BUSI 440 Chapter 8

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

market pricing

Adjustments to forms of pay occur more often than adjustments to overall pay level.

median

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

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

Quartiles and percentiles

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

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

True

Pay ranges for office and production work commonly range between _____ and _____ percent.

5; 15

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?

Both Mark and Steve will be paid the same amount.

Market pricers emphasize any unique or difficult-to-imitate aspects of an organization's pay structure.

False

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

False

A common first step in interpreting survey data is to _____.

check for the accuracy of job matches

The second major decision in pay-level determination is to _____.

define the purpose of a survey

A market pay line _____.

links a company's benchmark jobs with market rates paid by competitors

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

A company in which there is more lateral movement with no pay adjustment than promotions

Adjustments to forms of pay occur more often than adjustments to overall pay level.

False

Gramhold Inc., a pharmaceutical company, reduces its 10 salary grades to just three broad bands. Which of the following statements is most likely to be true in this case?

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

A survey conducted in January 2013 found that the median pay effective January 1, 2013, for a clerk was $22,000 and that the forecast rate of wage increases in the market for 2013 was 5 percent and another 5 percent 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

Pay ranges:

reflect the differences in performance or experience that an employer wishes to recognize with pay.

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

standard deviation