Chapter 8

All of the following are examples of potential anomalies EXCEPT

a large variation in average base pay for a job across companies

because employers are raising employee pay at various times during the year, survey data must be updated using a process called______ or ______

aging; trending

what shows how competitors value work in similar jobs

base wage

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

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

the first step in intercepting survey data is

check for the accuracy of job matches

The second major decision in pay-level determination is to

define the purpose of a survey

The fourth major decision in pay-level determination is to

design and conduct survey

The final major decision in pay-level determination is to

design grades and ranges or bands

the purpose of collecting data on the number of employees in a pay survey is to

estimate the organizations impact on the labor market

financial data in pay surveys are used to ____

group firms by size

The fifth major decision in pay-level determination is to

interpret and apply result

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

aging the market data to a point halfway through a plan year is called _____

lead/lag approach

A market pay line is

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

A company using a skill-based pay system prices the job of the 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

What _________pay strategy emphasizes external competitiveness and deemphasizes internal alignment

market pricing

What ____________minimizes the distortion of the central tendency caused by outliers

median

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

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

the "X"

In the regression equation, y=a + bx, what is constant?

the "a"

In the regression equation, y=a + bx, job what is the regression lean?

the "b"

In most organizations, the responsibility for managing a pay survey lies with

the compensation manager

For organizations using a skill-competency-based pay system or generic job descriptions, the best approach for pricing jobs is

the low-high approach

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

Which of the following statements is true regarding broad bands

they foster cross-functional growth

What measures reveal competitors' use of performance-based cash payments

total cash

this measure of compensation may overstate competitors' pay

total cash compensation

Which of the following is almost never used to set pay ranges

Standard Deviation

which of the following statements is false about market pricers

-they align pay structures with the business strategy -their pay structures are unique and difficult to imitate -they emphasize pay structures based on unique technologies or the way work is organized

pay ranges for office and production work commonly range between _____ and _____ percent

5; 15

Which of the following is often used to set pay ranges

Quartiles and Percentiles

Which of the following jobs would most likely fall into fuzzy market?

The position of senior directors of Future Vision Services that was filled by a Software Engineer with e-commerce, marketing, and theatre experience.

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 third major decision in pay-level determination is to

specify relevant market

Size of pay differentials between grades should

support career movement through the pay structure