accepted Answer

A) specify relevant markets 
B) define the purpose of a survey 
C) design and conduct a survey 
D) select product and labor market competitors 
A) specify relevant markets 
B) define the purpose of a survey 
C) design and conduct a survey 
D) select product and labor market competitors

Question 9

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.

Accepted Answer

A) benchmark-job 
B) low-high 
C) survey leveling 
D) benchmark conversion 
A) benchmark-job 
B) low-high 
C) survey leveling 
D) benchmark conversion

Question 10

A common first step in interpreting survey data is to _____.

Accepted Answer

A) check for the accuracy of job matches 
B) seek out non-responders 
C) check for anomalies 
D) remove the top- and bottom-paying companies 
A) check for the accuracy of job matches 
B) seek out non-responders 
C) check for anomalies 
D) remove the top- and bottom-paying companies

Question 11

A market pay line _____.

Accepted Answer

A) reflects an organization's pay scale based on the ratings given by its employees 
B) links a company's benchmark jobs with market rates paid by competitors 
C) provides an accurate prediction of an organization's entry level pay rates 
D) compares an organization's minimum and maxi mum pay rates for each skill level 
A) reflects an organization's pay scale based on the ratings given by its employees 
B) links a company's benchmark jobs with market rates paid by competitors 
C) provides an accurate prediction of an organization's entry level pay rates 
D) compares an organization's minimum and maxi mum pay rates for each skill level

Question 12

What is a market line?

Accepted Answer

A market line links a company's benchmar

Question 13

The first step in setting competitive pay and designing a pay structure is to _____.

Accepted Answer

A) specify a pay-level policy 
B) conduct a job evaluation 
C) draw policy lines 
D) specify the relevant market 
A) specify a pay-level policy 
B) conduct a job evaluation 
C) draw policy lines 
D) specify the relevant market

Question 14

Smaller pay ranges may reduce the opportunities for promotion.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) outliers 
B) a large variation in base pay for a job at one company 
C) one company dominating the results 
D) a large variation in average base pay for a job across companies 
A) outliers 
B) a large variation in base pay for a job at one company 
C) one company dominating the results 
D) a large variation in average base pay for a job across companies

Question 16

Career moves between bands are more common than within bands.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is true regarding broad bands?

Accepted Answer

A) They remove limits on total salary budgets. 
B) They support recognition via titles or career progression. 
C) They foster cross-functional growth. 
D) They increase the hierarchical nature of organizations. 
A) They remove limits on total salary budgets. 
B) They support recognition via titles or career progression. 
C) They foster cross-functional growth. 
D) They increase the hierarchical nature of organizations.

Question 18

Pay ranges for managerial jobs are larger than the ranges for other jobs because these jobs have greater opportunity for both discretion and performance than lower-level jobs.

Accepted Answer

A) True 
 B)False

Question 19

The final major decision in pay-level determination is to _____.

Accepted Answer

A) interpret and apply the results of the survey 
B) obtain top-management acceptance of the final decisions 
C) design grades and ranges or bands 
D) draw policy lines 
A) interpret and apply the results of the survey 
B) obtain top-management acceptance of the final decisions 
C) design grades and ranges or bands 
D) draw policy lines

Question 20

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

Accepted Answer

A) aging; trending 
B) leading; smoothing 
C) matching; leveling 
D) gaining; smoothing 
A) aging; trending 
B) leading; smoothing 
C) matching; leveling 
D) gaining; smoothing

_____ measures reveal competitors' use of performance-based cash payments.

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 _____.

Which of the following is true regarding the Employment Cost Index (ECI)?

Turnover and organizational revenues are examples of survey data collected to gather competitive intelligence.

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

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

The second major decision in pay-level determination is to _____.

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.

A common first step in interpreting survey data is to _____.

A market pay line _____.

What is a market line?

The first step in setting competitive pay and designing a pay structure is to _____.

Smaller pay ranges may reduce the opportunities for promotion.

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

Career moves between bands are more common than within bands.

Which of the following statements is true regarding broad bands?

Pay ranges for managerial jobs are larger than the ranges for other jobs because these jobs have greater opportunity for both discretion and performance than lower-level jobs.

The final major decision in pay-level determination is to _____.

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

Pay-For-Performance: The Evidence

Strategy: The Totality of Decisions

Defining Internal Alignment

R: Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

Exam 8: Designing Pay Levels, Mix, and Pay

_____ measures reveal competitors' use of performance-based cash payments.

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 _____.

Which of the following is true regarding the Employment Cost Index (ECI)?

Turnover and organizational revenues are examples of survey data collected to gather competitive intelligence.

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

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

The second major decision in pay-level determination is to _____.

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.

A common first step in interpreting survey data is to _____.

A market pay line _____.

What is a market line?

The first step in setting competitive pay and designing a pay structure is to _____.

Smaller pay ranges may reduce the opportunities for promotion.

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

Career moves between bands are more common than within bands.

Which of the following statements is true regarding broad bands?

Pay ranges for managerial jobs are larger than the ranges for other jobs because these jobs have greater opportunity for both discretion and performance than lower-level jobs.

The final major decision in pay-level determination is to _____.

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

Pay-For-Performance: The Evidence

Strategy: The Totality of Decisions

Defining Internal Alignment

R: Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

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