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Question 2: You are the Director of XYZ Company. Identify three standard functionalities available to you
through Compensation Workbench Budgeting.
A. You may choose to pass down the budgets only to those managers reporting directly to you.
B. You may choose to pass down budgets to all the managers below you.
C. You cannot do budgeting using Compensation Workbench.
D. You may choose not to pass down budgets to the managers below you. Instead you can hold the
entire amount.
Correct Answer: A,B,D
Explanation
Budgeting in Compensation Workbench
Compensation Workbench provides two general styles of budgeting:
* Automatic Budgeting: use this type of budget if you predetermine budgets prior to giving managers
access.
For example, you enter a budget of 7.5% for all managers in the west, and 10% for all managers in
the east.
Auto-issuing budgets gives the compensation professional control over the amount a manager can
allocate to reporting employees and creates a uniform compensation distribution across the
enterprise. You can set up variable rate profiles to vary the flat percentage or amount based on a
variety of eligibility criteria such as location.
* Roll-Down Budgeting: use this type of budget if you predetermine the initial budget only, and line
managers complete the budgeting task. As a compensation administrator, you publish the initial
budget with the highest-level manager, or with multiple lower managers. Managers roll the budgets
down the hierarchy by distributing the budget. Managers decide the level to which they want the
budget to trickle down by selecting the budgeting method on the Budget Task.
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