TRUE Difficulty Easy 64 p 268 Pay ranges for managerial jobs are larger than

True difficulty easy 64 p 268 pay ranges for

This preview shows page 56 - 60 out of 105 pages.

TRUE Difficulty: Easy 64. (p. 268) 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 Difficulty: Medium 7-56
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Chapter 07 - Defining Competitiveness 65. (p. 268-269) Smaller pay ranges may reduce the opportunities for promotion. TRUE Difficulty: Medium 66. (p. 269) When flat pay rates are used, they are typically the midpoint of a corresponding survey job. TRUE Difficulty: Medium 67. (p. 270) Ranges support flexibility within guidelines while bands support some flexibility within controls. FALSE Difficulty: Medium 68. (p. 271) Career moves between bands are more common than within bands. FALSE Difficulty: Medium 69. (p. 272) The pay structure is reflected in job evaluation or skill certification. FALSE Difficulty: Easy 70. (p. 273) Market pricers match a small percentage of their jobs with market data. FALSE Difficulty: Easy 7-57
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Chapter 07 - Defining Competitiveness 71. (p. 274) A pure market pricing strategy tends to ignore internal alignment. TRUE Difficulty: Medium Short Answer Questions 72. (p. 239-240) What is a survey? What purpose does it serve in terms of compensation? Translating any external pay policy into practice requires information on the external market. Surveys provide the data for translating that policy into pay levels, pay mix, and structures. As such, a survey is the systematic process of collecting and making judgments about the compensation paid by other employers. An employer conducts or participates in a survey for a number of reasons: (1) to adjust the pay level in response to changing rates paid by competitors, (2) to set the mix of pay forms relative to that paid by competitors, (3) to establish or price a pay structure, (4) to analyze pay-related problems, or (5) to estimate the labor costs of product/service market competitors. Difficulty: Medium 73. (p. 241) How is a relevant labor market defined? A relevant labor market must be defined that includes employers who compete in one or more of the following areas: 1. The same occupations or skills 2. Employees within the same geographic area 3. The same products and services Difficulty: Easy 7-58
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Chapter 07 - Defining Competitiveness 74. (p. 246) Who should be involved in designing a compensation survey? In most organizations, the responsibility for managing the survey lies with the compensation manager. But since compensation expenses have a powerful effect on profitability, including managers and employees on task forces makes sense. Outside consulting firms are typically used as third-party protection from possible "price-fixing" lawsuits. Difficulty: Easy 75. (p. 249) Explain the low-high approach in selecting jobs for inclusion in a compensation survey. If an organization is using skill-competency-based structures or generic job descriptions, it may not have benchmark jobs to match with jobs at competitors that use a traditional job- based approach. Market data must be converted to fit the skill or competency structure. The
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