Chapter 13

Question 1

Formula for labour costs

Answer 1

Employee ( # of workers * hours worked) * ( Average cash compensation + Average benefit cost)

Question 2

Turn over effect

Answer 2

decreased budget required as lower-paid workers replace employees who leave, calculated as annual turnover rate times planned average increase

Question 3

What is CPI?

Answer 3

Consumer price index aka cost of living index

Question 4

Red circle rates?

Answer 4

pay rates above the range maxiumum

Question 5

Green circle rates

Answer 5

pay rates below the range minimum

Question 6

Compa-ratio

Answer 6

ratio of average rates actually paid to range midpoint = average rates actually paid/ range midpoint

Question 7

Broadbands

Answer 7

managers have flexibility for pay

Question 8

Communication process

Answer 8

6 steps.
1. defining objectives
2. collect info from staff
3. communication strategy
4/5. determine effective use of media for audience