COMP ch 8

Which of the following statistical measures shows how similar or dissimilar the market rates are from each other? A. Weighted mean B. Mean C. Standard deviation D. Median

Standard deviation

All of the following are examples of potential anomalies except _____. A. outliers B. a large variation in base pay for a job at one company C. one company dominates the results D. a large variation in average base pay for a job across companies

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 _____. A. aging, trending B. aging, smoothing C. trending, leveling D. gaining, smoothing

aging, trending

Survey data from one or a few employers that are significantly out of line with other employers _____. A. are deviant data B. are anomalies C. reflect a diverse sample D. are standard deviations

are anomalies

Applying the job evaluation process to pay survey jobs to assess the degree of match between survey jobs and benchmark jobs is called the _____ approach. A. low-high B. benchmark job C. benchmark conversion D. point survey conversion

benchmark conversion

The first step in interpreting survey data is _____. A. check for the accuracy of job matches B. seek out non-responders C. check for fraudulent data D. remove the top and bottom paying companies

check for the accuracy of job matches

The second major decision in pay-level determination is _____. A. specify relevant market B. define purpose of survey C. design and conduct survey D. select product and labor market competitors

define purpose of survey

The final major decision in pay-level determination is _____. A. interpret and apply results of survey B. obtain top-management acceptance of final decisions C. design grades and ranges or bands D. draw policy lines

design grades and ranges or bands

Financial data in pay surveys are used to _____. A. group firms by size B. analyze competitors' performance C. compare competitors' labor costs D. compare competitors' debt ratios

group firms by size

Pay surveys collect total number of employees for the purpose of_______ _____ A. impact on the labor market B. how work is organized C. ability to pay D. recruiting success

impact on the labor market

Job structure is to ________ as pay structure is to pay-policy line. A. market line B. pay surveys C. job evaluation D. reference rates

job evaluation

Aging market data to a point halfway through the plan year is called _____. A. leveling B. updating C. lead/lag D. lag

lead/lag

A market pay line _____. A. reflects an organization's internal alignment policy B. links a company's benchmark jobs with market rates paid by competitors C. provides an accurate prediction of an organization's entry level pay rates D. compares an organization's minimum and maximum pay rates for each skill level

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

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. A. benchmark job B. low-high C. pay range D. benchmark conversion

low-high

For organizations using a skill-competency-based pay system or generic job descriptions, the best approach for pricing jobs is _____ A. benchmark job. B. low-high. C. market pricing D. benchmark conversion

low-high.

The _____ pay strategy emphasizes external competitiveness and deemphasizes internal alignment. A. job structure B. broad banding C. reference rate D. market pricing

market pricing

The _____ minimizes distortion of the central tendency caused by outliers. A. weighted mean B. mean C. mode D. median

median

Size of pay differentials between grades should _____. A. be based upon differentials in market surveys B. be approximately 15 percent C. support career movement through the pay structure D. be between 10 and 25 percent

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 _____. A. updating B. point factor adjustment C. lead/lag policy adjustment D. survey leveling

survey leveling

The primary responsibility for conducting a pay survey is _____. A. top management B. the facility or plant manager C. outside consultants D. the compensation manager

the compensation manager

The answer to the question of how many firms to include in a pay survey is _____. A. there are no firm rules B. include at least one-hundred C. focus primarily on labor-market competitors D. the top 50 percentile of similar sized firms

there are no firm rules

Companies typically use _______ pay survey(s) when setting pay levels. A. one well-validated B. two C. three or more D. more than five

three or more

In the regression equation, y = a + bx, job evaluation points are _____. A. a B. b C. x D. y

x

Pay ranges for clerical and production jobs commonly range between _____ and _____. A. 5, 15 B. 15, 30 C. 30, 40 D. 40, 60

5, 15

_____ shows how competitors value work in similar jobs. A. Base wage B. Total cash C. Total compensation D. Base pay plus benefits

Base wage

The _____ publishes extensive information on various occupations in different geographic areas. It is a major source of publicly available compensation data. A. Chamber of Commerce B. Bureau of Labor Statistics C. compensation association D. Department of Economics

Bureau of Labor Statistics

Which of the following jobs would most likely fall into a fuzzy market? A. Screen writer (MGM) B. Sound engineer (Sony studios) C. Director of future vision services (West Publishing) D. Vice-president of people (Southwest Airlines)

Director of future vision services (West Publishing)

Which of the following is true regarding the Employment Cost Index (ECI)? A. It is published by the Department of Commerce. B. It is an excellent source of competitor labor costs. C. It measures annual changes in employer compensation costs. D. It allows comparison of labor costs to all-industry averages.

It allows comparison of labor costs to all-industry averages.

Which of the following types of labor would most likely be recruited only locally? A. Office and clerical workers B. Scientists C. Managers D. Executives

Office and clerical workers

Which of the following is often used to set pay ranges? A. Median B. Weighted mean C. Quartiles and percentiles D. Standard deviation

Quartiles and percentiles

Which of the following statements is true about market pricers? A. They align pay structures with the business strategy. B. Their pay structures are unique and difficult to imitate. C. They assume that little value is added through internal alignment. D. They emphasize pay structures based on unique technology or the way work is organized.

They assume that little value is added through internal alignment.

Which of the following statements is true regarding broad bands? A. They require a relatively stable organization design. B. They support recognition via titles or career progression. C. They foster cross-functional growth. D. They give managers "freedom with guidelines".

They foster cross-functional growth.

_____ measures competitors' use of performance-based pay. A. Base pay B. Short-term incentive pay C. Total cash D. Total compensation

Total cash

This measure of compensation may overstate competitors' pay. A. Base pay plus benefits B. Total cash compensation C. Base pay D. Total compensation

Total cash compensation

You work in a midsize organization and have just conducted a wage survey. Five midsize companies have provided wage data for a particular job. Here are the numbers ... Which of the following statistics will be the most accurate reflection of the market rate? A. Mean B. Weighted mean C. Median D. Mode

Weighted mean

An organization that has a match (pay) policy will pay its employees: A. the market rate each month for the duration. B. more than the market rate for some months and less than the market rate for the other months. C. at the 100th percentile of the market rate obtained through the wage/salary survey. D. at the 50th percentile of the market rate obtained through the wage/salary survey.

more than the market rate for some months and less than the market rate for the other months.

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 of was 5% and another 5% for 2014. An employer choosing to follow a lead strategy of 4% above the market for the plan year, will need to _____. A. multiply salary by 105% and then by 109% B. increase the clerk salary by $2,200 C. multiply the salary by 109% D. multiply the salary by 114%

multiply salary by 105% and then by 109%

A relevant labor market includes all employers who compete in one or more of the following areas except _____. A. employees in the same geographic area B. the same occupations or skills C. the same products and services D. pay similar wages

pay similar wages

Paying jobs of different functions different rates within a pay band is called ____. A. reference rates B. broad banding C. pay leveling D. knowledge-based pay

reference rates

Pay ranges: A. are flexible enough to deal with differences in quality, but not with the productivity or value of these quality variations. B. usually lead to an increase in employee turnover. C. reflect the differences in performance or experience that an employer wishes to recognize with pay. D. cause employees to believe that their compensation can increase by only a limited amount.

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

The first step in setting competitive pay and designing a pay structure is _____. A. specify pay-level policy B. conduct job evaluation C. draw policy lines D. specify relevant market

specify pay-level policy