Question 1

Managing compensation ethically is comparatively easy since much of compensation is guided by many laws and regulations.

Accepted Answer

A) True 
 B)False

Question 2

A CPI of 180 in Boston and 220 in Chicago means that it is more expensive to live in Chicago than in Boston.

Accepted Answer

A) True 
 B)False

Question 3

Contingent workers include all of the following except _____.

Accepted Answer

A)  part-time regular workers 
B)  workers on rotating shifts 
C)  overtime workers 
D)  small independent vendors 
A)  part-time regular workers 
B)  workers on rotating shifts 
C)  overtime workers 
D)  small independent vendors

Question 4

In a _____ approach in a compensation communication program,the focus is on explaining practices and how pay is determined.

Accepted Answer

A)  communication 
B)  marketing 
C)  management 
D)  mixed 
A)  communication 
B)  marketing 
C)  management 
D)  mixed

Question 5

For the compensation system,the basic question to ask is _____

Accepted Answer

A)  "Who should do the activity?" 
B)  "How should the technique be redesigned?" 
C)  "Does each specific activity directly contribute to our objectives?" 
D)  "Should the activity be done in-house,or can others do it more effectively?" 
A)  "Who should do the activity?" 
B)  "How should the technique be redesigned?" 
C)  "Does each specific activity directly contribute to our objectives?" 
D)  "Should the activity be done in-house,or can others do it more effectively?"

Question 6

The _____ often comes into play if organizations target reductions among higher paid employees because higher paid employees also tend to be older employees.

Accepted Answer

A)  ADA 
B)  FMLA 
C)  FLSA 
D)  ADEA 
A)  ADA 
B)  FMLA 
C)  FLSA 
D)  ADEA

Question 7

Approximately _____ of 600 surveyed companies calculate the cost and value added of their pay programs.

Accepted Answer

A)  three-fourths 
B)  one-fourth 
C)  one-half 
D)  one-third 
A)  three-fourths 
B)  one-fourth 
C)  one-half 
D)  one-third

Question 8

An individual employee cannot earn more pay than the maximum of the pay grade of their current job.

Accepted Answer

A) True 
 B)False

Question 9

A major advantage of a _____ is that it reduces benefits costs,something that the other options ordinarily do not achieve.

Accepted Answer

A)  reduction in hours 
B)  furlough 
C)  pay cut 
D)  reduction in force 
A)  reduction in hours 
B)  furlough 
C)  pay cut 
D)  reduction in force

Question 10

Many employers achieve flexibility and control employment costs by utilizing contingent workers rather than expanding and contracting the core workforce.

Accepted Answer

A) True 
 B)False

Question 11

Sometimes referred to as "churn" or "slippage," the _____ recognizes the fact that when people leave an organization,they typically are replaced by employees who earn a lower wage.

Accepted Answer

A)  productivity effect 
B)  conflict effect 
C)  turnover effect 
D)  morale effect 
A)  productivity effect 
B)  conflict effect 
C)  turnover effect 
D)  morale effect

Question 12

What are red circle rates?

Accepted Answer

If employees are paid above the range ma

Question 13

What are the potential problems associated with headcount reductions?

Accepted Answer

Several potential problems can occur wit

Question 14

A key reason to communicate pay information is that the goodwill engendered by the act of being open about pay may also affect perceptions of pay equity.

Accepted Answer

A) True 
 B)False

Question 15

Rather than define employment as hours of work,number of employees is often used.

Accepted Answer

A) True 
 B)False

Question 16

The Web page for the compensation society is _____.

Accepted Answer

A)  Society for Human Resource Management 
B)  American Compensation Association 
C)  International Compensation and Benefits Society 
D)  WorldatWork 
A)  Society for Human Resource Management 
B)  American Compensation Association 
C)  International Compensation and Benefits Society 
D)  WorldatWork

Question 17

_____ are to broad bands as minimums,midpoints,and maximums are to pay ranges.

Accepted Answer

A)  Gray fields 
B)  Band-guides 
C)  Reference rates 
D)  Gray ranges 
A)  Gray fields 
B)  Band-guides 
C)  Reference rates 
D)  Gray ranges

Question 18

All of the following are recommended steps in the compensation communication cycle by WorldatWork except _____.

Accepted Answer

A)  defining the objectives of the communication program 
B)  a communication program that will convey the information needed to accomplish the original objectives 
C)  collecting information from executives,managers,and employees 
D)  operate an informal communication network 
A)  defining the objectives of the communication program 
B)  a communication program that will convey the information needed to accomplish the original objectives 
C)  collecting information from executives,managers,and employees 
D)  operate an informal communication network

Question 19

Which of the following is not a tradeoff that would be considered in setting a compensation budget?

Accepted Answer

A)  Seniority versus performance contingent pay 
B)  To pay overtime for exempt versus nonexempt 
C)  Short-term versus long-term incentives 
D)  Cash compensation versus benefits 
A)  Seniority versus performance contingent pay 
B)  To pay overtime for exempt versus nonexempt 
C)  Short-term versus long-term incentives 
D)  Cash compensation versus benefits

Question 20

Which of the following is a measure of prices of goods and services in the product and service markets?

Accepted Answer

A)  Producer price surveys 
B)  Product market competitor wage surveys 
C)  Labor market competitor wage surveys 
D)  Consumer price index 
A)  Producer price surveys 
B)  Product market competitor wage surveys 
C)  Labor market competitor wage surveys 
D)  Consumer price index

Managing compensation ethically is comparatively easy since much of compensation is guided by many laws and regulations.

A CPI of 180 in Boston and 220 in Chicago means that it is more expensive to live in Chicago than in Boston.

Contingent workers include all of the following except _____.

In a _____ approach in a compensation communication program,the focus is on explaining practices and how pay is determined.

For the compensation system,the basic question to ask is _____

The _____ often comes into play if organizations target reductions among higher paid employees because higher paid employees also tend to be older employees.

Approximately _____ of 600 surveyed companies calculate the cost and value added of their pay programs.

An individual employee cannot earn more pay than the maximum of the pay grade of their current job.

A major advantage of a _____ is that it reduces benefits costs,something that the other options ordinarily do not achieve.

Many employers achieve flexibility and control employment costs by utilizing contingent workers rather than expanding and contracting the core workforce.

Sometimes referred to as "churn" or "slippage," the _____ recognizes the fact that when people leave an organization,they typically are replaced by employees who earn a lower wage.

What are red circle rates?

What are the potential problems associated with headcount reductions?

A key reason to communicate pay information is that the goodwill engendered by the act of being open about pay may also affect perceptions of pay equity.

Rather than define employment as hours of work,number of employees is often used.

The Web page for the compensation society is _____.

_____ are to broad bands as minimums,midpoints,and maximums are to pay ranges.

All of the following are recommended steps in the compensation communication cycle by WorldatWork except _____.

Which of the following is not a tradeoff that would be considered in setting a compensation budget?

Which of the following is a measure of prices of goods and services in the product and service markets?

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

Managing compensation ethically is comparatively easy since much of compensation is guided by many laws and regulations.

A CPI of 180 in Boston and 220 in Chicago means that it is more expensive to live in Chicago than in Boston.

Contingent workers include all of the following except _____.

In a _____ approach in a compensation communication program,the focus is on explaining practices and how pay is determined.

For the compensation system,the basic question to ask is _____

The _____ often comes into play if organizations target reductions among higher paid employees because higher paid employees also tend to be older employees.

Approximately _____ of 600 surveyed companies calculate the cost and value added of their pay programs.

An individual employee cannot earn more pay than the maximum of the pay grade of their current job.

A major advantage of a _____ is that it reduces benefits costs,something that the other options ordinarily do not achieve.

Many employers achieve flexibility and control employment costs by utilizing contingent workers rather than expanding and contracting the core workforce.

Sometimes referred to as "churn" or "slippage," the _____ recognizes the fact that when people leave an organization,they typically are replaced by employees who earn a lower wage.

What are red circle rates?

What are the potential problems associated with headcount reductions?

A key reason to communicate pay information is that the goodwill engendered by the act of being open about pay may also affect perceptions of pay equity.

Rather than define employment as hours of work,number of employees is often used.

The Web page for the compensation society is _____.

_____ are to broad bands as minimums,midpoints,and maximums are to pay ranges.

All of the following are recommended steps in the compensation communication cycle by WorldatWork except _____.

Which of the following is not a tradeoff that would be considered in setting a compensation budget?

Which of the following is a measure of prices of goods and services in the product and service markets?

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