WORLD AT WORK C17 MARKET PRICING
COMPREHENSIVE EXAM QUESTIONS AND
CORRECT ANSWERS STUDY GUIDE
●● How market pricing can assist an organization in meeting its
business strategies?
Answer: By helping companies know what the prevailing rates for jobs
are in the current market place
●● Where does compensation fit within the organization's business
strategy?
Answer: An organization must first understand its compensation strategy
and philosophy
●● Which of the following best describes the statement of what the
organization believes about how people should be paid?
Answer: Compensation Philosophy
●● Which strategy builds on the business strategy and serves as a
guiding light in the designs of the all HR programs?
Answer: Human Resources Strategy
●● The total rewards design begins with which of the below process?
,Answer: Corporate vision and mission
●● What are the compensation program objectives?
Answer: Internally equitable, externally competitive, affordable,
understandable, legal/defensible, efficient to administer, capable of
being reshaped for the future, appropriate for the organization, attract,
retain, and motivate employees, create alignment of employee efforts
and business objectives
●● What is compensation Strategy?
Answer: Principles that guide the design, implementation, and
administration of a compensation program. What programs will be used
and how will the be administered.
●● What are the factors that influence the compensation?
Answer: External competitiveness, Pay competitiveness, relevant labor
market, organization must be willing and able to pay, in-demand
employees, internal v.s external equity,
●● What is pay competitiveness?
Answer: Collecting information of competitors, analyzing pay trends,
identifying pay practices, programs, policies and procedures.
●● What is relevant labor market?
, Answer: An organization from which it draws its employees and/or to
which it loses employees
●● How relevant labor market can be defined?
Answer: Organizational size (revenue, number of employees),
geographic location (local, regional, national, international), industry
(healthcare, retails manufacturing).
●● Who are in-demand employees?
Answer: employees with certain or hot skills are in short supply
●● When employee can perceive an unfair situation?
Answer: If employee values a job more or less than the organization
does.
●● What are the external rates?
Answer: Employer pays wages that correspond to prevailing, external
market rates as determined by market pricing.
●● How external equity can be achieved?
Answer: When employees believe their compensation is equal to what
they would receive if they worked in a similar job at another company
●● How leading the market may help organization?
COMPREHENSIVE EXAM QUESTIONS AND
CORRECT ANSWERS STUDY GUIDE
●● How market pricing can assist an organization in meeting its
business strategies?
Answer: By helping companies know what the prevailing rates for jobs
are in the current market place
●● Where does compensation fit within the organization's business
strategy?
Answer: An organization must first understand its compensation strategy
and philosophy
●● Which of the following best describes the statement of what the
organization believes about how people should be paid?
Answer: Compensation Philosophy
●● Which strategy builds on the business strategy and serves as a
guiding light in the designs of the all HR programs?
Answer: Human Resources Strategy
●● The total rewards design begins with which of the below process?
,Answer: Corporate vision and mission
●● What are the compensation program objectives?
Answer: Internally equitable, externally competitive, affordable,
understandable, legal/defensible, efficient to administer, capable of
being reshaped for the future, appropriate for the organization, attract,
retain, and motivate employees, create alignment of employee efforts
and business objectives
●● What is compensation Strategy?
Answer: Principles that guide the design, implementation, and
administration of a compensation program. What programs will be used
and how will the be administered.
●● What are the factors that influence the compensation?
Answer: External competitiveness, Pay competitiveness, relevant labor
market, organization must be willing and able to pay, in-demand
employees, internal v.s external equity,
●● What is pay competitiveness?
Answer: Collecting information of competitors, analyzing pay trends,
identifying pay practices, programs, policies and procedures.
●● What is relevant labor market?
, Answer: An organization from which it draws its employees and/or to
which it loses employees
●● How relevant labor market can be defined?
Answer: Organizational size (revenue, number of employees),
geographic location (local, regional, national, international), industry
(healthcare, retails manufacturing).
●● Who are in-demand employees?
Answer: employees with certain or hot skills are in short supply
●● When employee can perceive an unfair situation?
Answer: If employee values a job more or less than the organization
does.
●● What are the external rates?
Answer: Employer pays wages that correspond to prevailing, external
market rates as determined by market pricing.
●● How external equity can be achieved?
Answer: When employees believe their compensation is equal to what
they would receive if they worked in a similar job at another company
●● How leading the market may help organization?
