Question 1

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

Accepted Answer

One of the major issues for most organizations when planning for information technology is to determine how advanced the system should be. This includes deciding on the appropriate hardware, software applications, and infrastructure required to effectively support business processes and meet organizational goals. It also involves considering the cost-effectiveness of the system and the level of risk associated with it.

Question 2

Your organization has asked you to prepare a compensation budget by taking into account the following variables: 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

Accepted Answer

The organization is using a bottom-up compensation budgeting process, as they are taking into account specific variables such as current employees' wages, anticipated merit increases, seniority increases, and expected turnover. This approach involves collecting input from lower-level managers or employees, as opposed to a top-down approach where upper-level management makes all budget decisions. A zero-based budgeting process would require a review of all expenses and would start from scratch, while a break-even budgeting process is focused on determining the point where revenue equals expenses.

Question 3

Central tendency is a phenomenon associated with a decline in performance shortly after the introduction of a new process or system.

Accepted Answer

Central tendency refers to the tendency of data to cluster around the middle or average value, and is not related to a decline in performance after the introduction of a new process or system.

Question 4

According to a recent survey of HR professionals, what is the predominant use of human resources management systems?
A) planning and research
B) time and attendance
C) payroll
D) benefits

Accepted Answer

The predominant use of human resources management systems, according to the survey, is payroll. Therefore, choice C is the best answer. Choices A, B, and D are incorrect based on the given information.

Question 5

In order to avoid resistance to a new compensation system, it a good practice to discontinue the usage of the old system before you have fully tested the new system. Otherwise, employees will gravitate to the old and familiar system. .

Accepted Answer

It is important to fully test a new compensation system before discontinuing the old one to ensure it works as intended and to minimize resistance by addressing any issues or concerns employees may have with the new system. Transitioning without proper testing can lead to significant problems and resistance.

Question 6

You work in a human resource department and have access to the personal health information of employees. A front line manager contacts you and requests that you look at an employee's file and let her know if there are any health issues that could explain an employee's "bizarre behaviour" (the employee seems extremely quiet). Which of the following actions should you do, so as to be compliant with Bill C-6?
A) Email the file to the manager but scrub it so only information that may be related to the "bizarre behaviour" is included.
B) Email the employee's file to the manager, including any health-related information you may have.
C) Do not share any health-related information with the manager, even if she tells you she is going to escalate the request.
D) Email the requested information but tell the manager not to share it with anyone.

Accepted Answer

The best choice is to not share any health-related information with the manager, even if she tells you she is going to escalate the request. Under Bill C-6, personal health information can only be shared for a specific purpose with the individual's consent or in limited circumstances outlined in the legislation. In this case, there is no indication that the employee has given consent for their health information to be shared with their manager and there are no indications that the limited circumstances outlined in the legislation apply. Therefore, it is not appropriate to share any health-related information with the manager in this scenario.

Question 7

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

Accepted Answer

Establishing accountability is not a direct component of compensation administration. Compensation administration primarily involves tasks related to managing employee pay and benefits, such as collecting necessary information, performing pay calculations, and preparing and distributing remittances. Accountability, while important in an organizational context, is more related to general management and governance practices rather than the specific administrative tasks associated with compensation.

Question 8

Often, organizations will contract out a portion of their benefits administration to "product providers."

Accepted Answer

It is common for organizations to outsource certain aspects of their benefits administration to specialized product providers such as insurance companies or third-party administrators.

Question 9

Information technology is particularly useful for pay and remittance calculations.

Accepted Answer

Information technology can automate the calculation of payments and remittances, making the process faster, more accurate, and more efficient.

Question 10

You work as a human resource professional at a large accounting firm in Ontario. Part of your mandate requires that you investigate processes that will streamline basic human resource functions, including remittance of pay stubs to employees. You are currently contemplating the notion of automating this process. What minimum requirements must you adhere to so as to make this process compliant with Bill 88?
A) Make the statements available via the company's intranet to employees.
B) Send out a quarterly summary to each employee via a "personalized email," and make the biweekly stubs available via the intranet.
C) It is impossible to be compliant with the act while automating the process.
D) On a biweekly basis, send out the statements to each employee via the company's email platform.

Accepted Answer

Bill 88 requires that employees receive their pay stubs in a timely and accessible manner. Sending out biweekly statements via the company's email platform ensures compliance by providing direct and regular access to pay information.

Question 11

Why is a bottom-up approach for compensation budgeting favoured by the textbook author?
A) Its simplicity is advantageous.
B) It supports the strategic pay notion.
C) It fits with other strategic aspects of the organization.
D) It is more compatible with new human resource information systems.

Accepted Answer

The textbook author favours a bottom-up approach for compensation budgeting because it supports the strategic pay notion, which aligns compensation with organizational strategy and goals. This approach involves gathering information from employees, managers, and other stakeholders to determine pay needs and preferences, which in turn informs compensation decision-making from the bottom up.

Question 12

In evaluating a new compensation system, two main sets of employee attitudes should be examined-job attitudes and compensation attitudes.

Accepted Answer

It is important to evaluate both job attitudes (such as job satisfaction and engagement) and compensation attitudes (such as perceptions of fairness and adequacy) when implementing a new compensation system. This can help ensure that the system is effective in both motivating and retaining employees.

Question 13

Organizations using a classical management strategy are the most likely to use a broad spectrum of employees when developing a plan to manage the implementation process.

Accepted Answer

Classical management theory focuses on a hierarchical structure with a clear chain of command and division of labor, which means that decisions are often made at the top level and are then passed down to be executed by lower-level employees. Therefore, organizations using a classical management strategy are less likely to use a broad spectrum of employees when developing a plan to manage the implementation process.

Question 14

Two aspects of compensation system documentation include the compensation system itself and a process to document assignment of specific tasks.

Accepted Answer

The statement is true. The compensation system documentation should include information about the compensation system itself as well as a clear process for assigning and documenting specific tasks and responsibilities related to compensation.

Question 15

One of the key functions associated with documentation of compensation systems is the establishment of service contracts with external service providers. Which of the following criteria is likely to be the most difficult to document in the contract?
A) addressing unforeseeable events
B) employer responsibilities
C) penalties for failing to meet standards
D) minimum performance standards

Accepted Answer

Addressing unforeseeable events is likely to be the most difficult to document in the contract as it is challenging to anticipate all possible circumstances that might arise during the service period. It is challenging to establish a clear framework for addressing unforeseeable events in the contract, which can lead to disputes if they occur. The other criteria (employer responsibilities, penalties for failing to meet standards, minimum performance standards) are more straightforward to document in the contract.

Question 16

Integrated human resource information systems can support and increase efficiencies associated with many routine activities once performed by human resource personnel. Which of the following activities is NOT conducive to automation via computer systems?
A) computing market lines and pay policies
B) determining the relative value of jobs
C) labour market data analysis
D) online surveys of employee attitudes

Accepted Answer

Determining the relative value of jobs is often a subjective process that requires input and evaluation from human resource personnel. While computer systems can provide data and analysis to support this process, ultimately it is up to the judgment of human resource professionals to determine the value of a particular job within an organization.

Question 17

Which of the following aspects would a human resource professional consider part of documenting the compensation system?
A) ensuring stakeholders have up-to-date job evaluation manuals
B) deciding to use an external service provider
C) designing job evaluation criteria that are valid and reliable
D) deciding on the compensation strategy

Accepted Answer

Documenting the compensation system involves ensuring that all relevant materials, such as job evaluation manuals, are current and accessible to stakeholders.

Question 18

In the bottom-up approach to compensation budgeting, an arbitrary amount is allocated to compensation and given to department managers for distribution to their employees.

Accepted Answer

In the bottom-up approach to compensation budgeting, compensation is determined by analyzing job roles, market trends, and employee performance, and then allocating appropriate amounts to departments and individual employees. It is not an arbitrary allocation.

Question 19

Because of complexity and resistance by stakeholders, computers have taken on a secondary role in communicating compensation policies and procedures

Accepted Answer

The statement is saying that computers have taken on a secondary role in communicating compensation policies and procedures, but based on current trends, this is false. In fact, technology and computer systems are becoming increasingly important in managing and communicating compensation policies and procedures.

Question 20

Of all the human resource functions, payroll activities were one of the first functions to be computerized in medium and large organizations in Canada.

Accepted Answer

Payroll activities were one of the first functions to be computerized in medium and large organizations in Canada, making the statement true.

Quiz 13: Activating and Maintaining an Effective Compensation System

What is a major issue for most organizations when planning for information technology?

Your organization has asked you to prepare a compensation budget by taking into account the following variables: current employees' wages, anticipated merit increases, seniority increases, as well as expected turnover. What kind of compensation budgeting process is your organization using?

Central tendency is a phenomenon associated with a decline in performance shortly after the introduction of a new process or system.

According to a recent survey of HR professionals, what is the predominant use of human resources management systems?

In order to avoid resistance to a new compensation system, it a good practice to discontinue the usage of the old system before you have fully tested the new system. Otherwise, employees will gravitate to the old and familiar system. .

Which of the following is NOT a component of compensation administration?

Often, organizations will contract out a portion of their benefits administration to "product providers."

Information technology is particularly useful for pay and remittance calculations.

Why is a bottom-up approach for compensation budgeting favoured by the textbook author?

In evaluating a new compensation system, two main sets of employee attitudes should be examined-job attitudes and compensation attitudes.

Organizations using a classical management strategy are the most likely to use a broad spectrum of employees when developing a plan to manage the implementation process.

Two aspects of compensation system documentation include the compensation system itself and a process to document assignment of specific tasks.

One of the key functions associated with documentation of compensation systems is the establishment of service contracts with external service providers. Which of the following criteria is likely to be the most difficult to document in the contract?

Integrated human resource information systems can support and increase efficiencies associated with many routine activities once performed by human resource personnel. Which of the following activities is NOT conducive to automation via computer systems?

Which of the following aspects would a human resource professional consider part of documenting the compensation system?

In the bottom-up approach to compensation budgeting, an arbitrary amount is allocated to compensation and given to department managers for distribution to their employees.

Because of complexity and resistance by stakeholders, computers have taken on a secondary role in communicating compensation policies and procedures

Of all the human resource functions, payroll activities were one of the first functions to be computerized in medium and large organizations in Canada.