Exam 18: Management: Making It Work

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

Executive estimation is the budgetary approach that begins with an estimate from top management of the pay increase budget for the entire organization.

Which of following is a legitimate reason why a compa-ratio may be less than 1?

Employees should never be paid below the minimum of their pay range.

The Web page for the compensation society is _____.

Sometimes referred to as "churn" or "slippage," the _____ recognizes the fact that when people leave an organization,they typically are replaced by employees who earn a lower wage.

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

Why is outsourcing a viable alternative for organizations? What are the major potential advantages and disadvantages of outsourcing? Value chain analysis and Six Sigma are processes used to improve quality and ensure that value is added by each technique and at each stage in a process.For the compensation system,the basic question to ask is,"Does each specific activity directly contribute to our objectives?" If some added value is not apparent,then the question is,"How should it be redesigned? Or should it be dropped?" Of those activities that do add value,the next question is,"Who should do it?" "Should the activity be done in-house,or can others do it more effectively? That is,should it be outsourced?"

From 1991 to 2011,the average merit raise budget has gradually increased.

Which of the following is not a likely consequence of a highly decentralized pay system?

In the past 2 decades,the average variable pay budget has increased.

Under the contract pay system,each worker was paid according to a uniform contract for each company.

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

_____ is a system that allows employees to make health care choices,allocate savings to 401Ks or other savings vehicles,access vacation schedules and other activities.

A key reason to communicate pay information is that the goodwill engendered by the act of being open about pay may also affect perceptions of pay equity.

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

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

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

_____ are to broad bands as minimums,midpoints,and maximums are to pay ranges.

All of the following are recommended steps in the compensation communication cycle by WorldatWork except _____.