Question 1

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 payF) A) and B)
G) C) and E)

Question 2

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 marketsF) C) and D)
G) A) and D)

Question 3

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)  rangeF) A) and B)
G) A) and C)

Question 4

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

Accepted Answer

A market pay line links a company's benc...

Question 5

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 conditionsF) B) and C)
G) B) and E)

Question 6

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)  broadbandingF) A) and C)
G) All of the above D

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False  False

Question 9

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)  normalityF) A) and E)
G) All of the above

Question 10

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.F) None of the above
G) B) and C)

Question 11

Companies that adopt a market pricing strategy emphasize internal alignment.

Accepted Answer

A) True 
 B)False  False

Question 12

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)  ProgressionF) A) and E)
G) A) and B)

Question 13

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 14

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 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

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 laggingF) A) and C)
G) None of the above

Question 17

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 lineF) B) and D)
G) C) and E)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Describe the steps involved in market pricing.

Accepted Answer

Market pricing approach sets pay structu...

Question 20

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 bandsF) B) and D)
G) B) and C)

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA market pay line links a company's benc...View AnswerShow Answer

Market pricing refers to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Companies that adopt a market pricing strategy emphasize internal alignment.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Describe the steps involved in market pricing.

Correct AnswerverifiedMarket pricing approach sets pay structu...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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A market pay line links a company's benc...
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D

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False

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False

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Market pricing approach sets pay structu...
View Answer

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