Chapter 9 Quiz Flashcards
Which of the following best explains why current employers do not seem to reduce wages for existing employees in the short term when the supply for a particular set of skills far outstrips the demand?
a.
because of the wage compression phenomenon
b.
because of the negative impact on morale
c.
because labour budgets tend to be determined on an annual basis
d.
because fewer potential employees tend to put upwards pressure on wages
b.
because of the negative impact on morale
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? a. the supply/demand equilibrium b. the union effect c. compensation differential d. wage compression
c.
compensation differential
Which of the following characteristics is NOT typically considered in the selection of market comparator firms?
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
b.
whether the firm has achieved pay equity
What are three of the main “third-party” sources of compensation data?
a.
Statistics Canada, trade journals, and government agencies
b.
private agencies, trade journals, and government agencies
c.
government agencies, industry groups, and consulting firms
d.
consulting firms, boards of trade, and publishers
c.
government agencies, industry groups, and consulting firms
What are two main disadvantages associated with using informal in-house surveys? a. complexity and cost b. cost and reliability issues c. cost and speed d. reliability and validity issues
d.
reliability and validity issues
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?
a.
number of employees
b.
criteria associated with movements within the pay range
c.
base pay, performance pay, and indirect pay
d.
turnover rates
d.
turnover rates
Which of the following steps should be classified as the last step in conducting a compensation survey?
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
d.
determining the method of data collection
Which of the following is NOT a main step in conducting a proper compensation survey? a. identifying jobs to be surveyed b. identifying employees to be surveyed c. determining the information needed d. determining how you will collect the data
b.
identifying employees to be surveyed
Although very costly to use on a significant scale, which method of data collection provides the best quality of information? a. internet surveys b. personal interviews c. telephone interviews d. questionnaires
b.
personal interviews
Which of the following is NOT a procedure used to analyze and interpret survey data? a. central tendency b. dispersion c. compa-ratio d. data aging
d.
data aging
Which of the following statements refers to compa-ratio?
a.
It is calculated by averaging the pay ranges in the quartiles.
b.
It is a measure of pay dispersion across employers.
c.
It is derived by dividing mean base pay by the midpoint of the pay range.
d.
It is a calculation based on average base pay for each job.
c.
It is derived by dividing mean base pay by the midpoint of the pay range.
What does a compa-ratio of greater than 1 mean?
a.
Employees, on average, are being paid above the midpoint at that firm.
b.
The majority of employees are in the first pay quartile.
c.
The firm is paying their employees in the bottom half of the pay range.
d.
The firm has only a minority of their employees in the top pay bracket.
a.
Employees, on average, are being paid above the midpoint at that firm
Which of the following survey sources raises concerns among HR professionals about the validity of their data? a. industry groups b. formal in-house c. free websites d. consultants
c.
free websites
