CHAPTER 10
1. The ____________ method begins by identifying certain basic occupational groups such as
accounting or manufacturing and then identifying certain class-series within the groups.
(a) key job matching
(b) broad classification
(c) job evaluation
(d) occupational survey
2. The least used system of collecting compensation data is the
(a) conference
(b) personal interview
(c) telephone
(d) questionnaire
3. Which pay survey data collection technique will normally provide the best matching of jobs?
(a) telephone
(b) mailed questionnaire
(c) survey logs
(d) personal interviews
4. The simplest technique for collecting survey data is the
(a) personal interview survey
(b) mailed questionnaire survey
(c) telephone survey
(d) conference survey
5. In designing a compensation survey, different kinds of pay data may be obtained. The most useful
kind of pay data to collect is
(a) average pay and number of employees
(b) the actual pay for each employee
(c) the median pay
(d) the pay range and midpoint of a particular job
6. ________________ is a study of relationships that exist among selected items that form a specific
group and are representative of the entire group.
(a) Statistical sampling
(b) Job evaluation
(c) Correlation
(d) Multiple regression
7. Characteristics of key or benchmark jobs include all but which one of the following?
(a) unique to the company
(b) common throughout the industry
(c) contain large numbers of incumbents
(d) representative of the entire pay structure
8.
Normally the best technique for collecting compensation survey data, considering time required,
costs, and accuracy, is
(a) telephone survey
(b) completion of a questionnaire during a personal interview
(c) mailed questionnaire
(d) a conference with a group of compensation specialists
9. The main purpose for conducting a compensation survey is to collect data which will assist a
company in
(a) establishing internal equity in its compensation program
(b) establishing minimum job requirements
(c) identifying the market competitive pay rates
(d) identifying its key or benchmark jobs
10. The most commonly used survey method requires respondees to match benchmark jobs with
similar jobs in their organizations through comparison with identification data supplied by the
survey. It is called
(a) Occupational Survey Method
(b) Job Evaluation Method
(c) Broad Classification Method
(d) Key Job Matching Method
11. The survey method which requires that all parties participating in the survey use the same general
method for evaluating jobs is
(a) Broad Classification Method
(b) Job Evaluation Method
(c) Key Job Matching
(d) Occupational Survey Method
12. Which one of the following organizational qualities is least valuable in determining who should
participate in a pay survey?
(a) major employers
(b) organization that appears to attract surveying organization’s employees
(c) organizations that have many similar kinds of jobs
(d) including the organization recognized as the lowest payer in the labor market area
13. Which of the following is not one of the three major factors to be considered when determining
whether or not to conduct a compensation survey?
(a) promoting worker productivity
(b) hiring and retaining competent employees
(c) developing an adequate and acceptable pay structure
(d) identifying the labor market that organizations hire from
14. The “average” of a group of numbers is the same as its
(a) mode
(b) mean
(c) median
(d) middle value
15.
The 50th percentile of a distribution is the same as the
(a) mode
(b) mean
(c) median
(d) average
16. The measures of central tendency most used by compensation managers are
(a) the mean and the mode
(b) the mean and the midrange
(c) the median and the midrange
(d) the mean and the median
17. In the following array of data, which value is the 9th decile?
3 8 13 20
4 8 15 24
5 9 15 25
5 10 17 28
7 12 18 29
(a) 20
(b) 24
(c) 25
(d) 28
18. The interquartile range is the range involving _______ rates of pay.
(a) mean-minimum
(b) median-minimum
(c) middle 50%
(d) maximum-minimum
17. The term “trimmed mean” describes
(a) a weighted average of an array
(b) an unweighted average of an array
(c) the average value where extreme values are eliminated from the array
(d) a technique that should never be used in measuring statistical data
18. The following describes which measure of central tendency? “Organizations provide only
average pay data for a job and the average value is calculated by summing the average values and
dividing by number of averages provided.”
(a) trimmed mean
(b) unweighted average
(c) weighted average
(d) modified weighted average
21. What is the raw or unweighted average?
Business Senior Clerk-Typist Annual Pay Rate Total Annual Pay
1 Olympia 14 $ 27,400 $383,600
2 Alpha 3 28,400 85,200
3 Omega 5 29,800 149,000
4 Delta 8 26,800 214,400
30 $112,400 $832,200
(a) $26,430
(b) $27,500
(a) $28,000
(b) $28,100
22. A salary survey showed the following data for secretaries:
Company No of Secretaries Av Salary/Month
A 10 $3000
B 10 3000
C 25 3000
D 50 3200
How does the weighted average salary compare with the unweighted average?
(a) it is $55 lower
(b) it is $45 lower
(c) it is $45 higher
(d) it is $55 higher
23. The following pay survey data were provided for a secretary: 3 employees at $31,500; 5
employees at $32,600, and 2 employees at $33,706. The weighted average is
(a) $32,600
(b) $32,602
(c) $32,491
(d) $31,500
24. The following salaries for a clerk-typist were reported in a recently conducted survey They
were $25,846; $27,800; $26,376; $31,458; and $26,600. The median value is
(a) $31,458
(b) $26,600
(c) $26,376
(d) $27,800
25. Compensation surveys that are ready-made and are used by more than one organization
are known as
(a) canned surveys
(b) locked-step surveys
(c) multiple surveys
(d) specialized surveys
26. Which one of the following is not a weakness of a third-party prepared pay survey?
(a) user may be unable to identify respondent
(b) requires little of user’s time
(c) may require resummarization to meet user demands
(d) user is unable to weight data by importance of responding organization to the user
27. The job evaluation method of conducting a survey requires
(a) letters of the alphabet to identify class-series hierarchy
(b) that all participating parties use the same general method for evaluating jobs
(c) respondees to match key or benchmark jobs with similar jobs in their organization
(d) that certain rates of pay and number of employees be identified
28. Which one of the following is not a survey conducted by the Bureau of Labor Statistics?
(a) area wage survey
(b) industry wage survey
(c) municipal government wage survey
(d) professional and scientific survey
Chapter 10