Question 1

Which of the following characteristics is not typically considered by a given firm in the selection of market comparator firms?
A) the type of product or service the firm provides
B) whether the firm has achieved pay equity
C) whether the firm is union or non-union
D) the geographic area over which it operates

Accepted Answer

When selecting market comparator firms, firms typically consider the type of product or service provided, whether the firm is union or non-union, and the geographic area over which it operates. Pay equity is a consideration for the firm's own employees and is not typically a factor in selecting market comparator firms.

Question 2

Collecting data can be done by personal interviews,random sampling and questionnaires.

Accepted Answer

False

Question 3

Third party surveys may not cover the desired jobs or compensation characteristics needed to do comparisons.

Accepted Answer

Third party surveys are not tailored to specific organizations and their job roles and may not include all the necessary job characteristics to make accurate comparisons.

Question 4

Which of the following conditions best explains why professional athletes command the kinds of fees they do for endorsing various products and services?
A) wage compression
B) labour scarcity
C) compensating differentials
D) union wage premiums

Accepted Answer

Professional athletes are a scarce resource due to their unique and specific skill set, and as such, they are in high demand. This leads to companies willing to pay high fees to have them endorse their products or services.

Question 5

The compa-ratio is calculated by taking the average pay of all employees holding a particular job title and then dividing this by the midpoint of the pay range for that job.

Accepted Answer

The compa-ratio is indeed calculated by taking the average pay of all employees holding a particular job title and dividing this by the midpoint of the pay range for that job.

Question 6

In general,unionized employees receive a lower level of compensation than do non-union employees in comparable jobs.

Accepted Answer

This statement is not accurate. Studies show that unionized employees, on average, earn higher wages, receive better benefits, and have better working conditions than non-unionized employees in comparable jobs.

Question 7

What determines the geographic scope of the market for occupational groups?
A) the level of job specialization
B) the size of the firm
C) whether the firm is union or non-union
D) whether the firm is in the private or public sector

Accepted Answer

The level of job specialization determines the geographic scope of the market for occupational groups. Highly specialized occupations are more likely to be in demand in a larger geographic area, while less specialized occupations may be limited to a smaller market. For example, a highly specialized surgeon may be in demand in a larger geographic area than a general practitioner.

Question 8

Which of the following conditions can cause a compensating differential?
A) a strong union
B) publicly visible salaries
C) a long term pay equity plan
D) a poor industry reputation

Accepted Answer

A compensating differential is an additional amount of income that a worker receives to compensate for undesirable aspects of a job, such as a poor industry reputation.

Question 9

What are two main advantages of using third party surveys?
A) data custom-designed for company needs
B) availability of technology and short time frames
C) covers all jobs and relevant data
D) simplicity and economy

Accepted Answer

The answer of What are two main advantages of using...

Question 10

Which of the following is not considered a general pattern in compensation levels?
A) Union employees receive more compensation than comparable non-union employees.
B) Male employees earn more than female employees on average.
C) Resource sector employees earn more than those in the service sector.
D) The wage gap between public-sector organizations and private-sector firms is narrow for top-level employees.

Accepted Answer

The statement that "the wage gap between public-sector organizations and private-sector firms is narrow for top-level employees" is not a general pattern in compensation levels, as it is not always true. Depending on the industry and specific organization, top-level employees in the public sector may earn significantly more or less than their private sector counterparts.

Question 11

Compensation surveys reflect the value placed on jobs by the labour market but this does not always mean that the market values jobs fairly.

Accepted Answer

While compensation surveys do reflect the value placed on jobs by the labour market, this does not necessarily mean that the market values jobs fairly. Other factors such as discrimination, supply and demand, and power imbalances can influence how jobs are valued and compensated.

Question 12

In understanding labour markets,three kinds of competitors are relevant.

Accepted Answer

The answer of In understanding labour markets,three kinds of competitors...

Question 13

According to the text,sources of compensation market data include government agencies,trade journals,and compensation consultants.

Accepted Answer

The answer of According to the text,sources of compensation market...

Question 14

What does compensation survey data establish?
A) wage competitiveness
B) pay equity
C) internal equity
D) market comparators

Accepted Answer

The answer of What does compensation survey data establish?
A) wage...

Question 15

Which of the following identifies two crucial dimensions of the labour market?
A) occupational grouping and geographic scope
B) unemployment rate and turnover in the area
C) availability of labour and types of legislation
D) education levels and experience ratings

Accepted Answer

Occupational grouping and geographic scope are two crucial dimensions of the labour market as they determine the types of job opportunities available and the locations where these jobs are located. The occupational grouping dimension refers to the categories of jobs available, such as technical, managerial, or service-oriented. The geographic scope dimension refers to the areas where these jobs are located, such as local, regional, or national. Both of these dimensions can influence the demand for and supply of labour, wage rates, and other labour market outcomes.

Question 16

Which of the following describes a compensating differential?
A) an adjustment to job rates based on survey results
B) an adjustment to gender specific jobs
C) offering more compensation to overcome undesirable aspects of the job
D) assessing the distribution of employees within their pay range

Accepted Answer

A compensating differential is a higher wage rate earned by workers who experience undesirable working conditions or risks in their jobs. This is meant to compensate them for the negative aspects of their job. The other options are not related to compensating differentials.

Question 17

In analyzing compensation survey data,a key element is the mean base pay.

Accepted Answer

The mean base pay is a key element in compensation survey data analysis because it provides an average value of the salaries being surveyed. This helps in comparing and benchmarking salaries within and across industries, locations, and job roles.

Question 18

In regard to compensation market data,the key thing an employer needs to know is what its competitors are paying their employees.

Accepted Answer

Knowing what competitors are paying their employees allows an employer to stay competitive and attract and retain top talent. This data can also help an employer make informed decisions about setting salaries and benefits packages.

Question 19

Two of the least important aspects of pay data are the actual distribution of employees within their pay ranges and the amounts actually paid to employees.

Accepted Answer

The actual distribution of employees within their pay ranges and the amounts actually paid to employees are very important aspects of pay data. Understanding the distribution of pay levels and how individuals are compensated within those ranges can help organizations identify potential pay inequities and make the necessary adjustments. Furthermore, understanding the actual amounts paid to employees can help organizations assess their overall compensation competitiveness in the market and make informed decisions about future pay structures.

Question 20

Which of the following identifies the three main "third party" sources of compensation data?
A) Statistics Canada, trade journals, and government agencies
B) private agencies, trade journals, and government agencies
C) government agencies, industry groups, and consulting firms
D) consulting firms, boards of trade, and publishers

Accepted Answer

Government agencies, industry groups, and consulting firms are the three main "third party" sources of compensation data. Private agencies, trade journals, and publishers may also provide compensation data, but they are not the main sources. Statistics Canada and boards of trade are not specifically mentioned as "third party" sources of compensation data.

Quiz 9: Evaluating the Market

Which of the following characteristics is not typically considered by a given firm in the selection of market comparator firms?

Collecting data can be done by personal interviews,random sampling and questionnaires.

Third party surveys may not cover the desired jobs or compensation characteristics needed to do comparisons.

Which of the following conditions best explains why professional athletes command the kinds of fees they do for endorsing various products and services?

The compa-ratio is calculated by taking the average pay of all employees holding a particular job title and then dividing this by the midpoint of the pay range for that job.

In general,unionized employees receive a lower level of compensation than do non-union employees in comparable jobs.

What determines the geographic scope of the market for occupational groups?

Which of the following conditions can cause a compensating differential?

What are two main advantages of using third party surveys?

Which of the following is not considered a general pattern in compensation levels?

Compensation surveys reflect the value placed on jobs by the labour market but this does not always mean that the market values jobs fairly.

In understanding labour markets,three kinds of competitors are relevant.

According to the text,sources of compensation market data include government agencies,trade journals,and compensation consultants.

What does compensation survey data establish?

Which of the following identifies two crucial dimensions of the labour market?

Which of the following describes a compensating differential?

In analyzing compensation survey data,a key element is the mean base pay.

In regard to compensation market data,the key thing an employer needs to know is what its competitors are paying their employees.

Two of the least important aspects of pay data are the actual distribution of employees within their pay ranges and the amounts actually paid to employees.

Which of the following identifies the three main "third party" sources of compensation data?