Compensation
- 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
Correct Answer
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.
Correct Answer
A. Psychological contract. -
- 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
Correct Answer
A. Time and flexibility -
- 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
Correct Answer
B. Career development -
- 5.
The second step of the career management process is ______
- A.
Reality check
- B.
Self-assessment
- C.
Action planning
- D.
Goal setting
Correct Answer
A. Reality check -
- 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
Correct Answer
C. Protean careers have substantially increased companies' training and compensation costs -
- 7.
Performance appraisals provide information most relevant to _________
- A.
Goal setting.
- B.
Self-assessment
- C.
Reality check.
- D.
Action planning.
Correct Answer
C. Reality check. -
- 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
Correct Answer
C. Seeking challenge -
- 9.
Turnover rates and quality of job candidates are examples of measures of success of career management systems.
- A.
True
- B.
False
Correct Answer
A. True -
- 10.
The generational age cohorts have very different desires for security and the ability to balance work and personal life.
- A.
True
- B.
False
Correct Answer
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
Correct Answer
A. Reduced ability to predict labor costs -
- 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
Correct Answer
A. They help maintain competitive pay position relative to competitors -
- 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
Correct Answer
A. A standard of performance used to determine 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
Correct Answer
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
Correct Answer
C. Encourages competition between teams -
- 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
Correct Answer
A. The balanced scorecard -
- 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
Correct Answer
B. Specifying performance levels and due dates -
- 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
Correct Answer
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
Correct Answer
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
Correct Answer
B. False -
- 21.
_______________ is preferable to most employees.
- A.
Profit sharing
- B.
Lump-sum bonuses
- C.
Gain sharing
- D.
Risk-sharing
Correct Answer
C. Gain 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
Correct Answer
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
Correct Answer
C. High quality products -
- 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
Correct Answer
B. Had sales averaging $27,000 more per employee -
- 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
Correct Answer
B. Gain sharing -
- 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
Correct Answer
C. Instrumentality -
- 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
Correct Answer
A. 1,2,3 -
- 28.
Theories dealing with exchange include ____________
- A.
Maslow and Herzberg
- B.
Equity and agency
- C.
Expectancy and reinforcement
- D.
Goal setting and equity
Correct Answer
B. Equity and agency -
- 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
Correct Answer
A. Attracting and hiring good employees -
- 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
Correct Answer
A. An acceptable appraisal 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
Correct Answer
A. Small but stable portion of the work force is employed in these jobs -
- 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
Correct Answer
A. There are no firm rules -
- 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
Correct Answer
B. Low-high -
- 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
Correct Answer
C. Estimate the organization’s impact on the labor market -
- 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
Correct Answer
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
Correct Answer
A. Ageing, trending -
- 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
Correct Answer
B. Links a company's benchmark jobs with market rates paid by competitors -
- 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
Correct Answer
B. More than the market rate for some months and less than the market rate for the other months -
- 39.
In the regression equation, y =a + bx, job evaluation points are ___
- A.
A
- B.
B
- C.
X
- D.
Y
Correct Answer
C. X -
- 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
Correct Answer
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
Correct Answer
B. A large (over 500 employees) petroleum company -
- 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
Correct Answer
C. Security or commitment -
- 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
Correct Answer
A. Higher labor costs for Company A, but no more 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
Correct Answer
A. More unqualified workers apply -
- 45.
________________ theory is the most influential in explaining pay-level differences.
- A.
Human capital
- B.
Marginal productivity
- C.
Efficiency wage
- D.
Signaling
Correct Answer
A. Human capital -
- 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
Correct Answer
B. The product market -
- 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
Correct Answer
C. Ability to pay -
- 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
Correct Answer
B. Profitability affected the overall pay budget -
- 49.
The pay policy associated with increased productivity is ___________
- A.
Lead
- B.
Lag
- C.
Hybrid
- D.
Employer of Choice
Correct Answer
C. Hybrid -
- 50.
Most organizations pay about the same for the same job requiring similar education and experience.
- A.
True
- B.
False
Correct Answer
B. False -
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Sep 19, 2018Quiz Edited by
ProProfs Editorial Team -
Apr 30, 2012Quiz Created by
Sbmccla
Back to top