Comp Chapter 8
pay ranges for clerical and production jobs commonly range between
5 and 15
examples of potential anomalies: outliers, a large variation in base pay for a job at one company, and one company dominates the results. The following is something that is NOT a potential anomaly:
a large variation in average base pay for a job across companies
because employers are raising employee pay at various times during the year, survey data must be updated using a process called
aging or trending
The Employment Cost Index (ECI) allows comparison of labor costs to
all-industry averages
survey data from one or a few employers that are significantly out of line with other employers are
anomalies
size of pay differentials between grades should support ____ through the pay structure
career movement
the first step in interpreting survey data is
check for the accuracy of job matches
base wage shows how _____ value work in similar jobs
competitors
broad-bands foster
cross-functional growth
the second major decision in pay-level determination is
define purpose of survey
the final major decision in pay-level determination is
design grades and ranges
the purpose of collecting data on number of employees in a pay survey is to
estimate the org's impact on the labor mkt
T/F: a common practice is to use the 10th and 90th percentiles form pay survey data to set mins and max of pay grades
false
T/F: a frequency distribution must be constructed to calculate a median
false
T/F: adjustments to forms of pay occur more often than adjustments to overall pay level
false
T/F: career moves between bands are more common than within bands
false
T/F: it is easier for employers to determine the worth of jobs that fall into fuzzy markets than traditional relevant markets
false
T/F: mkt pricers match a small percentage of their jobs with mkt data
false
T/F: salary data available to employees via the internet are as reliable and accurate as other more traditional surveys
false
T/F: the final step in determining externally competitive pay levels and structures is merging internal and external pressure
false
T/F: the most common measure of variation in pay surveys is the standard deviation
false
T/F: the pay structure is reflected in job evaluation or skill certification
false
T/F: the relevant labor mkt for accting, sales or clerical skills should be limited to each industry in which these types of work are found
false
T/F: total cash includes base pay plus stock options and benefits
false
T/F:ranges support flexibility within guidelines while bands support some flexibility within controls
false
financial data in pay surveys are used to
group firms by size
the mkt pricing pay strategy emphasizes external competitiveness and deemphasizes
internal alignment
in the regression equation, y= a+bx, ___ points are x
job evaluation
aging mkt data to a point halfway through the plan year is called
lead/lag
mkt pricers assume that ___ is added through internal alignment
little value
A company using a skill-based pay system prices the job of lead assembler at between $10 to $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
low-high
an org that has a _____ will pay it employees more than the mkt rate for some months and less than mkt rate for the other months
match pay policy
the ____ minimizes distortion of the central tendency caused by outliers
median
a _____ links a company's benchmark jobs with mkt rates paid by competitors
mkt pay line
_____ workers as compared to scientists, managers, and executives would most likely be recruited only locally
office and clerical
the total cash compensation measure of compensation may
overstate competitors' pay
____ reflect the differences in performance or experience that an employer wishes to recognize with pay
pay ranges
a relevant labor mkt includes all employers who compete in one or more of the following areas except
pay similar wages
job structure is to job evaluation as pay structure is to
pay-policy line
total cash measures competitors' use of
performance-based pay
paying jobs of different functions different rates within a pay band is called
reference rates
the first step in setting competitive pay and designing a pay structure is
specify pay level policy
_____ statistical measure shows how similar or dissimilar the mkt rates are form each other
standard deviation
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
survey leveling
applying the job evaluation process to pay survey jobs to assess the degree of match between survey jobs and benchmark jobs is called
the benchmark conversion approach
the primary responsibility for conducting a pay survey is of this person
the compensation manager
the answer to the question of how many firms to include in a pay survey is
there are no firm rules
T/F: a pay range exists when at least two employees in the same job are paid different rates
true
T/F: a pure market pricing strategy tends to ignore internal alignment
true
T/F: aging the mkt data to a point halfway through the plan year is called lead/lag.
true
T/F: grades group job evaluation data on the horizontal axis
true
T/F: if the purpose of a survey is to price the entire structure, then benchmark jobs can be selected to include the entire job structure
true
T/F: 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
true
T/F: pay ranges for top-level mgmt positions are commonly larger than those other professional and midlevel managerial positions
true
T/F: regression smoothes large amounts of data while minimizing variations
true
T/F: setting your company's base pay to competitors' total compensation and benefits
true
T/F: smaller pay ranges may reduce the opportunities for promotion
true
T/F: the process of multiplying survey data by a factor reflecting the difference between a survey and a company job is called survey leveling
true
T/F: when flat pay rates are used, they are typically the midpoint of a corresponding survey job
true
T/F:Market lines may be constructed by either freehand drawing or linear regression
true
T/F:identifying pay survey participants by company name is considered price fixing under the Sherman Act
true
T/F:pay surveys include information about both, all forms of cash compensation and benefits
true
T/F:when there is an unusual level of turnover in a job, an employer is likely to conduct a mkt survey
true