Question 1

In calculating labor costs,employment level includes only core employees not contingent workers.

Accepted Answer

A) True 
 B)False

Question 2

A compa-ratio greater than 1 typically means that _____

Accepted Answer

A)  the intended policy line has been violated 
B)  employees are overpaid 
C)  most employees are new entrants 
D)  turnover is high 
A)  the intended policy line has been violated 
B)  employees are overpaid 
C)  most employees are new entrants 
D)  turnover is high

Question 3

What is the consumer price index (CPI)? Explain with an example.

Accepted Answer

Many people refer to the CPI as a "cost-

Question 4

The "churn","slippage" or turnover effects assume that employees who leave earn,on average,less than employees likely to replace them.

Accepted Answer

A) True 
 B)False

Question 5

The percentage increase that is planned for an organizational unit or company is called _____.

Accepted Answer

A)  a top-down budget 
B)  a bottoms-up budget 
C)  a planned pay-level rise 
D)  the current year's rise 
A)  a top-down budget 
B)  a bottoms-up budget 
C)  a planned pay-level rise 
D)  the current year's rise

Question 6

All of the following statements about commercial compensation software are true except _____.

Accepted Answer

A)  can analyze almost every aspect of compensation information 
B)  can simulate alternate wage proposals and compare their potential effects 
C)  can easily compare past estimates to future estimates 
D)  can help evaluate salary survey data and simulate the cost impact of gain-sharing options 
A)  can analyze almost every aspect of compensation information 
B)  can simulate alternate wage proposals and compare their potential effects 
C)  can easily compare past estimates to future estimates 
D)  can help evaluate salary survey data and simulate the cost impact of gain-sharing options

Question 7

Generally,management prefers a higher proportion of variable pay versus base wages and salary.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a likely consequence of a highly decentralized pay system?

Accepted Answer

A)  Total labor costs would be reduced 
B)  Pay rates would be very unsystematic 
C)  Managers would use pay to motivate their own objectives 
D)  Employees are likely to be treated unfairly 
A)  Total labor costs would be reduced 
B)  Pay rates would be very unsystematic 
C)  Managers would use pay to motivate their own objectives 
D)  Employees are likely to be treated unfairly

Question 9

_____ is the budgetary approach that begins with an estimate from top management of the pay increase budget for the entire organization.

Accepted Answer

A)  Bottom-up budgeting 
B)  Top-down budgeting 
C)  Managerial plan 
D)  Executive estimate budgeting 
A)  Bottom-up budgeting 
B)  Top-down budgeting 
C)  Managerial plan 
D)  Executive estimate budgeting

Question 10

The compa-ratio is the average actual pay divided by the midpoint of the pay grade.

Accepted Answer

A) True 
 B)False

Question 11

Which method of budgeting relies heavily on employee pay histories?

Accepted Answer

A)  Unit-level budgeting 
B)  Bottom-up 
C)  Control to planned level rise 
D)  Top-down 
A)  Unit-level budgeting 
B)  Bottom-up 
C)  Control to planned level rise 
D)  Top-down

Question 12

Policy lines and skill-based pay plans are examples of inherent controls on managers' compensation decisions.

Accepted Answer

A) True 
 B)False

Question 13

_____ is a common effect of layoffs.

Accepted Answer

A)  Lower financial gains than expected 
B)  Unfavorable short-term stock prices 
C)  Higher morale among remaining employees 
D)  Productivity gains 
A)  Lower financial gains than expected 
B)  Unfavorable short-term stock prices 
C)  Higher morale among remaining employees 
D)  Productivity gains

Question 14

If a pay system is not based upon work-related or business-related logic,it is best to not conduct a formal compensation communication program.

Accepted Answer

A) True 
 B)False

Question 15

Broad bands provide managers greater discretion in pay for their subordinates than in grades and ranges.

Accepted Answer

A) True 
 B)False

Question 16

What are some of the software packages that help in making information useful?

Accepted Answer

Compensation software transforms data in

Question 17

The CPI measures the cost of living.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following approaches to pay budgeting requires the most training of managers?

Accepted Answer

A)  Top-down 
B)  Forward cycle budgeting 
C)  Bottom-up approach 
D)  Unit-level budgeting 
A)  Top-down 
B)  Forward cycle budgeting 
C)  Bottom-up approach 
D)  Unit-level budgeting

Question 19

Under the contract pay system,each worker was paid according to a uniform contract for each company.

Accepted Answer

A) True 
 B)False

Question 20

Why is outsourcing a viable alternative for organizations? What are the major potential advantages and disadvantages of outsourcing?

Accepted Answer

Value chain analysis and Six Sigma are p

In calculating labor costs,employment level includes only core employees not contingent workers.

A compa-ratio greater than 1 typically means that _____

What is the consumer price index (CPI)? Explain with an example.

The "churn","slippage" or turnover effects assume that employees who leave earn,on average,less than employees likely to replace them.

The percentage increase that is planned for an organizational unit or company is called _____.

All of the following statements about commercial compensation software are true except _____.

Generally,management prefers a higher proportion of variable pay versus base wages and salary.

Which of the following is not a likely consequence of a highly decentralized pay system?

_____ is the budgetary approach that begins with an estimate from top management of the pay increase budget for the entire organization.

The compa-ratio is the average actual pay divided by the midpoint of the pay grade.

Which method of budgeting relies heavily on employee pay histories?

Policy lines and skill-based pay plans are examples of inherent controls on managers' compensation decisions.

_____ is a common effect of layoffs.

If a pay system is not based upon work-related or business-related logic,it is best to not conduct a formal compensation communication program.

Broad bands provide managers greater discretion in pay for their subordinates than in grades and ranges.

What are some of the software packages that help in making information useful?

The CPI measures the cost of living.

Which of the following approaches to pay budgeting requires the most training of managers?

Under the contract pay system,each worker was paid according to a uniform contract for each company.

Why is outsourcing a viable alternative for organizations? What are the major potential advantages and disadvantages of outsourcing?

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, mix, and Pay Structures

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Filters

Exam 18: Management: Making It Work

In calculating labor costs,employment level includes only core employees not contingent workers.

A compa-ratio greater than 1 typically means that _____

What is the consumer price index (CPI)? Explain with an example.

The "churn","slippage" or turnover effects assume that employees who leave earn,on average,less than employees likely to replace them.

The percentage increase that is planned for an organizational unit or company is called _____.

All of the following statements about commercial compensation software are true except _____.

Generally,management prefers a higher proportion of variable pay versus base wages and salary.

Which of the following is not a likely consequence of a highly decentralized pay system?

_____ is the budgetary approach that begins with an estimate from top management of the pay increase budget for the entire organization.

The compa-ratio is the average actual pay divided by the midpoint of the pay grade.

Which method of budgeting relies heavily on employee pay histories?

Policy lines and skill-based pay plans are examples of inherent controls on managers' compensation decisions.

_____ is a common effect of layoffs.

If a pay system is not based upon work-related or business-related logic,it is best to not conduct a formal compensation communication program.

Broad bands provide managers greater discretion in pay for their subordinates than in grades and ranges.

What are some of the software packages that help in making information useful?

The CPI measures the cost of living.

Which of the following approaches to pay budgeting requires the most training of managers?

Under the contract pay system,each worker was paid according to a uniform contract for each company.

Why is outsourcing a viable alternative for organizations? What are the major potential advantages and disadvantages of outsourcing?

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, mix, and Pay Structures

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Filters