Chapter 8
Lead/lag approach
Aging the market data to a point halfway through a plan year is called _____.
Lead/Lag updating
Aging the market data to a point halfway through the plan is called:
a large variation in average base pay for a job across companies
All of the following are examples of potential anomalies EXCEPT _____.
benchmark conversion approach
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.
Median
The _____ minimizes the distortion of the central tendency caused by outliers.
market pricing pay strategy
The _____ pay strategy emphasizes external competitiveness and deemphasizes internal alignment.
Bureau of Labor Statistics
The _____ publishes extensive information on various occupations in different geographic areas. It is a major source of publicly available compensation data.
Median
The ______________ minimizes distortion of the central tendency caused by outliers
Market Pricing
The __________________ pay strategy emphasizes external competitiveness and deemphasizes internal alignment.
There are no firm rules, No set amount. Enough to have a stable estimate of relevant companies.
The answer to the question of how many firms to include in a pay survey is ______________.
design grades and ranges or bands
The final major decision in pay-level determination is to _____.
check for the accuracy of job matches
The first step in interpreting survey data is ________________.
specify pay-level policy
The first step in setting competitive pay and designing a pay structure is
specify a pay level policy.
The first step in setting competitive pay and designing a pay structure is to _____.
The Standard Deviation
Which of the following statistical measures shows how similar or dissimilar the market rates are from each other?
Total Cash
_____ measures reveal competitors' use of performance-based cash payments.
Total Cash
______________ measures competitors' use of performance-based pay.
Base wage
__________________ shows how competitors value work in similar jobs.
support career movement through the pay structure
Size of pay differentials between grades should _____.
They foster cross-functional growth
Which of the following statements is true regarding broad bands?
check for the accuracy of job matches
A common first step in interpreting survey data is to _____.
Low-High Method of Job Matching
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.
links a company's benchmark jobs with market rates paid by competitors.
A market pay line _____.
links a company' benchmark jobs with market rates paid to competitors
A market pay line __________________________.
Aging; Trending
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 _____.
group firms by size
Financial data in pay surveys are used to __________________.
the Low-High Approach
For organizations using a skill-competency-based pay system or generic job descriptions, the best approach for pricing jobs is _____.
the compensation manager
In most organizations, the responsibility for managing a pay survey lies with _____.
the X
In the regression equation, y = a + bx, job evaluation points are denoted by _____.
5; 15
Pay ranges for office and production work commonly range between _____ and _____ percent.
reflect the differences of performances or experience that an employer wishes to recognize with pay
Pay ranges:
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
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 _____.
estimate the organizations impact on the labor market
The purpose of collecting data on the number of employees in a pay survey 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 second major decision in pay-level determination is to _____.
Total Cash Compensation
This measure of compensation may overstate competitors' pay.
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:
Quartiles and Percentiles
Which of the following is often used to set pay ranges?
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.
Which of the following is true regarding the Employment Cost Index (ECI)?
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.
Which of the following jobs would most likely fall into a fuzzy market?
They assume that little value is added through internal alignment
Which of the following statements is true about market pricers?