Question 1

Identify the tasks involved in preparing to implement a compensation system.

Accepted Answer

The tasks involved in preparing to implement a compensation system include the following: preparing the compensation budget,planning the infrastructure for compensation administration,planning for information technology,and organizing for compensation administration.

Question 2

What budget approach are you using by applying the compensation rates to employees,factoring in probable merit and seniority increases as well as expected turnover?

Accepted Answer

A)  zero based 
B)  top-down 
C)  bottom-up 
D)  break-even 
A)  zero based 
B)  top-down 
C)  bottom-up 
D)  break-even C

Question 3

In evaluating a new compensation system,a key issue is the time period that should be used.

Accepted Answer

A) True 
 B)False  True

Question 4

This legislation requires that no "personal health information",such as employee medical and dental claims information,can be released to anybody without informed employee consent:

Accepted Answer

A)  Bill 88 
B)  PIPEDA 
C)  ADP 
D)  EDS 
A)  Bill 88 
B)  PIPEDA 
C)  ADP 
D)  EDS

Question 5

Information technology is particularly useful for pay and remittance calculations.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following actions is not a way to contain compensation costs?

Accepted Answer

A)  Enact a hiring freeze. 
B)  Contain benefit costs. 
C)  Replace some raises with bonuses. 
D)  Replace variable pay with fixed pay. 
A)  Enact a hiring freeze. 
B)  Contain benefit costs. 
C)  Replace some raises with bonuses. 
D)  Replace variable pay with fixed pay.

Question 7

Compared to last year's results you have determined an increase in your compensation cost ratio.What does this tell you?

Accepted Answer

A)  This is a sign of greater productivity. 
B)  Managers have inconsistently applied the new system. 
C)  The typical employee is earning more money. 
D)  Noncompensation costs have increased. 
A)  This is a sign of greater productivity. 
B)  Managers have inconsistently applied the new system. 
C)  The typical employee is earning more money. 
D)  Noncompensation costs have increased.

Question 8

There are two approaches to compensation administration: doing it all in-house or outsourcing it.

Accepted Answer

A) True 
 B)False

Question 9

Why is a bottom-up approach for compensation budgeting favoured by the textbook author?

Accepted Answer

A)  For its simplicity. 
B)  It supports the strategic pay notion. 
C)  It ensures strategy fits with other strategic aspects of the organization. 
D)  It is more compatible with new human resource information systems. 
A)  For its simplicity. 
B)  It supports the strategic pay notion. 
C)  It ensures strategy fits with other strategic aspects of the organization. 
D)  It is more compatible with new human resource information systems.

Question 10

What is a major issue for most organizations when planning for information technology?

Accepted Answer

A)  whether to use computers 
B)  whether to use consultants 
C)  how advanced the system should be 
D)  whether to protect employee privacy 
A)  whether to use computers 
B)  whether to use consultants 
C)  how advanced the system should be 
D)  whether to protect employee privacy

Question 11

What aspect of compensation management is most neglected?

Accepted Answer

A)  evaluating the compensation system 
B)  keeping employees informed 
C)  ensuring employee privacy rights 
D)  budget planning 
A)  evaluating the compensation system 
B)  keeping employees informed 
C)  ensuring employee privacy rights 
D)  budget planning

Question 12

As a result of focusing your recruitment efforts on attracting recent university graduates your workforce has become younger. What impact does this change have on your compensation system?

Accepted Answer

A)  greater focus on pension plans and retirement income 
B)  offer more cash and family benefits 
C)  adopt job evaluation system 
D)  adopt new managerial strategy 
A)  greater focus on pension plans and retirement income 
B)  offer more cash and family benefits 
C)  adopt job evaluation system 
D)  adopt new managerial strategy

Question 13

Which of the following situations may account for higher-than-budgeted compensation expenditures?

Accepted Answer

A)  initial dip 
B)  spiral career paths 
C)  job evaluation system 
D)  excessive accumulation 
A)  initial dip 
B)  spiral career paths 
C)  job evaluation system 
D)  excessive accumulation

Question 14

Which of the following is not considered a way to evaluate the impact of the compensation system?

Accepted Answer

A)  impact on compensation objectives 
B)  impact on compensation costs 
C)  impact on employee behaviours and attitudes 
D)  impact on key strategies 
A)  impact on compensation objectives 
B)  impact on compensation costs 
C)  impact on employee behaviours and attitudes 
D)  impact on key strategies

Question 15

Which of the following is true of outsourcing compensation administration?

Accepted Answer

A)  Most organizations outsource at least some aspect of their benefits administration. 
B)  It has been gaining momentum in recent years. 
C)  It is generally an all-or-nothing proposition. 
D)  New human resources information systems make it more likely. 
A)  Most organizations outsource at least some aspect of their benefits administration. 
B)  It has been gaining momentum in recent years. 
C)  It is generally an all-or-nothing proposition. 
D)  New human resources information systems make it more likely.

Question 16

Which of the following aspects is not considered part of documenting the compensation system?

Accepted Answer

A)  briefing managers on compensation issues 
B)  preparing job evaluation manuals 
C)  negotiating and drawing up service provider contracts 
D)  recording assigned responsibilities for carrying out various compensation processes 
A)  briefing managers on compensation issues 
B)  preparing job evaluation manuals 
C)  negotiating and drawing up service provider contracts 
D)  recording assigned responsibilities for carrying out various compensation processes

Question 17

Documenting the compensation system is a key step in preparing for implementation.

Accepted Answer

A) True 
 B)False

Question 18

A good employee threatens to leave your firm because she has received a higher pay offer from a competitor.The offer is well outside your company's pay range for the job the employee is performing.What should you tell the employee?

Accepted Answer

A)  You will match the other offer. 
B)  You will beat the other offer, to be sure you won't lose her. 
C)  You will try to get her job put into a higher pay grade. 
D)  You wish her all the best in her new job at the competitor. 
A)  You will match the other offer. 
B)  You will beat the other offer, to be sure you won't lose her. 
C)  You will try to get her job put into a higher pay grade. 
D)  You wish her all the best in her new job at the competitor.

Question 19

Which of the following is not a component of compensation administration?

Accepted Answer

A)  collecting the necessary information 
B)  performing pay calculations 
C)  establishing accountability 
D)  preparing and distributing remittances 
A)  collecting the necessary information 
B)  performing pay calculations 
C)  establishing accountability 
D)  preparing and distributing remittances

Question 20

Which of the following groups is not considered a key part of the training plan for implementation of a new compensation system?

Accepted Answer

A)  key support people in HR department 
B)  managers and supervisors 
C)  those who have role in operating the system 
D)  all employees covered by the new system 
A)  key support people in HR department 
B)  managers and supervisors 
C)  those who have role in operating the system 
D)  all employees covered by the new system

Identify the tasks involved in preparing to implement a compensation system.

What budget approach are you using by applying the compensation rates to employees,factoring in probable merit and seniority increases as well as expected turnover?

In evaluating a new compensation system,a key issue is the time period that should be used.

This legislation requires that no "personal health information",such as employee medical and dental claims information,can be released to anybody without informed employee consent:

Information technology is particularly useful for pay and remittance calculations.

Which of the following actions is not a way to contain compensation costs?

Compared to last year's results you have determined an increase in your compensation cost ratio.What does this tell you?

There are two approaches to compensation administration: doing it all in-house or outsourcing it.

Why is a bottom-up approach for compensation budgeting favoured by the textbook author?

What is a major issue for most organizations when planning for information technology?

What aspect of compensation management is most neglected?

As a result of focusing your recruitment efforts on attracting recent university graduates your workforce has become younger. What impact does this change have on your compensation system?

Which of the following situations may account for higher-than-budgeted compensation expenditures?

Which of the following is not considered a way to evaluate the impact of the compensation system?

Which of the following is true of outsourcing compensation administration?

Which of the following aspects is not considered part of documenting the compensation system?

Documenting the compensation system is a key step in preparing for implementation.

A good employee threatens to leave your firm because she has received a higher pay offer from a competitor.The offer is well outside your company's pay range for the job the employee is performing.What should you tell the employee?

Which of the following is not a component of compensation administration?

Which of the following groups is not considered a key part of the training plan for implementation of a new compensation system?

A Road Map to Effective Communication

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Filters

Exam 13: Activating and Maintaining an Effective Compensation System

Identify the tasks involved in preparing to implement a compensation system.

What budget approach are you using by applying the compensation rates to employees,factoring in probable merit and seniority increases as well as expected turnover?

In evaluating a new compensation system,a key issue is the time period that should be used.

This legislation requires that no "personal health information",such as employee medical and dental claims information,can be released to anybody without informed employee consent:

Information technology is particularly useful for pay and remittance calculations.

Which of the following actions is not a way to contain compensation costs?

Compared to last year's results you have determined an increase in your compensation cost ratio.What does this tell you?

There are two approaches to compensation administration: doing it all in-house or outsourcing it.

Why is a bottom-up approach for compensation budgeting favoured by the textbook author?

What is a major issue for most organizations when planning for information technology?

What aspect of compensation management is most neglected?

As a result of focusing your recruitment efforts on attracting recent university graduates your workforce has become younger. What impact does this change have on your compensation system?

Which of the following situations may account for higher-than-budgeted compensation expenditures?

Which of the following is not considered a way to evaluate the impact of the compensation system?

Which of the following is true of outsourcing compensation administration?

Which of the following aspects is not considered part of documenting the compensation system?

Documenting the compensation system is a key step in preparing for implementation.

A good employee threatens to leave your firm because she has received a higher pay offer from a competitor.The offer is well outside your company's pay range for the job the employee is performing.What should you tell the employee?

Which of the following is not a component of compensation administration?

Which of the following groups is not considered a key part of the training plan for implementation of a new compensation system?

A Road Map to Effective Communication

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Filters