Question 1

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

Accepted Answer

A) True 
 B)False

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.

Question 3

Which of the following statistical measures shows how similar or dissimilar the market rates are from each other?

Accepted Answer

A)   Weighted mean
B)   Mean
C)   Standard deviation
D)   Median

Question 4

Pay ranges for managerial jobs are larger than the ranges for other jobs because these jobs have greater opportunity for both discretion and performance than lower-level jobs.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is true regarding broad bands?

Accepted Answer

A)   They remove limits on total salary budgets.
B)   They support recognition via titles or career progression.
C)   They foster cross-functional growth.
D)   They increase the hierarchical nature of organizations.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

In cases where the content of an organization's jobs does not sufficiently match that of the jobs in the salary survey,an effort can be made to quantify the difference via benchmark conversion.

Accepted Answer

A) True 
 B)False

Question 11

A pay range exists when at least two employees in the same job are paid different rates.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

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

Question 13

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 14

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 15

Regression smoothes large amounts of data while minimizing variations.

Accepted Answer

A) True 
 B)False

Question 16

The final major decision in pay-level determination is to _____.

Accepted Answer

A)   interpret and apply the results of the survey
B)   obtain top-management acceptance of the final decisions
C)   design grades and ranges or bands
D)   draw policy lines

Question 17

_____ measures reveal competitors' use of performance-based cash payments.

Accepted Answer

A)   Base cash pay
B)   Short-term incentive pay
C)   Total cash
D)   Long-term incentive pay

Question 18

The first step in setting competitive pay and designing a pay structure is to _____.

Accepted Answer

A)   specify a pay-level policy
B)   conduct a job evaluation
C)   draw policy lines
D)   specify the relevant market

Question 19

Career moves between bands are more common than within bands.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 8: Designing Pay Levels, Mix, and Pay

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?

Correct AnswerverifiedShow Answer

_____ measures reveal competitors' use of performance-based cash payments.

Correct AnswerverifiedShow Answer

The final major decision in pay-level determination is to _____.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In cases where the content of an organization's jobs does not sufficiently match that of the jobs in the salary survey,an effort can be made to quantify the difference via benchmark conversion.

Correct AnswerverifiedShow Answer

Size of pay differentials between grades should _____.

Correct AnswerverifiedShow Answer

The first step in setting competitive pay and designing a pay structure is to _____.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Pay ranges for managerial jobs are larger than the ranges for other jobs because these jobs have greater opportunity for both discretion and performance than lower-level jobs.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statistical measures shows how similar or dissimilar the market rates are from each other?

Correct AnswerverifiedShow Answer

Regression smoothes large amounts of data while minimizing variations.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding broad bands?

Correct AnswerverifiedShow Answer

Career moves between bands are more common than within bands.

Correct AnswerverifiedShow Answer

A pay range exists when at least two employees in the same job are paid different rates.

Correct AnswerverifiedShow Answer

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