hrm2011c p3

19. Which of the following statements about compensation surveys is FALSE?

• A. For compliance, compensation departments should use third-parties to administer surveys.

• B. For compliance, compensation departments should make sure pay survey data are more than three months old.

• C. For best accuracy, compensation departments should make sure that internal jobs and benchmarked jobs are in the same industry and geography.

• D. For best accuracy, compensation departments should make sure that internal jobs and benchmarked jobs have the same job titles.

20. Suppose that some new technology (like Coursera!) instantly made it cheap and easy for anyone to become a lawyer. What effect will this have on labor supply and labor demand?

• A. Labor demand will increase

  B. Neither curve will change

• C. Labor demand will decrease

• D. Labor supply will increase

• E. The labor supply and labor demand curves will both change

• F. Labor supply will decrease

21. Consider the following statements about employees who are promoted. Which is NOT true?

• A. Employees who are promoted will change job grades.

• B. Employees who are promoted can go from relatively high on their grade's pay range to being relatively low of the new grade's pay range.

• C. Employees who are promoted will generally see an increase in base pay.

• D. An employee who is promoted will get a new pay range, with the maximum of the pay range corresponding to base plus the total possible incentive pay.

22. Which of the following statements about pay structures and internal benchmarks is NOT correct?

• A. Pay tends to increase in job grades because higher grades tend to have workers with greater skills and experience.

• B. Pay tends to increase in job grades because higher grades tend to have workers whose productivity is associated with greater revenue.

• C. The control rates tell you the pay at benchmarked jobs.

• D. The pay policy line must perfectly intersect all of the control rates.

23. Using a typical merit-based raise criteria, which of the following employees would likely get the largest annual raise?

• A. An employee high on the pay range, with high evaluations.

• B. An employee low on the pay range, with high evaluations.

• C. An employee who has not been recently promoted, but has been receiving high evaluations for a long time.

• D. An employee in the middle of the pay range with average evaluations.

24. Which of the following statements about pay bands is NOT true?

• A. They typically span multiple non-contiguous grades within the same ladder (e.g. associates are levels 1-3 and 7-9).

• B. They typically combine multiple contiguous grades.

• C. They typically combine jobs that are roughly similar in job level, prestige, and pay.

25. Employees who perform well are given raises. This is an example of a performance evaluation being tied to which element of the pay mix?

• A. Benefits and Perks

• B. LTIs

• C. STIs

• D. Base pay

• E. Non-Monetary

26. A good performance evaluation can lead to a boost in any of the following EXCEPT?

• A. STIs

• B. Base pay

• C. Benefits and Perks

• D. MBOs

• E. LTIs

27. Suppose a company decides to separate performance evaluations from raises. Which of the following is a common reason that a company would do so?

• A. The company is concerned that tying pay to evaluations can impede the ability of evaluations to serve as a coaching tool.

• B. Tying pay to performance evaluations encourages poor performers to stay.

• C. The company is concerned that tying pay to performance evaluation makes it difficult for managers and employees to communicate openly about development goals.

28. Managers conducting performance evaluations tend to overweight instances that occurred in the last week more than those that happened six months ago. This is an example of what kind of bias?

• A. Recency

• B. Halo

• C. Anchoring

• D. Horn

• E. Primacy

  F. Spillover