Exam 2 Compensation and benefits

low-high

A company using a skill-based pay system prices the job of 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.

true

A job structure based upon job value orders jobs on the basis of the relative contribution of the skills, duties, and responsibilities of each job to the organization's goals.

true

A pay range exists whenever two or more rates are paid to employees in the same job.

true

A pure market pricing strategy carried to its extreme tends to ignore internal alignment completely.

The productivity will reduce.

A small lawn care company has two mowers and four employees. If it hires another employee and the factors of production remain the same, how will the productivity of the fifth employee compare to that of the current four employees?

market data had a substantially larger effect on pay decisions than job evaluation data.

A study of 400 compensation specialists revealed that:

false

Career moves between bands are more common than within bands.

executive leaderships

Competencies are derived from the ________ beliefs about the organization and its strategic intent.

a job-based pay plan

Lisa is a manager at Trell, Inc. When she hires her employees, she focuses on finding the right job for the right person. Which of the following pay plans is her employer most likely using?

job based

Managers whose employers use ________ plans focus on placing the right people in the right job.

lag-pay-level policy

Marie hired on with a tech company offering the usual benefits but paying below-market rates. She took the job because the company was promising generous stock options and hefty yearly bonuses if goals are met. Plus, they are paying her to relocate to Hawaii! Marie's new employer is using a _____.

hit rates

One way to measure the validity of job evaluation is through _____ - the degree to which the job evaluation plan matches an agreed-upon pay structure for benchmark jobs.

True

Paired-comparison and alternate-ranking methods may be more reliable than simple ranking.

true

Scaled competency indicators are similar to degrees of compensable factors.

Pay rates reflect the total costs of base pay.

Theories of labor markets usually begin with four basic assumptions. Which of the following options is not one of those four assumptions?

true

When designing the survey, three basic types of data are typically collected: information about the organization, information about the total compensation system, and specific pay data on each incumbent in the jobs under study.

motivation

Which of the following answer options is not one of the three Hay compensable factors?

Content has intrinsic value outside the external market.

Which of the following is the underlying assumption in the assessment of job content?

It oversimplifies business conditions in the real world.

Which of the following is true of the marginal revenue product model?

It captures the size of supply and demand in a market.

Which of the following is true of weighted mean as a statistical measure to analyze survey data?

Standard deviation

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

true

Work-related documentation helps gain acceptance by employees and managers, is easier to understand, and can withstand a variety of challenges to the pay structure.

job evaluation

is the process of systematically determining the relative worth of jobs to create a job structure for an organization.

true

Fundamental skills include familiarity with company forms and procedures, basic product knowledge, safety, basic computer usage, and so on.

true

Advocates of competencies say that by focusing on optimum performance rather than average performance, competencies can help employees maintain their marketability.

true

An employer offering lower base pay with high bonuses is a likely signal that it is seeking risk-taking employees.

false

As a measure of compensation, base pay includes performance incentives, and therefore it gives a true picture if competitors offer low base but high incentives.

true

As experience with competencies has grown, organizations are placing greater emphasis on business-related descriptions of behaviors.

false

Each organization operates in a single homogeneous labor market.

true

In a labor market, the demand side focuses on the actions of the employers.

true

In cases where the content of an organization's jobs does not sufficiently match that of the jobs in the salary survey, an effort can be made to quantify the difference via benchmark conversion.

paired comparison

In the context of job evaluation methods, which of the following is a common way of ranking?

compensable factors

In the context of the point method of job evaluation, ________ are job attributes that provide the basis for evaluating the relative growth of jobs inside an organization.

true

In the past, compensation managers handled the appeal review procedures, but increasingly teams of managers and even peers are used.

true

In virtually all the studies on job evaluation, job-based evaluation is treated as a measurement device.

Product demand is responsive to price changes.

In which of the following conditions would product market competitors' data be given more weight than data from labor market competitors?

Employment Cost Index

It allows a firm to compare changes in its average costs to an all-industry or specific-industry average.

true

Product demand and the degree of competition affect the ability of an organization to change what it charges for its products and services.

true

The leadership of any organization is the best source of information on where the business should be going and how it is going to get there.

work/life balance policy.

The pay-mix policy alternative in which the percentage of benefits is likely to be the highest is known as a