Question 1

A management strategy that gives separate organization units the responsibility to design and administer their own systems is known as:

Accepted Answer

A) outsourcing 
B) centralization 
C) decentralization 
D) authoritarianism 
E) tactical planning 
A) outsourcing 
B) centralization 
C) decentralization 
D) authoritarianism 
E) tactical planning

Question 2

Employers achieve flexibility and control labour costs by:

Accepted Answer

A) hiring only full-time employees 
B) expanding the permanent workforce 
C) forming strong and long-term relationships with all employees 
D) expanding or contracting the contingent workforce 
E) basing employee payment decisions on manager preferences 
A) hiring only full-time employees 
B) expanding the permanent workforce 
C) forming strong and long-term relationships with all employees 
D) expanding or contracting the contingent workforce 
E) basing employee payment decisions on manager preferences

Question 3

The compa-ratio reflects the relationship of:

Accepted Answer

A) red circle rates to green circle rates 
B) average rates actually paid to the midpoint of the range 
C) company profits of the present year to those of the previous year 
D) rates paid for satisfactory performance to rates paid for exceptional performance 
E) range maximums to range minimums 
A) red circle rates to green circle rates 
B) average rates actually paid to the midpoint of the range 
C) company profits of the present year to those of the previous year 
D) rates paid for satisfactory performance to rates paid for exceptional performance 
E) range maximums to range minimums

Question 4

How do inherent controls help control labour costs?

Accepted Answer

Inherent controls establish pa

Question 5

Range minimums and maximums reflect:

Accepted Answer

A) the value placed on work 
B) government regulations of wages 
C) the market value of the output produced 
D) market fluctuations in wage rates 
E) the market value of an employee's skills and abilities 
A) the value placed on work 
B) government regulations of wages 
C) the market value of the output produced 
D) market fluctuations in wage rates 
E) the market value of an employee's skills and abilities

Question 6

To help ensure that different managers grant consistent increases to employees with similar performance ratings and in the same position in their ranges one should utilize:

Accepted Answer

A) job security measures 
B) outsourcing techniques 
C) ad hoc reshuffling 
D) merit grids 
E) management by objectives 
A) job security measures 
B) outsourcing techniques 
C) ad hoc reshuffling 
D) merit grids 
E) management by objectives

Question 7

Organizations secure a range of services and supplies from independent, external vendors by:

Accepted Answer

A) doing a job analysis 
B) outsourcing 
C) engaging in employment-at-will 
D) having joint ventures 
E) partnering 
A) doing a job analysis 
B) outsourcing 
C) engaging in employment-at-will 
D) having joint ventures 
E) partnering

Question 8

Increased cost is the most significant short-term disadvantage of outsourcing.

Accepted Answer

A) True 
 B)False

Question 9

What is the formula for calculating compa-ratio?

Accepted Answer

The formula for calc

Question 10

Range minimums and maximums reflect the market value of output produced.

Accepted Answer

A) True 
 B)False

Question 11

The CPI is of public interest because changes in it trigger changes in labour contracts.

Accepted Answer

A) True 
 B)False

Question 12

The most common approach to managing labour costs during a recession involves:

Accepted Answer

A) using a top-down budgeting 
B) reducing employees' variable pay 
C) reducing the workforce 
D) hiring only core employees 
E) using competitive market rates 
A) using a top-down budgeting 
B) reducing employees' variable pay 
C) reducing the workforce 
D) hiring only core employees 
E) using competitive market rates

Question 13

An index that measures changes in prices over time is known as the:

Accepted Answer

A) Producer Price Index 
B) Manufacturer Price Index 
C) Consumer Price Index 
D) Cost of Living Index 
E) Cost Price Index 
A) Producer Price Index 
B) Manufacturer Price Index 
C) Consumer Price Index 
D) Cost of Living Index 
E) Cost Price Index

Question 14

Which of the following depends on performance and is NOT added to employees' base pay?

Accepted Answer

A) variable pay 
B) overtime pay 
C) merit pay 
D) across-the-board increase 
E) provident fund 
A) variable pay 
B) overtime pay 
C) merit pay 
D) across-the-board increase 
E) provident fund

Question 15

Beta Systems decided to outsource some of its operations. Which of the following will be a short-term advantage for the company?

Accepted Answer

A) increased ability to focus on activities that do not directly contribute to the strategic objectives of the company 
B) more control over decisions 
C) less risk of information being leaked to rivals 
D) cost savings 
E) more responsiveness to employee-manager problems 
A) increased ability to focus on activities that do not directly contribute to the strategic objectives of the company 
B) more control over decisions 
C) less risk of information being leaked to rivals 
D) cost savings 
E) more responsiveness to employee-manager problems

Question 16

A possible side effect of a decentralized pay structure is that:

Accepted Answer

A) it may be difficult to transfer employees from one business unit to another 
B) there is decreased potential for pay discrimination 
C) there is decreased opportunity for the inconsistent treatment of employees 
D) pushing responsibilities and expenses close to the units, managers, and employees affected by them may cause doubt that decisions are business related 
E) organizations require larger compensation staffs 
A) it may be difficult to transfer employees from one business unit to another 
B) there is decreased potential for pay discrimination 
C) there is decreased opportunity for the inconsistent treatment of employees 
D) pushing responsibilities and expenses close to the units, managers, and employees affected by them may cause doubt that decisions are business related 
E) organizations require larger compensation staffs

Question 17

Labour costs are a function of which three factors?

Accepted Answer

There are three main factors to control

Question 18

Green circle rates pay rates above the range maximum.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is true about analyzing the return of investments of pay decisions?

Accepted Answer

A) It focuses on increasing the turnover of top employees. 
B) It restricts thinking to treating compensation as only an expense. 
C) It is a practice followed by all organizations regularly. 
D) It encourages looking at compensation as an investment as well as an expense. 
E) It increases the focus of employees as individuals and not as human capital. 
A) It focuses on increasing the turnover of top employees. 
B) It restricts thinking to treating compensation as only an expense. 
C) It is a practice followed by all organizations regularly. 
D) It encourages looking at compensation as an investment as well as an expense. 
E) It increases the focus of employees as individuals and not as human capital.

Question 20

A compa-ratio greater than 1.00 typically occurs because:

Accepted Answer

A) majority of employees are new hires 
B) turnover is high 
C) promotion rates are low 
D) most workers are high in seniority 
E) majority of workers are poor performers 
A) majority of employees are new hires 
B) turnover is high 
C) promotion rates are low 
D) most workers are high in seniority 
E) majority of workers are poor performers

A management strategy that gives separate organization units the responsibility to design and administer their own systems is known as:

Employers achieve flexibility and control labour costs by:

The compa-ratio reflects the relationship of:

How do inherent controls help control labour costs?

Range minimums and maximums reflect:

To help ensure that different managers grant consistent increases to employees with similar performance ratings and in the same position in their ranges one should utilize:

Organizations secure a range of services and supplies from independent, external vendors by:

Increased cost is the most significant short-term disadvantage of outsourcing.

What is the formula for calculating compa-ratio?

Range minimums and maximums reflect the market value of output produced.

The CPI is of public interest because changes in it trigger changes in labour contracts.

The most common approach to managing labour costs during a recession involves:

An index that measures changes in prices over time is known as the:

Which of the following depends on performance and is NOT added to employees' base pay?

Beta Systems decided to outsource some of its operations. Which of the following will be a short-term advantage for the company?

A possible side effect of a decentralized pay structure is that:

Labour costs are a function of which three factors?

Green circle rates pay rates above the range maximum.

Which of the following statements is true about analyzing the return of investments of pay decisions?

A compa-ratio greater than 1.00 typically occurs because:

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

A management strategy that gives separate organization units the responsibility to design and administer their own systems is known as:

Employers achieve flexibility and control labour costs by:

The compa-ratio reflects the relationship of:

How do inherent controls help control labour costs?

Range minimums and maximums reflect:

To help ensure that different managers grant consistent increases to employees with similar performance ratings and in the same position in their ranges one should utilize:

Organizations secure a range of services and supplies from independent, external vendors by:

Increased cost is the most significant short-term disadvantage of outsourcing.

What is the formula for calculating compa-ratio?

Range minimums and maximums reflect the market value of output produced.

The CPI is of public interest because changes in it trigger changes in labour contracts.

The most common approach to managing labour costs during a recession involves:

An index that measures changes in prices over time is known as the:

Which of the following depends on performance and is NOT added to employees' base pay?

Beta Systems decided to outsource some of its operations. Which of the following will be a short-term advantage for the company?

A possible side effect of a decentralized pay structure is that:

Labour costs are a function of which three factors?

Green circle rates pay rates above the range maximum.

Which of the following statements is true about analyzing the return of investments of pay decisions?

A compa-ratio greater than 1.00 typically occurs because:

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