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

A market pay line is useful for setting pay for benchmark jobs that match competitors,but not for non-benchmark jobs.

A company using a skill-based pay system prices the job of lead assembler at between $10 and $22 per hour.Survey data showed the job assembler averaged $10 per hour and the job of assembly supervisor at $22 per hour.The company was using the _____ method of job matching.

Aging market data to a point halfway through the plan year is called _____.

Explain the concept of pay ranges.

A pay range exists when at least two employees in the same job are paid different rates.

Applying the job evaluation process to pay survey jobs to assess the degree of match between survey jobs and benchmark jobs is called the _____ approach.

What is broad banding? What are some of its advantages?

When there is an unusual level of turnover in a job,an employer is likely to conduct a market survey.

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

Survey data from one or a few employers that are significantly out of line with other employers _____.

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

Pay ranges for clerical and production jobs commonly range between _____ and _____.

Who should be involved in designing a compensation survey?

_____ measures competitors' use of performance-based pay.

The primary responsibility for conducting a pay survey is _____.

Market pricers match a small percentage of their jobs with market data.

What is a market line?

What are the advantages and disadvantages of the different measures of compensation?

Which of the following is often used to set pay ranges?

The process of multiplying survey data by a factor reflecting the difference between a survey and a company job is called survey leveling.