Question 1

Discuss how centralization and decentralization affect the structuring of the compensation function.

Accepted Answer

An important issue related to structurin

Question 2

Green circle rates pay rates above the range maximum.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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 5

A compa-ratio of below 1.00 indicates lower turnover.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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

Question 8

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 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

What are the six stages in the compensation communication cycle?

Accepted Answer

The six stages in the compensation commu

Question 13

What is bottom-up budgeting?

Accepted Answer

Bottom-up budgeting is a metho

Question 14

Labour costs are a function of which three factors?

Accepted Answer

There are three main factors to control

Question 15

How do organizations deal with the issues that arise from decentralization?

Accepted Answer

The answer to issues arising from decent

Question 16

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 17

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 18

Which are the two groups of employees that employers establish different relationships with?

Accepted Answer

The two groups are commonly referred to

Question 19

Which of the following factors helps in the reduction of labour costs?

Accepted Answer

A) Paying more benefits and less cash 
B) Paying the same wages to fewer employees 
C) Making early retirement less attractive 
D) Increasing the number of employees 
E) Expanding the core workforce 
A) Paying more benefits and less cash 
B) Paying the same wages to fewer employees 
C) Making early retirement less attractive 
D) Increasing the number of employees 
E) Expanding the core workforce

Question 20

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.

Discuss how centralization and decentralization affect the structuring of the compensation function.

Green circle rates pay rates above the range maximum.

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

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

A compa-ratio of below 1.00 indicates lower turnover.

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

A compa-ratio greater than 1.00 typically occurs because:

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

Range minimums and maximums reflect:

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

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

What are the six stages in the compensation communication cycle?

What is bottom-up budgeting?

Labour costs are a function of which three factors?

How do organizations deal with the issues that arise from decentralization?

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

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

Which are the two groups of employees that employers establish different relationships with?

Which of the following factors helps in the reduction of labour costs?

Which of the following is an advantage of outsourcing?

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

Discuss how centralization and decentralization affect the structuring of the compensation function.

Green circle rates pay rates above the range maximum.

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

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

A compa-ratio of below 1.00 indicates lower turnover.

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

A compa-ratio greater than 1.00 typically occurs because:

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

Range minimums and maximums reflect:

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

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

What are the six stages in the compensation communication cycle?

What is bottom-up budgeting?

Labour costs are a function of which three factors?

How do organizations deal with the issues that arise from decentralization?

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

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

Which are the two groups of employees that employers establish different relationships with?

Which of the following factors helps in the reduction of labour costs?

Which of the following is an advantage of outsourcing?

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