Question 1

Which of the following is the first step in the six-stage process of compensation communication?

Accepted Answer

A) evaluating the compensation program 
B) defining the objectives of the communication program 
C) developing a communicating strategy for the compensation program 
D) collecting information from executives, managers, and employees concerning their understanding of existing compensation programs 
E) determining the most effective media with which to communicate compensation program 
A) evaluating the compensation program 
B) defining the objectives of the communication program 
C) developing a communicating strategy for the compensation program 
D) collecting information from executives, managers, and employees concerning their understanding of existing compensation programs 
E) determining the most effective media with which to communicate compensation program B

Question 2

Which of the following is an advantage of outsourcing?

Accepted Answer

A) It ensures short-term cost savings to the business. 
B) It enables more control over decisions that are often critical to all employees. 
C) It brings about greater responsiveness to unique and specific employee problems. 
D) It reshapes the compensation function to make it less client focused and more promotion focused. 
E) It results in the preservation of information from rivals and competitors. 
A) It ensures short-term cost savings to the business. 
B) It enables more control over decisions that are often critical to all employees. 
C) It brings about greater responsiveness to unique and specific employee problems. 
D) It reshapes the compensation function to make it less client focused and more promotion focused. 
E) It results in the preservation of information from rivals and competitors. A

Question 3

A Consumer Price Index (CPI)of 120 in Ontario and 160 in Toronto means that it costs more to live in Toronto.

Accepted Answer

A) True 
 B)False  False

Question 4

Which of the following processes is a change agent in restructuring compensation policies?

Accepted Answer

A) reemployment 
B) reverse engineering 
C) broadbanding 
D) reengineering 
E) benchmarking 
A) reemployment 
B) reverse engineering 
C) broadbanding 
D) reengineering 
E) benchmarking

Question 5

Outsourcing means that organizations secure a range of services and supplies from independent, external vendors.

Accepted Answer

A) True 
 B)False

Question 6

Which budgeting method places most responsibility on individual managers?

Accepted Answer

A) the top-down budgeting method 
B) the planned level rise budgeting method 
C) the unit-level budgeting method 
D) the bottom-up budgeting method 
E) the control to compa-ratio budgeting method 
A) the top-down budgeting method 
B) the planned level rise budgeting method 
C) the unit-level budgeting method 
D) the bottom-up budgeting method 
E) the control to compa-ratio budgeting method

Question 7

The budgeting approach that requires senior management of each unit to estimate the pay increase for the entire organization unit is known as the:

Accepted Answer

A) bottom-up budgeting approach 
B) peer budgeting approach 
C) top-down budgeting approach 
D) employee-participation budgeting approach 
E) decentralized budgeting approach 
A) bottom-up budgeting approach 
B) peer budgeting approach 
C) top-down budgeting approach 
D) employee-participation budgeting approach 
E) decentralized budgeting approach

Question 8

A compa-ratio of below 1.00 indicates lower turnover.

Accepted Answer

A) True 
 B)False

Question 9

Using contingent employees makes it more difficult to control labour costs.

Accepted Answer

A) True 
 B)False

Question 10

If the pay system is not based on work-related or business-related logic, then the wisest course is probably to avoid formal communication until the system is put in order.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a step in the bottom-up approach to controlling salary level?

Accepted Answer

A) examining the current year's rise in average wages 
B) managers to forecast pay increase recommendations 
C) instructing managers in compensation policies and techniques 
D) determining the company's ability to pay 
E) analyzing the impact of cost-of-living increases on wages 
A) examining the current year's rise in average wages 
B) managers to forecast pay increase recommendations 
C) instructing managers in compensation policies and techniques 
D) determining the company's ability to pay 
E) analyzing the impact of cost-of-living increases on wages

Question 12

What are the six stages in the compensation communication cycle?

Accepted Answer

The six stages in the compensation commu

Question 13

Announcements of layoffs and plant closings never have favourable effects on stock prices as investors anticipate poor cash flow and increased costs.

Accepted Answer

A) True 
 B)False

Question 14

A planned level rise is the percentage increase in average pay that is planned for a budget period.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true about core employees?

Accepted Answer

A) They are employees whose employment agreements cover only short, specific time periods. 
B) They can be contracted and expanded more easily than the contingent workers. 
C) They help achieve flexibility and control labour costs. 
D) They bring about an increase in the fixed portion of labour costs. 
E) They have many varied compensation packages. 
A) They are employees whose employment agreements cover only short, specific time periods. 
B) They can be contracted and expanded more easily than the contingent workers. 
C) They help achieve flexibility and control labour costs. 
D) They bring about an increase in the fixed portion of labour costs. 
E) They have many varied compensation packages.

Question 16

Costing out wage proposals is commonly done prior to recommending pay increases.

Accepted Answer

A) True 
 B)False

Question 17

An organization adopts a marketing approach to let its employees know the benefits of its overall pay policies but not specific details about increases or limits of the policies. Which of the six steps in the communication compensation process does the organization's action reflect?

Accepted Answer

A) collecting information from executives, managers, employees concerning their understanding of the existing compensation programs 
B) evaluating the compensation program 
C) developing a communication strategy that will accomplish the original objectives 
D) defining the objectives of the compensation program 
E) determining the most effective media in light of the message and the audience 
A) collecting information from executives, managers, employees concerning their understanding of the existing compensation programs 
B) evaluating the compensation program 
C) developing a communication strategy that will accomplish the original objectives 
D) defining the objectives of the compensation program 
E) determining the most effective media in light of the message and the audience

Question 18

What balance is required in order to manage compensation?

Accepted Answer

Some balance between strict controls and

Question 19

Decentralized pay structures are generally easier to administer.

Accepted Answer

A) True 
 B)False

Question 20

A group of employees with whom a strong and long-term relationship is desired is:

Accepted Answer

A) temporary workers 
B) part-time employees 
C) contract employees 
D) core employees 
E) contingent workers 
A) temporary workers 
B) part-time employees 
C) contract employees 
D) core employees 
E) contingent workers

Which of the following is the first step in the six-stage process of compensation communication?

Which of the following is an advantage of outsourcing?

A Consumer Price Index (CPI)of 120 in Ontario and 160 in Toronto means that it costs more to live in Toronto.

Which of the following processes is a change agent in restructuring compensation policies?

Outsourcing means that organizations secure a range of services and supplies from independent, external vendors.

Which budgeting method places most responsibility on individual managers?

The budgeting approach that requires senior management of each unit to estimate the pay increase for the entire organization unit is known as the:

A compa-ratio of below 1.00 indicates lower turnover.

Using contingent employees makes it more difficult to control labour costs.

If the pay system is not based on work-related or business-related logic, then the wisest course is probably to avoid formal communication until the system is put in order.

Which of the following is a step in the bottom-up approach to controlling salary level?

What are the six stages in the compensation communication cycle?

Announcements of layoffs and plant closings never have favourable effects on stock prices as investors anticipate poor cash flow and increased costs.

A planned level rise is the percentage increase in average pay that is planned for a budget period.

Which of the following is true about core employees?

Costing out wage proposals is commonly done prior to recommending pay increases.

An organization adopts a marketing approach to let its employees know the benefits of its overall pay policies but not specific details about increases or limits of the policies. Which of the six steps in the communication compensation process does the organization's action reflect?

What balance is required in order to manage compensation?

Decentralized pay structures are generally easier to administer.

A group of employees with whom a strong and long-term relationship is desired is:

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Defining Competitiveness

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Filters

Exam 13: Compensation Budgets and Administration

Which of the following is the first step in the six-stage process of compensation communication?

Which of the following is an advantage of outsourcing?

A Consumer Price Index (CPI)of 120 in Ontario and 160 in Toronto means that it costs more to live in Toronto.

Which of the following processes is a change agent in restructuring compensation policies?

Outsourcing means that organizations secure a range of services and supplies from independent, external vendors.

Which budgeting method places most responsibility on individual managers?

The budgeting approach that requires senior management of each unit to estimate the pay increase for the entire organization unit is known as the:

A compa-ratio of below 1.00 indicates lower turnover.

Using contingent employees makes it more difficult to control labour costs.

If the pay system is not based on work-related or business-related logic, then the wisest course is probably to avoid formal communication until the system is put in order.

Which of the following is a step in the bottom-up approach to controlling salary level?

What are the six stages in the compensation communication cycle?

Announcements of layoffs and plant closings never have favourable effects on stock prices as investors anticipate poor cash flow and increased costs.

A planned level rise is the percentage increase in average pay that is planned for a budget period.

Which of the following is true about core employees?

Costing out wage proposals is commonly done prior to recommending pay increases.

An organization adopts a marketing approach to let its employees know the benefits of its overall pay policies but not specific details about increases or limits of the policies. Which of the six steps in the communication compensation process does the organization's action reflect?

What balance is required in order to manage compensation?

Decentralized pay structures are generally easier to administer.

A group of employees with whom a strong and long-term relationship is desired is:

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Defining Competitiveness

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Filters