Question 1

The compa-ratio reflects the _____.

Accepted Answer

A)  rate paid for satisfactory performance 
B)  relationship of actual salaries to the midpoint of the going rates in the market 
C)  relationship of the midpoint of each range to actual salaries 
D)  relationship of actual salaries in each range to the midpoint of the range 
A)  rate paid for satisfactory performance 
B)  relationship of actual salaries to the midpoint of the going rates in the market 
C)  relationship of the midpoint of each range to actual salaries 
D)  relationship of actual salaries in each range to the midpoint of the range

Question 2

Distinguish the concepts of the cost of living,changes in prices in the product and service markets,and changes in wages in labor markets.

Accepted Answer

Although there is little research to sup

Question 3

Range minimums and maximums reflect the _____.

Accepted Answer

A)  market value of the output produced 
B)  market value of the employee's skills and abilities 
C)  market fluctuations in wage rates 
D)  value to the organization of the output of a job 
A)  market value of the output produced 
B)  market value of the employee's skills and abilities 
C)  market fluctuations in wage rates 
D)  value to the organization of the output of a job

Question 4

What is the turnover effect? Explain how it is calculated with an example.

Accepted Answer

Sometimes referred to as "churn" or "sli

Question 5

_____ 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 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 workers compensation insurance. 
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 workers compensation insurance.

Question 9

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 10

A compa-ratio less than 1 typically means ________ .

Accepted Answer

A)  many employees are poor performers 
B)  turnover is low 
C)  there are relatively few new hires 
D)  the majority of workers are long tenure 
A)  many employees are poor performers 
B)  turnover is low 
C)  there are relatively few new hires 
D)  the majority of workers are long tenure

Question 11

Comp-ratios above or below 1 suggest compensation is not well-managed.

Accepted Answer

A) True 
 B)False

Question 12

The component of compensation most likely subject to unethical practices are employee profit-sharing payouts and executive stock valuations.

Accepted Answer

A) True 
 B)False

Question 13

If a company pays above the market for only one of five jobs,total compensation for these jobs may be above competitors.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Total compensation in many organizations makes up __ percent of operating expenses.

Accepted Answer

A)  20 
B)  30 
C)  40 
D)  50 
A)  20 
B)  30 
C)  40 
D)  50

Question 16

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 17

Which form(s)of compensation is/are most likely to be involved in unethical practices?

Accepted Answer

A)  Executive stock options 
B)  Employee medical benefits 
C)  Employee base pay 
D)  Worker pensions and retirement income 
A)  Executive stock options 
B)  Employee medical benefits 
C)  Employee base pay 
D)  Worker pensions and retirement income

Question 18

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)  Employee contributions versus across the board increases 
D)  Cash compensation versus benefits 
A)  Seniority versus performance contingent pay 
B)  To pay overtime for exempt versus nonexempt 
C)  Employee contributions versus across the board increases 
D)  Cash compensation versus benefits

Question 19

_____ 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 20

The most important components of a pay communication program are the business- and work-related rationales on which the system is based.

Accepted Answer

A) True 
 B)False

The compa-ratio reflects the _____.

Distinguish the concepts of the cost of living,changes in prices in the product and service markets,and changes in wages in labor markets.

Range minimums and maximums reflect the _____.

What is the turnover effect? Explain how it is calculated with an example.

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

A major potential advantage of outsourcing is _____.

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

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

Contingent workers include all of the following except _____.

A compa-ratio less than 1 typically means ________ .

Comp-ratios above or below 1 suggest compensation is not well-managed.

The component of compensation most likely subject to unethical practices are employee profit-sharing payouts and executive stock valuations.

If a company pays above the market for only one of five jobs,total compensation for these jobs may be above competitors.

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

Total compensation in many organizations makes up __ percent of operating expenses.

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

Which form(s)of compensation is/are most likely to be involved in unethical practices?

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

_____ is a common effect of layoffs.

The most important components of a pay communication program are the business- and work-related rationales on which the system is based.

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

The compa-ratio reflects the _____.

Distinguish the concepts of the cost of living,changes in prices in the product and service markets,and changes in wages in labor markets.

Range minimums and maximums reflect the _____.

What is the turnover effect? Explain how it is calculated with an example.

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

A major potential advantage of outsourcing is _____.

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

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

Contingent workers include all of the following except _____.

A compa-ratio less than 1 typically means ________ .

Comp-ratios above or below 1 suggest compensation is not well-managed.

The component of compensation most likely subject to unethical practices are employee profit-sharing payouts and executive stock valuations.

If a company pays above the market for only one of five jobs,total compensation for these jobs may be above competitors.

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

Total compensation in many organizations makes up __ percent of operating expenses.

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

Which form(s)of compensation is/are most likely to be involved in unethical practices?

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

_____ is a common effect of layoffs.

The most important components of a pay communication program are the business- and work-related rationales on which the system is based.

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