Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
382. The __________ system is a pay system that is based on job tiers, with each tier
having a strict pay range.
A. Steiner
B. Gantt
C. Hay
D. Gilbreath
383. The two most common compensation methods for teams are:
A. cash bonuses and cashless bonuses.
B. skill-based pay and gain-sharing.
C. piecework pay and commissions.
D. salaries and capital gains.
384. Although the skills learned do not always translate into profits for the company,
______ pay rewards the growth of both the individual and team participation.
A. skill-based
B. gain-sharing
C. commission
D. stock option
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391.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
A problem with the Hay system of compensating workers is that:
A. because it is relatively new, most workers and managers are unfamiliar with it.
B. the EEOC has declared it illegal because it discriminates against older workers.
C. it is difficult and expensive to administer because of the extensive paperwork needed to
compute wages and salaries each pay period.
D. it can lead to resentment because more productive employees may earn less than
employees who do not perform as well but have worked for the company longer.
Feedback: The Hay system is based on job tiers, with each tier having a strict pay range. This
system can lead to friction and resentment among workers because hard working, productive
employees on a low tier will earn less than other workers who are not as productive, but are
on a higher tier because they have worked for the company longer.
392. Human resource managers at Tri Max, Inc. want to encourage teamwork and are
looking for a better way to compensate members of teams. One approach they are
considering is a skill-based system. Which of the following statements about this type of
pay system is most accurate?
A. Skill-based systems are unlikely to work with teams because they are designed to
encourage individual initiative rather than teamwork.
B. A skill-based system is a very effective way to pay teams because this approach makes
it easy to correlate skill acquisition with the bottom-line gains of the company.
C. A skill-based pay system works well in many cases, but employees tend to resist this
approach since it affects only bonuses, which are not guaranteed, rather than base pay.
D. Team members have base salaries, but they are additionally compensated according to
the number of new skills they acquire as a team.
Feedback: Skill-based pay is one of the two most common ways to compensate teams (the
other being gain-sharing). In skill-based pay systems, base pay is raised when team members
acquire additional skills. There are two problems with skill-based pay: it is complex, and it is
difficult to correlate skill acquisition to bottom-line gains for the firm.
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393. Which of the following statements about team pay is the most accurate?
A. Most managers are very satisfied with the team-based pay programs that are currently
in place.
B. Most managers have concluded that team pay methods are so complex and difficult to
administer that they have gone back to pay plans based on rewarding workers for their
individual achievements.
C. Although individuals who make an outstanding contribution should be recognized and
rewarded, a pay system based strictly on individual performance can undermine the
cohesiveness teams need to meet their goals.
D. Team pay plans should emphasize individual rewards since the team can succeed only
if all individuals are highly motivated to work as hard as possible.
Feedback: Measuring and rewarding individual performance on teams while at the same time
rewarding team performance can be tricky. Nonetheless, it can (and should) be done. A study
by Jay Schuster suggests that pay plans based only on individual performance can undermine
the cohesiveness needed for the team to achieve its goals. Thus, team pay should reflect team
performance. However, it is also important to reward individual team players for outstanding
efforts. This reward may take the form of recognition or some other cashless reward as well as
cash.
394.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
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When workers are a part of a team their compensation should be:
A. based strictly on their individual performance in order to encourage each worker to
exert his or her maximum effort.
B. based strictly on the achievements of their team in order to encourage teamwork and
cooperation.
C. a stated wage or salary that is not based on either team or individual performance,
because it is very difficult to measure individual performance in a team environment.
D. based on team performance, with additional rewards for those workers who make
outstanding individual contributions.
Feedback: When team pay is based strictly on individual effort, it may erode team
cohesiveness and make it less likely that workers will collaborate to achieve team goals. Thus,
team pay should reflect the accomplishments of the team. However, outstanding workers who
go beyond what is expected and make exceptional contributions should be separately
recognized for their additional contributions. One way to avoid alienating others on the team
is to let the team members themselves decide which members get what type of individual
reward.
395.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
According to the material in the Reaching Beyond Our Borders box for Chapter 11, which
of the following statements about working with employees from different countries is
most accurate?
A. The increasingly global nature of markets and the impact of television, movies and the
Internet on people’s attitudes and perceptions have largely eliminated cultural differences
between foreign and domestic workers.
B. Currency rate differences and different laws with respect to fringe benefits such as
health insurance and time-off, offer challenges for HR management.
C. U.S. laws require American firms to hire, train, and pay employees in other countries
the same way their U.S. employees are hired, trained and paid.
D. More often than not, American firms have found that cultural differences in other
nations are so great that it is more efficient to staff key positions in foreign facilities with
American workers rather than hire foreign workers.
Feedback: This question is based on the Reaching Beyond Our Borders box in Chapter 11.
The material in this box points out that American human resource managers must be aware of
significant differences in culture, law, and business practices when they deal with foreign
employees.
396. Companies place a considerable amount of attention on compensation plans because:
A. firms are likely to face stiff penalties from the government if they do not offer
competitive wages and salaries.
B. attracting the right employees with good compensation packages can translate into a
competitive advantage.
C. it is a hygiene factor.
D. a good compensation plan will be less costly than other parts of the operation.
Feedback: Today, companies compete for customers, and also for good employees. The right
employees can place the company at a competitive advantage. Good compensation plans will
attract high level employees.
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403. After graduating with a double major in engineering and business, Scott accepted a job
with a large telecommunications company with the understanding that his first two years
on the job would be spent internationally – Argentina and Korea. The company was
willing to offer a compensation package that would compensate him for the sacrifice of
leaving his family and living abroad, and if things went well, they anticipated that he
would receive a promotion when coming back to the states. According to the Reaching
Beyond our Borders box, titled, “Working Worldwide”, which of the following is the firm
least likely to consider when planning Scott’s compensation plan?
A. special relocation allowances for housing and travel
B. currency conversions and tax consequences
C. health insurance concerns
D. soft benefits
Feedback: Soft benefits are onsite perks such as haircuts, shoe repair, concierge services, and
free breakfasts.
404. A ___________ plan gives employees some ability to adjust hours when they work, as
long as they work the required number of hours.
A. cafeteria-style plan
B. flextime
C. varitime
D. Gantt scheduling
405.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
The time when all employees must be present in a flextime plan is referred to as:
A. compressed time.
B. shared time.
C. core time.
D. company time.
406. A __________ allows workers to work the full number of hours per week in fewer
days.
A. flextime plan
B. compressed workweek
C. maximum plan
D. double shift plan
407. A disadvantage of flextime plans is that they often:
A. confuse workers.
B. lead to a higher level of absenteeism.
C. cause worker morale to decline.
D. require supervisors and managers to work longer hours.
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411.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
A major characteristic of a compressed workweek is that:
A. workers receive the same pay for fewer hours of work.
B. the pace of work is increased so that workers perform the same amount of work in
fewer hours.
C. employees work fewer days each week, but work more hours each workday.
D. two or more part-time workers are hired to fill each full-time position.
Feedback: In a compressed workweek employees work the same number of hours in fewer
days.
412. A firm that wants to reduce its office costs, broaden its base of available talent and
improve job satisfaction could achieve all of these goals by:
A. recruiting only from internal sources.
B. making greater use of scientific management techniques.
C. implementing the Hay system of compensation.
D. allowing more workers to work from home.
Feedback: Figure 11.8 lists the advantages and disadvantages of home-based work to
organizations, individuals, and society as a whole. Among the main advantages listed for the
organization are that it increases job satisfaction and reduces problems with absenteeism,
broadens the available talent pool, and reduces the cost of providing on-site office space.
