Compensation Mgt. Ch.8

Which of the following is the first important decision involved in determining pay levels and designing pay structures?

• specifying the employer's external pay policy

• designing the survey

• defining the purpose of the compensation survey

• constructing an internal pay policy line that reflects external pay policy

The amount of cash that competitors decide each job is worth is called:

• bonus

• incentive

• piece rate

• base pay

Multiplying survey data by some numerical factor that corresponds to the analyst's judgment of the differences between the company and the survey job is called:

• survey banding

• survey forecasting

• survey levelling

• survey lagging

When data from a survey is adjusted to represent pay at the current or future date when the pay decisions will be implemented, it is known as:

• survey normalizing

• survey levelling

• aging/trending survey data

• survey restructuring

A market pay line is adjusted in order to construct a pay policy line.

• True

• False

Which of the following is the final decision involved in determining pay levels and designing pay structures?

• determining the pay level policy

• interpreting and applying results

• designing and conducting the survey

• balancing competitiveness with internal alignment through the use of ranges, flat rates, and/or bands

Pay grades are created by grouping jobs considered substantially equal.

• True

• False

Pay ranges exist whenever two or more rates are paid to employees performing the same job

• True

• False

Pay rates from market data used in pricing broad bands are known as:

• anomalies

• reference rates

• pay grades

• pay ranges

The mix of different forms of pay and their relative importance makes up the ________.

• pay package

• pay band

• pay level

• base pay