CompensationMGMT Quiz 18

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

Which of the following is a factor to control in order to manage labor costs in a simple labor cost model?

Employment

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

50 cents

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

50 percent

Which of the following is the basic question to ask to improve quality and ensure that value is added by each technique and at each stage in the compensation system?

Does each specific activity directly contribute to our objectives?

Financially healthy employers may wish to maintain their competitive positions in the labor market or share financial success through

bonuses and profit sharing.

Bottom-up budgeting includes the process of distributing forecasting instructions and worksheets where:

firms furnish managers with the forms and instructions necessary to preplan increases.

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.

A compa-ratio reflects the

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

If red circle rates become common throughout an organization, then:

the design of the ranges and the evaluation of the jobs should be reexamined.