HCM Unit 2

What are the main functions of Compensation Management?

• The Equity Function, The Welfare Function, The Motivation Function, The Retention Function

• The Equity Function, The Welfare Function, The Motivation Function, The Cost function

• The Welfare Function, The Motivation Function, The Retention Function, The Orville Function

• The Equity Function, The Retention Function, The Incentive Function, The Remuneration Function

What is the Equity Function in Compensation Management?

• Non-cash pay offered to employees

• Ensures employees are fairly paid

• Takes care of psychological needs

• Encourages employees to take challenges

What does the Welfare Function focus on?

• Psychological and social need satisfaction

• Career plans and training

• Retention of employees

• Equity in pay

What is the primary goal of the Motivation Function?

• To provide health insurance

• To ensure fair pay

• To encourage employees to take challenges

• To retain employees

What is the Retention Function in Compensation Management?

• To retain and develop the knowledge bank

• To ensure fair compensation

• To provide psychological support

• To encourage employee motivation

What is the formula for calculating the Consumer Price Index (CPI)?

• CPI = Total cost of basket of goods in current period / Total cost of basket of goods in base period × 100

• CPI = Total cost of basket of goods in base period / Total cost of basket of goods in current period × 100

• CPI = (Current price - Base price) / Base price × 100

• CPI = Total cost of goods / Number of goods

What is the importance of the Consumer Price Index (CPI)?

• Measures change in consumers' purchasing power

• Calculates the average salary of employees

• Determines the cost of living for employees

• Sets the base salary for new hires

What are the components of the CPI in India?

• Food And Beverages, Clothing And Footwear, Housing, Fuel And Light, Transport, Miscellaneous Items

• Housing, Transport, Education, Health

• Food, Clothing, Shelter, Education

• Food, Transport, Utilities, Entertainment

What is the difference between CPI and WPI?

• CPI measures consumer prices, WPI measures wholesale prices

• CPI is published monthly, WPI is published quarterly

• CPI is used for salary negotiations, WPI is not

• CPI is for urban areas, WPI is for rural areas

What is the formula for calculating the Consumer Price Index (CPI) using the Aggregate Expenditure Method?

• CPI = ∑P1. Q0∑P0. Q0 × 100

• CPI = ∑PW∑W

• CPI = ∑P0. Q0∑P1. Q0 × 100