Exam 13: Activating and Maintaining an Effective Compensation System

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

You work in a human resource department and have access to the personal health information of employees. A front line manager contacts you and requests that you look at an employee's file and let her know if there are any health issues that could explain an employee's "bizarre behaviour" (the employee seems extremely quiet). Which of the following actions should you do, so as to be compliant with Bill C-6?

A particular company notices that performance, as measured by the accuracy of entries by managers in a new human resource management system, decreased during the early stages of launch. What phenomenon may account for this decrease in performance?

Integrated human resource information systems can support and increase efficiencies associated with many routine activities once performed by human resource personnel. Which of the following activities is NOT conducive to automation via computer systems?

One of the key functions associated with documentation of compensation systems is the establishment of service contracts with external service providers. Which of the following criteria is likely to be the most difficult to document in the contract?

You have been tasked with providing senior management with a plan to evaluate the effectiveness of a new compensation system to be launched by an organization. Which of the following is NOT a typical approach associated with evaluating the impact of a compensation system?

Organizations using a classical management strategy are the most likely to use a broad spectrum of employees when developing a plan to manage the implementation process.

A training process is critical to the launch of a new compensation system. Our textbook identifies three groups of stakeholders that should be trained so as to facilitate the introduction of an effective compensation system. Which of the following stakeholders should have very detailed system knowledge?

Which of the following aspects would a human resource professional consider part of documenting the compensation system?

Central tendency is a phenomenon associated with a decline in performance shortly after the introduction of a new process or system.

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?

Katrina works at a factory assembling plastic toys. She prides herself in producing the most units with the lowest rejection rates. What kind of behaviour is Katrina displaying?

Your organization has asked you to prepare a compensation budget by taking into account the following variables: current employees' wages, anticipated merit increases, seniority increases, as well as expected turnover. What kind of compensation budgeting process is your organization using?

Because of complexity and resistance by stakeholders, computers have taken on a secondary role in communicating compensation policies and procedures

Information technology is particularly useful for pay and remittance calculations.

Which of the following statements about developing a communication plan to introduce a new compensation system is NOT true?

In the bottom-up approach to compensation budgeting, an arbitrary amount is allocated to compensation and given to department managers for distribution to their employees.

In regard to evaluating the compensation system, which of the following is NOT true?

You work as a human resource professional at a large accounting firm in Ontario. Part of your mandate requires that you investigate processes that will streamline basic human resource functions, including remittance of pay stubs to employees. You are currently contemplating the notion of automating this process. What minimum requirements must you adhere to so as to make this process compliant with Bill 88?

In order to avoid resistance to a new compensation system, it a good practice to discontinue the usage of the old system before you have fully tested the new system. Otherwise, employees will gravitate to the old and familiar system. .