Question 1

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 D

Question 2

Changes in the CPI indicate whether prices have increased more or less rapidly in an area since the base period.

Accepted Answer

A) True 
 B)False  True

Question 3

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  True

Question 4

When employees are paid more than the maximum of their pay grade, these rates are called _____ rates.

Accepted Answer

A) red circle 
B) yellow circle 
C) blue circle 
D) green triangle 
A) red circle 
B) yellow circle 
C) blue circle 
D) green triangle

Question 5

The average company match for 401(k) retirement plan is _____ cents on the dollar up to 6 percent of pay.

Accepted Answer

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

Question 6

What is the consumer price index (CPI)? Explain with an example.

Accepted Answer

Many people refer to the CPI as a cost-o

Question 7

Pay policies are more open in the public sector than in the private sector.

Accepted Answer

A) True 
 B)False

Question 8

If Philadelphia has a CPI of 165 and Houston has a CPI of 145, and if both cities started with bases of 100, it means that _____.

Accepted Answer

A) prices have risen faster in Philadelphia since the base year than in Houston 
B) it essentially costs more to live in Philadelphia than in Houston 
C) it costs less to live in Houston than in Philadelphia 
D) pay in Philadelphia is, on average, 20 percent higher than in Houston 
A) prices have risen faster in Philadelphia since the base year than in Houston 
B) it essentially costs more to live in Philadelphia than in Houston 
C) it costs less to live in Houston than in Philadelphia 
D) pay in Philadelphia is, on average, 20 percent higher than in Houston

Question 9

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

Question 10

GronLan Inc., a company with a majority of workers with high seniority, decides to hire 1,000 college graduates to meet the sudden productivity requirements generated by a growth in the market.Which of the following statements is most likely to be happen in this situation?

Accepted Answer

A) The compa-ratio of the company will become greater than one. 
B) The average pay actually paid by the company will fall below its range midpoint. 
C) The salary range midpoint of the company will become lesser than the compa-ratio. 
D) The number of employees being paid red circle rates will increase. 
A) The compa-ratio of the company will become greater than one. 
B) The average pay actually paid by the company will fall below its range midpoint. 
C) The salary range midpoint of the company will become lesser than the compa-ratio. 
D) The number of employees being paid red circle rates will increase.

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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.

Question 14

The _____ recognizes the fact that when people leave an organization, they typically are replaced by employees who earn a lower wage.

Accepted Answer

A) productivity effect 
B) conflict effect 
C) turnover effect 
D) morale effect 
A) productivity effect 
B) conflict effect 
C) turnover effect 
D) morale effect

Question 15

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 16

A major advantage of a _____ is that it reduces benefits costs, something that the other cost-cutting options ordinarily do not achieve.

Accepted Answer

A) reduction in work hours 
B) furlough 
C) pay cut 
D) reduction in force 
A) reduction in work hours 
B) furlough 
C) pay cut 
D) reduction in force

Question 17

Rather than define employment as hours of work, number of employees is often used.

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 software package, allows workers to make health-care choices, allocate savings to 401(k)s or other savings vehicles, and access vacation schedules.

Accepted Answer

A) Manager self-service 
B) Employee self-service 
C) A cafeteria plan 
D) An enterprise resource planning system 
A) Manager self-service 
B) Employee self-service 
C) A cafeteria plan 
D) An enterprise resource planning system

Question 20

Briefly summarize compa-ratios.

Accepted Answer

Range midpoints reflect the pay policy l

The major potential advantage of outsourcing is _____.

Changes in the CPI indicate whether prices have increased more or less rapidly in an area since the base period.

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.

When employees are paid more than the maximum of their pay grade, these rates are called _____ rates.

The average company match for 401(k) retirement plan is _____ cents on the dollar up to 6 percent of pay.

What is the consumer price index (CPI)? Explain with an example.

Pay policies are more open in the public sector than in the private sector.

If Philadelphia has a CPI of 165 and Houston has a CPI of 145, and if both cities started with bases of 100, it means that _____.

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

GronLan Inc., a company with a majority of workers with high seniority, decides to hire 1,000 college graduates to meet the sudden productivity requirements generated by a growth in the market.Which of the following statements is most likely to be happen in this situation?

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

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

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

The _____ recognizes the fact that when people leave an organization, they typically are replaced by employees who earn a lower wage.

The compa-ratio reflects the _____.

A major advantage of a _____ is that it reduces benefits costs, something that the other cost-cutting options ordinarily do not achieve.

Rather than define employment as hours of work, number of employees is often used.

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

_____, a software package, allows workers to make health-care choices, allocate savings to 401(k)s or other savings vehicles, and access vacation schedules.

Briefly summarize compa-ratios.

Pay-For-Performance: The Evidence

Strategy: The Totality of Decisions

Defining Internal Alignment

R: 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

The major potential advantage of outsourcing is _____.

Changes in the CPI indicate whether prices have increased more or less rapidly in an area since the base period.

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.

When employees are paid more than the maximum of their pay grade, these rates are called _____ rates.

The average company match for 401(k) retirement plan is _____ cents on the dollar up to 6 percent of pay.

What is the consumer price index (CPI)? Explain with an example.

Pay policies are more open in the public sector than in the private sector.

If Philadelphia has a CPI of 165 and Houston has a CPI of 145, and if both cities started with bases of 100, it means that _____.

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

GronLan Inc., a company with a majority of workers with high seniority, decides to hire 1,000 college graduates to meet the sudden productivity requirements generated by a growth in the market.Which of the following statements is most likely to be happen in this situation?

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

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

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

The _____ recognizes the fact that when people leave an organization, they typically are replaced by employees who earn a lower wage.

The compa-ratio reflects the _____.

A major advantage of a _____ is that it reduces benefits costs, something that the other cost-cutting options ordinarily do not achieve.

Rather than define employment as hours of work, number of employees is often used.

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

_____, a software package, allows workers to make health-care choices, allocate savings to 401(k)s or other savings vehicles, and access vacation schedules.

Briefly summarize compa-ratios.

Pay-For-Performance: The Evidence

Strategy: The Totality of Decisions

Defining Internal Alignment

R: 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