Take Another Quiz

Compensation

120 Questions
Compensation

Questions and Answers
  • 1. 
    A career is defined as _______
    • A. 

      A sequence of promotions or upwards moves in a company over a person’s working life.

    • B. 

      A profession.

    • C. 

      A lifelong sequence of jobs.

    • D. 

      The individual sequence of attitudes and behavior associated with work-related experiences

  • 2. 
    The expectations that employers and employees have about each other is called a
    • A. 

      Psychological contract.

    • B. 

      Protean career.

    • C. 

      Psychological success.

    • D. 

      Career plateau.

  • 3. 
    Sixty percent of all age groups rated __________as reasons for staying with a company. 
    • A. 

      Time and flexibility

    • B. 

      High-wages

    • C. 

      Child care and health care

    • D. 

      Challenging and meaningful work

  • 4. 
    ________is the process by which employees progress through a series of stages, each characterized by a different set of developmental tasks, activities, and relationships.
    • A. 

      Continuous learning

    • B. 

      Career development

    • C. 

      Holland’s Work Growth cycle

    • D. 

      The protean career

  • 5. 
    The second step of the career management process is ______
    • A. 

      Reality check

    • B. 

      Self-assessment

    • C. 

      Action planning

    • D. 

      Goal setting

  • 6. 
    All but one of the following is true of protean careers. Name the exception.
    • A. 

      Protean careers are characterized by frequent changes due to both changes in the person's interests, abilities and values and changes in the work environment

    • B. 

      Employees take greater responsibility for managing protean careers than for traditional careers

    • C. 

      Protean careers have substantially increased companies' training and compensation costs


    • D. 

      Changes in the psychological contract between the employees and company have influenced the development of protean careers

  • 7. 
    Performance appraisals provide information most relevant to _________
    • A. 

      Goal setting.

    • B. 

      Self-assessment

    • C. 

      Reality check.

    • D. 

      Action planning.

  • 8. 
    Which of the following is not a manager’s role in career management?
    • A. 

      Coaching

    • B. 

      Requesting information from other company sources

    • C. 

      Seeking challenge

    • D. 

      Counseling

  • 9. 
    Turnover rates and quality of job candidates are examples of measures of success of career management systems.
    • A. 

      True

    • B. 

      False

  • 10. 
    The generational age cohorts have very different desires for security and the ability to balance work and personal life.
    • A. 

      True

    • B. 

      False

  • 11. 
    Disadvantages of individual incentive plans include all but _________
    • A. 

      Reduced ability to predict labor costs

    • B. 

      Increases complaints about equipment maintenance

    • C. 

      Increased turnover among new employees

    • D. 

      Greater conflict between management and workers

  • 12. 
    Which of the following is not true of lump-sum bonuses? 
    • A. 

      They help maintain competitive pay position relative to competitors

    • B. 

      They are less expensive than merit pay

    • C. 

      Employees dislike them

    • D. 

      They are a more visible reward than merit pay they are a more visible reward than merit pay they are a more visible reward than merit pay they are a more visible reward than merit pay

  • 13. 
    The common feature to all types of incentive plans is ____________
    • A. 

      A standard of performance used to determine magnitude of incentive pay

    • B. 

      A sharing formula between worker and employer

    • C. 

      Penalties for poor performance

    • D. 

      Limits on magnitude of incentive pay

  • 14. 
    Straight piecework is to Taylor differential piece-rate as standard hour plan is to ________________
    • A. 

      Gantt plan

    • B. 

      Rowan plan

    • C. 

      Halsey 50-50 method

    • D. 

      Any of the above

  • 15. 
    Which of the following is not an advantage of team incentives?
    • A. 

      Stimulates problem solving

    • B. 

      May better reflect how work is performed

    • C. 

      Encourages competition between teams

    • D. 

      Minimizes distinctions between team members

  • 16. 
    _________________ offer(s) a reward pool based upon achieving performance targets and communicates organizational priorities.
    • A. 

      The balanced scorecard

    • B. 

      Stock options

    • C. 

      Deferred profit sharing

    • D. 

      Cash profit sharing

  • 17. 
    A team leader with a free rider problem could maximize performance by _____________
    • A. 

      Instructing them to do their best

    • B. 

      Specifying performance levels and due dates

    • C. 

      Assigning another team member to monitor their performance

    • D. 

      Punishing free riders who fail to meet standards

  • 18. 
    All but which of the following is a condition supporting use of individual incentives?
    • A. 

      Task accomplishment is independent of others

    • B. 

      The worker has a strong commitment to their profession

    • C. 

      Production methods and labor mix are stable

    • D. 

      Presence of a union

  • 19. 
    In gain sharing plan formulas, ______________ is(are) the numerator and ____________ the denominator.
    • A. 

      Productivity measures, inputs

    • B. 

      Productivity measures, labor inputs

    • C. 

      Costs and scrap rate, revenues

    • D. 

      Labor inputs, productivity measures

  • 20. 
    The percent of companies using some form of variable pay is declining because many employees prefer base wages.
    • A. 

      True

    • B. 

      False

  • 21. 
    _______________ is preferable to most employees.
    • A. 

      Profit sharing

    • B. 

      Lump-sum bonuses

    • C. 

      Gain sharing

    • D. 

      Risk-sharing

  • 22. 
    From discussion of the behavior = f (M, A, E) model, one may conclude that while other HR functions are important, compensation has the greatest effect on influencing employee behavior.
    • A. 

      True

    • B. 

      False

  • 23. 
    Growing evidence suggests that the major effect of skill-based pay is ______________
    • A. 

      High productivity

    • B. 

      Reduced labor costs

    • C. 

      High quality products

    • D. 

      Low training costs

  • 24. 
    Organizations using performance appraisal systems tied to both pay increases and promotions, _______________ than organizations without such a system.
    • A. 

      Were not significantly different

    • B. 

      Had sales averaging $27,000 more per employee

    • C. 

      Had 20% higher profits

    • D. 

      Had 15% lower turnover

  • 25. 
    Which of the following wage components has the clearest line of sight for employees?
    • A. 

      Profit sharing

    • B. 

      Gain sharing

    • C. 

      Merit pay

    • D. 

      Lump-sum bonus

  • 26. 
    ______________ is the belief that when a specified level of job performance is attained, the employee will receive a specified reward.
    • A. 

      Valence

    • B. 

      Expectancy

    • C. 

      Instrumentality

    • D. 

      Utility

  • 27. 
    According to expectancy theory, effort level depends on which of these factors?     (1)  expectancy      (2)  valence      (3)  instrumentality      (4)  reward      (5)  goals
    • A. 

      1,2,3

    • B. 

      2,3,4

    • C. 

      1,4,5

    • D. 

      2,5,4

  • 28. 
    Theories dealing with exchange include ____________
    • A. 

      Maslow and Herzberg

    • B. 

      Equity and agency

    • C. 

      Expectancy and reinforcement

    • D. 

      Goal setting and equity

  • 29. 
    Compensation should reinforce all but which of the following behaviors?
    • A. 

      Attracting and hiring good employees

    • B. 

      Keeping turnover to nearly zero

    • C. 

      Encourage skill development

    • D. 

      Motivate high job performance

  • 30. 
    A key factor in increasing trust in top management is ____________
    • A. 

      An acceptable appraisal system

    • B. 

      High base pay

    • C. 

      Stock options

    • D. 

      A well-designed piece rate system

  • 31. 
    Benchmark jobs have all of the following characteristics except ___
    • A. 

      Small but stable portion of the work force is employed in these jobs

    • B. 

      They represent the entire job structure under study

    • C. 

      They are common across employers

    • D. 

      Their contents are well known and relatively stable

  • 32. 
    The answer to the question of how many firms to include in a pay survey is __________
    • A. 

      There are no firm rules

    • B. 

      Include at least one-hundred

    • C. 

      Focus primarily on labor-market competitors

    • D. 

      The top 50 percentile of similar sized firms

  • 33. 
    A company using a skill-based pay system prices the job of lead assembler at between $10 and $22 per hour. Survey data showed the job assembler averaged $10 per hour and the job of assembly supervisor at $22 per hour. The company was using the _________ method of job matching.
    • A. 

      Benchmark job

    • B. 

      Low-high

    • C. 

      Pay range

    • D. 

      Benchmark conversion

  • 34. 
    The purpose of collecting data on number of employees in a pay survey is to ____________
    • A. 

      Indicate how the business is organized

    • B. 

      Estimate the ability to pay

    • C. 

      Estimate the organization’s impact on the labor market

    • D. 

      Indicate staffing patterns

  • 35. 
    The process of multiplying survey data by some factor judged to reflect the difference between a survey benchmark job and a company job is called _______________
    • A. 

      Updating

    • B. 

      Point factor adjustment

    • C. 

      Lead/lag policy adjustment

    • D. 

      Survey leveling

  • 36. 
    Because employers are raising employee pay at various times during the year, survey data must be updated using a process called _______ or __________
    • A. 

      Ageing, trending

    • B. 

      Ageing, smoothing

    • C. 

      Trending, leveling

    • D. 

      Gaining, smoothing

  • 37. 
    A market pay line _________
    • A. 

      Reflects an organization's internal alignment policy

    • B. 

      Links a company's benchmark jobs with market rates paid by competitors

    • C. 

      Provides an accurate prediction of an organization's entry level pay rates

    • D. 

      Compares an organization's minimum and maximum pay rates for each skill level

  • 38. 
    An organization that has a match (pay) policy will pay its employees
    • A. 

      The market rate each month for the duration

    • B. 

      More than the market rate for some months and less than the market rate for the other months

    • C. 

      At the 100th percentile of the market rate obtained through the wage/salary survey

    • D. 

      At the 50th percentile of the market rate obtained through the wage/salary survey

  • 39. 
    In the regression equation, y =a + bx, job evaluation points are ___
    • A. 

      A

    • B. 

      B

    • C. 

      X

    • D. 

      Y

  • 40. 
    Which of the following are not advantages or characteristics of broad bands?
    • A. 

      Managers have freedom to manage a pay budget

    • B. 

      Employees can move laterally across functions

    • C. 

      Eases acquisitions and mergers

    • D. 

      Controls are designed into the system

  • 41. 
    If you were seeking a job, which of the following is most likely to offer the highest pay?
    • A. 

      A large health care company

    • B. 

      A large (over 500 employees) petroleum company

    • C. 

      A small (under 100) clothing retailer

    • D. 

      A small manufacturer

  • 42. 
    In which of the following pay-mixes are bonuses and options the smallest?
    • A. 

      Performance driven

    • B. 

      Market match

    • C. 

      Security or commitment

    • D. 

      Work-life balance

  • 43. 
    If Company A raises its pay rate one dollar per hour to hire additional workers and competitors immediately match the increase, what is the most likely result?
    • A. 

      Higher labor costs for Company A, but no more workers

    • B. 

      Company A will hire the needed workers at the higher wage rate

    • C. 

      Competitors will lose employees to Company A

    • D. 

      Company A will hire higher quality workers

  • 44. 
    Research on efficiency wage theory shows ______________
    • A. 

      More unqualified workers apply

    • B. 

      Disciplinary layoffs are higher

    • C. 

      More supervision is required

    • D. 

      4. profits are not related 4. profits are not related profits are not related

  • 45. 
    ________________ theory is the most influential in explaining pay-level differences.
    • A. 

      Human capital

    • B. 

      Marginal productivity

    • C. 

      Efficiency wage

    • D. 

      Signaling

  • 46. 
    ____________ sets a maximum pay level an employer can pay.
    • A. 

      Government legislation

    • B. 

      The product market

    • C. 

      The labor market

    • D. 

      Labor market competitors

  • 47. 
    All of the following except ___________ is an important factor in defining a market for compensation purposes.
    • A. 

      Skill/knowledge required

    • B. 

      Geography

    • C. 

      Ability to pay

    • D. 

      Product and/or labor market competitors

  • 48. 
    The study referred to in the text on how managers make wage adjustment decisions found:
    • A. 

      Level of unemployment had a major effect

    • B. 

      Profitability affected the overall pay budget

    • C. 

      Managers believed efficiency wage theory

    • D. 

      Managers believed higher pay makes supervision easier

  • 49. 
    The pay policy associated with increased productivity is ___________
    • A. 

      Lead

    • B. 

      Lag

    • C. 

      Hybrid

    • D. 

      Employer of Choice

  • 50. 
    Most organizations pay about the same for the same job requiring similar education and experience.
    • A. 

      True

    • B. 

      False

  • 51. 
    Which of the following occupational groups are not likely to be categorized as exempt.
    • A. 

      Administrative

    • B. 

      Professional

    • C. 

      Managerial

    • D. 

      Clerical

  • 52. 
    The minimum wage that must be paid for work done on covered government projects or purchases is defined by the government as the ___________ wage.
    • A. 

      Negotiated

    • B. 

      Average area

    • C. 

      Prevailing

    • D. 

      Average union

  • 53. 
    The concept of comparable worth has been implemented in a few state and municipal governments.
    • A. 

      True

    • B. 

      False

  • 54. 
    The primary sources of the race/ethnic pay gap are differences in __________
    • A. 

      Work-related behaviors and union differences

    • B. 

      Qualifications and occupations

    • C. 

      Firms and industries

    • D. 

      Labor markets and discrimination

  • 55. 
    All of the following except _________ are provisions of the 1938 Fair Labor Standards Act.
    • A. 

      Prohibition of hazardous work

    • B. 

      The minimum wage

    • C. 

      Prohibition of child labor

    • D. 

      Hours of work

  • 56. 
    Factors such as shift differential, temporary assignment and training programs are examples of __________
    • A. 

      Working conditions

    • B. 

      “essential functions”

    • C. 

      Factors other than sex

    • D. 

      Bases of substantially equal

  • 57. 
    Which of the following is not one of the steps in establishing a comparable worth pay plan?
    • A. 

      Adopt a single, “gender neutral” point job evaluation plan for all jobs within a unit

    • B. 

      All jobs with equal job evaluation points should be paid the same

    • C. 

      Identify the percentages of male and female employees in each job group

    • D. 

      Base the wage-to-job evaluation point ratio on wages paid for female dominated jobs

  • 58. 
    Employers were more likely to offer bonuses, gain-sharing and stock options after the passage of _____________
    • A. 

      The FLSA

    • B. 

      The Davis-Bacon Act

    • C. 

      Sarbanes-Oxley Act

    • D. 

      Worker Economic Opportunity Act

  • 59. 
    Because relatively few people are paid minimum wage, raising the minimum wage does not affect pay structures.
    • A. 

      True

    • B. 

      False

  • 60. 
    Regarding pay differences for different jobs, ________
    • A. 

      There is considerable acceptance of comparable worth

    • B. 

      The courts favor reliance on use of unbiased job analysis results

    • C. 

      Court decisions have been inconclusive

    • D. 

      Courts continue to uphold use of market data to justify differences

  • 61. 
    The main advantage of skill-based pay plans is _____
    • A. 

      The line of sight is clear

    • B. 

      They aid matching workers to the work flow

    • C. 

      They are less expensive than job-based plans

    • D. 

      Courts view them very favorably

  • 62. 
    Competencies are better at ____________ than _______
    • A. 

      Developing an internal pay structure, the point method.

    • B. 

      Serving as an objective basis for pay, developing employees.

    • C. 

      Serving as an objective basis for pay, distinguishing typical from outstanding performance.

    • D. 

      Distinguishing typical from outstanding performance, serving as an objective basis for pay.

  • 63. 
    ___________ are to certification process as job evaluation is to factor degrees and weights.
    • A. 

      Skill blocks

    • B. 

      Competency sets

    • C. 

      Skill analysis

    • D. 

      Core competencies

  • 64. 
    The most important factor determining success of a skill-based pay plan is ______________________
    • A. 

      Impact on labor costs

    • B. 

      How well it aligns with the organization strategy

    • C. 

      Stakeholder satisfaction with the plan

    • D. 

      Ts effect on productivity

  • 65. 
    One of the best ways to ensure that job evaluation plans are as free from sex bias as possible is _______________
    • A. 

      Define compensable factors and scales to include content of jobs held predominantly by women

    • B. 

      Use market pricing

    • C. 

      Use the same evaluators for all jobs

    • D. 

      Use an outside consultant do the evaluation

  • 66. 
    Which of the following is least likely to be used as a skill-based certification method?
    • A. 

      Tests

    • B. 

      College degree


    • C. 

      Peer review

    • D. 

      On-the-job demonstration

  • 67. 
    Skill-based plans tend to work best in organizations using ________________ strategy. 

    • A. 

      An innovator

    • B. 

      A defender

    • C. 

      A laissez-faire


    • D. 

      Cost-cutter

  • 68. 
    Reliability of job evaluations may be measured by:
    • A. 

      Determining if different evaluators produce similar results.

    • B. 

      Asking the question: "What does the evaluation measure?"


    • C. 

      Determining "hit rates"


    • D. 

      Surveying employee attitudes about the evaluation.

  • 69. 
    An inappropriate way to assess the acceptability of a job evaluation plan and its resulting job structure is __________________.
    • A. 

      Examine the number of formal appeals

    • B. 

      Examine the number of requests for reanalysis

    • C. 

      Conduct employee attitude surveys

    • D. 

      Examine the number of job offers not accepted

  • 70. 
    In a skill-based pay system, workers with greater seniority and experience receive higher pay.
    • A. 

      True

    • B. 

      False

  • 71. 
    _____________ is the process of systematically determining the relative worth of jobs for the purpose of creating an organization’s job structure.
    • A. 

      Performance evaluation

    • B. 

      Job analysis

    • C. 

      Job evaluation

    • D. 

      Point factor evaluation

  • 72. 
    Which of the following is not an appropriate basis for evaluating the worth of jobs to an organization?
    • A. 

      Worker performance

    • B. 

      External market

    • C. 

      Skills required

    • D. 

      Organizational culture

  • 73. 
    Which of the following is not a characteristic of a benchmark job.
    • A. 

      Not unique to a particular employer

    • B. 

      A moderate number of employees perform this job

    • C. 

      The pay level is typical of the industry

    • D. 

      Content of the job relatively stable over time

  • 74. 
    All of the following are advantages of the ranking method of job evaluation except ___________
    • A. 

      Rankings are easy to defend and justify

    • B. 

      The evaluation process is fast

    • C. 

      The evaluation process is inexpensive

    • D. 

      The evaluation process is not complex

  • 75. 
    A company changes its strategy to be more “lean” and efficient. What if anything should the company do about the compensable factor “scope of responsibility” that is measured by number of subordinates?
    • A. 

      Nothing since the factor has no effect on strategy

    • B. 

      Change the factor name to “depth of responsibility” and measure it the same

    • C. 

      Remove the factor

    • D. 

      Reduce the weight of the factor

  • 76. 
    Which of the following is not a generic compensable factor used to determine equal work in the Equal Pay Act?
    • A. 

      Skill

    • B. 

      Working conditions

    • C. 

      Knowledge

    • D. 

      Effort

  • 77. 
    The best single compensable factor for creating a job structure, is ________
    • A. 

      Problem solving

    • B. 

      Accountability

    • C. 

      Responsibility

    • D. 

      Skill

  • 78. 
    A compensable factor of effort has a weight 30% and has two sub-factors, physical and mental. Mental has a degree rating of 4. How many points does the mental effort receive?
    • A. 

      120

    • B. 

      60

    • C. 

      40

    • D. 

      30

  • 79. 
    A hospital would most likely have one job evaluation plan rather than multiple plans because a single plan best fits the workflow.
    • A. 

      True

    • B. 

      False

  • 80. 
    The primary criterion for scaling compensable factors is use the number of degrees necessary to distinguish among jobs.
    • A. 

      True

    • B. 

      False

  • 81. 
    Which of the following is not one of the major decisions in job analysis?
    • A. 

      What information is needed?

    • B. 

      How to collect information?

    • C. 

      Which competitors to include?

    • D. 

      How useful are the results?

  • 82. 
    The method of job analysis claimed to be able to analyze any job is __________
    • A. 

      PAQ

    • B. 

      Task inventory

    • C. 

      Task element questionnaire

    • D. 

      Open-ended interview

  • 83. 
    Job analysis is important for both managers and employees because it is
    • A. 

      The basis for a work-related rationale for pay differences

    • B. 

      An important result of the job evaluation process

    • C. 

      Required under the Fair Labor Standards Act

    • D. 

      Required for performance appraisal

  • 84. 
    “Responsible for ensuring that accurate information is provided to customers” is an example of a ________________
    • A. 

      Task

    • B. 

      Task statement

    • C. 

      Task dimension

    • D. 

      Job

  • 85. 
    “Essential elements” refers to _______________
    • A. 

      Tasks that are most important for job success

    • B. 

      Activities and duties rated critical by management

    • C. 

      Tasks that can not be reassigned to other workers

    • D. 

      Highly rated tasks in a task inventory

  • 86. 
    One of the best reasons to involve employees and supervisors in the job analysis process is to ___________________
    • A. 

      Reduce costs

    • B. 

      Meet Fair Labor Standards Act requirements

    • C. 

      Increase reliability

    • D. 

      Increase employee acceptance

  • 87. 
    “Does the analysis create an accurate perception of the work?” is a question answered by ______________ .
    • A. 

      Reliability

    • B. 

      Validity

    • C. 

      Acceptability

    • D. 

      Usefulness

  • 88. 
    All but which of the following affects reliability of job analysis?
    • A. 

      Experience level of incumbents

    • B. 

      Performance level of incumbents

    • C. 

      Gender and race differences

    • D. 

      All of the above affect reliability

  • 89. 
    Broad, generic job descriptions increase the flexibility of a job structure.
    • A. 

      True

    • B. 

      False

  • 90. 
    When job analysis shows managers and employees disagree on parts of a job, what is the best answer?
    • A. 

      Collect more data

    • B. 

      Use quantitative job analysis

    • C. 

      Refer the problem to the compensation committee

    • D. 

      Use an experienced compensation consultant

  • 91. 
    __________________ addresses how pay design and administration issues are made and the consistency of pay procedures.
    • A. 

      External equity

    • B. 

      Distributive justice

    • C. 

      Procedural justice

    • D. 

      Internal alignment

  • 92. 
    ______________ refers to rules and procedures that determine pay for different jobs in an organization and allocates employees among these jobs.
    • A. 

      Job evaluation

    • B. 

      Pay structure

    • C. 

      HR policies

    • D. 

      Internal labor market

  • 93. 
    Common bases for modern pay structures include all but which of the following?
    • A. 

      Content of the work

    • B. 

      Skills and knowledge required to perform the work

    • C. 

      Seniority and experience

    • D. 

      Relative value for achieving organizational objectives

  • 94. 
    The most common bases for determining internal structures are:
    • A. 

      Work content and it value

    • B. 

      Seniority and experience

    • C. 

      Use value and exchange value

    • D. 

      Pay surveys and job evaluation

  • 95. 
    5. The pay for the job of accountant in London, Los Angles and Berlin is likely to be different due to
    • A. 

      Use value

    • B. 

      Currency exchange rates

    • C. 

      Demand and supply

    • D. 

      Exchange value

  • 96. 
    Which of the following is not a factor in defining equal work in the Equal Pay Act?
    • A. 

      Skill

    • B. 

      Effort

    • C. 

      Knowledge

    • D. 

      Working conditions

  • 97. 
    Which of the following pay structure procedures would not increase perceptions of pay fairness?
    • A. 

      Consistency across all employees

    • B. 

      Use of accurate data

    • C. 

      Consultants develop the pay structure

    • D. 

      An appeals procedure is available

  • 98. 
    Organizations in a turbulent and unpredictable environment requiring flexibility in jobs and work processes are likely to be more successful with a ________________ internal pay structure.
    • A. 

      Egalitarian

    • B. 

      Bureaucratic

    • C. 

      Loosely coupled

    • D. 

      Closely tailored

  • 99. 
    Which of the following is not true?
    • A. 

      Large pay differences in a top management team are associated with high turnover.

    • B. 

      Egalitarian structures are a better fit for executive groups that need to work closely as a team.

    • C. 

      Large raises with a promotion increases effort and reduces absenteeism.

    • D. 

      Tournament theory raises performance of the top performers but reduces motivation of poorer performers.

  • 100. 
    In practice, pay differentials and pay levels mean basically the same thing.
    • A. 

      True

    • B. 

      False

  • 101. 
    The primary reason compensation is important to managers is because:
    • A. 

      Employees regard it as a reward

    • B. 

      It influences employee behavior

    • C. 

      It is a larger cost than benefits

    • D. 

      Stock holders dislike high compensation costs

  • 102. 
    The pay policy choice with the greatest effect on employee perceptions of fairness of pay with other workers in their organization is:
    • A. 

      Internal alignment

    • B. 

      External competitiveness

    • C. 

      Contributions

    • D. 

      Management

  • 103. 
    Which form of pay is likely to be least expensive for employers?
    • A. 

      Incentive

    • B. 

      Merit

    • C. 

      Cost-of-living adjustments

    • D. 

      Across the board pay increases

  • 104. 
    In the pay model, costs are to management as __________ is to alignment.
    • A. 

      Work analysis

    • B. 

      Communication

    • C. 

      Surveys

    • D. 

      Merit guidelines

  • 105. 
    Managers seek internal alignment within their organization by:
    • A. 

      Matching competitors’ pay rates

    • B. 

      Following FLSA guidelines

    • C. 

      Using fair merit increases

    • D. 

      Paying on the basis of similarities among jobs

  • 106. 
    Questions such as should a job be paid at a flat rate and should pay for performance be emphasized are part of which pay policy choice?
    • A. 

      Internal alignment

    • B. 

      External competitiveness

    • C. 

      Contributions

    • D. 

      Management

  • 107. 
    ______________ are most likely to seek lower labor costs?
    • A. 

      Shareholders

    • B. 

      Employees

    • C. 

      Managers

    • D. 

      Goverments

  • 108. 
    An inclusive categorization of total returns includes:
    • A. 

      Benefits and cash compensation

    • B. 

      Relational returns and cash compensation

    • C. 

      Total compensation and relational returns

    • D. 

      Benefits and relational returns

  • 109. 
    Which of the following is not an objective of external competitiveness pay decisions?
    • A. 

      Attracting applicants

    • B. 

      Keeping product costs competitive

    • C. 

      Retaining employees

    • D. 

      Maintain perception of fairness of rewards

  • 110. 
    You have just read a research article about the effects of a type of lottery to reduce absenteeism. Which of the following factors are least relevant for judging the value of the research?
    • A. 

      Are there alternative explanations?

    • B. 

      Was the sample working adults or students?

    • C. 

      Is there a clear separation of causation from correlation

    • D. 

      Is the research useful?

  • 111. 
    The most common approach to managing labor costs is
    • A. 

      Controlling average benefit costs

    • B. 

      Controlling average wage level

    • C. 

      Controlling use of variable reward

    • D. 

      Managing number of hours worked

  • 112. 
    All of the following except _______ are factors affecting the size of an average wage level increase.
    • A. 

      Turnover effect

    • B. 

      The current period's increase

    • C. 

      Competitive market pressures

    • D. 

      All of the above affect the wage level increase

  • 113. 
    Which of the following has the greatest effect on a planned level rise when an organization has problems with their ability to pay?
    • A. 

      Raising co-pays and deductibles

    • B. 

      Reduce employment levels

    • C. 

      Reducing average wage increase

    • D. 

      Increase use of contingent workers

  • 114. 
    All of the following are examples of embedded or inherent controls except
    • A. 

      Range minimums and maximums

    • B. 

      Broad bands

    • C. 

      Budgets

    • D. 

      All are examples of inherent controls

  • 115. 
    If San Diego has a CPI of 165 and Los Angeles has a CPI of 145, this means
    • A. 

      The cost of living in San Diego has risen faster than LA

    • B. 

      It cost more to live in San Diego than LA

    • C. 

      It cost less to live in San Diego than LA

    • D. 

      Pay in San Diego is, on average, 20 percent higher than LA

  • 116. 
    A(n)_____ circle rate is if an employee were given a pay raise indicated by the merit increase rate, their new pay would be a _____ circle rate.
    • A. 

      Orange; green

    • B. 

      Yellow; red

    • C. 

      Yellow; blue

    • D. 

      Red; blue

  • 117. 
    Which of the following is not a legitimate reason why a como-ration may be less than 1?
    • A. 

      Many employers are new

    • B. 

      Promotion rates are relatively low

    • C. 

      Employee performance may be poor

    • D. 

      Turnover is high

  • 118. 
    Research shows that employees tend to ________ the actual pay of those in jobs above them and _______ the pay of those below them.
    • A. 

      Underestimate; underestimate

    • B. 

      Overestimate; underestimate

    • C. 

      Underestimate; overestimate

    • D. 

      Overestimate; overestimate

  • 119. 
    In a _______ approach in a compensation communication program, the focus is on explaining practices and how pay is determined.
    • A. 

      Communication

    • B. 

      Marketing

    • C. 

      Management

    • D. 

      Mixed

  • 120. 
    Employee A received the highest performance rating, has a comp-ration of 1.2, and received a pay increase of 10 percent. Employee B received the highest performance rating and has a comp-ration of .90. Given the way most merit increase grids work, what size pay increase would you expect Employee B to receive?
    • A. 

      Less than 10 percent

    • B. 

      More than 10 percent

    • C. 

      10 percent

    • D. 

      There is not relationship