HRMN 3420 TEST 2 QUESTIONS AND ANSWERS LATEST UPDATE 2025-2026
which is the first step in constructing a pay structure? - Answers deciding on the number of pay
structures
which of the following describes midpoint pay value - Answers halfway mark on the pay range
of minimum and maximum rates
compensation budgets - Answers blueprints that describe the allocation of monetary resources
what is the key advantage associated with nonrecurring merit pay increases - Answers non-
recurring merit pay increases strengthen the pay-for-performance link and contain costs for the
company
Juan works as a salesperson for a major farming equipment manufacturer. Usually, there is
considerable lead time between when he approaches a prospective client and when the sale is
finalized. Juan typically generates demand for the product and another member of the sales
team closes the sale. What type of commission would be most appropriate for Juan? - Answers
salary-only plan
which type of plan spreads the risk of selling between the company and its sales professionals -
Answers salary-plus-commission
Skill blocks are sets of skills (knowledge) necessary to perform a job. Before grouping skills into
blocks, a company needs to - Answers develop job descriptions; organize jobs into job families
Skills assessment is a consideration when going from job-based pay to person-focused pay.
Which of the following questions is NOT relevant to skills assessment? - Answers which input
should customers provide in the skills assessment process?
What major trend are companies following by using the broadbanding concept to consolidate
existing pay grades and ranges into fewer pay grades and wider ranges? - Answers making the
organizations flatter
a major limitation of the two-tiered pay system is that - Answers the company has difficulty
recruiting and retaining new hires who are brought in at a lower pay scale
when a company thoroughly examines its external market context and its internal factors, it is,
in essence, - Answers conducting a strategic analysis
in recent years, ________ have become part of compensation surveys because they are key
elements of market-competitive pay systems - Answers employee benefits
key piece of information that compensation specialists hope to gain from compensation
surveys is about - Answers the pay practices of their competitors and employee preferences for
different forms of compensation
, which statement about compensation surveys is false - Answers published compensation
surveys are mostly inaccurate
what is the correct equation that models the prediction of the market pay line - Answers
predicted salary equals the Y intercept plus the slope multiplied by job evaluation points
What statistical method makes it possible for compensation specialists to set pay rates for a
set of jobs that are consistent with the pay rates in the market? - Answers regression analysis
Following which type of pay level policy would enable a company to follow a lowest-cost
strategy? - Answers market lag
Many companies use market match or market lead policies for which types of employees? -
Answers professional and managerial employees
____________ policies refer to the combination of core compensation and employee benefits
components that make up an employee's total compensation package. - Answers pay mix
Companies emphasize some elements relative to others such as merit pay and short-term
incentives focused on individual performance in formulating ____________. - Answers pay mix
Which two processes are used by compensation specialists to create internally consistent job
structures? - Answers job analysis followed by job evaluation
which of the following refers to the actual activities that an employee must perform on the job -
Answers job content
which of the following is not a step in the job analysis process - Answers determining a plan for
the pay structure
what is the end result of a reliable job analysis method - Answers consistent results under
similar conditions
A committee created to design, oversee, and evaluate jobs would include representatives from
all of the following groups EXCEPT ________. - Answers customers
The difference between job analysis and job evaluation is that ________. - Answers job analysis is
descriptive, whereas job evaluation reflects management's priorities for different positions
Which of the following evaluation methods is most popular because it gives compensation
professionals better control over balancing internal and market considerations.? - Answers
point method
The first step in conducting a pointmethod valuation is to select benchmark jobs. A benchmark
job can be defined as a job ________. - Answers found outside the company that is used as a
reference point to judge jobs within the company
which is the first step in constructing a pay structure? - Answers deciding on the number of pay
structures
which of the following describes midpoint pay value - Answers halfway mark on the pay range
of minimum and maximum rates
compensation budgets - Answers blueprints that describe the allocation of monetary resources
what is the key advantage associated with nonrecurring merit pay increases - Answers non-
recurring merit pay increases strengthen the pay-for-performance link and contain costs for the
company
Juan works as a salesperson for a major farming equipment manufacturer. Usually, there is
considerable lead time between when he approaches a prospective client and when the sale is
finalized. Juan typically generates demand for the product and another member of the sales
team closes the sale. What type of commission would be most appropriate for Juan? - Answers
salary-only plan
which type of plan spreads the risk of selling between the company and its sales professionals -
Answers salary-plus-commission
Skill blocks are sets of skills (knowledge) necessary to perform a job. Before grouping skills into
blocks, a company needs to - Answers develop job descriptions; organize jobs into job families
Skills assessment is a consideration when going from job-based pay to person-focused pay.
Which of the following questions is NOT relevant to skills assessment? - Answers which input
should customers provide in the skills assessment process?
What major trend are companies following by using the broadbanding concept to consolidate
existing pay grades and ranges into fewer pay grades and wider ranges? - Answers making the
organizations flatter
a major limitation of the two-tiered pay system is that - Answers the company has difficulty
recruiting and retaining new hires who are brought in at a lower pay scale
when a company thoroughly examines its external market context and its internal factors, it is,
in essence, - Answers conducting a strategic analysis
in recent years, ________ have become part of compensation surveys because they are key
elements of market-competitive pay systems - Answers employee benefits
key piece of information that compensation specialists hope to gain from compensation
surveys is about - Answers the pay practices of their competitors and employee preferences for
different forms of compensation
, which statement about compensation surveys is false - Answers published compensation
surveys are mostly inaccurate
what is the correct equation that models the prediction of the market pay line - Answers
predicted salary equals the Y intercept plus the slope multiplied by job evaluation points
What statistical method makes it possible for compensation specialists to set pay rates for a
set of jobs that are consistent with the pay rates in the market? - Answers regression analysis
Following which type of pay level policy would enable a company to follow a lowest-cost
strategy? - Answers market lag
Many companies use market match or market lead policies for which types of employees? -
Answers professional and managerial employees
____________ policies refer to the combination of core compensation and employee benefits
components that make up an employee's total compensation package. - Answers pay mix
Companies emphasize some elements relative to others such as merit pay and short-term
incentives focused on individual performance in formulating ____________. - Answers pay mix
Which two processes are used by compensation specialists to create internally consistent job
structures? - Answers job analysis followed by job evaluation
which of the following refers to the actual activities that an employee must perform on the job -
Answers job content
which of the following is not a step in the job analysis process - Answers determining a plan for
the pay structure
what is the end result of a reliable job analysis method - Answers consistent results under
similar conditions
A committee created to design, oversee, and evaluate jobs would include representatives from
all of the following groups EXCEPT ________. - Answers customers
The difference between job analysis and job evaluation is that ________. - Answers job analysis is
descriptive, whereas job evaluation reflects management's priorities for different positions
Which of the following evaluation methods is most popular because it gives compensation
professionals better control over balancing internal and market considerations.? - Answers
point method
The first step in conducting a pointmethod valuation is to select benchmark jobs. A benchmark
job can be defined as a job ________. - Answers found outside the company that is used as a
reference point to judge jobs within the company
