MML Quiz Ch 7 & Study Plan

A key piece of information that compensation specialists hope to gain from compensation surveys is about​ ________. A. the pay practices of their competitors and employee preferences for different forms of compensation B. the​ cost-of-living adjustments being given at other companies C. the types of benefits their competitors are offering D. the type of​ on-site facilities employees want E. the role supervisors play at other companies regarding pay

a

A relevant labor market can be defined on the basis of all of the following EXCEPT​ ________. A. customer type B. product market competitors C. occupational classification D. geography E. service market competitors

a

Well-designed pay systems generally​ ________. A. help companies pursue competitive strategies B. discourage employees from asking for​ cost-of-living adjustment C. prove ineffective in the long run D. prevent companies from pursuing differentiation strategies E. promote collaborative behaviors at work

a

What are the components of a pay​ mix? A. Core compensation and benefits B. Total pay and merit pay C. Total benefits and incentives D. Core compensation and incentive pay E. Total benefits and bonuses

a

What does the term market pay line imply when conducting a regression​ analysis? A. The typical market pay rates expressed as a mean or median B. Insignificant pay rate increases in the market C. The deviation in pay rates D. The highest wages paid in the market E. The lowest wages paid in the market

a

Which statement about benchmark jobs is​ true? A. Benchmark jobs are common across many different employers. B. Benchmark jobs increase the time required to determine pay levels. C. Benchmark jobs represent a limited number of jobs within a company. D. Benchmark jobs are used for determining appropriate employee benefits. E. Benchmark jobs are typically unstable over time in most industries.

a

Following which type of pay level policy would enable a company to follow a​ lowest-cost strategy? A. Pay mix B. Market lag C. Base wage D. Market lead E. Market match

b

Those companies that follow a market match policy when designing compensation policies​ ________. A. never pursue a differentiation strategy B. take a safe approach C. take the market lead D. play a risky game E. pay lower than the market

b

What can sometimes happen when companies follow the market lag policy as their choice for compensation​ policy? A. Companies save less in the short run. B. Companies have difficulty attracting quality candidates. C. Companies save more in the long run. D. Companies have a low turnover rate. E. Companies recruit highly skilled job candidates.

b

What is the primary reason that compensation professionals design compensation​ policies? A. To satisfy government regulations B. To promote competitive strategies C. To satisfy union leaders D. To help keep workers happy E. To make sure that top executives get the highest compensation

b

When a company pursues a differentiation​ strategy, it is best to follow a market lead strategy as its choice of compensation policy. Why is that​ so? A. Market lead policies keep the competitors happy. B. Market lead policy helps companies pursue their competitive strategies. C. Market lead policies guarantee that the company would be able to produce unique products. D. Market lead policies help the company maintain market pay rates. E. Market lead policies help companies cut costs.

b

When an​ employer's total compensation is analyzed to determine benefits and core​ compensation, the result is called​ ________. A. Incentives B. the pay mix C. total wages D. nominal compensation E. the Consumer Price Index

b

Which of the following is the correct equation that models the prediction of the market pay​ line? A. Predicted salary equals the X intercept plus the job evaluation points. B. Predicted salary equals the Y intercept plus the slope multiplied by job evaluation points. C. Job evaluation points equal the Y intercept plus the slope multiplied by the predicted salary. D. Predicted salary equals the Y intercept plus the slope multiplied by job evaluation points divided by the number of predicted employees. E. Predicted salary equals the total budget divided by the total number of employees.

b

________ is when companies make corrections for differences between their jobs and external benchmark jobs. A. Point factor leveling B. Job leveling C. Objective correction D. Occupational classification E. Subjective correction

b

Companies traditionally competed for qualified candidates on the basis of​ ________. A. ​sign-up bonuses B. quality pension plans C. base pay D. generous relocation allowances E. benefits

c

Custom surveys are superior to published surveys when determining​ competitors' pay mix. What is the reason for​ this? A. Custom surveys are cheaper. B. Custom surveys study a lot more companies than existing surveys. C. Custom surveys can be tailored to the​ company's needs and selected companies can be studied. D. Custom surveys are more truthful. E. Custom surveys have the approval of executives.

c

In order to remain​ competitive, how often should companies update their pay​ systems? A. Quarterly B. Every two years C. Annually D. Every five years E. Every six months

c

Many companies use market match or market lead policies for which types of​ employees? A. ​Part-time employees B. New employees C. Professional and managerial employees D. Administrative employees E. Unskilled employees

c

What statistical method makes it possible for compensation specialists to set pay rates for a set of jobs that are consistent with the pay rates in the​ market? A. Hypothesis testing B. Average deviation C. Regression analysis D. Normal distribution E. Standard deviation

c

When conducting a strategic analysis for designing a​ market-competitive pay​ system, which of the following would be considered an internal​ factor? A. Industry profile B. ​Competitors' pay practices C. Functional capabilities of the firm D. ​Long-term growth prospects E. Information about competitors

c

Which of the following helps compensation professionals establish market pay​ rates? A. Computing a mean B. Median analysis C. Regression analysis D. Standard deviation E. Variance

c

Who should be involved in job leveling in a​ company? A. Compensation professionals B. Compensation professionals and HR specialists C. Job incumbents and supervisors D. Employees and HR professionals E. Employees and union leaders

c

A hospital that has been looking to fill the position for a neurosurgeon​ (a highly skilled and specialized job where demand is high and supply is​ low) would more than likely define its relevant labor market in terms of​ ________. A. occupational classification B. service market competitors C. the local area where the hospital is located D. geography E. product market competitors

d

All of the following activities are part of designing a​ market-competitive pay system EXCEPT​ ________. A. determining compensation policies B. assessing​ competitors' pay practices with surveys C. integrating internal job structures with external market pay rates D. matching job descriptions to pay levels E. conducting strategic analyses

d

All of the following contribute to the COST of developing custom surveys EXCEPT​ ________. A. needing computers for data analysis B. paying staff to interpret the data C. paying staff to conduct the survey D. using BLS data to enhance the survey E. mailing the surveys

d

An appropriate pay mix should consider the relative worth of jobs within a structure. Keeping this in​ mind, most of the bonus compensation in a technology company like Intel would likely be given to which of the following​ groups? A. Sales and marketing staff B. Blue collar workers C. Custodial staff D. Engineers E. Administrative staff

d

Compensation professionals must be aware of certain characteristics of compensation surveys. Which statement about compensation surveys is​ FALSE? A. Compensation surveys are loaded with information. B. Compensation surveys become outdated quickly. C. Compensation survey data requires statistical analysis. D. Compensation surveys represent​ real-time data. E. Compensation surveys contain a wide range of pay rates across companies.

d

Compensation surveys generally focus on​ competitors' ________. A. merit pay practices B. benefits practices C. bonus pay practices D. wage and salary practices E. ​cost-of-living increases

d

In recent​ years, ________ have become part of compensation​ surveys, because they are key elements of​ market-competitive pay systems. A. pension plans B. merit increases C. wage rates D. employee benefits E. bonuses

d

The data collected on compensation by professional and industry association members tends to be accurate because​ ________. A. members are proficient in statistical techniques B. it is extremely expensive to purchase the data C. it is valuable​ information, and therefore goes through several cycles of accuracy checks D. members themselves stand to benefit from the data E. it takes a very long time to compile the data

d

What does the R2 statistic tell the compensation​ professional? A. It helps explain the spread in the market pay range. B. It helps explain the average market pay. C. It helps in explaining the high and low market pay rates. D. It helps explain the variation in pay based on the​ company's job structure. E. It tells the variation in market pay.

d

What is critical to developing an effective compensation​ survey? A. Making sure that the survey sample is adequate B. Ensuring that the data is obtained from government sources C. Getting wage and salary data D. Making sure that something can be gained from the survey E. Making sure that the data is current

d

When a company thoroughly examines its external market context and its internal​ factors, it is in essence​ ________. A. conducting a management analysis B. conducting a compensation survey C. determining compensation policies D. conducting a strategic analysis E. assessing​ competitors' pay practices

d

Which of the following measures the purchasing power of a​ dollar? A. Nominal compensation B. Central tendency C. Standard deviation D. Real compensation E. Market pay line

d

Which statement about compensation surveys is​ FALSE? A. Most companies lack qualified personnel who can design accurate surveys. B. The custom development of surveys involves potential risks for employers. C. Developing​ in-house surveys is expensive. D. Published compensation surveys are mostly inaccurate. E. Developing a customized survey requires specialized knowledge.

d

Which term refers to the set of data that clusters around a typical numerical​ value? A. Quartile B. Regression analysis C. Standard deviation D. Central tendency E. Variation

d

Who is ultimately responsible for making compensation policy​ decisions? A. Labor unions B. HR specialists C. Employees D. Top management E. Supervisors

d

All of the following are activities that create​ market-competitive pay systems EXCEPT​ ________. A. conducting strategic analysis B. assessing​ competitors' pay practices with surveys C. integrating internal job structures with market pay rates D. determining compensation policies E. surveying employees and supervisors in the company

e

Before investing time and money into compensation​ surveys, which question is most important for compensation professionals to​ consider? A. How should we design the​ survey? B. How long will the survey be​ valid? C. Should company employees be involved in constructing the​ survey? D. How long will it take to conduct the​ survey? E. What does the company want to gain from the​ survey?

e

Compensation specialists hope to gain information regarding​ ________ from compensation surveys. A. ​competitors' benefits packages B. employee preferences regarding pay C. labor​ unions' preferences regarding pay D. ​competitors' hiring practices E. ​competitors' base pay and mix of total monetary compensation

e

Custom compensation surveys designed by consulting firms for clients may be superior to existing surveys because they​ ________. A. cost much less than existing surveys B. are not as out of date as existing surveys C. consider the total compensation package of the​ client, unlike existing surveys D. use multiple sources to collect​ data, unlike existing​ surveys, which use one source E. include questions specifically designed to meet client​ needs, unlike existing surveys

e

If the slope of the market pay line was​ $30, what would it mean for a job that was 301 job evaluation points instead of 300 job evaluation​ points? A. It would mean that the job that has 301 points should be paid at a flat rate of​ $30 per hour. B. It would be ​$30times×10 ​= $300 more for a job that has 301 points. C. It would mean​ $30 less for the job that has 301 points. D. It would mean the job that has 300 points would be worth​ $30 more. E. It would mean that the job that has 301 evaluation points would be worth​ $30 more.

e

Pay mix policy may be expressed in​ ________. A. dollars expressing total payroll taxes paid in a given year B. fractions and ratios C. hours spent on the job D. dollars expressing the total savings in compensation E. currency or as a percentage of total dollars spent on compensation

e

The index component of National Compensation​ Data, the Employer Cost Index​ (ECI), measures changes in​ ________. A. hourly versus salaried wages B. pay raises C. pay relative to inflation D. benefits E. labor costs

e

The​ ________ survey is a monthly survey of the payroll records of businesses establishments that provides national estimates of average weekly hours and average hourly earnings for the private sector for all employees and for production and nonsupervisory employees. A. Bureau of Labor Statistics B. National Compensation C. Consumer Price Index D. National Estimates E. Current Employment Statistics

e

What is the balance that companies must strike when it comes to designing a differentiation pay​ strategy? A. Paying employees competitively while pursuing a​ lowest-cost strategy B. Trying to match their overhead costs to their competitors while keeping up with productivity levels C. Paying employees lower pay than competitors and keeping employees from joining unions D. Providing employees generous benefits while keeping compensation costs to a minimum E. Attracting and retaining qualified candidates with sufficient pay and giving them adequate resources with which to work

e

When compensation analysts use regression​ analysis, they are trying to​ ________. A. come up with an average of the salaries on a survey B. establish the highest and lowest salary levels on the survey C. study the amount of deviation in salaries D. predict salary increases in the future E. predict the values of one variable from another

e

Which of the following is true in regard to​ benefits? A. Benefits costs have been falling for most companies. B. Benefits are currently far less important to employees than base pay. C. Compensation surveys do not take into account​ benefits; they concentrate on base pay. D. Benefits are becoming a smaller component of total compensation packages. E. Benefits costs have​ increased, giving rise to greater variability in benefits among companies.

e

Why do compensation professionals use regression​ analysis? A. To determine pay equity between male and female employees B. To calculate merit pay increases C. To conduct an internal job evaluation D. To make​ cost-of-living adjustment to pay rates E. To determine pay rates that are comparable to pay rates in the market

e