Chapter 8

Question 1

The step following survey design in setting competitive pay and designing a pay structure is \_\_\_\_\_\_\_\_ 
  A) specify pay-level policy 
  B) conduct job evaluation 
  C) draw policy lines 
  D) specify relevant market

Answer 1

C) draw policy lines

Question 2

It is more difficult for companies using a market pricing approach to price “fuzzy market” jobs than those using a benchmark job approach.
A) TRUE
B) FALSE

Answer 2

A) TRUE

Question 3

Adjustments to forms of pay occur less often than adjustments to overall pay level.
A) TRUE
B) FALSE

Answer 3

A) TRUE

Question 4

Job structure is to job evaluation as pay structure is to \_\_\_\_\_\_\_\_\_\_\_\_\_. 
  A) market line 
  B) pay surveys 
  C) pay policy line 
  D) reference rates

Answer 4

C) pay policy line

Question 5

The second step in interpreting pay survey data is _______________
A) check accuracy of the job matches
B) conduct survey leveling
C) check for anomalies
D) throw out the top and bottom paying firms

Answer 5

C) check for anomalies

Question 6

If only company data are used with the \_\_\_\_\_\_\_\_\_\_\_\_, this statistic will not represent the labor market. 
  A) mode 
  B) mean 
  C) weighted mean 
  D) median

Answer 6

B) mean

Question 7

In the regression equation, y =a + bx, pay for jobs are \_\_\_ 
  A) a 
  B) b 
  C) x 
  D) y

Answer 7

D) y

Question 8

Pay ranges for clerical and production jobs commonly range between \_\_\_\_\_ and \_\_\_\_\_. 
  A) 5, 15 
  B) 15, 30 
  C) 20, 40 
  D) 30, 60

Answer 8

D) 30, 60

Question 9

Pay ranges __________
A) reflect the difference between the midpoint and maximum pay within an organization
B) are rates paid to jobs in a career progression
C) can meet employees’ expectations that pay will increase over time
D) make pay administration more complex

Answer 9

C) can meet employees’ expectations that pay will increase over time

Question 10

Career moves between bands are less common than within bands.
A) TRUE
B) FALSE

Answer 10

A) TRUE

Question 11

What are the steps in creating a competitive pay policy?

Answer 11

1. Specify policy
2. Select market
3. Design survey
4. Draw policy lines
5. Merge internal and external pressures
6. Competitive pay levels mix, and structures

Question 12

What are the purposes of a survey

Answer 12

1. Adjust pay level--how much?
2, Adjust pay mix--what forms?
3. Adjust pay structure
4. Study special situations
5. Estimate competitors' labor costs