Hurm Chapter 8
Financial data in pay surveys are used to __________________.
group firms by size
The first step in interpreting survey data is ________________.
check for the accuracy of job matches
The purpose of collecting data on the number of employees in a pay survey is to _____________.
estimate the organizations impact on the labor market
The _____ pay strategy emphasizes external competitiveness and deemphasizes internal alignment.
market pricing pay strategy
For organizations using a skill-competency-based pay system or generic job descriptions, the best approach for pricing jobs is _____.
the Low-High Approach
In the regression equation, y = a + bx, job evaluation points are denoted by _____.
the X
In most organizations, the responsibility for managing a pay survey lies with _____.
the compensation manager
Pay ranges for office and production work commonly range between _____ and _____ percent
5; 15
Which of the following jobs would most likely fall into a fuzzy market?
A fuzzy market fuses together diverse knowledge and experience, so "relevant markets appear more "fuzzy". Example: The position of senior director of Future Vision Services that was filled by a Software Engineer with e-commerce, marketing and theatre experience.
__________________ shows how competitors value work in similar jobs.
Base wage
The _____ minimizes the distortion of the central tendency caused by outliers.
Median
The ______________ minimizes distortion of the central tendency caused by outliers
Median
Which of the following is often used to set pay ranges?
Quartiles and Percentiles *Standard Deviation is almost never used
Which of the following statistical measures shows how similar or dissimilar the market rates are from each other?
The Standard Deviation
The answer to the question of how many firms to include in a pay survey is ______________.
There are no firm rules, No set amount. Enough to have a stable estimate of relevant companies.
Which of the following statements is true about market pricers?
They assume that little value is added through internal alignment Sample False Statements: They align pay structures with the business strategy; Their pay structures are unique and difficult to imitate;
Which of the following statements is true regarding broad bands?
They foster cross-functional growth
_____ measures reveal competitors' use of performance-based cash payments.
Total Cash
______________ measures competitors' use of performance-based pay.
Total Cash
This measure of compensation may overstate competitors' pay.
Total Cash Compensation
The second major decision in pay-level determination is to _____.
define the purpose of a survey Steps in order: Specify pay-level policy; Define purpose of survey; Specify relevant market; Design and conduct survey; Interpret and apply result; Design grades and ranges or bands
The final major decision in pay-level determination is to _____.
design grades and ranges or bands
Because employers are raising employee pay at various times during the year, survey data must be updated using a process called _____ or _____.
Aging OR Trending (Updating)
Because employers are raising employee pay at various times during the year, survey data must be updated using a process called ________________ or _________________.
Aging; Trending (Updating)
The _____ publishes extensive information on various occupations in different geographic areas. It is a major source of publicly available compensation data.
Bureau of Labor Statistics
Which of the following is true regarding the Employment Cost Index (ECI)?
It allows comparison of changes in its average cost to an all-industry average
Which of the following is true regarding the Employment Cost Index (ECI)?
It allows comparison of labor costs to all-industry averages.
Aging the market data to a point halfway through the plan is called:
Lead/Lag updating
Aging the market data to a point halfway through a plan year is called _____.
Lead/lag approach
A company using a skill-based pay system prices the job of lead assembler between $10 and $22 per hour. Survey data showed that the job of assembler averaged $10 per hour and the job of assembly supervisor averaged $22 per hour. The company is using the _____ method of job matching.
Low-High Method of Job Matching
The __________________ pay strategy emphasizes external competitiveness and deemphasizes internal alignment.
Market Pricing
All of the following are examples of potential anomalies EXCEPT _____.
a large variation in average base pay for a job across companies
Applying the job evaluation process to pay survey jobs to assess the degree of match between survey jobs and benchmark jobs are called the _________________ approach.
benchmark conversion approach
A common first step in interpreting survey data is to _____.
check for the accuracy of job matches
A market pay line __________________________.
links a company' benchmark jobs with market rates paid to competitors
A market pay line _____.
links a company's benchmark jobs with market rates paid by competitors.
Pay ranges:
reflect the differences of performances or experience that an employer wishes to recognize with pay
The first step in setting competitive pay and designing a pay structure is to _____.
specify a pay level policy.
The first step in setting competitive pay and designing a pay structure is _____________.
specify pay-level policy
Size of pay differentials between grades should _____.
support career movement through the pay structure
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
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
To multiply the survey data by some factor that corresponds to the analyst's judgement of the difference between the company and the survey job is called:
survey leveling