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

Size of pay differentials between grades should _____.

For organizations using a skill-competency-based pay system or generic job descriptions,the best approach for pricing jobs is _____

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

Salary data available to employees via the Internet are as reliable and accurate as other more traditional surveys.

Regression smoothes large amounts of data while minimizing variations.

Total cash includes base pay plus stock options and benefits.

Smaller pay ranges may reduce the opportunities for promotion.

Grades group job evaluation data on the horizontal axis.

The answer to the question of how many firms to include in a pay survey is _____.

Managers often regard external market data as more objective than internal job evaluation.

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

This measure of compensation may overstate competitors' pay.

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

Which of the following jobs would most likely fall into a fuzzy market?

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

Research shows that most managers analyze pay surveys in similarly by weighting pay of their major product and labor market competitor more than others.

It is easier for companies using a market pricing approach to price "fuzzy market" jobs than those using a benchmark job approach.

Financial data in pay surveys are used to _____.

The first step in interpreting survey data is _____.

Market lines may be constructed by either freehand drawing or linear regression.