A variable distance scale uses: Ans✓✓✓ Different point distances between each
level in the scale
Absolute Level Ans✓✓✓ The reward can be defined.
All compensable factors are probably not equally valuable to the organization.
Ans✓✓✓ True
An effective performance system will need to have more frequent payouts in the
Ans✓✓✓ Beginning of the rollout
As a general rule, base pay strategies rarely lead the market by more than
Ans✓✓✓ 10%
Bad data challenge Ans✓✓✓ Exists because the data a company obtains about
market rates may not be an accurate representation of the market. It is often
difficult to fully understand the quality of the data obtained from various sources,
or how best to integrate this information, which adds error to any reward system
based on that data.
Benchmark competitors Ans✓✓✓ A selection of primary organizations that
exemplify the labor and product/service markets in which the organization
competes.
Benchmark jobs Ans✓✓✓ Jobs that are representative of the type, content, and
level of jobs in the organization.
, Benefit Benchmark Survey Ans✓✓✓ A tool that helps organizations better
understand how employee benefits may impact their ability to attract and retain
qualified employees.
Benefit level strategy Ans✓✓✓ Refers to the level of each benefit type provided
as well as the overall company expenditure.
Benefit mix strategy Ans✓✓✓ Refers to the particular combination of benefit
types that an organization offers.
Blue-collar workers are always Ans✓✓✓ Non-exempt
Broadbanding Ans✓✓✓ Entails the use of a few broad bands (or grades) to
organize work for pay purposes.
Capability based pay Ans✓✓✓ When a reward system explicitly attempts to vary
rewards based upon capabilities of the employees. Types include Skill-based pay,
Competency-based pay, and Seniority-based pay.
Central tendency Ans✓✓✓ Describes what's typical for a set of data, usually
measured by the arithmetic mean, median, or mode.
Centralized approach Ans✓✓✓ The Human Resources department makes all
decisions relating to pay strategy, as well as specific reward decisions.