Quiz 3 Flashcards
T or F: Compensation surveys provide the data for translating a policy into pay levels, pay mix and structures.
True
T or F: A compensation survey is the systematic process of collecting & making judgements about the compensation paid by other employers
True
T or F: The first major decision in designing pay structures pertains to defining the purpose of a compensation survey.
False
T or F: In most organizations, the responsibility for managing the compensation survey lies with the chief financial officer.
False
T or F: One of the most important questions asked while designing a compensation survey is “who should be involved in the survey design?”
True
T or F: “Trending” is a process by which jobs considered substantially equal for pay purposes are grouped together
False
T or F: A market pay line is a way to set the external competitive position by adjusting the pay policy line.
False
T or F: Grades and ranges offer managers the flexibility to deal with pressures from external markets and within the organization.
True
T or F: Because future cost estimates may be difficult to project, it is imperative that benefits administrators reduce uncertainty.
True
T or F: Benefits need not be externally equitable.
False
T or F: Any evaluation of employee benefits must be placed in the context of total compensation costs.
True
T or F: Claims processing determines whether an employer has an obligation to fulfil a promise of payment when an employee asserts that disability or hospitalisation has occurred.
True
T or F: Disability income payments cannot be limited to some maximum percentage of income.
False
T or F: In a defined benefit plan, employees assume the risks associated with changes in inflation and interest rates.
False
MC: Which of the following statements about external competitiveness is true?
External competitiveness refers to an organizations pay relative to other organizations
MC: External competitiveness is expressed in practice by:
Setting a pay level that is above, below or equal to competitors
MC: The mix of the various types of payments that make up total compensation is known as:
Pay forms
MC: The average of the array of rates paid by an employer- i.e. the sum of base, bonuses, benefits and options- is referred to as:
Pay level
MC: Which of the following is an assumption of economic theories of labour markets?
People are homogenous and therefore interchangeable
MC: The marginal revenue of labour refers to:
The additional output from the employment of one additional person
MC: The additional income generated when a firm employs one additional unit of human resources, with other production factors held constant is known as the marginal ___
Revenue of Labour
MC: The additional output associated with the employment of one additional human resources unit, with other production factors held constant, is known as the ___
Marginal product of labour
MC: Which of the following statements about employee benefits is true?
Employee benefits are mostly not taxable
MC: Which method of financing benefit plans allows costs to be shared between employer and employee?
Contributory
