Question 1

Many employers use market surveys to validate their own job evaluation results.

Accepted Answer

A) True 
 B)False

Question 2

It is easier for employers to determine the worth of jobs that fall into fuzzy markets than traditional relevant markets.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following types of labor would most likely be recruited only locally?

Accepted Answer

A)  Office and clerical workers 
B)  Scientists 
C)  Managers 
D)  Executives 
A)  Office and clerical workers 
B)  Scientists 
C)  Managers 
D)  Executives

Question 4

Setting your company's base pay to competitors' total compensation risks high fixed costs.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is true about market pricers?

Accepted Answer

A)  They align pay structures with the business strategy. 
B)  Their pay structures are unique and difficult to imitate. 
C)  They assume that little value is added through internal alignment. 
D)  They emphasize pay structures based on unique technology or the way work is organized. 
A)  They align pay structures with the business strategy. 
B)  Their pay structures are unique and difficult to imitate. 
C)  They assume that little value is added through internal alignment. 
D)  They emphasize pay structures based on unique technology or the way work is organized.

Question 6

Explain the market pricing approach to compensation.

Accepted Answer

The market pricing approach sets pay str

Question 7

Career moves between bands are more common than within bands.

Accepted Answer

A) True 
 B)False

Question 8

A high degree of overlap between adjacent pay ranges means pay raises can be larger compared to low overlap.

Accepted Answer

A) True 
 B)False

Question 9

A relevant labor market includes all employers who compete in one or more of the following areas except _____.

Accepted Answer

A)  employees in the same geographic area 
B)  the same occupations or skills 
C)  the same products and services 
D)  pay similar wages 
A)  employees in the same geographic area 
B)  the same occupations or skills 
C)  the same products and services 
D)  pay similar wages

Question 10

A market pay line _____.

Accepted Answer

A)  reflects an organization's internal alignment policy 
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 maximum pay rates for each skill level 
A)  reflects an organization's internal alignment policy 
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 maximum pay rates for each skill level

Question 11

Use of broad bands has risks of bias and high labor costs.

Accepted Answer

A) True 
 B)False

Question 12

A common practice is to use the 10th and 90th percentiles from pay survey data to set minimums and maximums of pay grades.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

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

Question 14

Which of the following statements is true regarding broad bands?

Accepted Answer

A)  They require a relatively stable organization design. 
B)  They support recognition via titles or career progression. 
C)  They foster cross-functional growth. 
D)  They give managers "freedom with guidelines". 
A)  They require a relatively stable organization design. 
B)  They support recognition via titles or career progression. 
C)  They foster cross-functional growth. 
D)  They give managers "freedom with guidelines".

Question 15

The measure of central tendency that minimizes distortion is the mode.

Accepted Answer

A) True 
 B)False

Question 16

When flat pay rates are used,they are typically the midpoint of a corresponding survey job.

Accepted Answer

A) True 
 B)False

Question 17

Aging the market data to a point halfway through the plan year is called lead/lag.

Accepted Answer

A) True 
 B)False

Question 18

The _____ pay strategy emphasizes external competitiveness and deemphasizes internal alignment.

Accepted Answer

A)  job structure 
B)  broad banding 
C)  reference rate 
D)  market pricing 
A)  job structure 
B)  broad banding 
C)  reference rate 
D)  market pricing

Question 19

Companies typically use _______ pay survey(s)when setting pay levels.

Accepted Answer

A)  one well-validated 
B)  two 
C)  three or more 
D)  more than five 
A)  one well-validated 
B)  two 
C)  three or more 
D)  more than five

Question 20

Pay ranges:

Accepted Answer

A)  are flexible enough to deal with differences in quality, but not with the productivity or value of these quality variations. 
B)  usually lead to an increase in employee turnover. 
C)  reflect the differences in performance or experience that an employer wishes to recognize with pay. 
D)  cause employees to believe that their compensation can increase by only a limited amount. 
A)  are flexible enough to deal with differences in quality, but not with the productivity or value of these quality variations. 
B)  usually lead to an increase in employee turnover. 
C)  reflect the differences in performance or experience that an employer wishes to recognize with pay. 
D)  cause employees to believe that their compensation can increase by only a limited amount.

Many employers use market surveys to validate their own job evaluation results.

It is easier for employers to determine the worth of jobs that fall into fuzzy markets than traditional relevant markets.

Which of the following types of labor would most likely be recruited only locally?

Setting your company's base pay to competitors' total compensation risks high fixed costs.

Which of the following statements is true about market pricers?

Explain the market pricing approach to compensation.

Career moves between bands are more common than within bands.

A high degree of overlap between adjacent pay ranges means pay raises can be larger compared to low overlap.

A relevant labor market includes all employers who compete in one or more of the following areas except _____.

A market pay line _____.

Use of broad bands has risks of bias and high labor costs.

A common practice is to use the 10^th and 90^th percentiles from pay survey data to set minimums and maximums of pay grades.

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

Which of the following statements is true regarding broad bands?

The measure of central tendency that minimizes distortion is the mode.

When flat pay rates are used,they are typically the midpoint of a corresponding survey job.

Aging the market data to a point halfway through the plan year is called lead/lag.

The _____ pay strategy emphasizes external competitiveness and deemphasizes internal alignment.

Companies typically use _______ pay survey(s)when setting pay levels.

Pay ranges:

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

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 Structures

Many employers use market surveys to validate their own job evaluation results.

It is easier for employers to determine the worth of jobs that fall into fuzzy markets than traditional relevant markets.

Which of the following types of labor would most likely be recruited only locally?

Setting your company's base pay to competitors' total compensation risks high fixed costs.

Which of the following statements is true about market pricers?

Explain the market pricing approach to compensation.

Career moves between bands are more common than within bands.

A high degree of overlap between adjacent pay ranges means pay raises can be larger compared to low overlap.

A relevant labor market includes all employers who compete in one or more of the following areas except _____.

A market pay line _____.

Use of broad bands has risks of bias and high labor costs.

A common practice is to use the 10th and 90th percentiles from pay survey data to set minimums and maximums of pay grades.

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

Which of the following statements is true regarding broad bands?

The measure of central tendency that minimizes distortion is the mode.

When flat pay rates are used,they are typically the midpoint of a corresponding survey job.

Aging the market data to a point halfway through the plan year is called lead/lag.

The _____ pay strategy emphasizes external competitiveness and deemphasizes internal alignment.

Companies typically use _______ pay survey(s)when setting pay levels.

Pay ranges:

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

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

A common practice is to use the 10^th and 90^th percentiles from pay survey data to set minimums and maximums of pay grades.