Question 1

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 D

Question 2

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. D

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

Decentralized pay structures are generally easier to administer.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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 8

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 9

What balance is required in order to manage compensation?

Accepted Answer

Some balance between strict controls and

Question 10

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 11

Describe the steps within the compensation forecasting cycle of bottom-up budgeting.

Accepted Answer

1. Instruct managers in compensation pol

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

How do inherent controls help control labour costs?

Accepted Answer

Inherent controls establish pa

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

Changes in the CPI only indicate whether prices have increased more or less rapidly in an area since the base period.

Accepted Answer

A) True 
 B)False

Question 20

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

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

Which of the following is true about core employees?

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

Decentralized pay structures are generally easier to administer.

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

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?

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?

Which budgeting method places most responsibility on individual managers?

Describe the steps within the compensation forecasting cycle of bottom-up budgeting.

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

How do inherent controls help control labour costs?

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

Employers achieve flexibility and control labour costs by:

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.

The compa-ratio reflects the relationship of:

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

Changes in the CPI only indicate whether prices have increased more or less rapidly in an area since the base period.

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:

The Pay Model

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

Which of the following is true about core employees?

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

Decentralized pay structures are generally easier to administer.

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

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?

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?

Which budgeting method places most responsibility on individual managers?

Describe the steps within the compensation forecasting cycle of bottom-up budgeting.

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

How do inherent controls help control labour costs?

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

Employers achieve flexibility and control labour costs by:

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.

The compa-ratio reflects the relationship of:

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

Changes in the CPI only indicate whether prices have increased more or less rapidly in an area since the base period.

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:

The Pay Model

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