Question 1

Many employers use market surveys to validate their own job evaluation results.

Accepted Answer

A) True 
 B)False  True

Question 2

Gramhold Inc., a pharmaceutical company, reduces its 10 salary grades to just three broad bands.Which of the following statements is most likely to be true in this case?

Accepted Answer

A)  Gramhold will face difficulty in defining job responsibilities broadly with the new structure.
B)  Gramhold will find that the new structure hinders cross-functional growth.
C)  Gramhold will experience career moves within bands more than career moves between bands.
D)  Gramhold will offer recognition via titles rather than through cross-functional experience and lateral progression. C

Question 3

The _____ publishes extensive information on various occupations in different geographic areas.It is a major source of publicly available compensation data.

Accepted Answer

A)  Chamber of Commerce
B)  Bureau of Labor Statistics
C)  Compensation Association
D)  Department of Economics B

Question 4

Regression smoothes large amounts of data while minimizing variations.

Accepted Answer

A) True 
 B)False

Question 5

When there is an unusual level of turnover in a job, an employer is likely to conduct a market survey.

Accepted Answer

A) True 
 B)False

Question 6

A survey conducted in January 2013 found that the median pay effective January 1, 2013, for a clerk was $22,000 and that the forecast rate of wage increases in the market for 2013 was 5 percent and another 5 percent for 2014.An employer choosing to follow a lead strategy of 4 percent above the market for the plan year will need to _____.

Accepted Answer

A)  multiply the salary by 105 percent and then by 109 percent
B)  increase the clerk salary by $2,200
C)  multiply the salary by 109 percent
D)  multiply the salary by 114 percent

Question 7

Aging the market data to a point halfway through the plan year is called lead/lag.

Accepted Answer

A) True 
 B)False

Question 8

The final step in determining externally competitive pay levels and structures is the merging of internal and external pressure.

Accepted Answer

A) True 
 B)False

Question 9

Managers often regard external market data as more objective than internal job evaluation.

Accepted Answer

A) True 
 B)False

Question 10

Who should be involved in designing a compensation survey?

Accepted Answer

The answer of Who should be involved in designing a...

Question 11

Size of pay differentials between grades should _____.

Accepted Answer

A)  be based upon differentials in market surveys
B)  be approximately 15 percent
C)  support career movement through the pay structure
D)  be between 10 and 25 percent

Question 12

Which of the following statements is true about market pricers?

Accepted Answer

A)  They align pay structures with the business strategy.
B)  Their pay structures are unique and difficult to imitate.
C)  They assume that little value is added through internal alignment.
D)  They emphasize pay structures based on unique technology or the way work is organized.

Question 13

It is easier for employers to determine the worth of jobs that fall into fuzzy markets than traditionally relevant markets.

Accepted Answer

A) True 
 B)False

Question 14

If the purpose of a survey is to price the entire structure of a job, then benchmark jobs can be selected to include the entire job structure.

Accepted Answer

A) True 
 B)False

Question 15

In most organizations, the responsibility for managing a pay survey lies with _____.

Accepted Answer

A)  top management
B)  the facility or plant manager
C)  outside consultants
D)  the compensation manager

Question 16

Aging the market data to a point halfway through a plan year is called _____.

Accepted Answer

A)  leveling
B)  updating
C)  lead/lag
D)  matching

Question 17

Pay ranges for office and production work commonly range between _____ and _____ percent.

Accepted Answer

A)  5; 15
B)  15; 30
C)  30; 40
D)  40; 60

Question 18

Which of the following jobs would most likely fall into a fuzzy market?

Accepted Answer

A)  The position of English professor that was filled by a Ph.D.holder in English Language and Literature with five years of teaching experience
B)  The position of Sound Engineer that was filled by a graduate with a degree in audio engineering
C)  The position of Senior Director of Future Vision Services that was filled by a software engineer with e-commerce, marketing, and theater experience
D)  The position of Vice-President of a marketing firm that was filled by a marketing manager with 15 years of experience in the marketing field

Question 19

Skill-based plans establish single flat rates for each skill level regardless of performance or seniority.

Accepted Answer

A) True 
 B)False

Question 20

Pay ranges for top-level management positions are smaller than the pay ranges for entry-level managerial positions.

Accepted Answer

A) True 
 B)False

Exam 8: Designing Pay Levels, Mix, and Pay

Many employers use market surveys to validate their own job evaluation results.

Gramhold Inc., a pharmaceutical company, reduces its 10 salary grades to just three broad bands.Which of the following statements is most likely to be true in this case?

The _____ publishes extensive information on various occupations in different geographic areas.It is a major source of publicly available compensation data.

Regression smoothes large amounts of data while minimizing variations.

When there is an unusual level of turnover in a job, an employer is likely to conduct a market survey.

Aging the market data to a point halfway through the plan year is called lead/lag.

The final step in determining externally competitive pay levels and structures is the merging of internal and external pressure.

Managers often regard external market data as more objective than internal job evaluation.

Who should be involved in designing a compensation survey?

Size of pay differentials between grades should _____.

Which of the following statements is true about market pricers?

It is easier for employers to determine the worth of jobs that fall into fuzzy markets than traditionally relevant markets.

If the purpose of a survey is to price the entire structure of a job, then benchmark jobs can be selected to include the entire job structure.

In most organizations, the responsibility for managing a pay survey lies with _____.

Aging the market data to a point halfway through a plan year is called _____.

Pay ranges for office and production work commonly range between _ and _ percent.

Which of the following jobs would most likely fall into a fuzzy market?

Skill-based plans establish single flat rates for each skill level regardless of performance or seniority.

Pay ranges for top-level management positions are smaller than the pay ranges for entry-level managerial positions.