Question 1

Research shows that employees tend to _____ the actual pay of those in jobs above them and _____ the pay of those below them.

Accepted Answer

A)  underestimate;underestimate 
B)  overestimate;overestimate 
C)  access;overestimate 
D)  overestimate;underestimate 
A)  underestimate;underestimate 
B)  overestimate;overestimate 
C)  access;overestimate 
D)  overestimate;underestimate C

Question 2

If an organization has a number of red circle pay rates,this suggests problems with pay ranges and/or job evaluations.

Accepted Answer

A) True 
 B)False  True

Question 3

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 D

Question 4

Replacing merit grids with _____ eliminates the link between the pay increase and the employees' salary position in the range and performance rating.

Accepted Answer

A)  banding 
B)  skill- or competency-based plans 
C)  job evaluation 
D)  bonuses 
A)  banding 
B)  skill- or competency-based plans 
C)  job evaluation 
D)  bonuses

Question 5

All of the following are examples of inherent controls except _____.

Accepted Answer

A)  range minimums and maximums 
B)  broad bands 
C)  budgets 
D)  performance evaluation 
A)  range minimums and maximums 
B)  broad bands 
C)  budgets 
D)  performance evaluation

Question 6

Employees in companies with open pay systems express higher satisfaction with their pay system but not their pay than employees in more secret pay systems.

Accepted Answer

A) True 
 B)False

Question 7

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 8

The phenomenon of turnover effect means that organizations must budget additional money for next year's budget to cover effects of turnover.

Accepted Answer

A) True 
 B)False

Question 9

Tying changes in pensions,social security payments,and labor agreements to changes in the CPI is called indexing.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

Sometimes referred to as "churn" or "sli

Question 11

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 12

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

Accepted Answer

A)  centralized authority 
B)  decentralized responsibility 
C)  the best approach to design 
D)  rarely done in today's organizations 
A)  centralized authority 
B)  decentralized responsibility 
C)  the best approach to design 
D)  rarely done in today's organizations

Question 13

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 14

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

Question 15

Job analysis and gain-sharing are not examples of inherent controls on managers' compensation decisions.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Briefly summarize compa-ratios.

Accepted Answer

Range midpoints reflect the pay policy l

Question 18

In a total decentralized pay system,employees are likely to be treated unequally and unfairly.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

Accepted Answer

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

Research shows that employees tend to _ the actual pay of those in jobs above them and _ the pay of those below them.

If an organization has a number of red circle pay rates,this suggests problems with pay ranges and/or job evaluations.

The compa-ratio reflects the _____.

Replacing merit grids with _____ eliminates the link between the pay increase and the employees' salary position in the range and performance rating.

All of the following are examples of inherent controls except _____.

Employees in companies with open pay systems express higher satisfaction with their pay system but not their pay than employees in more secret pay systems.

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

The phenomenon of turnover effect means that organizations must budget additional money for next year's budget to cover effects of turnover.

Tying changes in pensions,social security payments,and labor agreements to changes in the CPI is called indexing.

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

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

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

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

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

Job analysis and gain-sharing are not examples of inherent controls on managers' compensation decisions.

Range minimums and maximums reflect the _____.

Briefly summarize compa-ratios.

In a total decentralized pay system,employees are likely to be treated unequally and unfairly.

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

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

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

Research shows that employees tend to _____ the actual pay of those in jobs above them and _____ the pay of those below them.

If an organization has a number of red circle pay rates,this suggests problems with pay ranges and/or job evaluations.

The compa-ratio reflects the _____.

Replacing merit grids with _____ eliminates the link between the pay increase and the employees' salary position in the range and performance rating.

All of the following are examples of inherent controls except _____.

Employees in companies with open pay systems express higher satisfaction with their pay system but not their pay than employees in more secret pay systems.

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

The phenomenon of turnover effect means that organizations must budget additional money for next year's budget to cover effects of turnover.

Tying changes in pensions,social security payments,and labor agreements to changes in the CPI is called indexing.

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

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

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

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

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

Job analysis and gain-sharing are not examples of inherent controls on managers' compensation decisions.

Range minimums and maximums reflect the _____.

Briefly summarize compa-ratios.

In a total decentralized pay system,employees are likely to be treated unequally and unfairly.

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

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

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

Research shows that employees tend to _ the actual pay of those in jobs above them and _ the pay of those below them.