Question 1

Briefly discuss some of the limitations of compensation surveys.

Accepted Answer

Compensation surveys are essential tools for compensation planning within the organization.However,they are subject to numerous limitations.First,they may vary dramatically in quality of job matches and methodology.Second,they may omit important information.Third,unless survey data are available for individual employers,we cannot surmise anything about the compensation strategies practised by other firms.Fourth,compensation data may not fit all of the jobs an organization may have.Fifth,surveys cannot capture the entire range of rewards-both extrinsic and intrinsic-offered by organizations.Sixth,there could be bias in the sample of firms selected.Seventh,markets may not value jobs fairly.

Question 2

What is a potential drawback associated with using compensation consultants to gather labour market information?

Accepted Answer

A)  The data is usually not presented in a "user-friendly manner"; hence,it is difficult to use. 
B)  The data is usually old and not relevant. 
C)  The data may be restricted to client firms; hence,it does not necessarily comprise an appropriate sample. 
D)  The data tends to be more expensive compared to designing and administering your own survey. 
A)  The data is usually not presented in a "user-friendly manner"; hence,it is difficult to use. 
B)  The data is usually old and not relevant. 
C)  The data may be restricted to client firms; hence,it does not necessarily comprise an appropriate sample. 
D)  The data tends to be more expensive compared to designing and administering your own survey. C

Question 3

In analyzing compensation data that include extreme values,what would be an advisable measure of central tendency to use?

Accepted Answer

A)  compa-ratio 
B)  mean 
C)  median 
D)  inter-quartile range 
A)  compa-ratio 
B)  mean 
C)  median 
D)  inter-quartile range C

Question 4

Briefly discuss the factors to be considered in defining the relevant labour market for a given firm.

Accepted Answer

Two kinds of competitors are important t

Question 5

Which of the following provides the best-quality compensation data?

Accepted Answer

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

Question 6

Which characteristic is NOT typically considered 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 7

You have determined that the lowest-paying employer pays it secretaries a mean total compensation of $30,000,and the highest-paying employer pays its secretaries a mean total compensation of $42,000.What is the dispersion in secretarial compensation across firms?

Accepted Answer

A)  12 percent 
B)  25 percent 
C)  40 percent 
D)  50 percent 
A)  12 percent 
B)  25 percent 
C)  40 percent 
D)  50 percent

Question 8

It is easier to use third-party surveys and data than to design and conduct an in-house survey.

Accepted Answer

A) True 
 B)False

Question 9

The textbook identifies two in-house methods that may be used to collect compensation data.Which of the following is classified as an "in-house" source?

Accepted Answer

A)  formal surveys 
B)  government agencies 
C)  consultants 
D)  industry groups 
A)  formal surveys 
B)  government agencies 
C)  consultants 
D)  industry groups

Question 10

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 11

In broad terms,wages paid for a particular "labourer" depend on the relationship between supply and demand for labour,and a specific company's ability to pay.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT a procedure used to analyze and interpret survey data?

Accepted Answer

A)  central tendency 
B)  dispersion 
C)  compa-ratio 
D)  data aging 
A)  central tendency 
B)  dispersion 
C)  compa-ratio 
D)  data aging

Question 13

Which topic would typically NOT be included in survey questions asked by most consultants in the process of populating their compensation databases?

Accepted Answer

A)  number of employees 
B)  criteria associated with movements within the pay range 
C)  base pay,performance pay,and indirect pay 
D)  turnover rates 
A)  number of employees 
B)  criteria associated with movements within the pay range 
C)  base pay,performance pay,and indirect pay 
D)  turnover rates

Question 14

Which of the following is generally NOT collected in compensation surveys?

Accepted Answer

A)  base pay 
B)  performance appraisal methods 
C)  performance pay 
D)  benefits 
A)  base pay 
B)  performance appraisal methods 
C)  performance pay 
D)  benefits

Question 15

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

Accepted Answer

A)  Employees,on average,are being paid above the midpoint in the pay range. 
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 in the pay range. 
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 16

What term describes the process of adjusting survey results to account for the dated nature of compensation surveys,while at the same time,taking into consideration potential market increases in the following year?

Accepted Answer

A)  benchmarking the data 
B)  aging the data 
C)  data alignment 
D)  pay trending 
A)  benchmarking the data 
B)  aging the data 
C)  data alignment 
D)  pay trending

Question 17

An employer is contemplating conducting their own in-house compensation surveys.What would you caution them about?

Accepted Answer

A)  There is a lack of control over process. 
B)  There is no need to involve outside consultants. 
C)  Skills and abilities associated with survey methodology are needed. 
D)  They are likely to sample the wrong jobs and/or industry. 
A)  There is a lack of control over process. 
B)  There is no need to involve outside consultants. 
C)  Skills and abilities associated with survey methodology are needed. 
D)  They are likely to sample the wrong jobs and/or industry.

Question 18

Which of the following is NOT a possible limitation of compensation surveys?

Accepted Answer

A)  Free labour market data is not readily available. 
B)  We cannot surmise anything about compensation strategies practised by other firms. 
C)  They may misrepresent actual pay trends. 
D)  Markets may not value jobs fairly. 
A)  Free labour market data is not readily available. 
B)  We cannot surmise anything about compensation strategies practised by other firms. 
C)  They may misrepresent actual pay trends. 
D)  Markets may not value jobs fairly.

Question 19

Which method is used to measure dispersion of salary data across employers?

Accepted Answer

A)  percentiles 
B)  weighted mean 
C)  simple mean 
D)  median 
A)  percentiles 
B)  weighted mean 
C)  simple mean 
D)  median

Question 20

You determined that $65,000.00 in salary represents the 85th percentile of total compensation paid by employers for the heavy-duty mechanic job in British Columbia.Which statement is most accurate,given the aforementioned statement?

Accepted Answer

A)  15% of employers compensate above $65,000. 
B)  $65,000.00 represents the median. 
C)  15% of employers compensate below $65,000. 
D)  85% of employers compensate above $55,250. 
A)  15% of employers compensate above $65,000. 
B)  $65,000.00 represents the median. 
C)  15% of employers compensate below $65,000. 
D)  85% of employers compensate above $55,250.

Briefly discuss some of the limitations of compensation surveys.

What is a potential drawback associated with using compensation consultants to gather labour market information?

In analyzing compensation data that include extreme values,what would be an advisable measure of central tendency to use?

Briefly discuss the factors to be considered in defining the relevant labour market for a given firm.

Which of the following provides the best-quality compensation data?

Which characteristic is NOT typically considered in the selection of market comparator firms?

You have determined that the lowest-paying employer pays it secretaries a mean total compensation of $30,000,and the highest-paying employer pays its secretaries a mean total compensation of $42,000.What is the dispersion in secretarial compensation across firms?

It is easier to use third-party surveys and data than to design and conduct an in-house survey.

The textbook identifies two in-house methods that may be used to collect compensation data.Which of the following is classified as an "in-house" source?

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

In broad terms,wages paid for a particular "labourer" depend on the relationship between supply and demand for labour,and a specific company's ability to pay.

Which of the following is NOT a procedure used to analyze and interpret survey data?

Which topic would typically NOT be included in survey questions asked by most consultants in the process of populating their compensation databases?

Which of the following is generally NOT collected in compensation surveys?

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

What term describes the process of adjusting survey results to account for the dated nature of compensation surveys,while at the same time,taking into consideration potential market increases in the following year?

An employer is contemplating conducting their own in-house compensation surveys.What would you caution them about?

Which of the following is NOT a possible limitation of compensation surveys?

Which method is used to measure dispersion of salary data across employers?

You determined that $65,000.00 in salary represents the 85th percentile of total compensation paid by employers for the heavy-duty mechanic job in British Columbia.Which statement is most accurate,given the aforementioned statement?

A Road Map to Effective Compensation

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.

What is a potential drawback associated with using compensation consultants to gather labour market information?

In analyzing compensation data that include extreme values,what would be an advisable measure of central tendency to use?

Briefly discuss the factors to be considered in defining the relevant labour market for a given firm.

Which of the following provides the best-quality compensation data?

Which characteristic is NOT typically considered in the selection of market comparator firms?

You have determined that the lowest-paying employer pays it secretaries a mean total compensation of $30,000,and the highest-paying employer pays its secretaries a mean total compensation of $42,000.What is the dispersion in secretarial compensation across firms?

It is easier to use third-party surveys and data than to design and conduct an in-house survey.

The textbook identifies two in-house methods that may be used to collect compensation data.Which of the following is classified as an "in-house" source?

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

In broad terms,wages paid for a particular "labourer" depend on the relationship between supply and demand for labour,and a specific company's ability to pay.

Which of the following is NOT a procedure used to analyze and interpret survey data?

Which topic would typically NOT be included in survey questions asked by most consultants in the process of populating their compensation databases?

Which of the following is generally NOT collected in compensation surveys?

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

What term describes the process of adjusting survey results to account for the dated nature of compensation surveys,while at the same time,taking into consideration potential market increases in the following year?

An employer is contemplating conducting their own in-house compensation surveys.What would you caution them about?

Which of the following is NOT a possible limitation of compensation surveys?

Which method is used to measure dispersion of salary data across employers?

You determined that $65,000.00 in salary represents the 85th percentile of total compensation paid by employers for the heavy-duty mechanic job in British Columbia.Which statement is most accurate,given the aforementioned statement?

A Road Map to Effective Compensation

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