Total compensation in many organizations
Which of the following is NOT a likely
consequence of a highly decentralized pay system?
a. Financial malfeasance is completely eliminated.
b. Pay rates for the same work could be inconsistent.
c. Managers could use pay to motivate their own objectives.
d. Employees are likely to be treated unfairly.
·
Financial malfeasance
is completely eliminated.
Total compensation in many organizations makes
up at least _____ percent of operating expenses.
a. 20
b. 30
c. 40
d. 50
·
d. 50
The average company match for 401(k)
retirement plan is _____ cents on the dollar up to 6 percent of pay.
a. 50
b. 40
c. 30
d. 20
·
50
A major advantage of a _____ is that it
reduces benefits costs, something that the other cost-cutting options
ordinarily do not achieve.
a. reduction in work hours
b. furlough
c. pay cut
d. reduction in force
·
d. reduction in force
All of the following are adverse effects of
layoffs EXCEPT _____.
a. decreased unemployment insurance tax rates
b. unrealized productivity
c. lower morale
d. lower financial gains than expected
·
decreased unemployment
insurance tax rates
The _____ often comes into play if
organizations target reductions among higher paid employees because higher paid
employees also tend to be older employees.
a. WHO
b. FMLA
c. OSHA
d. ADEA
·
d. ADEA
Which of the following is NOT a potential
problem with headcount reductions?
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.
·
d. RIFs are very
costly in tangible terms in the long run due to decreases in unemployment
insurance tax rate.
_____ is the budgetary approach that begins
with an estimate from the highest ranking executives of the pay increase budget
for an entire organization.
a. Bottom-up budgeting
b. Top-down budgeting
c. Managerial plan
d. Executive estimate budgeting
·
b. Top-down budgeting
If financially troubled employers have NOT
been able to maintain competitive market positions, the conventional response
has been to _____.
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
·
d. reduce employment
The denominator for calculating the current
year's pay rise is _____.
a. average pay at the beginning of the year
b. average pay at the end of the year
c. average number of employees during the year
d. average employment level
·
average pay at the
beginning of the year
The _____ recognizes the fact that when people
leave an organization, they typically are replaced by employees who earn a
lower wage.
a. productivity effect
b. conflict effect
c. turnover effect
d. morale effect
·
c. turnover effect
Changes in wages in labor markets are measured
_____.
a. using the producer price index
b. using the modified balance sheet approach
c. through pay surveys
d. by examining the personal expenditure of each employee
·
c. through pay surveys
Which of the following is a measure of changes
in prices of goods and services in the product and service markets over time?
a. Producer price survey
b. Product market competitor wage survey
c. Labor market competitor wage survey
d. Consumer price index
·
d. Consumer price
index
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
_____.
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
·
prices have risen
faster in Philadelphia since the base year than in Houston
The compa-ratio reflects the _____.
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
·
d. relationship of the
average actual salary in each range to the midpoint of the range
A compa-ratio less than 1 means that, on
average, _____.
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
·
d. employees in a
range are paid below the midpoint
ronLan 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. 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.
·
b. The average pay
actually paid by the company will fall below its range midpoint.
Which of the following statements about
anchoring/framing is true?
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.
·
It states that initial
data strongly affect decisions/beliefs.
_____, designed for employees or managers,
explain compensation policies and practices, answer frequently asked questions,
and explain how these systems affect their pay.
a. Communication portals
b. Enterprise resource planning systems
c. Cafeteria plans
d. Content delivery networks
·
Communication portals
The major potential advantage of outsourcing
is _____.
a. increased turnover rate
b. increased compa-ratio
c. increased absenteeism
d. increased cost savings
·
d. increased cost
savings
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