WORLD AT WORK C17 MARKET PRICING
TEST BANK QUESTIONS WITH VERIFIED
ANSWERS FULL REVIEW
●● Compensation Strategy
Answer: Specific principles that guide the design, implementation and
administration of a compensation program in an organization
●● Compensation Philosophy
Answer: It should support the business strategy and be a good fit with
the organization's culture
●● Factors influencing Compensation
Answer: External competitiveness and Pay competitiveness
●● Relevant labor market
Answer: Market(s) from which organization draws or loses employees
●● Relevant labor market is defined by
Answer: Organization size, Geographic location & industry
●● Relevant labor market is differ by job groups
,Answer: Scope-sensitive job (e.g., management), Clerical jobs &
Industry-specific jobs (petroleum engineer, pharmacist)
●● In-demand employees
Answer: Employers must keep close watch on how competitors are
paying their employees who have hot skills or are identified as critical
key talent
●● Internal Equity
Answer: Each job's relative value
●● Internal Equity
Answer: Equal pay for jobs of equal worth
●● External Equity
Answer: Pay levels compared to competitors
●● Prevailing External Rates
Answer: Imply that the employer pays wages that correspond to external
market rates as determined by market pricing
●● Achieving Equity
,Answer: When employees believe their compensation is equal to what
they would receive if they worked in a similar job at another company
●● Blend and Balance
Answer: When employers combine internal equity and external
competitiveness
●● Job Value
Answer: Jobs with higher value to the organization
●● Market Position
Answer: Lead the market
●● Market Position
Answer: Lag the market
●● Market Position
Answer: Lead-lag the market
●● Lead the market
Answer: Set its pay at year-end anticipated market level not at current
market levels
, ●● Lag the market
Answer: Set its pay equal to current market levels at the beginning of the
year.
●● Lead-lag the market
Answer: Set its pay at mid-year anticipated market level
●● Business Life Cycle
Answer: The progression of steps an organization passes through from
its creation to its decline
●● Start-up
Answer: The organization is new with few or no formal policies or
procedures
●● Growth
Answer: Generates the need to begin standardizing procedures through
policy creation
●● Mature
Answer: Focus on maintaining/increasing market share, improving
productivity and reducing cost of sales
TEST BANK QUESTIONS WITH VERIFIED
ANSWERS FULL REVIEW
●● Compensation Strategy
Answer: Specific principles that guide the design, implementation and
administration of a compensation program in an organization
●● Compensation Philosophy
Answer: It should support the business strategy and be a good fit with
the organization's culture
●● Factors influencing Compensation
Answer: External competitiveness and Pay competitiveness
●● Relevant labor market
Answer: Market(s) from which organization draws or loses employees
●● Relevant labor market is defined by
Answer: Organization size, Geographic location & industry
●● Relevant labor market is differ by job groups
,Answer: Scope-sensitive job (e.g., management), Clerical jobs &
Industry-specific jobs (petroleum engineer, pharmacist)
●● In-demand employees
Answer: Employers must keep close watch on how competitors are
paying their employees who have hot skills or are identified as critical
key talent
●● Internal Equity
Answer: Each job's relative value
●● Internal Equity
Answer: Equal pay for jobs of equal worth
●● External Equity
Answer: Pay levels compared to competitors
●● Prevailing External Rates
Answer: Imply that the employer pays wages that correspond to external
market rates as determined by market pricing
●● Achieving Equity
,Answer: When employees believe their compensation is equal to what
they would receive if they worked in a similar job at another company
●● Blend and Balance
Answer: When employers combine internal equity and external
competitiveness
●● Job Value
Answer: Jobs with higher value to the organization
●● Market Position
Answer: Lead the market
●● Market Position
Answer: Lag the market
●● Market Position
Answer: Lead-lag the market
●● Lead the market
Answer: Set its pay at year-end anticipated market level not at current
market levels
, ●● Lag the market
Answer: Set its pay equal to current market levels at the beginning of the
year.
●● Lead-lag the market
Answer: Set its pay at mid-year anticipated market level
●● Business Life Cycle
Answer: The progression of steps an organization passes through from
its creation to its decline
●● Start-up
Answer: The organization is new with few or no formal policies or
procedures
●● Growth
Answer: Generates the need to begin standardizing procedures through
policy creation
●● Mature
Answer: Focus on maintaining/increasing market share, improving
productivity and reducing cost of sales
