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
