Which Pay-Setting Approach Places the Highest Relative Emphasis on External

question 28

Multiple Choice

Which pay-setting approach places the highest relative emphasis on external comparisons?

• A)Basing pay on market surveys that cover as many key jobs as possible.
• B)Deriving pay rates for all jobs based on the number of job evaluation points.
• C)Grouping jobs into a smaller number of pay grades.
• D)Basing pay on skills employees have acquired.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, which can be seen as the cost of borrowing money or the return on saving.

Rule Of 70

A method used to estimate the number of years it will take for a variable to double, calculated by dividing 70 by the annual growth rate.

Interest Rate

The proportion of a specified sum that is added as a charge for borrowing it, usually stated as an annual rate.

Utility Function

A mathematical representation describing how a consumer ranks different bundles of goods according to levels of satisfaction.