Question 1

Briefly discuss some of the limitations of compensation surveys.

Accepted Answer

Compensation surveys are essential tools

Question 2

Which of the following identifies the three main "third party" sources of compensation data?

Accepted Answer

A)  Statistics Canada, trade journals, and government agencies 
B)  private agencies, trade journals, and government agencies 
C)  government agencies, industry groups, and consulting firms 
D)  consulting firms, boards of trade, and publishers 
A)  Statistics Canada, trade journals, and government agencies 
B)  private agencies, trade journals, and government agencies 
C)  government agencies, industry groups, and consulting firms 
D)  consulting firms, boards of trade, and publishers

Question 3

What determines the geographic scope of the market for occupational groups?

Accepted Answer

A)  the level of job specialization 
B)  the size of the firm 
C)  whether the firm is union or non-union 
D)  whether the firm is in the private or public sector 
A)  the level of job specialization 
B)  the size of the firm 
C)  whether the firm is union or non-union 
D)  whether the firm is in the private or public sector

Question 4

Which of the following sources of compensation data may have poor reliability and validity?

Accepted Answer

A)  informal surveys 
B)  government agencies 
C)  consultants 
D)  formal surveys 
A)  informal surveys 
B)  government agencies 
C)  consultants 
D)  formal surveys

Question 5

Which of the following measures can be used to assess the central tendency of pay?

Accepted Answer

A)  dispersion 
B)  standard deviation 
C)  quartiles and deciles 
D)  mean 
A)  dispersion 
B)  standard deviation 
C)  quartiles and deciles 
D)  mean

Question 6

Discuss some of the advantages and disadvantages of in-house surveys.

Accepted Answer

Advantages of in-house surveys include a

Question 7

Which of the following describes a compensating differential?

Accepted Answer

A)  an adjustment to job rates based on survey results 
B)  an adjustment to gender specific jobs 
C)  offering more compensation to overcome undesirable aspects of the job 
D)  assessing the distribution of employees within their pay range 
A)  an adjustment to job rates based on survey results 
B)  an adjustment to gender specific jobs 
C)  offering more compensation to overcome undesirable aspects of the job 
D)  assessing the distribution of employees within their pay range

Question 8

What does a compa-ratio of greater than 1 mean?

Accepted Answer

A)  Employees, on average, are being paid above the midpoint at that firm. 
B)  The majority of employees are in the first pay quartile. 
C)  The firm is paying their employees in the bottom half of the pay range. 
D)  The firm has only a minority of their employees in the top pay bracket. 
A)  Employees, on average, are being paid above the midpoint at that firm. 
B)  The majority of employees are in the first pay quartile. 
C)  The firm is paying their employees in the bottom half of the pay range. 
D)  The firm has only a minority of their employees in the top pay bracket.

Question 9

Which of the following questions is not appropriate to ask when conducting a compensation survey?

Accepted Answer

A)  Are the employees in this job union members? 
B)  What is your annual compensation budget? 
C)  On what basis do employees move through the pay range? 
D)  What is your annual sick leave allowance? 
A)  Are the employees in this job union members? 
B)  What is your annual compensation budget? 
C)  On what basis do employees move through the pay range? 
D)  What is your annual sick leave allowance?

Question 10

According to the text,sources of compensation market data include government agencies,trade journals,and compensation consultants.

Accepted Answer

A) True 
 B)False

Question 11

Although very costly to use on a significant scale,which method of data collection provides the best quality of information?

Accepted Answer

A)  internet surveys 
B)  personal interviews 
C)  telephone interviews 
D)  questionnaires 
A)  internet surveys 
B)  personal interviews 
C)  telephone interviews 
D)  questionnaires

Question 12

In understanding labour markets,three kinds of competitors are relevant.

Accepted Answer

A) True 
 B)False

Question 13

What measure of central tendency should be used to avoid information being distorted by extreme values?

Accepted Answer

A)  median 
B)  weighted average 
C)  simple average 
D)  mode 
A)  median 
B)  weighted average 
C)  simple average 
D)  mode

Question 14

Compensation surveys reflect the value placed on jobs by the labour market but this does not always mean that the market values jobs fairly.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following characteristics is not typically considered by a given firm in the selection of market comparator firms?

Accepted Answer

A)  the type of product or service the firm provides 
B)  whether the firm has achieved pay equity 
C)  whether the firm is union or non-union 
D)  the geographic area over which it operates 
A)  the type of product or service the firm provides 
B)  whether the firm has achieved pay equity 
C)  whether the firm is union or non-union 
D)  the geographic area over which it operates

Question 16

Briefly describe the process for analyzing and interpreting survey data.

Accepted Answer

In analyzing survey data,the first steps

Question 17

How do you apply your survey data results to a skill-based pay system?

Accepted Answer

A)  Use information from jobs that match the bottom of the skill grid and the top of the skill grid. 
B)  Develop a market line and calibrate your system against that. 
C)  Apply the market rates to your jobs 
D)  Surveys don't capture the appropriate information, and misrepresent actual pay trends. 
A)  Use information from jobs that match the bottom of the skill grid and the top of the skill grid. 
B)  Develop a market line and calibrate your system against that. 
C)  Apply the market rates to your jobs 
D)  Surveys don't capture the appropriate information, and misrepresent actual pay trends.

Question 18

Which of the following conditions best explains why professional athletes command the kinds of fees they do for endorsing various products and services?

Accepted Answer

A)  wage compression 
B)  labour scarcity 
C)  compensating differentials 
D)  union wage premiums 
A)  wage compression 
B)  labour scarcity 
C)  compensating differentials 
D)  union wage premiums

Question 19

Which of the following statements refers to compa-ratio?

Accepted Answer

A)  calculated by averaging the pay ranges in the quartiles 
B)  a measure of pay dispersion across employers 
C)  derived by dividing mean base pay by the midpoint of the pay range 
D)  a calculation based on average base pay for each job 
A)  calculated by averaging the pay ranges in the quartiles 
B)  a measure of pay dispersion across employers 
C)  derived by dividing mean base pay by the midpoint of the pay range 
D)  a calculation based on average base pay for each job

Question 20

Which of the following is the first step in analyzing compensation survey data?

Accepted Answer

A)  establishing pay grades and ranges 
B)  calculating a compa-ratio 
C)  assessing the number of job evaluation points that each job has received 
D)  assessing central tendency of pay and the variation across employers 
A)  establishing pay grades and ranges 
B)  calculating a compa-ratio 
C)  assessing the number of job evaluation points that each job has received 
D)  assessing central tendency of pay and the variation across employers

Briefly discuss some of the limitations of compensation surveys.

Which of the following identifies the three main "third party" sources of compensation data?

What determines the geographic scope of the market for occupational groups?

Which of the following sources of compensation data may have poor reliability and validity?

Which of the following measures can be used to assess the central tendency of pay?

Discuss some of the advantages and disadvantages of in-house surveys.

Which of the following describes a compensating differential?

What does a compa-ratio of greater than 1 mean?

Which of the following questions is not appropriate to ask when conducting a compensation survey?

According to the text,sources of compensation market data include government agencies,trade journals,and compensation consultants.

Although very costly to use on a significant scale,which method of data collection provides the best quality of information?

In understanding labour markets,three kinds of competitors are relevant.

What measure of central tendency should be used to avoid information being distorted by extreme values?

Compensation surveys reflect the value placed on jobs by the labour market but this does not always mean that the market values jobs fairly.

Which of the following characteristics is not typically considered by a given firm in the selection of market comparator firms?

Briefly describe the process for analyzing and interpreting survey data.

How do you apply your survey data results to a skill-based pay system?

Which of the following conditions best explains why professional athletes command the kinds of fees they do for endorsing various products and services?

Which of the following statements refers to compa-ratio?

Which of the following is the first step in analyzing compensation survey data?

A Road Map to Effective Communication

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters

Exam 9: Evaluating the Market

Briefly discuss some of the limitations of compensation surveys.

Which of the following identifies the three main "third party" sources of compensation data?

What determines the geographic scope of the market for occupational groups?

Which of the following sources of compensation data may have poor reliability and validity?

Which of the following measures can be used to assess the central tendency of pay?

Discuss some of the advantages and disadvantages of in-house surveys.

Which of the following describes a compensating differential?

What does a compa-ratio of greater than 1 mean?

Which of the following questions is not appropriate to ask when conducting a compensation survey?

According to the text,sources of compensation market data include government agencies,trade journals,and compensation consultants.

Although very costly to use on a significant scale,which method of data collection provides the best quality of information?

In understanding labour markets,three kinds of competitors are relevant.

What measure of central tendency should be used to avoid information being distorted by extreme values?

Compensation surveys reflect the value placed on jobs by the labour market but this does not always mean that the market values jobs fairly.

Which of the following characteristics is not typically considered by a given firm in the selection of market comparator firms?

Briefly describe the process for analyzing and interpreting survey data.

How do you apply your survey data results to a skill-based pay system?

Which of the following conditions best explains why professional athletes command the kinds of fees they do for endorsing various products and services?

Which of the following statements refers to compa-ratio?

Which of the following is the first step in analyzing compensation survey data?

A Road Map to Effective Communication

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters