Question 1

Pay ranges for top-level management positions are commonly larger than those other professional and midlevel managerial positions.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is true regarding the Employment Cost Index (ECI)?

Accepted Answer

A)   It is published by the Department of Commerce.
B)   It is an excellent source of competitor labor costs.
C)   It measures annual changes in employer compensation costs.
D)   It allows comparison of labor costs to all-industry averages. D

Question 3

The second major decision in pay-level determination is _____.

Accepted Answer

A)   specify relevant market
B)   define purpose of survey
C)   design and conduct survey
D)   select product and labor market competitors B

Question 4

Flat rates,in which pay is the same regardless of performance or seniority,are often used in skill-based pay systems and in unionized employers.

Accepted Answer

A) True 
 B)False

Question 5

Paying jobs of different functions different rates within a pay band is called ____.

Accepted Answer

A)   reference rates
B)   broad banding
C)   pay leveling
D)   knowledge-based pay

Question 6

Turnover and organizational revenues are examples of survey data collected to gather competitive intelligence.

Accepted Answer

A) True 
 B)False

Question 7

What is a survey? What purpose does it serve in terms of compensation?

Accepted Answer

The answer of What is a survey? What purpose does...

Question 8

Explain the low-high approach in selecting jobs for inclusion in a compensation survey.

Accepted Answer

The answer of Explain the low-high approach in selecting jobs...

Question 9

A job structure is anchored by the organization's
external competitive position and reflected in its pay-policy line.

Accepted Answer

A) True 
 B)False

Question 10

Identifying pay survey participants by company name is considered price fixing under the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 11

The most common measure of variation in pay surveys is the standard deviation.

Accepted Answer

A) True 
 B)False

Question 12

In the regression equation,y = a + bx,job evaluation points are _____.

Accepted Answer

A)   a
B)   b
C)   x
D)   y

Question 13

Explain the difference between standard deviation and quartiles and percentiles.

Accepted Answer

The answer of Explain the difference between standard deviation and...

Question 14

A pure market pricing strategy tends to ignore internal alignment.

Accepted Answer

A) True 
 B)False

Question 15

Job structure is to ________ as pay structure is to pay-policy line.

Accepted Answer

A)   market line
B)   pay surveys
C)   job evaluation
D)   reference rates

Question 16

All of the following are examples of potential anomalies except _____.

Accepted Answer

A)   outliers
B)   a large variation in base pay for a job at one company
C)   one company dominates the results
D)   a large variation in average base pay for a job across companies

Question 17

You work in a midsize organization and have just conducted a wage survey.Five midsize companies have provided wage data for a particular job.Here are the numbers.  Which of the following statistics will be the most accurate reflection of the market rate?

Accepted Answer

A)   Mean
B)   Weighted mean
C)   Median
D)   Mode

Question 18

A segmented labor supply requires multiple labor market comparisons.

Accepted Answer

A) True 
 B)False

Question 19

Pay surveys collect total number of employees for the purpose of_______ _____

Accepted Answer

A)   impact on the labor market
B)   how work is organized
C)   ability to pay
D)   recruiting success

Question 20

The process of multiplying survey data by some factor judged to reflect the difference between a survey benchmark job and a company job is called _____.

Accepted Answer

A)   updating
B)   point factor adjustment
C)   lead/lag policy adjustment
D)   survey leveling

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

Pay ranges for top-level management positions are commonly larger than those other professional and midlevel managerial positions.

Which of the following is true regarding the Employment Cost Index (ECI) ?

The second major decision in pay-level determination is _____.

Flat rates,in which pay is the same regardless of performance or seniority,are often used in skill-based pay systems and in unionized employers.

Paying jobs of different functions different rates within a pay band is called ____.

Turnover and organizational revenues are examples of survey data collected to gather competitive intelligence.

What is a survey? What purpose does it serve in terms of compensation?

Explain the low-high approach in selecting jobs for inclusion in a compensation survey.

A job structure is anchored by the organization's external competitive position and reflected in its pay-policy line.

Identifying pay survey participants by company name is considered price fixing under the Sherman Act.

The most common measure of variation in pay surveys is the standard deviation.

In the regression equation,y = a + bx,job evaluation points are _____.

Explain the difference between standard deviation and quartiles and percentiles.

A pure market pricing strategy tends to ignore internal alignment.

Job structure is to ________ as pay structure is to pay-policy line.

All of the following are examples of potential anomalies except _____.

You work in a midsize organization and have just conducted a wage survey.Five midsize companies have provided wage data for a particular job.Here are the numbers. Which of the following statistics will be the most accurate reflection of the market rate?

A segmented labor supply requires multiple labor market comparisons.

Pay surveys collect total number of employees for the purpose of___ _

The process of multiplying survey data by some factor judged to reflect the difference between a survey benchmark job and a company job is called _____.