Question 1

Changes in wages in labor markets are measured _____.

Accepted Answer

A)  using the producer price index 
B)  using the modified balance sheet approach 
C)  through pay surveys 
D)  by examining the personal expenditure of each employee 
A)  using the producer price index 
B)  using the modified balance sheet approach 
C)  through pay surveys 
D)  by examining the personal expenditure of each employee C

Question 2

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

Accepted Answer

A)  It states that initial data strongly affect decisions/beliefs. 
B)  It is the reluctance to accept evidence that contradicts existing beliefs. 
C)  It refers to the tendency to follow fashions in programs/techniques. 
D)  It states that people discover patterns in random events. 
A)  It states that initial data strongly affect decisions/beliefs. 
B)  It is the reluctance to accept evidence that contradicts existing beliefs. 
C)  It refers to the tendency to follow fashions in programs/techniques. 
D)  It states that people discover patterns in random events. A

Question 3

What are the potential problems associated with headcount reductions?

Accepted Answer

Several potential problems can occur with headcount reductions.First,regulatory requirements make it difficult to make targeted cuts.Second,workforce reductions,especially if not handled well,can harm employee relations.Third,organizations that make greater (involuntary)workforce reductions also experience greater voluntary turnover.Fourth,RIFs,while reducing costs over time,are very costly in tangible terms up front due to increases in unemployment insurance tax rates,disruption of work processes and serving customers,and administrative costs of handling exits.Fifth,some companies have learned to run so lean,and have controlled hiring so successfully,that there may be little room to cut headcount.Finally,where cuts can be made,if the cuts are too deep,an organization will be poorly positioned to generate revenue if business picks up again.

Question 4

The CPI accurately reflects an individual employee's cost of living.

Accepted Answer

A) True 
 B)False

Question 5

Briefly summarize compa-ratios.

Accepted Answer

Range midpoints reflect the pay policy l

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

A compa-ratio less than 1 means that,on average,_____.

Accepted Answer

A)  employees are senior employees 
B)  the turnover rate of the organization is low 
C)  employees are high performers 
D)  employees in a range are paid below the midpoint 
A)  employees are senior employees 
B)  the turnover rate of the organization is low 
C)  employees are high performers 
D)  employees in a range are paid below the midpoint

Question 8

The denominator for calculating the current year's pay rise is _____.

Accepted Answer

A)  average pay at the beginning of the year 
B)  average pay at the end of the year 
C)  average number of employees during the year 
D)  average employment level 
A)  average pay at the beginning of the year 
B)  average pay at the end of the year 
C)  average number of employees during the year 
D)  average employment level

Question 9

A management strategy of giving separate organization units the responsibility to design and administer their own compensation systems is _____.

Accepted Answer

A)  known as a centralized strategy 
B)  known as a decentralized strategy 
C)  the best approach to design 
D)  rarely done in today's organizations 
A)  known as a centralized strategy 
B)  known as a decentralized strategy 
C)  the best approach to design 
D)  rarely done in today's organizations

Question 10

Total compensation in many organizations makes up at least _____ percent of operating expenses.

Accepted Answer

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

Question 11

The major potential advantage of outsourcing is _____.

Accepted Answer

A)  increased turnover rate 
B)  increased compa-ratio 
C)  increased absenteeism 
D)  increased cost savings 
A)  increased turnover rate 
B)  increased compa-ratio 
C)  increased absenteeism 
D)  increased cost savings

Question 12

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 13

If red circle rates become common throughout an organization,then the design of the ranges and the evaluation of the jobs should be reexamined.

Accepted Answer

A) True 
 B)False

Question 14

Broad bands provide managers greater discretion in pay for their subordinates compared to a grade-range design.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is the basic question to ask to improve quality and ensure that value is added by each technique and at each stage in the compensation system?

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 16

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)  maximum value of red circle rates 
D)  relationship of the average actual salary 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)  maximum value of red circle rates 
D)  relationship of the average actual salary in each range to the midpoint of the range

Question 17

Over half of the employees in the private sector work in companies with open pay policies.

Accepted Answer

A) True 
 B)False

Question 18

Generally,organizations have increased their use of variable pay relative to traditional base pay increases.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Exit incentives is likely to result in the loss of high-performing employees.

Accepted Answer

A) True 
 B)False

Changes in wages in labor markets are measured _____.

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

What are the potential problems associated with headcount reductions?

The CPI accurately reflects an individual employee's cost of living.

Briefly summarize compa-ratios.

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

A compa-ratio less than 1 means that,on average,_____.

The denominator for calculating the current year's pay rise is _____.

A management strategy of giving separate organization units the responsibility to design and administer their own compensation systems is _____.

Total compensation in many organizations makes up at least _____ percent of operating expenses.

The major potential advantage of outsourcing is _____.

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

If red circle rates become common throughout an organization,then the design of the ranges and the evaluation of the jobs should be reexamined.

Broad bands provide managers greater discretion in pay for their subordinates compared to a grade-range design.

Which of the following is the basic question to ask to improve quality and ensure that value is added by each technique and at each stage in the compensation system?

The compa-ratio reflects the _____.

Over half of the employees in the private sector work in companies with open pay policies.

Generally,organizations have increased their use of variable pay relative to traditional base pay increases.

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

Exit incentives is likely to result in the loss of high-performing employees.

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

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

Changes in wages in labor markets are measured _____.

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

What are the potential problems associated with headcount reductions?

The CPI accurately reflects an individual employee's cost of living.

Briefly summarize compa-ratios.

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

A compa-ratio less than 1 means that,on average,_____.

The denominator for calculating the current year's pay rise is _____.

A management strategy of giving separate organization units the responsibility to design and administer their own compensation systems is _____.

Total compensation in many organizations makes up at least _____ percent of operating expenses.

The major potential advantage of outsourcing is _____.

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

If red circle rates become common throughout an organization,then the design of the ranges and the evaluation of the jobs should be reexamined.

Broad bands provide managers greater discretion in pay for their subordinates compared to a grade-range design.

Which of the following is the basic question to ask to improve quality and ensure that value is added by each technique and at each stage in the compensation system?

The compa-ratio reflects the _____.

Over half of the employees in the private sector work in companies with open pay policies.

Generally,organizations have increased their use of variable pay relative to traditional base pay increases.

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

Exit incentives is likely to result in the loss of high-performing employees.

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

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