Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

_____, designed for employees or managers, explain compensation policies and practices, answer frequently asked questions, and explain how these systems affect their pay.

Accepted Answer

A) Communication portals 
B) Enterprise resource planning systems 
C) Cafeteria plans 
D) Content delivery networks 
A) Communication portals 
B) Enterprise resource planning systems 
C) Cafeteria plans 
D) Content delivery networks

Question 3

What is the top-down method of budgeting?

Accepted Answer

Top-down budgeting begins with an estima

Question 4

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 5

If financially troubled employers have NOT been able to maintain competitive market positions, the conventional response has been to _____.

Accepted Answer

A) increase the rate of reduction in average pay by controlling adjustments in base pay 
B) decrease employees' copays and deductibles for benefits 
C) increase base wages but not variable pay 
D) reduce employment 
A) increase the rate of reduction in average pay by controlling adjustments in base pay 
B) decrease employees' copays and deductibles for benefits 
C) increase base wages but not variable pay 
D) reduce employment

Question 6

What are the potential problems associated with headcount reductions?

Accepted Answer

Several potential problems can occur wit

Question 7

All of the following are adverse effects of layoffs EXCEPT _____.

Accepted Answer

A) decreased unemployment insurance tax rates 
B) unrealized productivity 
C) lower morale 
D) lower financial gains than expected 
A) decreased unemployment insurance tax rates 
B) unrealized productivity 
C) lower morale 
D) lower financial gains than expected

Question 8

HoldDesk Inc.has an annual labor cost of $3,000,000.It has a turnover rate of 10 percent and a planned average increase of 5 percent.The turnover effect is _____.

Accepted Answer

A) $10,000 
B) $45,000 
C) $15,000 
D) $30,000 
A) $10,000 
B) $45,000 
C) $15,000 
D) $30,000

Question 9

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 10

Less than 10 percent of compensation professionals strongly agree that employees know their own pay range and the one above them.

Accepted Answer

A) True 
 B)False

Question 11

If a pay system is not based upon work-related or business-related logic, it is probably best to not conduct a formal compensation communication program.

Accepted Answer

A) True 
 B)False

Question 12

MerTon Inc.decides to reduce labor costs by using exit incentives to encourage some of its senior, high-earning members to leave the organization.It replaces the employees who quit with new employees and pays them low wages.Which of the following statements is most likely true in this scenario?

Accepted Answer

A) The number of employees being paid red circle rates will increase. 
B) The salary range midpoint of the company is lesser than the compa-ratio. 
C) The salary range midpoint of the company is higher than the actual salary paid. 
D) The compa-ratio of the company is greater than one. 
A) The number of employees being paid red circle rates will increase. 
B) The salary range midpoint of the company is lesser than the compa-ratio. 
C) The salary range midpoint of the company is higher than the actual salary paid. 
D) The compa-ratio of the company is greater than one.

Question 13

The Web page for the compensation society is _____.

Accepted Answer

A) Society for Human Resource Management 
B) American Compensation Association 
C) International Compensation and Benefits Society 
D) WorldatWork 
A) Society for Human Resource Management 
B) American Compensation Association 
C) International Compensation and Benefits Society 
D) WorldatWork

Question 14

_____ is the budgetary approach that begins with an estimate from the highest ranking executives of the pay increase budget for an entire organization.

Accepted Answer

A) Bottom-up budgeting 
B) Top-down budgeting 
C) Managerial plan 
D) Executive estimate budgeting 
A) Bottom-up budgeting 
B) Top-down budgeting 
C) Managerial plan 
D) Executive estimate budgeting

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

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

According to one study, only _____ of organizations actually calculate the cost and value added by their pay programs.

Accepted Answer

A) three-fourths 
B) one-fourth 
C) one-half 
D) one-third 
A) three-fourths 
B) one-fourth 
C) one-half 
D) one-third

Question 19

Which of the following is NOT a potential problem with headcount reductions?

Accepted Answer

A) Regulatory requirements make it difficult to make targeted cuts. 
B) Workforce reductions, especially if not handled well, can harm employee relations. 
C) Organizations that make greater involuntary workforce reductions also experience greater voluntary turnover. 
D) RIFs are very costly in tangible terms in the long run due to decreases in unemployment insurance tax rate. 
A) Regulatory requirements make it difficult to make targeted cuts. 
B) Workforce reductions, especially if not handled well, can harm employee relations. 
C) Organizations that make greater involuntary workforce reductions also experience greater voluntary turnover. 
D) RIFs are very costly in tangible terms in the long run due to decreases in unemployment insurance tax rate.

Question 20

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

Accepted Answer

A) True 
 B)False

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

_____, designed for employees or managers, explain compensation policies and practices, answer frequently asked questions, and explain how these systems affect their pay.

What is the top-down method of budgeting?

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

If financially troubled employers have NOT been able to maintain competitive market positions, the conventional response has been to _____.

What are the potential problems associated with headcount reductions?

All of the following are adverse effects of layoffs EXCEPT _____.

HoldDesk Inc.has an annual labor cost of $3,000,000.It has a turnover rate of 10 percent and a planned average increase of 5 percent.The turnover effect is _____.

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

Less than 10 percent of compensation professionals strongly agree that employees know their own pay range and the one above them.

If a pay system is not based upon work-related or business-related logic, it is probably best to not conduct a formal compensation communication program.

MerTon Inc.decides to reduce labor costs by using exit incentives to encourage some of its senior, high-earning members to leave the organization.It replaces the employees who quit with new employees and pays them low wages.Which of the following statements is most likely true in this scenario?

The Web page for the compensation society is _____.

_____ is the budgetary approach that begins with an estimate from the highest ranking executives of the pay increase budget for an entire organization.

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?

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

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

According to one study, only _____ of organizations actually calculate the cost and value added by their pay programs.

Which of the following is NOT a potential problem with headcount reductions?

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

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

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

_____, designed for employees or managers, explain compensation policies and practices, answer frequently asked questions, and explain how these systems affect their pay.

What is the top-down method of budgeting?

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

If financially troubled employers have NOT been able to maintain competitive market positions, the conventional response has been to _____.

What are the potential problems associated with headcount reductions?

All of the following are adverse effects of layoffs EXCEPT _____.

HoldDesk Inc.has an annual labor cost of $3,000,000.It has a turnover rate of 10 percent and a planned average increase of 5 percent.The turnover effect is _____.

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

Less than 10 percent of compensation professionals strongly agree that employees know their own pay range and the one above them.

If a pay system is not based upon work-related or business-related logic, it is probably best to not conduct a formal compensation communication program.

MerTon Inc.decides to reduce labor costs by using exit incentives to encourage some of its senior, high-earning members to leave the organization.It replaces the employees who quit with new employees and pays them low wages.Which of the following statements is most likely true in this scenario?

The Web page for the compensation society is _____.

_____ is the budgetary approach that begins with an estimate from the highest ranking executives of the pay increase budget for an entire organization.

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?

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

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

According to one study, only _____ of organizations actually calculate the cost and value added by their pay programs.

Which of the following is NOT a potential problem with headcount reductions?

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

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