Chapter 13 Quiz Flashcards
Your organization has asked you to prepare a compensation budget by taking into account the following variable: current employees wages, anticipated merit increases, seniority increases, as well as expected turnover. What kind of compensation budgeting process is your organization using?
a. zero-based
b. top-down
c. bottom-up
d. break-even
c. bottom-up
Which of the following is NOT a component of compensation administration?
a. collecting the necessary information
b. performing pay calculations
c. establishing accountability
d. preparing and distributing remittances
c. establishing accountability
What is a major issue for most organizations when planning for information technology?
a. whether to use computers
b. whether to use consultants
c. how advanced the system should be
d. whether to protect employee privacy
c. how advanced the system should be
According to a recent survey of HR professionals, what is the predominant use of hr management systems?
a. planning and research
b. time and attendance
c. payroll
d. benefits
c. payroll
which of the following does NOT support the notion of outsourcing some hr functions to third-party service providers?
a. it provides internal staff with a better sense of issues facing employees
b. it reduces costs
c. it leverages the specialized knowledge of external experts
d. it allows internal staff to focus on strategic hr activities
a. it provides internal staff with a better sense of issues facing employees
which of the following factors is NOT
normally a consideration when organizations make the decisions to outsource hr functions?
a. the size of the organiation
b. the activities competitors are undertaking with their hr functions
c. level of internal expertise
d. the strategic role played by compensation in the organization
b. the activities competitors are undertaking with their hr functions
which of the following is NOT a key aspect of developing the implementation plan?
a. the training plan
b. preparing the compensation budget
c. the plan for communicating the new system
d. the plan for evaluating the new system
b. preparing the compensation budget
which of the following statements about developing a communication plan to introduce a new compensation system is NOT true?
a. Employees need to know the rationale behind the change
b. Ensure it is an on-going process; communicate often
c. various does of communications should be used
d. It is often a recipe for failure if frontline managers are told of impending changes early in the process
d. It is often a recipe for failure if frontline managers are told of impending changes early in the process
Which of the following is NOT one of the steps in implementing the compensation system?
a. Establish the implementation task forces
b. Decide on the compensation level
c. Test the system
d. Conduct the training
b. Decide on the compensation level
You have been tasked with providing senior management with a plan to evaluate the effectiveness of a new compensation system to be launched by an organization. Which of the following is NOT a typical approach associated with evaluating the impact of a compensation system?
a. impact on a company’s return on equity
b. impact on compensation objectives
c. impact on compensation costs
impact on employee’s attitudes and behaviours
a. impact on a company’s return on equity
In regard to evaluating the compensation system, which of the following is NOT true?
a. Most organizations don’t even try to evaluate their systems
b. A slipshod attempt at evaluation may do more harm than good
c. Compensation costs below budgeted levels should make you happy
d. if the budget was not realistic in the first place, comparisons are meaningless
c. Compensation costs below budgeted levels should make you happy
What main indicators would firms examine in the process of examining compensation costs?
a. budgeted costs and actual costs
b. compensation cost ratios and budget ratios
c. net profit per employee and average employee earnings
d. compensation cost ratios and average employee earnings
d. compensation cost ratios and average employee earnings
