Question 1

A major potential advantage of outsourcing is _____.

Accepted Answer

A)  stockholder returns 
B)  improved employee satisfaction 
C)  fewer problems with legislative compliance 
D)  cost savings 
A)  stockholder returns 
B)  improved employee satisfaction 
C)  fewer problems with legislative compliance 
D)  cost savings

Question 2

If San Diego has a CPI of 165 and Los Angeles has a CPI of 145,this means _____.

Accepted Answer

A)  prices have risen faster in San Diego since the base year than they have in LA 
B)  it essentially costs more to live in San Diego than in LA 
C)  it costs less to live in LA than in San Diego 
D)  pay in San Diego is,on average,20 percent higher than in LA 
A)  prices have risen faster in San Diego since the base year than they have in LA 
B)  it essentially costs more to live in San Diego than in LA 
C)  it costs less to live in LA than in San Diego 
D)  pay in San Diego is,on average,20 percent higher than in LA

Question 3

Which of the following objectives of the pay model is most appropriate for judging ethical behavior of compensation specialists?

Accepted Answer

A)  Ensure legal compliance 
B)  Strive to achieve efficiency and fairness 
C)  Seek fairness for all stakeholders 
D)  Strive to achieve efficiency and legal compliance 
A)  Ensure legal compliance 
B)  Strive to achieve efficiency and fairness 
C)  Seek fairness for all stakeholders 
D)  Strive to achieve efficiency and legal compliance

Question 4

If financially troubled employers have not been able to maintain competitive market positions,the conventional response has been to _____.

Accepted Answer

A)  increase the rate of reduction in average pay by controlling adjustments in base pay 
B)  decrease employees' copays and deductibles for benefits 
C)  increase base wages but not variable pay 
D)  reduce employment 
A)  increase the rate of reduction in average pay by controlling adjustments in base pay 
B)  decrease employees' copays and deductibles for benefits 
C)  increase base wages but not variable pay 
D)  reduce employment

Question 5

_____ is a system that allows employees to make health care choices,allocate savings to 401Ks or other savings vehicles,access vacation schedules and other activities.

Accepted Answer

A)  Manager self-service 
B)  Employee self-service 
C)  Cafeteria plans 
D)  A communication portal 
A)  Manager self-service 
B)  Employee self-service 
C)  Cafeteria plans 
D)  A communication portal

Question 6

All of the following are major factors used to manage total labor costs except _____.

Accepted Answer

A)  average employment level 
B)  average cash compensation 
C)  number of overtime hours 
D)  average benefits costs 
A)  average employment level 
B)  average cash compensation 
C)  number of overtime hours 
D)  average benefits costs

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A _____ rate is when an employee is paid more than the maximum of their pay grade.

Accepted Answer

A)  red circle 
B)  yellow circle 
C)  blue circle 
D)  green triangle 
A)  red circle 
B)  yellow circle 
C)  blue circle 
D)  green triangle

Question 9

The final step in the compensation communication cycle is conducting the communication sessions.

Accepted Answer

A) True 
 B)False

Question 10

What is the top-down method of budgeting?

Accepted Answer

Top-down budgeting begins with an estima

Question 11

Which of the following statements about anchoring/framing is true?

Accepted Answer

A)  Initial data strongly affect decisions/beliefs. 
B)  Reluctance to accept evidence that contradicts existing beliefs. 
C)  Following fashions in programs/techniques. 
D)  People "discover" patterns in random events. 
A)  Initial data strongly affect decisions/beliefs. 
B)  Reluctance to accept evidence that contradicts existing beliefs. 
C)  Following fashions in programs/techniques. 
D)  People "discover" patterns in random events.

Question 12

An area that presents an ethical dilemma for compensation managers is the manipulation of measures on which variable pay is based.

Accepted Answer

A) True 
 B)False

Question 13

All of the following are potential problems with headcount reductions except _____.

Accepted Answer

A)  regulatory requirements make it difficult to make targeted cuts 
B)  workforce reductions,especially if not handled well,can harm employee relations 
C)  organizations that make greater involuntary workforce reductions also experience greater voluntary turnover 
D)  RIFs are very costly in tangible terms up front due to increases in employment insurance tax rates 
A)  regulatory requirements make it difficult to make targeted cuts 
B)  workforce reductions,especially if not handled well,can harm employee relations 
C)  organizations that make greater involuntary workforce reductions also experience greater voluntary turnover 
D)  RIFs are very costly in tangible terms up front due to increases in employment insurance tax rates

Question 14

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 15

What are the steps involved in the bottom-up budgeting process?

Accepted Answer

Bottom-up budgeting begins with managers

Question 16

Which of following is a legitimate reason why a compa-ratio may be less than 1?

Accepted Answer

A)  A majority of workers with high performance 
B)  The majority of employees may be new or recent hires 
C)  Low promotion rates 
D)  Turnover is low 
A)  A majority of workers with high performance 
B)  The majority of employees may be new or recent hires 
C)  Low promotion rates 
D)  Turnover is low

Question 17

Changes in wages in labor markets are measured _____.

Accepted Answer

A)  by the producer price index 
B)  by the consumer price index 
C)  through pay surveys 
D)  by examining the personal expenditures of each employee 
A)  by the producer price index 
B)  by the consumer price index 
C)  through pay surveys 
D)  by examining the personal expenditures of each employee

Question 18

Employees should never be paid below the minimum of their pay range.

Accepted Answer

A) True 
 B)False

Question 19

_____,designed for employees or managers,explain compensation policies and practices,answer frequently asked questions,and explain how these systems affect their pay.

Accepted Answer

A)  Communication portals 
B)  Manager self-services 
C)  Cafeteria plans 
D)  Content delivery networks 
A)  Communication portals 
B)  Manager self-services 
C)  Cafeteria plans 
D)  Content delivery networks

Question 20

Manager self-service answers questions,explains compensation policy,and explains how systems affect their pay.

Accepted Answer

A) True 
 B)False

A major potential advantage of outsourcing is _____.

If San Diego has a CPI of 165 and Los Angeles has a CPI of 145,this means _____.

Which of the following objectives of the pay model is most appropriate for judging ethical behavior of compensation specialists?

If financially troubled employers have not been able to maintain competitive market positions,the conventional response has been to _____.

_____ is a system that allows employees to make health care choices,allocate savings to 401Ks or other savings vehicles,access vacation schedules and other activities.

All of the following are major factors used to manage total labor costs except _____.

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

A _____ rate is when an employee is paid more than the maximum of their pay grade.

The final step in the compensation communication cycle is conducting the communication sessions.

What is the top-down method of budgeting?

Which of the following statements about anchoring/framing is true?

An area that presents an ethical dilemma for compensation managers is the manipulation of measures on which variable pay is based.

All of the following are potential problems with headcount reductions except _____.

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

What are the steps involved in the bottom-up budgeting process?

Which of following is a legitimate reason why a compa-ratio may be less than 1?

Changes in wages in labor markets are measured _____.

Employees should never be paid below the minimum of their pay range.

_____,designed for employees or managers,explain compensation policies and practices,answer frequently asked questions,and explain how these systems affect their pay.

Manager self-service answers questions,explains compensation policy,and explains how systems affect their pay.

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

A major potential advantage of outsourcing is _____.

If San Diego has a CPI of 165 and Los Angeles has a CPI of 145,this means _____.

Which of the following objectives of the pay model is most appropriate for judging ethical behavior of compensation specialists?

If financially troubled employers have not been able to maintain competitive market positions,the conventional response has been to _____.

_____ is a system that allows employees to make health care choices,allocate savings to 401Ks or other savings vehicles,access vacation schedules and other activities.

All of the following are major factors used to manage total labor costs except _____.

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

A _____ rate is when an employee is paid more than the maximum of their pay grade.

The final step in the compensation communication cycle is conducting the communication sessions.

What is the top-down method of budgeting?

Which of the following statements about anchoring/framing is true?

An area that presents an ethical dilemma for compensation managers is the manipulation of measures on which variable pay is based.

All of the following are potential problems with headcount reductions except _____.

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

What are the steps involved in the bottom-up budgeting process?

Which of following is a legitimate reason why a compa-ratio may be less than 1?

Changes in wages in labor markets are measured _____.

Employees should never be paid below the minimum of their pay range.

_____,designed for employees or managers,explain compensation policies and practices,answer frequently asked questions,and explain how these systems affect their pay.

Manager self-service answers questions,explains compensation policy,and explains how systems affect their pay.

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