Exam 13: Activating and Maintaining an Effective Compensation System

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..

When evaluating a new compensation system,you notice that the compensation cost ratio increased,while total compensation or average earnings remained static.What is a likely explanation?

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?

Why is it useful to conduct surveys of key employee attitudes before system implementation?

A compensation budget is a forecast of what the firm expects to spend on compensation in the coming year.

What is NOT a key aspect in implementing the compensation system?

What would a human resource professional consider part of documenting the compensation system?

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?

Which statement best describes outsourcing among Canadian firms?

As a result of focusing your recruitment efforts on attracting recent university graduates,your workforce has become younger.What impact does this change have on your compensation system?

Which factor is NOT normally a consideration when organizations make the decision to outsource human resource functions?

What are the primary areas for computer applications in a compensation system?

Which statement does NOT accurately describe the act of evaluating the compensation system?

Which statement does NOT support the notion of outsourcing some human resource functions to third-party service providers?

In evaluating a new compensation system,two main sets of employee attitudes should be examined-job attitudes and compensation attitudes.

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

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?

Which statement does NOT accurately describe compensation communication?

What main indicators should firms examine in the process of examining compensation costs?

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?