Question 1

What does the regression line provide?

Options :

A : The average market pay level

B : The highest market pay level

C : The lowest market pay level

D : A line of best fit of market pay levels for each grade based on the benchmark jobs

Answer: D

Question 2

Which statement best describes the term relevant labor market(s)?

Options :

A : markets which exclude geographic location and organizational size

B : Labor market(s) against which the organization must equal its pay levels

C : Market(s) from which an organization draws and loses its employees

D : Labor market information that is generally applicable only to the manufacturing sector

Answer: C

Question 3

When using market-based job evaluation, what is the percentage of jobs in the organization that should be benchmarked?

Options :

A : At least 30%

B : At least 50%

C : At least 70%

D : At least 90%

Answer: B

Question 4

What is midpoint-to-midpoint differential?

Options :

A : The difference in wage rates paid at the top and bottom of a salary grade

B : The difference in wage rates paid for the same job in different locations

C : The difference in wage rates paid for jobs with similar job titles

D :

The difference in wage rates paid in the midpoints of two adjacent grades and is also known as a salary range spread

Answer: D

Question 5

What is a "pay structure"?

Options :

A : A system for distributing bonuses to employees

B : A set of policies and procedures for administering employee pay

C : The organization-s approach to paying employees

D : The specific salary levels and ranges for each job in the organization

Answer: D