OBHR 3330 EXAM 3 QUESTIONS AND ANSWERS
What are the two areas of salary level decisions? - Answers -pay structure, individual
pay
The relative pay of different jobs and how much they are paid, set within ranges based
on experience and demand, within a pay band (salary range) - Answers -pay structure
The relative pay of jobs in an organization - information from the job evaluation -
Answers -job structure
The average pay including wages, salaries, and bonuses, class overload, of jobs in an
organization - information from market pay surveys from the government - Answers -
Pay level*
Equal pay is evaluated on: - Answers -effort, ability, experience
Pay comparisons focus on what employees in other organizations are paid for doing the
same general job
Ex: UTD vs. UNT or SMU - Answers -External equity
Pay comparisons focus on what employees within the same organization are paid -
Answers -Internal equity
What are the two competitive challenges from market pressures? - Answers -Product
market competition, labor market competition
The organization must be able to sell their goods and services to provide a sufficient
return on investment (ROI)
Ex: UTD masters programs - Answers -Product market competition
Reflects the workers available relative to the number of jobs available - Answers -Labor
market competition
A theory stating that wages influence worker productivity. The decision that needs to be
made is: do we pay above, at, or below market pay - Answers -Efficiency wage theory
What are the wages within efficiency wage theory? - Answers -Above market pay -
ability to attract and retain top talent; Ex: IT, analytics, In-n-out, Costco
At market pay - to be competitive; within the band of market pay; Ex: Southwest
Below market pay - during times of high unemployment some companies will take
advantage of the excess labor in the workforce and reduce wages; Ex: Amazon (higher
pay, harder work) vs. retail
, Compares an organization to other organizations competing in the same space, try to
have an average close to the average within the pay band - Answers -Benchmarking
survey
What questions do pay surveys require answers to? - Answers -Which employees
should be included in the survey?
Which jobs should be included in the survey?
If you use multiple surveys, how do you weigh the different results?
Different employees in the same job may have different pay rates as a result of:
Employee performance, Seniority, Training
Employees covered by a collective bargaining agreement are usually paid the same -
Answers -Rate ranges
Benchmark jobs, used in pay surveys, that have relatively stable content and are
common to many organizations - Answers -Key jobs
Jobs that are unique to the organizations and that cannot be directly valued or
compared through the use of market surveys - Answers -Non-key jobs
An administrative procedure used to measure internal job worth - Answers -Job
evaluation
The characteristics of jobs that an organization values and chooses to pay for -
Answers -compensable factors
What are the point-factors in a three-factor job evaluation system?*
(which of the following is not part of the job evaluation system) - Answers -experience,
education, complexity
result is a total point score, the higher the score, the higher the value
What are the three common pay-setting approaches? - Answers -Use market survey
data - Benchmarking
Use a pay policy line - Based on key jobs; Ex: pilot>flight attendants>ramp agents
(more substitutes available)
Use pay grades - Job of similar worth or content grouped together for pay administration
purposes, fixed salaries
The distance between the minimum and maximum amounts in a pay grade
pay band- position within the band dependent on experience, education, complexity;
you can negotiate salary beginning with your second job after you get experience
pay adjustments are based on geographic location - Answers -range spread
What shows employees the importance of the process? - Answers -Participation -
Employee participation in the decision making process
What are the two areas of salary level decisions? - Answers -pay structure, individual
pay
The relative pay of different jobs and how much they are paid, set within ranges based
on experience and demand, within a pay band (salary range) - Answers -pay structure
The relative pay of jobs in an organization - information from the job evaluation -
Answers -job structure
The average pay including wages, salaries, and bonuses, class overload, of jobs in an
organization - information from market pay surveys from the government - Answers -
Pay level*
Equal pay is evaluated on: - Answers -effort, ability, experience
Pay comparisons focus on what employees in other organizations are paid for doing the
same general job
Ex: UTD vs. UNT or SMU - Answers -External equity
Pay comparisons focus on what employees within the same organization are paid -
Answers -Internal equity
What are the two competitive challenges from market pressures? - Answers -Product
market competition, labor market competition
The organization must be able to sell their goods and services to provide a sufficient
return on investment (ROI)
Ex: UTD masters programs - Answers -Product market competition
Reflects the workers available relative to the number of jobs available - Answers -Labor
market competition
A theory stating that wages influence worker productivity. The decision that needs to be
made is: do we pay above, at, or below market pay - Answers -Efficiency wage theory
What are the wages within efficiency wage theory? - Answers -Above market pay -
ability to attract and retain top talent; Ex: IT, analytics, In-n-out, Costco
At market pay - to be competitive; within the band of market pay; Ex: Southwest
Below market pay - during times of high unemployment some companies will take
advantage of the excess labor in the workforce and reduce wages; Ex: Amazon (higher
pay, harder work) vs. retail
, Compares an organization to other organizations competing in the same space, try to
have an average close to the average within the pay band - Answers -Benchmarking
survey
What questions do pay surveys require answers to? - Answers -Which employees
should be included in the survey?
Which jobs should be included in the survey?
If you use multiple surveys, how do you weigh the different results?
Different employees in the same job may have different pay rates as a result of:
Employee performance, Seniority, Training
Employees covered by a collective bargaining agreement are usually paid the same -
Answers -Rate ranges
Benchmark jobs, used in pay surveys, that have relatively stable content and are
common to many organizations - Answers -Key jobs
Jobs that are unique to the organizations and that cannot be directly valued or
compared through the use of market surveys - Answers -Non-key jobs
An administrative procedure used to measure internal job worth - Answers -Job
evaluation
The characteristics of jobs that an organization values and chooses to pay for -
Answers -compensable factors
What are the point-factors in a three-factor job evaluation system?*
(which of the following is not part of the job evaluation system) - Answers -experience,
education, complexity
result is a total point score, the higher the score, the higher the value
What are the three common pay-setting approaches? - Answers -Use market survey
data - Benchmarking
Use a pay policy line - Based on key jobs; Ex: pilot>flight attendants>ramp agents
(more substitutes available)
Use pay grades - Job of similar worth or content grouped together for pay administration
purposes, fixed salaries
The distance between the minimum and maximum amounts in a pay grade
pay band- position within the band dependent on experience, education, complexity;
you can negotiate salary beginning with your second job after you get experience
pay adjustments are based on geographic location - Answers -range spread
What shows employees the importance of the process? - Answers -Participation -
Employee participation in the decision making process
