Chap 16

If financially troubled employers have NOT been able to maintain competitive market positions, the conventional response has been to _____.

reduce employment

A major advantage of a _____ is that it reduces benefits costs, something that the other cost-cutting options ordinarily do not achieve.

reduction in force

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 _____.

prices have risen faster in Philadelphia since the base year than in Houston

The _____ recognizes the fact that when people leave an organization, they typically are replaced by employees who earn a lower wage.

turnover effect

The average company match for 401(k) retirement plan is _____ cents on the dollar up to 6 percent of pay.

50

Total compensation in many organizations makes up at least _____ percent of operating expenses.

50

The _____ often comes into play if organizations target reductions among higher paid employees because higher paid employees also tend to be older employees.

ADEA

_____, designed for employees or managers, explain compensation policies and practices, answer frequently asked questions, and explain how these systems affect their pay.

Communication portals

Which of the following is a measure of changes in prices of goods and services in the product and service markets over time?

Consumer price index

Which of the following is NOT a likely consequence of a highly decentralized pay system?

Financial malfeasance is completely eliminated.

Which of the following statements about anchoring/framing is true?

It states that initial data strongly affect decisions/beliefs.

Which of the following is NOT a potential problem with headcount reductions?

RIFs are very costly in tangible terms in the long run due to decreases in unemployment insurance tax rate.

GronLan 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?

The average pay actually paid by the company will fall below its range midpoint.

_____ is the budgetary approach that begins with an estimate from the highest ranking executives of the pay increase budget for an entire organization.

Top-down budgeting

The denominator for calculating the current year's pay rise is _____.

average pay at the beginning of the year

Changes in wages in labor markets are measured _____.

through pay surveys

All of the following are adverse effects of layoffs EXCEPT _____.

decreased unemployment insurance tax rates

A compa-ratio less than 1 means that, on average, _____.

employees in a range are paid below the midpoint

The major potential advantage of outsourcing is _____.

increased cost savings

The compa-ratio reflects the _____.

relationship of the average actual salary in each range to the midpoint of the range