Question 1

Broadbanding reduces the size of pay ranges so that there is more cohesiveness in pay ranges.

Accepted Answer

A) True 
 B)False  False

Question 2

Companies that adopt a market pricing strategy emphasize internal alignment.

Accepted Answer

A) True 
 B)False  False

Question 3

Updating the market data to represent pay at the current or future date when the pay decisions will be implemented is called:

Accepted Answer

A)  matching
B)  compensating
C)  survey levelling
D)  aging/trending survey data
E)  broadbanding D

Question 4

Multiplying survey data by some numerical factor that corresponds to the analyst's judgment of the differences between the company and the survey job is called:

Accepted Answer

A)  survey forecasting
B)  survey trending
C)  survey banding
D)  survey levelling
E)  survey lagging

Question 5

A market pay line is a way to set the external competitive position by adjusting the pay policy line.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  designing and conducting the survey
B)  determining the pay level policy
C)  interpreting and applying results
D)  defining the relevant market
E)  balancing competitiveness with internal alignment through the use of ranges, flat rates, and/or bands

Question 7

Compensation surveys provide the data for translating a policy into pay levels, pay mix, and structures.

Accepted Answer

A) True 
 B)False

Question 8

When new organizations and jobs fuse together diverse knowledge and experience, relevant markets appear more like .

Accepted Answer

A)  equity firms
B)  defined markets
C)  fuzzy markets
D)  monopolies
E)  knowledge markets

Question 9

A compensation survey is the systematic process of collecting and making judgments about the compensation paid by other employers.

Accepted Answer

A) True 
 B)False

Question 10

Market pricing refers to:

Accepted Answer

A)  adjusting the price of products according to the prices of competitors
B)  combining jobs into a broader market band
C)  relying on external market rates to set the internal pay structure
D)  the point where supply and demand curves cross
E)  paying rates that reflect product market conditions

Question 11

In a survey report, when an employer's data is substantially out of line from other employers, it is called a(n):

Accepted Answer

A)  congruity
B)  synchronicity
C)  anomaly
D)  conformity
E)  normality

Question 12

Pay ranges are usually narrower for managerial jobs than for production jobs.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is true of market pay line?

Accepted Answer

A)  A market pay line is a line of consumers in a market.
B)  A market pay line links a company's benchmark jobs on the vertical axis with market rates paid by competitors on the horizontal axis.
C)  A market pay line is constructed by adjusting pay policy line.
D)  A market pay line reflects a firm's competitive position in the market.
E)  A market pay line is adjusted in order to construct a pay policy line.

Question 14

Which of the following links a company's benchmark jobs on the horizontal axis with market rates paid by competitors on the vertical axis?

Accepted Answer

A)  a market pay line
B)  a quartile line
C)  a pay range line
D)  a pay policy line
E)  a percentile line

Question 15

A high degree of overlap among job ranges makes it more difficult to move employees from one range to another.

Accepted Answer

A) True 
 B)False

Question 16

provides a statistical summary of the distribution of going rates paid by competitors in the market.

Accepted Answer

A)  Dispersion
B)  Accretion
C)  Regression
D)  Accession
E)  Progression

Question 17

Discuss how the market pay line and the pay policy line are used.

Accepted Answer

The answer of Discuss how the market pay line and...

Question 18

A data point that falls outside the majority of data points is known as a(n):

Accepted Answer

A)  mean
B)  outlier
C)  median
D)  variance
E)  range

Question 19

Describe the steps involved in market pricing.

Accepted Answer

The answer of Describe the steps involved in market pricing....

Question 20

The amount of cash that competitors decide each job is worth is called:

Accepted Answer

A)  a bonus
B)  a fringe benefit
C)  an incentive
D)  piece rate
E)  base pay

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

Broadbanding reduces the size of pay ranges so that there is more cohesiveness in pay ranges.

Companies that adopt a market pricing strategy emphasize internal alignment.

Updating the market data to represent pay at the current or future date when the pay decisions will be implemented is called:

Multiplying survey data by some numerical factor that corresponds to the analyst's judgment of the differences between the company and the survey job is called:

A market pay line is a way to set the external competitive position by adjusting the pay policy line.

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

Compensation surveys provide the data for translating a policy into pay levels, pay mix, and structures.

When new organizations and jobs fuse together diverse knowledge and experience, relevant markets appear more like .

A compensation survey is the systematic process of collecting and making judgments about the compensation paid by other employers.

Market pricing refers to:

In a survey report, when an employer's data is substantially out of line from other employers, it is called a(n) :

Pay ranges are usually narrower for managerial jobs than for production jobs.

Which of the following statements is true of market pay line?

Which of the following links a company's benchmark jobs on the horizontal axis with market rates paid by competitors on the vertical axis?

A high degree of overlap among job ranges makes it more difficult to move employees from one range to another.

provides a statistical summary of the distribution of going rates paid by competitors in the market.

Discuss how the market pay line and the pay policy line are used.

A data point that falls outside the majority of data points is known as a(n) :

Describe the steps involved in market pricing.

The amount of cash that competitors decide each job is worth is called: