C236 End of Topic Review Ch. 5

Central tendency is: A group of numbers to represent one number A single number that best represents a group of numbers Both A and B None of the above

Answer: A single number that best represents a group of numbers The quest of Central Tendency is simply to find one single number that best represents a whole group of numbers. Found in the following section(s) of the text: 5.4 Compensation Calculations - Central Tendency (The one best number)

A reward survey is: A survey published by the government to employers to understand rewards offered A survey published by the AMA to employers to understand rewards offered A survey designed to understand employees' desire for rewards Aggregations of reward information gathered from other market organizations

Answer: Aggregations of reward information gathered from other market organizations The foundation of external reward positioning is found in reward surveys. Found in the following section(s) of the text: 5.5 Reward Surveys

The mean is also known as the: Average Median Mode Metrics

Answer: Average Found in the following section(s) of the text: 5.4 Compensation Calculations - Mean (or Average)

Through the use of __________________, an organization is going to create a link between its reward structures and the external markets. Benchmark jobs Exit intervie Interviews Surveys

Answer: Benchmark jobs Benchmark jobs are jobs that are representative of the type, content, and level of jobs in the organization. Found in the following section(s) of the text: 5.5 Reward Surveys - Selecting Benchmark Jobs

Self-reported information is important because: It provides an additional source of data that can help make your overall reward estimates more reliable Data sources often are the exact sources that employees use to define market rates and their own reward expectations Both A & B None of the above

Answer: Both A & B It is useful for organizations to be aware of these sources and how their reported reward information compares to those used by the organization to set pay levels. Found in the following section(s) of the text: 5.5 Reward Surveys - Self-Report

In the United States, the _________conducts a National Compensation Survey to measure broad reward practices and levels. American Management Associates Bureau of Labor Statistics Society of Human Resources Management Bureau of Animal Rights

Answer: Bureau of Labor Statistics This information is most useful for considering the broad-level positioning of an organization in relation to broadly-defined labor markets. Found in the following section(s) of the text: 5.5 Reward Surveys - Government

Which of the following is not a readily available way of obtaining reward information: Government Competitors compensation plan Self-report Popular press

Answer: Competitors compensation plan Found in the following section(s) of the text: 5.5 Reward Surveys - Reward Survey Sources

State, county, or city governments conduct some form of compensation survey. These sources would have great utility for smaller, local labor markets. This data is very specific and provides data on most benchmark jobs. TrueFalse

Answer: False Due to the lack of precision in benchmark jobs, this data is rarely specific enough to provide data on most benchmark jobs. Found in the following section(s) of the text: 5.5 Reward Surveys - Government

In choosing benchmark jobs, organizations should be careful to ensure adequate representation for all of the following, except: Organizational levels Career points Government mandates Different job families

Answer: Government mandates In choosing benchmark jobs, organizations should be careful to ensure adequate representation for different job families, organizational levels, and career points. Found in the following section(s) of the text: 5.5 Reward Surveys - Selecting Benchmark Jobs

One advantage of using subscription information from a third party is: Price Accuracy Industry specific Relative

Answer: Industry specific Many of these surveys are industry specific, providing compensation data that is quite tailored to the common norms and practices of that industry. Found in the following section(s) of the text: 5.5 Reward Surveys - Subscription Survey Data

The median is the: Highest number Middle number Lowest number Average number

Answer: Middle number Found in the following section(s) of the text: 5.4 Compensation Calculations - Median

The mean can be heavily influenced by: Outliers Median Market trends Organizational cultures

Answer: Outliers The mean can be heavily influenced by outliers, or numbers that are far above or below most of the other numbers. Found in the following section(s) of the text: 5.4 Compensation Calculations - Median

Data aging refers to: The adjustment of market reward information to take into account how inflation has likely changed the market rates since the data were collected The adjustment of market reward information from 10 years ago The adjustment of market reward information to guess the rewards for 3 years from a certain starting point None of the above

Answer: The adjustment of market reward information to take into account how inflation has likely changed the market rates since the data were collected Data aging refers to the adjustment of market reward information to take into account how inflation has likely changed the market rates since the data was collected. Found in the following section(s) of the text: 5.5 Reward Surveys - Aging the Data

Dispersion represents: The gap between lower and higher level employees The gap between two data points The gap between the highest and lowest data point The gap between industries

Answer: The gap between two data points There are two basic ways to measure dispersion: range and standard deviation. Found in the following section(s) of the text: 5.4 Compensation Calculations - Dispersion (How Spread Out)

A drawback to designing your own survey is: Price Accuracy Time Industry specific

Answer: Time It may also be difficult to get the sample size that you need to be sure of having generalizable results. Found in the following section(s) of the text: 5.5 Reward Surveys - Custom Survey Data

Markets are one way to establish the price for any good or service. TrueFalse

Answer: True Based upon changes in the supply for the good/service and the demand for that good/service, the price for it will change. Found in the following section(s) of the text: 5.2 Defining Markets

Many forms of employee benefits and intangible rewards are difficult to quantify. TrueFalse

Answer: True Many forms of employee benefits and intangible rewards are difficult to quantify and information on them may not be included in the standard rewards surveys, which can further complicate the matching process. Found in the following section(s) of the text: 5.5 Reward Surveys - Pay forms

Organizations would be wise to recognize that employee choices are often driven more by what they perceive reality to be than what reality actually is. TrueFalse

Answer: True This suggests that an awareness of, and explanation for, popular press sources will prove beneficial for the design and implementation of a reward system. Found in the following section(s) of the text: 5.5 Reward Surveys - Popular Press

Geography has a significant impact on how an organization should define its labor market. TrueFalse

Answer: True Thus, the first step in externally positioning your reward system is to analyze and define the relevant labor market for each job or job family. Found in the following section(s) of the text: 5.2 Defining Markets - Market Differences Due to Geography and Jobs

Which of the following is not a primary concern when integrating data from multiple rewards surveys? Pay forms Understanding government mandates Aging the data Matching benchmark jobs

Answer: Understanding government mandates The three primary concerns when integrating data from multiple rewards surveys are pay forms, matching benchmark jobs, and aging the data. Found in the following section(s) of the text: 5.5 Reward Surveys - Pay Surveys Integration