11. A market pay policy line may be developed using job evaluation data and market pay survey data.
12. A disadvantage of using pay grades is the increased administrative burden and costs.
13. Market rates are used in the pay policy line approach, but not in the market survey data approach.
14. When resolving conflicts between external and internal pay data, there is a growing sentiment that external comparisons deserve greater weight because organizations are finding it increasingly difficult to ignore market competitive pressures.
15. A compa-ratio equivalent to 1 suggests that actual pay is not consistent with the pay policy.
16. Under a two-tier wage plan, employees doing the same job are paid two different rates, depending on their background and training.
17. Broad band pay programs can lead to weaker budgetary controls and rising labor costs.
18. Skill-based pay systems fit well with the increased breadth and depth of skill that changing technology continues to bring.
19. The use of "banding" in organizations may mean fewer promotional opportunities for employees.
20. The quality and productivity of national labor forces do not vary dramatically between industrialized countries and developing countries.