Exam 3 Ch 8

Which of the following statements is true of pay ranges

- proportionate to labor costs - not the same across organizations - competitor pay effects product & service prices - not independent of staff numbers

A common first step in interpreting compensation survey data is to

check for the accuracy of job matches

A market pay line does what according to the text

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

The _____ pay strategy emphasizes external competitiveness and deemphasizes internal alignment

market pricing

Which of the following statements is true regarding broad bands

they foster cross-functional growth

The process of matching survey jobs by applying an employer's plan to the external jobs and then comparing the worth of the external job with its internal "match" is called

benchmark conversion

The final major decision in setting externally competitive pay and designing the corresponding pay structures is to

construct a pay policy line that reflects external pay policy

The second major decision in setting externally competitive pay and designing the corresponding pay structures is to

define the purpose of the survey

The first major decision in setting externally competitive pay and designing the corresponding pay structures

specify the employer's competitive pay policy

Which of the following statistical measures shows how similar or dissimilar the market rates are from each other

standard deviation

The size of pay differentials between grades should

support career movement through the pay structure

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

the "X"

In the United States, the ________ is a major source of publicly available pay data, and it also calculates the consumer price index

Bureau of Labor Statistics

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

Director of future vision services

Gramhold, Inc., a pharmaceutical company, reduces its ten salary grades to just three broad bands. Which of the following statements is most likely to be true in this case

Gramhold will experience career moves within bands more than career moves between bands

Which measure of central tendency minimizes distortion caused by outliers

Median

Pay ranges for office and production work commonly range between

5 & 15

Asai uses a skill-based plan that establishes single flat rates for each skill level. Mark performs better than Steve, even though Steve has more seniority. Which of the following statements is most likely to be true in this scenario?

Steve will be paid more than Mark as he has more seniority

Which of the following statements is true of market pricers

They assume that little value is added through internal alignment

Who usually has responsibility for managing a pay survey

Top or compensation management

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

Total Cash