comp test 3

Pay ranges for office and production work commonly range between

5 and 15 percent.

Which of the following is an example of a company that uses broad banding?

A company in which there are more lateral movements with no pay adjustment than promotions

Which of the following is an example of a bourse market? Question options:

Flatcake, a website that allows buyers to negotiate prices with the sellers of handmade goods

Gramhold, Inc., a pharmaceutical company, reduces its ten salary grades to just three broad bands. Which of the following statements is most likely to be true in this case?

Gramhold will experience more career moves within bands than career moves between bands.

theory is based on the premise that higher earnings flow to those who improve their potential productivity by investing in themselves.

Human capital

Which of the following is true of the Employment Cost Index?

It allows a firm to compare changes in its average costs to an all-industry or specific-industry average.

Which of the following is true of weighted mean as a statistical measure to analyze survey data?

It captures the size of supply and demand in a market.

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

aging.

A common first step in interpreting compensation survey data is to

check for the accuracy of job matches

The second major decision in setting externally competitive pay and designing the corresponding pay structures is to

define the purpose of the survey.

The final major decision in setting externally competitive pay and designing the corresponding pay structures is to

design grades and ranges or bands.

Among pay-mix alternatives, the percentage of base pay is highest in a

security or commitment policy.

The first major decision in setting externally competitive pay and designing the corresponding pay structures is to

specify the employer's competitive pay policy.

The size of pay differentials between grades should

support career movement through the pay structure.

In most organizations, the responsibility for managing a pay survey lies with

the compensation manager.

The pay-mix policy alternative in which the percentage of benefits is likely to be the highest is known as a

work/life balance policy.

Which of the following statements is true of pay level?

Pay level is directly proportional to labor costs.

In which of the following conditions would product market competitors' data be given more weight than data from labor market competitors?

Product demand is responsive to price changes.

Which of the following is linked to high pay levels?

Reduced vacancy rates

In the context of types of markets, which of the following statements is true?

Bourse markets allow haggling over terms and conditions until an agreement is reached.

Which of the following labor demand theories states that work with negative characteristics requires higher pay to attract or retain workers?

Compensating differentials

Which of the following is an assumption held by the labor supply model about the behavior of potential employees?

Job seekers do not face barriers to mobility

minimizes the distortion of the central tendency caused by outliers.

Median

Which of the following is an example of a quoted-price market?

Nile, a website that allows sellers to sell their products for a fixed price

is the additional output associated with the employment of one additional human resource unit, with other production factors held constant.

The marginal product of labor

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

The position of senior director of Future Vision Services that was filled by a software engineer with e-commerce, marketing, and theater experience

puts a lid on the maximum pay level an employer can set. Question options:

The product market

is an example of a bourse.

The total compensation for a top athlete

Which of the following statements is true of market pricers?

They assume that little value is added through internal alignment.

Which of the following statements is true regarding broad bands?

They foster cross-functional growth.

The pay-level policy that is most likely to reduce pay dissatisfaction is a(n)

lead policy.

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

lead/lag.

The estimates of competitors' pay rates will be incorrect and the pay level and pay mix inappropriately established if:

markets are incorrectly defined.

quartiles and percentiles

often used to set pay ranges

refers to the average of the array of rates paid by an employer.

pay level

Evidence shows that in manufacturing, ________ is positively correlated with hourly wage level.

productivity