Question 91. Which of the following is a benefit of reducing the

91. Which of the following is a benefit of reducing the number of pay grades and broadening pay ranges?

a. It reduces the organization’s overall compensation expense.

b. It encourages employees to take horizontal job moves.

c. It enhances the distinctions between various jobs.

d. It increases employee opportunities for upward mobility.

92. Which of the following employees will be qualified for the LARGEST pay raise according to a typical pay adjustment matrix? An employee with

a. a compra-ratio of 85 who does not meet performance expectations.

b. a compra-ratio of 115 who exceeds performance expectations.

c. a compra-ratio of 115 who meets performance expectations.

d. a compra-ratio of 85 who exceeds performance expectations.

93. Which of the following approaches is recommended for bringing a red-circled employee’s pay into line?

a. Transfer the employee to a lower paying job.

b. Keep pay levels and ranges confidential.

c. Cut the employee’s pay so it falls within the range.

d. Freeze the employee’s pay until the pay range is adjusted upward.

94. Martha has been a professor at a major state university for 20 years. Martha loves her work and is satisfied with the university. Because of her high level of publications and her high quality of teaching, Martha has received the highest raises possible every year. Since this a public university, Martha has access to all the salary data for all her fellow professors. She has learned that the last three professors hired in her field at her level were paid one-quarter more than she is paid. This amounts to tens of thousands of dollars. Martha is shocked and gathers data on the job market in her field. She finds that her pay is much lower than the market rate. Martha has encountered

a. the failure of step progression.

b. gender-based pay inequity.

c. compensation stagnation.

d. pay compression.

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