True False54.Pay surveys include information about both all forms of cash compensation and benefits. True False55.Turnover and organizational revenues are examples of survey data collected to gather competitive intelligence. True False56.Setting your company's base pay to competitors' total compensation risks high fixed costs. True False57.Total cash includes base pay plus stock options and benefits. True False58.The process of multiplying survey data by a factor reflecting the difference between a survey and a company job is called survey leveling. True False59.Research shows that most managers analyze pay surveys in similarly by weighting pay of their major product and labor market competitor more than others. True False60.The most common measure of variation in pay surveys is the standard deviation. True False61.The measure of central tendency that minimizes distortion is the mode. True False62.A common practice is to use the 10thand 90thpercentiles from pay survey data to set minimums and maximums of pay grades. True False63.Market lines may be constructed by either freehand drawing or linear regression. True False64.Regression smoothes large amounts of data while minimizing variations. True False65.A market pay line is useful for setting pay for benchmark jobs that match competitors, but not for non-benchmark jobs. True False
66.Aging the market data to a point halfway through the plan year is called lead/lag. True False67.A pay range exists when at least two employees in the same job are paid different rates. True False68.Grades group job evaluation data on the horizontal axis. True False69.Pay ranges for top-level management positions are commonly larger than those other professional and midlevel managerial positions. True False70.Pay ranges for managerial jobs are larger than ranges for other jobs because these jobs have greater opportunity for both discretion and performance than lower level jobs. True False71.Smaller pay ranges may reduce the opportunities for promotion. True False72.A high degree of overlap between adjacent pay ranges means pay raises can be larger compared to low overlap. True False73.When flat pay rates are used, they are typically the midpoint of a corresponding survey job. True False74.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. True False75.Use of broad bands has risks of bias and high labor costs. True False76.Career moves between bands are more common than within bands. True False77.Managers often regard external market data as more objective than internal job evaluation. True False78.A job structure is anchored by the organization's external competitive position and reflected in its pay-policy line.
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