MHR 413 Ch. 8 Quiz

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

False

The final step in determining externally competitive pay levels and structures is merging internal and external pressure.

False

Pay ranges for clerical and production jobs commonly range between

5 and 15.

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

??? A. Median B. Weighted mean C. Quartiles and percentiles D. Standard deviation

Which of the following statistical measures shows how similar or dissimilar the market rates are from each other?

Standard deviation

Which of the following statements is true about 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.

A pure market pricing strategy carried to its extreme tends to ignore internal alignment completely.

True

The Employment Cost Index (ECI) allows comparison of labor costs to

all-industry averages.

In the regression equation, y = a + bx, job evaluation points are

b

The second major decision in pay-level determination is

define purpose of survey.

A survey conducted in January, 2013 found the median pay effective January 1, 2013,for a clerk was $22,000 and the forecast rate of wage increases in the market for 2013 was 5% and another 5% for 2014. An employer choosing to follow a lead strategy of 4 percent above the market for the plan year will need to _____.

multiply the salary by 105 percent and then by 109 percent

Total cash measures competitors' use of

performance-based cash payments.

The primary person responsible for conducting a pay survey is

the compensation manager.

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

??? A. A company in which there is more lateral movement with no pay adjustment than promotions B. A company that has pay guidelines and controls designed right into the pay system C. A company that has unlimited total salary budget D. A company that pays all its employees the same salary

In cases where the content of an organization's jobs does not sufficiently match that of the jobs in the salary survey, an effort can be made to quantify the difference via benchmark conversion.

??? (T/F)

Mark and Steve work as crane operators in a construction company called Asai Corp. Asai uses a skill- based plan that establishes single flat rates for each skill level. Mark performs better than Steve even though Steve has more seniority. Which of the following statements is most likely to be true in this scenario?

Steve will be paid more than Mark as he has more seniority.

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

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.

low-high

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.