Deck 13: Compensation Budgets and Administration

Question 1

Which of the following factors influences decisions made using the top-down approach?

A) estimating the pay increase budget
B) providing consultation to managers
C) analyzing forecasts
D) monitoring budget versus actual increases
E) reviewing and revising forecasts and budgets with management

Answer 1

A

Question 2

Which of the following statements is true about analyzing the value added of pay decisions?

A) It is a practice followed by all organizations regularly.
B) It encourages looking at compensation as an investment as well as an expense.
C) It increases the focus of employees as individuals and not as human capital.
D) It focuses on increasing the turnover of top employees.
E) It restricts thinking to treating compensation as only an expense.

Answer 2

B

Question 3

The marketing approach focuses on which of the following?

A) increase guides
B) range maximums
C) bottom-up budgeting
D) strategy
E) merit pay

Answer 3

D

Question 4

Which of the following would increase the controls and guidelines inherent in any pay plan?

A) broadbanding
B) replacing bonuses with merit grids
C) using skill-based plans instead of job evaluation
D) reducing the impact of range minimum and maximums
E) green circling

Question 5

Announcements of layoffs and plant closings always have negative effects on stock prices as investors anticipate poor cash flow and increased costs.

Question 6

The CPI does not necessarily reflect an individual employee's cost of living.

Question 7

Merit grids make it difficult to control costs because of the varied increases to employees.

Question 8

Competency-based plans provide more flexibility for manager to assign employees to a wider variety of work.

Question 9

Employee sell-service allows access to choices about healthcare coverage and compensation recommendations.

Question 10

What are the main issues with workforce reductions?

Question 11

What can employers do with red circled and green circled employees?