summer mgmt 494 ch.7 – Flashcards

________ is defined as an in-depth examination of the external and internal environmental factors that are likely to have the greatest impact on the future of the company. A) Market-competitive pay structure B) Regression analysis C) Competitive strategy D) Strategic analysis

Compensation surveys are typically focused on which two factors? A) competitors' promotion and advancement opportunities B) internal promotion and advancement opportunities C) competitors' wage and salary practices D) internal wage and salary practices

When examining competitors' compensation offerings, this term is used to describe the percentage of employer compensation costs that are applied to compensation and benefits. A) mix B) quartile C) standard percentile D) nominal dollars

As of December 2012, U.S. companies spent approximately how much per employee for discretionary benefits? A) $28,995 B) $20,000 C) $3,050 D) $1,200

This BLS survey provides the quarterly measure of changes in labor and compensation costs and is used as the principle economic indicator for the Federal Reserve. A) National Compensation Survey B) Employment Cost Index C) Employer Costs for Employee Compensation D) National Benefit Index

The NCS provided incidence and extensive data on which two types of compensation benefits? A) health insurance and retirement B) retirement and stock options C) health insurance and pay D) pay and stock options

Which of the following are reference points against which jobs within the company are judged? A) benchmark jobs B) relevant labor markets C) internal labor markets D) human resource capabilities

These are used as reference points for setting pay levels. A) mean pay B) median pay C) market-competitive pay D) benchmark jobs

When using compensation survey data, statistical analyses are used to integrate this with the external market, in order to determine pay rates. A) internal pay scales B) nominal pay rates C) internal pay benchmarks D) internal job structures

This causes compensation survey data to become obsolete fairly quickly. A) the lag time between when the data was collected and used B) pay compression C) changes in the unemployment rate D) changes in the geographic location of the company

If the means salary for B42DA, Inc., is $30,000 and the median salary is $32,000, what would Yolanda's salary of $165,000 be considered? A) overlie B) outsider C) outlier D) over layer

In statistical analysis, which of the following is used to signify the possible extreme observations? A) deviations B) extremities C) outliers D) variants

Which of the following are the two types of central tendency measures that are pertinent to compensation? A) mode and arithmetic mean B) median and mode C) mode and quartile D) arithmetic mean and median

Which of the following are the three measures of dispersion? A) percentile standard, deviation, arithmetic mean B) standard deviation, quartile, percentile C) quartile, arithmetic mean, standard deviation D) arithmetic mean, percentile, quartile

Suppose that a compensation professional would like to calculate the median salary. He orders four salaries as follows: $20,000, $22,000, $24,000, $26,000. What is the median salary for this data set? A) $21,000 B) $22,000 C) $23,000 D) $24,000

Which of the following surveys are tools used by employers to determine the pay levels needed to recruit highly qualified employees? A) strategic surveys B) external market surveys C) compensation surveys D) internal market surveys

This term refers to the distance of each salary figure from the mean. A) standard deviation B) quartile C) percentile D) deviated mean

Jose Escobar conducts a survey of salaries at ERL Enterprises and finds that 50% of the workers fall below the market pay average of $32,000. In which quartile do the workers at ERL Enterprises fall? A) first B) second C) third D) fourth

What does Quartile 3 represent? A) the number of figures that are above 25% B) the number of figures that fall below 25% C) the number of figures that are above 75% D) the number of figures that fall below 75%

What does it mean when the distribution of data is skewed to the right? A) There is a lower frequency of larger values and the median is greater than the mean. B) There is a higher frequency of larger values and the median is greater than the mean C) There is a lower frequency of larger values and the mean is greater than the median. D) There is a higher frequency of larger values and the mean is greater than the median

How often is the Consumer Price Index calculated for the United States? A) daily B) weekly C) monthly D) twice a year

The Consumer Price Index represents the average price changes for the price of goods and services in how many regions? A) 2 B) 4 C) 6 D) 8

In the regression analysis formula, what does the X represent? A) predicted salary B) job evaluation points C) the slope D) the Y intercept

In regression, what does it mean when the R2 = 1? A) All of the variation in market pay can be explained by the company's job structure. B) None of the variation in market pay can be explained by the company's job structure. C) All of the variation in market pay can be explained by the company's external pay rates. D) All of the variation in market pay can be explained by the benchmark rates.

Compensation professionals in XYZ Company use regression analysis to determine the pay rates of its marketing professionals. There are 4 different marketing job titles in XYZ Company. Compensation professionals use job evaluation points assigned to each marketing job title and a salary survey data. In other words, they regress job evaluation points on the salary data. What does it mean when the R2 value of this regression turns out to be 0.85? A) All of the variation in market pay can be explained by the company's job structure. B) None of the variation in market pay can be explained by the company's job structure. C) A large amount of the variation in market pay can be explained by company's job structure. D) A small amount of the variation in market pay can be explained by company's job structure

XYZ Company is a world leader in medical device manufacturing. Aiming to continue its market position in this industry, XYZ Company pursues differentiation strategy. As a result, this company compensates its employees higher than almost all competitors in order to attract and retain best employees. What kind of pay level policy does XYZ Company follow? A) market match B) market lag C) market lead D) market pay line

XYZ Inc. pursues a low-cost strategy in its industry and generally needs lower skilled employees. As a result, their management team decided to establish a compensation policy that pays less than the marketplace. In recent years, the company became susceptible to labor shortages and high turnover. What kind of pay level policy does XYZ Inc. follow? A) market match B) market lag C) market lead D) market pay line

Market match policies are generally set to which quartile in the salary survey? A) 1st B) 2nd C) 3rd D) 4th

Market lag policies are generally set to which quartile in the salary survey? A) 1st B) 2nd C) 3rd D) 4th

Companies pursuing a differentiation strategy are most likely to use which pay level policy? A) market lead B) market average C) market lag D) market match