Compensation Management - 14

Question Documents used for wage analysis are :-
Answer Wage sheets , Job cards
Question Indirect compensation mainly acts as :-
Answer Maintenance factor
Question The lacuna which led to the introduction of 'Employee's
Deposit Linked Insurance Scheme' did not have effect from :-
Answer 7th of March 1971 , 3rd of March 1971 , 2nd of March 1971
Question Source documents for preparations of wages are :-
Answer Daily time sheet , Weekly time sheet. , Attendance register.

Question Following are causes of idle time of labour pertaining to
administration :-
Answer Poor management , Management policy
Answer Managerial attitude
Unskilled worker Lower compensation Lower compensation

Good compensation system Avoid exploitation Higher skills

High demand & Low supply High compensation High compensation

Equal work Equal pay Equal pay

Question Employees in the railways are entitled of payment of wages
Act, 1936 who are drawing wages and salaries below :-
Answer Rs. 1600/- a month
Question In the case of salary income, it is important that there
should be a :-
Answer Relation of employer and employee
Question Disadvantage of maintaining hand written register for
attendance is :-
Answer Depends upon honesty.
Question Ratio of number of persons over 4 years of service at
present to present total employees is called ________
Answer Skill dilution index
Question ________ is a source document for preparation of wage sheet.
Answer Attendance Register
Question Financial &/or quantitative statement prepared & approved
prior to period of time is called :-
Answer Budget
Question Group incentive payments are :-
Answer Less than individual ones
Question In profit-sharing plan, employees :-
Answer Work more diligently , Try to achieve higher profits ,
Fulfill entirely their responsibilities
Question Every worker is ensured the minimum payment in :-
Answer Piece rate & time rate combination
Question In the history of Indian IT industry, the year 2001-2002
will be remembered as ________.
Answer Year of lay-offs
Question Carpenters engaged in cutting of wood in a furniture making
shop is an example of :-
Answer Direct labour
Question Time rate systems are :-
Answer Ordinary level , High wage level , Graduated time rates
Question After deducting depreciation and initial or development
rebate from profit, we arrive at ________.
Answer Surplus profit
Question Any other amenity or service excluded from the computation
of wages by a general or special order of appropriate Govt.
Answer False
Question Taylor differential piece rate system is difficult to
understand and implement.
Answer False
Question Employees are paid incentives on 'Output' basis if :-
Answer Units of output can be measured , Direct relationship
between employee efforts and quantity of output , Jobs are standardised
Your Answer Units of output can be measured , Direct relationship
between employee efforts and quantity of output , Jobs are standardised


Question Wage differentials have been classified into ________
categories.
Answer 3
Question Compensation policy does not need criteria for promotions.
Answer False
Question ________ is financial / quantitative statement prepared &
approved prior to a period of time.
Answer Budget
Question Halsey Premium plan is a combination of the day wage & piece
wage in modified form.
Answer True
Question Employees are paid incentives on 'Time' basis if :-
Answer Units of output are difficult to measure , Delays in work
are frequent , Quality is prime consideration
Question In profit-sharing plan, the proportion of profits to be
distributed among the employees is determined :-
Answer In advance
Question Direct labour cost varies in proportion to output of
production.
Answer False
Question First to lay down the guidelines for fixation of Minimum
Wages was :-
Answer Indian Labour Conference
Question Within the factory group promotion is important.
Answer False
Question There are many methods that an alive ________ management can
creatively develop for employees rendered redundant through little
forethought.
Answer HRD
Question Wage structure is made flexible according to the changes in
the price level and ________.
Answer Working efficiency
Question Remuneration paid for the service of the labour in
production is :-
Answer Wage
Question Various enactments that are applicable to employees of
organization are :-
Answer Payment of Gratuity Act , Payment of Bonus Act , Employee's
Provident Fund & Misc. Provisions Act
Question Salary is still the only or chief motivator for IT
employees.
Answer False
Question Time rate system at ordinary level is suitable where :-
Answer Quality of output is of great importance , Quantitative
measurement of work is not possible , Production unit is small
Question If the same or about the same general rates of wages were
not paid to the employees as were paid by the organisation's competitors, it
would not be able to attract and maintain a sufficient quantity and quality
of manpower.
Answer False
Question Which of the following are used to compensate major
executives?
Answer Straight salaries , Bonuses , Profit sharing
Question Direct labour costs are included in cost of production of
each unit.
Answer True
Wage disbursement Actual payment of remuneration Payment on vouchers

Attendance Register Input to payroll process Actual payment of
remuneration

Pay slips Output of payroll process Output of payroll process

Journal entry Amounts of debit & credit Amounts of debit & credit

Question ________ cost do not vary much in proportion to output or
volume of production.
Answer Direct Labour
Question The total of direct material, direct labour, direct expenses
is called :-
Answer Prime cost
Question If workers do not understand relationship between
performance and rewards, incentive plans cannot motivate workers.
Answer True
Question Overtime payment given to the worker for completing work
before scheduled date art the instruction of buyer is treated as ________
cost
Answer Direct
Question Contribution to the P.F. have to be remitted along with the
challan for Account No.:-
Answer 2 , 21 , 10

Question Surprise check on calculation & disbursement of payments is
necessary to avoid any fraud.
Answer True
Question Dotcom companies were founded to go beyond :-
Answer Physical business
Question Piece workers come under ________ class of workers.
Answer Semi - skilled
Question Persons interested in enhancing their reputations and
receiving recognition may respond to ________.
Answer Verbal praise
Question Direct labour costs are included in cost of production of
each unit.
Answer True
Question In co-partnership Incentive system, there is division of :-
Answer Surplus profit
Question Wage & salary administration refers to the establishment and
implementation of sound policies and practices of employee :-
Answer Compensation
Question Remuneration paid for the service of the labour in
production is :-
Answer Wage
Question Which of the following are used to compensate major
executives?
Answer Straight salaries , Bonuses , Profit sharing
Question Carpenters engaged in cutting of wood in a furniture making
shop is an example of :-
Answer Direct labour
Question Employee's State Insurance Act, ________ is a pioneering
measure in the field of social insurance of our country.
Answer 1948
Question Following are avoidable causes of employees turnover :-
Answer Unsatisfactory pay package , Absence of job satisfaction
Francis A Walker 1840 - 1897 1849 - 1883

David Ricardo 1772 - 1823 1723 - 1790

Adam Smith 1723 - 1790 1728 - 1794

Karl Marx 1849 - 1883 1772 - 1823

Question Marriages were supposed to be made in :-
Answer Heaven
Question Wage differentials are of following factors :-
Answer Difference in labour efficiency , Social esteem , Occupation

Question In India, Group incentive plans face problems like :-
Answer High norms of standard work , Illiterate workforce ,
Numerous slabs in rate structure
Question HR or Personnel department realises the relative worth of
jobs by :-
Answer Job evaluation
Question Scanlon plan of profit sharing aims at :-
Answer Reduction of cost of operation of increased production ,
Sharing in gains , Workers participation
Question Ratio of number persons over 4 years of service at present
to total employed 4 years ago is called ________
Answer Skill wastage index
Question To minimize disparity in wages & levels, following act is
passed :-
Answer Minimum wages Act
Question In developmental phase, the dotcom companies concentrate on
:-
Answer Building brand
Question Employees are paid incentives on 'Output' basis if :-
Answer Units of output can be measured , Direct relationship
between employee efforts and quantity of output , Jobs are standardised
Question Compensation system should reduce ________.
Answer Employee turnover
Question Article 43 reads: State shall endeavour to secure by
suitable legislation to all :-
Answer Agricultural workers , Industrial , Working in a living wage

Question To perform a ________ function by way of determining the
social status of workers.
Answer Social
Question If workers do not understand relationship between
performance and rewards, incentive plans cannot motivate workers.
Answer True
Question Sequence of operations for a job is clear in case of :-
Answer Job cards.
Question Level II in senior managers include or comprises of :-
Answer General Manager , Senior General Manager , Deputy General
Manager
Question Group incentive plans are best suited for :-
Answer Small work groups
Question compensation should be ________ efficiency & result .
Answer Directly proportional
Question IT jobs still remain the best paying jobs in the country.
Answer True
Good compensation system Avoid exploitation Avoid exploitation

High demand & Low supply High compensation High compensation

Equal work Equal pay Equal pay

Unskilled worker Lower compensation Lower compensation

Question If the idle time is controllable and normal, its cost is
treated as ________ cost.
Answer Indirect
Question Life and Medical insurance or reimbursement of medical bills
is considered as a part of ________.
Answer Perks
Question Overtime paid because of inefficiency of other department is
charged to the job.
Answer False
Question Effectiveness of incentive system is ascertained with the
help of :-
Answer Efficiency report.
Question Demerits of time rate system at ordinary level are :-
Answer No distinction between efficient and inefficient workers at
regards output , Increase the cost of production in case of low productivity

Question Job analysis describes :-
Answer Duties , Responsibilities , Working conditions
Question A good incentive scheme should have :-
Answer Elasticity , Parity , Less operational costs
Question Employee turnover rate focuses on stability of employee in
the organisation.
Answer False
Question Employees cost to the company includes :-
Answer Basic wages , Incentives
Question The cost of time lost in strikes is charged to Profit & Loss
Account.
Answer True
Question When a dotcom company starts earning profits, promoters are
focused on the launch of:-
Answer IPO
Question The total of direct material, direct labour, direct expenses
is called :-
Answer Prime cost
Question Insurance of a worker is a part of gross salary.
Answer False
Question At germination stage, to attract and retain talent, dotcom
companies offer :
Answer Stock option
Question The ________ criterion is usually regarded as an automatic
minimum equity pay criterion.
Answer Cost of living pay

Posted in: Compensation Management (Set - 5)