Comp Chapter 8

pay ranges for clerical and production jobs commonly range between

5 and 15

examples of potential anomalies: outliers, a large variation in base pay for a job at one company, and one company dominates the results. The following is something that is NOT a potential anomaly:

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

aging or trending

The Employment Cost Index (ECI) allows comparison of labor costs to

all-industry averages

survey data from one or a few employers that are significantly out of line with other employers are

anomalies

size of pay differentials between grades should support ____ through the pay structure

career movement

the first step in interpreting survey data is

check for the accuracy of job matches

base wage shows how _____ value work in similar jobs

competitors

broad-bands foster

cross-functional growth

the second major decision in pay-level determination is

define purpose of survey

the final major decision in pay-level determination is

design grades and ranges

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

estimate the org's impact on the labor mkt

T/F: a common practice is to use the 10th and 90th percentiles form pay survey data to set mins and max of pay grades

false

T/F: a frequency distribution must be constructed to calculate a median

false

T/F: adjustments to forms of pay occur more often than adjustments to overall pay level

false

T/F: career moves between bands are more common than within bands

false

T/F: it is easier for employers to determine the worth of jobs that fall into fuzzy markets than traditional relevant markets

false

T/F: mkt pricers match a small percentage of their jobs with mkt data

false

T/F: salary data available to employees via the internet are as reliable and accurate as other more traditional surveys

false

T/F: the final step in determining externally competitive pay levels and structures is merging internal and external pressure

false

T/F: the most common measure of variation in pay surveys is the standard deviation

false

T/F: the pay structure is reflected in job evaluation or skill certification

false

T/F: the relevant labor mkt for accting, sales or clerical skills should be limited to each industry in which these types of work are found

false

T/F: total cash includes base pay plus stock options and benefits

false

T/F:ranges support flexibility within guidelines while bands support some flexibility within controls

false

financial data in pay surveys are used to

group firms by size

the mkt pricing pay strategy emphasizes external competitiveness and deemphasizes

internal alignment

in the regression equation, y= a+bx, ___ points are x

job evaluation

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

lead/lag

mkt pricers assume that ___ is added through internal alignment

little value

A company using a skill-based pay system prices the job of lead assembler at between $10 to $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

low-high

an org that has a _____ will pay it employees more than the mkt rate for some months and less than mkt rate for the other months

match pay policy

the ____ minimizes distortion of the central tendency caused by outliers

median

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

mkt pay line

_____ workers as compared to scientists, managers, and executives would most likely be recruited only locally

office and clerical

the total cash compensation measure of compensation may

overstate competitors' pay

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

pay ranges

a relevant labor mkt includes all employers who compete in one or more of the following areas except

pay similar wages

job structure is to job evaluation as pay structure is to

pay-policy line

total cash measures competitors' use of

performance-based pay

paying jobs of different functions different rates within a pay band is called

reference rates

the first step in setting competitive pay and designing a pay structure is

specify pay level policy

_____ statistical measure shows how similar or dissimilar the mkt rates are form each other

standard deviation

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

applying the job evaluation process to pay survey jobs to assess the degree of match between survey jobs and benchmark jobs is called

the benchmark conversion approach

the primary responsibility for conducting a pay survey is of this person

the compensation manager

the answer to the question of how many firms to include in a pay survey is

there are no firm rules

T/F: a pay range exists when at least two employees in the same job are paid different rates

true

T/F: a pure market pricing strategy tends to ignore internal alignment

true

T/F: aging the mkt data to a point halfway through the plan year is called lead/lag.

true

T/F: grades group job evaluation data on the horizontal axis

true

T/F: if the purpose of a survey is to price the entire structure, then benchmark jobs can be selected to include the entire job structure

true

T/F: pay ranges for managerial jobs are larger than ranges for other jobs because these jobs have greater opportunity for both discretion and performance than lower level jobs

true

T/F: pay ranges for top-level mgmt positions are commonly larger than those other professional and midlevel managerial positions

true

T/F: regression smoothes large amounts of data while minimizing variations

true

T/F: setting your company's base pay to competitors' total compensation and benefits

true

T/F: smaller pay ranges may reduce the opportunities for promotion

true

T/F: the process of multiplying survey data by a factor reflecting the difference between a survey and a company job is called survey leveling

true

T/F: when flat pay rates are used, they are typically the midpoint of a corresponding survey job

true

T/F:Market lines may be constructed by either freehand drawing or linear regression

true

T/F:identifying pay survey participants by company name is considered price fixing under the Sherman Act

true

T/F:pay surveys include information about both, all forms of cash compensation and benefits

true

T/F:when there is an unusual level of turnover in a job, an employer is likely to conduct a mkt survey

true