MGT 308 Quiz #18

All of the following are adverse effects of layoffs EXCEPT _____. a. decreased unemployment insurance tax rates b. unrealized productivity c. lower morale d. lower financial gains than expected

a. decreased unemployment insurance tax rates

The denominator for calculating the current year's pay rise is _____. a. average pay at the beginning of the year b. average pay at the end of the year c. average number of employees during the year d. average employment level

a. average pay at the beginning of the year

Total compensation in many organizations makes up at least _____ percent of operating expenses. a. 20 b. 30 c. 40 d. 50

d. 50

The _____ often comes into play if organizations target reductions among higher paid employees because higher paid employees also tend to be older employees. a. WHO b. FMLA c. OSHA d. ADEA

d. ADEA

Which of the following is a measure of changes in prices of goods and services in the product and service markets over time? a. Producer price survey b. Product market competitor wage survey c. Labor market competitor wage survey d. Consumer price index

d. Consumer price index

Which of the following is NOT a potential problem with headcount reductions? a. Regulatory requirements make it difficult to make targeted cuts. b. Workforce reductions, especially if not handled well, can harm employee relations. c. Organizations that make greater involuntary workforce reductions also experience greater voluntary turnover. d. RIFs are very costly in tangible terms in the long run due to decreases in unemployment insurance tax rate.

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

A compa-ratio less than 1 means that, on average, _____. a. employees are senior employees b. the turnover rate of the organization is low c. employees are high performers d. employees in a range are paid below the midpoint

d. employees in a range are paid below the midpoint

The major potential advantage of outsourcing is _____. a. increased turnover rate b. increased compa-ratio c. increased absenteeism d. increased cost savings

d. increased cost savings

The average company match for 401(k) retirement plan is _____ cents on the dollar up to 6 percent of pay. a. 50 b. 40 c. 30 d. 20

a. 50

_____, designed for employees or managers, explain compensation policies and practices, answer frequently asked questions, and explain how these systems affect their pay. a. Communication portals b. Enterprise resource planning systems c. Cafeteria plans d. Content delivery networks

a. Communication portals

Which of the following is NOT a likely consequence of a highly decentralized pay system? a. Financial malfeasance is completely eliminated. b. Pay rates for the same work could be inconsistent. c. Managers could use pay to motivate their own objectives. d. Employees are likely to be treated unfairly.

a. Financial malfeasance is completely eliminated.

Which of the following statements about anchoring/framing is true? a. It states that initial data strongly affect decisions/beliefs. b. It is the reluctance to accept evidence that contradicts existing beliefs. c. It refers to the tendency to follow fashions in programs/techniques. d. It states that people discover patterns in random events.

a. It states that initial data strongly affect decisions/beliefs.

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 _____. a. prices have risen faster in Philadelphia since the base year than in Houston b. it essentially costs more to live in Philadelphia than in Houston c. it costs less to live in Houston than in Philadelphia d. pay in Philadelphia is, on average, 20 percent higher than in Houston

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

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? a. The compa-ratio of the company will become greater than one. b. The average pay actually paid by the company will fall below its range midpoint. c. The salary range midpoint of the company will become lesser than the compa-ratio. d. The number of employees being paid red circle rates will increase.

b. 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. a. Bottom-up budgeting b. Top-down budgeting c. Managerial plan d. Executive estimate budgeting

b. Top-down budgeting

Changes in wages in labor markets are measured _____. a. using the producer price index b. using the modified balance sheet approach c. through pay surveys d. by examining the personal expenditure of each employee

c. through pay surveys

The _____ recognizes the fact that when people leave an organization, they typically are replaced by employees who earn a lower wage. a. productivity effect b. conflict effect c. turnover effect d. morale effect

c. turnover effect

If financially troubled employers have NOT been able to maintain competitive market positions, the conventional response has been to _____. a. increase the rate of reduction in average pay by controlling adjustments in base pay b. decrease employees' copays and deductibles for benefits c. increase base wages but not variable pay d. reduce employment

d. reduce employment

A major advantage of a _____ is that it reduces benefits costs, something that the other cost-cutting options ordinarily do not achieve. a. reduction in work hours b. furlough c. pay cut d. reduction in force

d. reduction in force

The compa-ratio reflects the _____. a. rate paid for satisfactory performance b. relationship of actual salaries to the midpoint of the going rates in the market c. maximum value of red circle rates d. relationship of the average actual salary in each range to the midpoint of the range

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