Deck 8: Designing Pay Levels, Pay Mix, and Pay Structures

Question 1

Which of the following is the first important decision involved in determining pay levels and designing pay structures?

A) determining the pay policy line
B) choosing relevant market competitors to survey
C) designing the survey
D) specifying the employer's competitive pay policy
E) constructing an internal pay policy line that reflects competitive pay policy

Answer 1

D

Question 2

Which of the following steps involved in determining pay levels and designing pay structures immediately follows designing and conducting a compensation survey?

A) determining the pay policy line
B) selecting relevant market competitors to survey
C) setting a competitive pay policy
D) designing grades, ranges, or bands
E) analyzing data statistically

Answer 2

B

Question 3

Which of the following applies to pay grades instead of pay bands?

A) controls designed into system
B) shadow ranges
C) global organizations
D) lateral progression
E) freedom to manage

Answer 3

A

Question 4

The first major decision in designing pay structures pertains to determining the pay policy line.

Question 5

Adjustments to the different forms of pay competitors use (base, bonus, incentives, benefits) occur more frequently than adjustments to overall pay level.

Question 6

Skill-based plans use grades but not ranges.

Question 7

Broadbanding has guidelines and controls designed right into the pay system.

Question 8

What are the main reasons for participating in a compensation survey?

Question 9

What are the main approaches to selecting jobs for inclusion?

Question 10

What do the four elements of central tendency tell us?