Test Your Knowledge

Market Pricing – Conducting a Competitive Pay Analysis (Course C17)

Instructions: Choose an answer for each question and then click on the "Get Results" button at the end of the quiz.

1. Choose the market position that matches the following description: The company's pay philosophy will stay ahead of the market until focal reviews are conducted, then fall behind the market.
A. Lead
B. Lead-lag
C. Lag
D. Leap

2. In base pay structure design, what data does the job evaluation step provide?
A. Information about the nature and level of work
B. Written information about job content, functions and KSAs
C. Data that can be used to create a job worth hierarchy
D. Information about where each job fits, relative to other jobs

3. In market pricing, job rates are set based on what criterion?
A. How a job is valued internally
B. A company's best estimate of typical wage rates in the external market
C. A company's data regarding current internal wage rates
D. How a job is classified when compared to other jobs within the structure

4. Which of the following terms refers to the act of placing a job into a job worth hierarchy?
A. Pay range
B. Market rate composite
C. Slotting
D. Pay policy

5. When conducting your own survey, which of the following parameters should be used to create a legal “safety zone”?
A. Information provided by survey participants is based on data more than three weeks old
B. There are at least three providers reporting data upon which each disseminated statistic is based.
C. No individual provider's data represents more than 25% on a weighted basis of the statistic.

6. What is usually located in an HRIS?
A. Information related to individual employees
B. Information related to groups of employees
C. Spreadsheet applications useful for gathering and sorting information

7. How do you measure the market for high-demand jobs?
A. Focus on broadly defined job roles
B. Focus on individual employees with specific skills
C. Focus on internal value to the organization

8. Which of the following is true when aging data over two calendar years?
A. Combine into one factor, then age
B. Age both years first, then subtract the second year
C. Age one year first, then age the second year

The Test Your Knowledge questions are intended to provide a small sample of the information covered in a particular course. Passing this test should not be considered an indicator that you also will pass the related certification exam. No portion of this document may be reproduced in any form without express written permission from WorldatWork. Copyright 2005 WorldatWork.

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