ADM 2337 CHAPTER 9 REVISION
QUESTIONS AND VERIFIED SOLUTIONS
RATED A.
Crystal Ball Inc. is a large information technology firm with many levels of
management. The company would like to compensate its managers on
factors such as knowledge and accountability. Which system would you
recommend?
a. market pricing
b. the Hay profile method
c. job classification as implemented in Microsoft
d. work valuation
B
In geography, the water catchment area or watershed refers to the area that
channels or supplies a specific area with its water. Catchment areas divide
drainage basins. In wage surveys, what is this catchment area similar to?
a. the labour market
b. the region
c. the recruiting area
d. the supply region
A
Ontario Hydro is seeking a top-level engineer to help with its operations.
What is the relevant labour market to be surveyed?
a. regional
b. local
c. national
d. internal
,C
What type of equity do wage and salary surveys permit an organization to
maintain?
a. internal
b. distributive
c. external
d. salary
C
What type of jobs do companies normally use to collect wage survey data?
a. key jobs
b. low-rated jobs
c. high-rated jobs
d. strategic jobs
A
In developing a wage curve, what are market wage rates plotted against?
a. market survey data
b. employee benefits
c. the size of a firm
d. the point value of jobs
D
Accounting clerks, pay clerks, and junior secretaries are all classed in Grade
2 at Metroland Inc. Which of the following should apply to all these jobs?
a. They should all receive the same wage rate in order to achieve equality.
b. They should be paid within the same pay range.
c. They should be paid similar to Grade 2 jobs at McDonald's.
d. They should be paid at different wage rates because the worth of these
jobs to the organization may differ.
, B
What should employers do if they wish to encourage employees to accept a
promotion to a job in a higher grade?
a. increase the size of successive rate ranges
b. increase the point spread of pay grades
c. decrease the size of successive rate ranges
d. decrease the point spread of pay grades
A
When can red circle rates lead to results above the maximum for the pay
range?
a. promotional opportunities are plentiful
b. the relevant jobs may have been evaluated too high previously
c. employees are demoted
d. grades are added to the range
B
Tiffany works as an IT specialist at Nortel. She is compensated based on
such skills as programming and service to clients. It is likely that she is paid
under which of the following pay plans?
a. a competence-based pay plan
b. a performance-based pay plan
c. a merit-based pay plan
d. a seniority-based pay plan
A
According to the text, what is the predominant approach to employee
compensation?
a. pay-for-performance
b. competence-based pay
QUESTIONS AND VERIFIED SOLUTIONS
RATED A.
Crystal Ball Inc. is a large information technology firm with many levels of
management. The company would like to compensate its managers on
factors such as knowledge and accountability. Which system would you
recommend?
a. market pricing
b. the Hay profile method
c. job classification as implemented in Microsoft
d. work valuation
B
In geography, the water catchment area or watershed refers to the area that
channels or supplies a specific area with its water. Catchment areas divide
drainage basins. In wage surveys, what is this catchment area similar to?
a. the labour market
b. the region
c. the recruiting area
d. the supply region
A
Ontario Hydro is seeking a top-level engineer to help with its operations.
What is the relevant labour market to be surveyed?
a. regional
b. local
c. national
d. internal
,C
What type of equity do wage and salary surveys permit an organization to
maintain?
a. internal
b. distributive
c. external
d. salary
C
What type of jobs do companies normally use to collect wage survey data?
a. key jobs
b. low-rated jobs
c. high-rated jobs
d. strategic jobs
A
In developing a wage curve, what are market wage rates plotted against?
a. market survey data
b. employee benefits
c. the size of a firm
d. the point value of jobs
D
Accounting clerks, pay clerks, and junior secretaries are all classed in Grade
2 at Metroland Inc. Which of the following should apply to all these jobs?
a. They should all receive the same wage rate in order to achieve equality.
b. They should be paid within the same pay range.
c. They should be paid similar to Grade 2 jobs at McDonald's.
d. They should be paid at different wage rates because the worth of these
jobs to the organization may differ.
, B
What should employers do if they wish to encourage employees to accept a
promotion to a job in a higher grade?
a. increase the size of successive rate ranges
b. increase the point spread of pay grades
c. decrease the size of successive rate ranges
d. decrease the point spread of pay grades
A
When can red circle rates lead to results above the maximum for the pay
range?
a. promotional opportunities are plentiful
b. the relevant jobs may have been evaluated too high previously
c. employees are demoted
d. grades are added to the range
B
Tiffany works as an IT specialist at Nortel. She is compensated based on
such skills as programming and service to clients. It is likely that she is paid
under which of the following pay plans?
a. a competence-based pay plan
b. a performance-based pay plan
c. a merit-based pay plan
d. a seniority-based pay plan
A
According to the text, what is the predominant approach to employee
compensation?
a. pay-for-performance
b. competence-based pay
