Question 1

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 C

Question 2

Typically, employees working in the natural resource sector tend to experience long periods of layoffs, while at the same time, they are paid higher compensation compared to other sectors that are less cyclical in nature. Which of the following terms best describes this phenomenon?

Accepted Answer

A)   the supply/demand equilibrium
B)   the union effect
C)   compensation differential
D)   wage compression C

Question 3

In order to calibrate a compensation system, a sample of 25 to 45 percent of sample of jobs should be a minimum.

Accepted Answer

A) True 
 B)False  False

Question 4

Which of the following survey sources raises concerns among HR professionals about the validity of their data?

Accepted Answer

A)   industry groups
B)   formal in-house
C)   free websites
D)   consultants

Question 5

Third-party surveys tend to be inexpensive and much easier to acquire than by developing them internally.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following steps should be classified as the last step in conducting a compensation survey?

Accepted Answer

A)   identifying the jobs to be surveyed
B)   determining the information to be collected about each job
C)   determining which employers are to be surveyed
D)   determining the method of data collection

Question 7

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

Question 8

New companies tend to compensate employees at a lower price point than existing companies when the demand for labour exceeds supply.

Accepted Answer

A) True 
 B)False

Question 9

How does the use of questionnaires to collect data compare to personal interviews and telephone interviews?

Accepted Answer

A)   It is the most complete and efficient survey method.
B)   It is the least expensive and least reliable survey method.
C)   It is the most favourable and user friendly survey method.
D)   It is the least efficient and most expensive survey method.

Question 10

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 11

Which of the following 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 a few organizations; hence, it does not comprise an appropriate sample.
D)   The data tends to be more expensive compared to designing and administering your own survey.

Question 12

Data can be collected through personal interviews, random sampling, and questionnaires.

Accepted Answer

A) True 
 B)False

Question 13

The compa-ratio is calculated by taking the average pay of all employees holding a particular job title and then dividing this by the midpoint of the pay range for that job.

Accepted Answer

A) True 
 B)False

Question 14

An employer is contemplating conducting their own in-house compensation surveys. Which of the following points 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.

Question 15

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

Question 16

In conducting a compensation survey, the first step should be to identify the jobs to be surveyed.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following topics 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

Question 18

Which of the following characteristics 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

Question 19

Briefly describe the process for analyzing and interpreting survey data.

Accepted Answer

The answer of Briefly describe the process for analyzing and...

Question 20

Which of the following conditions tends to explain why jobs in the higher hierarchy positions of the public sector tend to be paid less than similar positions in the private sector?

Accepted Answer

A)   a strong union
B)   publicly visible salaries
C)   the levels of indirect pay provided to senior public sector positions
D)   a poor industry reputation

Exam 9: Evaluating the Market

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?

Typically, employees working in the natural resource sector tend to experience long periods of layoffs, while at the same time, they are paid higher compensation compared to other sectors that are less cyclical in nature. Which of the following terms best describes this phenomenon?

In order to calibrate a compensation system, a sample of 25 to 45 percent of sample of jobs should be a minimum.

Which of the following survey sources raises concerns among HR professionals about the validity of their data?

Third-party surveys tend to be inexpensive and much easier to acquire than by developing them internally.

Which of the following steps should be classified as the last step in conducting a compensation survey?

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?

New companies tend to compensate employees at a lower price point than existing companies when the demand for labour exceeds supply.

How does the use of questionnaires to collect data compare to personal interviews and telephone interviews?

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

Data can be collected through personal interviews, random sampling, and questionnaires.

The compa-ratio is calculated by taking the average pay of all employees holding a particular job title and then dividing this by the midpoint of the pay range for that job.

An employer is contemplating conducting their own in-house compensation surveys. Which of the following points would you caution them about?

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

In conducting a compensation survey, the first step should be to identify the jobs to be surveyed.

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

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

Briefly describe the process for analyzing and interpreting survey data.

Which of the following conditions tends to explain why jobs in the higher hierarchy positions of the public sector tend to be paid less than similar positions in the private sector?