Compensation professionals in the XYZ Company use regression analysis to determine the pay rates of ...

Compensation professionals in the XYZ Company use regression analysis to determine the pay rates of its marketing professionals. There are 4 different marketing job titles in the XYZ Company.
 
  Compensation professionals use job evaluation points assigned to each marketing job title and a salary survey data. In other words, they regress job evaluation points on the salary data to indicate the amount of variation in market pay rates that can be explained by a company's job structure. Which of the following best describes this amount of variation when the R2 value turns out to be 0.85?
  A) All of the variation in market pay
  B) None of the variation in market pay
  C) A large amount of the variation in market pay
  D) A small amount of the variation in market pay

Question 2

XYZ Inc. pursues a low-cost strategy in its industry and generally needs lower skilled employees. As a result, their management team decided to establish a compensation policy that pays less than the marketplace.
 
  In recent years, the company became susceptible to labor shortages and high turnover. Which kind of pay level policy does XYZ Inc. follow?
  A) market match
  B) market lag
  C) market lead
  D) market pay line

Question 3

The XYZ Company is a world leader in medical device manufacturing. Aiming to continue its market position in this industry, the XYZ Company pursues a differentiation strategy.
 
  As a result, this company compensates its employees higher than competitors in order to attract and retain the best employees. What kind of pay level policy does the XYZ Company follow?
  A) market match
  B) market lag
  C) market lead
  D) market pay line

Question 4

________ analyses enable compensation professionals to establish pay rates for a set of jobs that are consistent with typical pay rates for jobs in the external market.
 
  FIll in the blank with correct word.

Question 5

Explain the three reasons why companies often choose not to develop their own compensation surveys.
 
  What will be an ideal response?

Question 6

When using compensation survey data, statistical analyses are used to integrate this with the external market, in order to determine pay rates.
 
  A) internal pay scales
  B) nominal pay rates
  C) internal pay benchmarks
  D) internal job structures

Question 7

In the regression analysis formula, what does the X represent?
 
  A) predicted salary
  B) job evaluation points
  C) the slope
  D) the Y intercept

Question 8

Which term is used to describe the situation where the pay spread between newly hired employees and more qualified job incumbents is small?
 
  A) pay structures
  B) pay compression
  C) red circle pay rates
  D) green circle pay rates