This is the systematic process for recognizing differences in the relative worth among a
set of jobs and for establishing pay differentials accordingly.
A) job analysis
B) job content
C) job evaluation
D) job-relatedness
Which one of the following would be correct regarding person-focused pay programs?
A) the skill blocks model only emphasizes horizontal skills
B) the stair-step model addresses depth, while the skill blocks model emphasizes both
horizontal and vertical skills
C) employees do not progress to more complex jobs in the stair-step model
D) competency models do not apply to jobs within the same family
These profit sharing plans award cash to employees on a quarterly or annual basis as
part of their regular compensation.
A) common
B) current
C) deferred
D) anticipated
The SEC’s Summary Compensation Table contains data covering how many years?
A) 3
B) 5
C) 7
D) 10
When determining Ms. Jenkins’ relocation assistance amount, what will you need to
consider?
A) her seniority
B) her level of education
C) her ability to speak a relevant foreign language
D) her length of assignment
If the means salary for B42DA, Inc., is $30,000 and the median salary is $32,000, what
would Yolanda’s salary of $165,000 be considered?
A) overlie
B) outsider
C) outlier
D) over layer
In San Francisco, the typical pay in the installation, maintenance, and repair occupation
exceeded the national average by 44 percent. In Johnstown, Pennsylvania, the rate was
9 percent less than the national average. What do these statistics represent?
A) capital intensity effects
B) pay rate differentials
C) interindustry wage differentials
D) relative pay differentials
Compensation professionals in the XYZ Company use regression analysis to determine
the pay rates of its marketing professionals. There are 4 different marketing job titles in
the XYZ Company. Compensation professionals use job evaluation points assigned to
each marketing job title and a salary survey data. In other words, they regress job
evaluation points on the salary data to indicate the amount of variation in market pay
rates that can be explained by a company’s job structure. Which of the following best
describes this amount of variation when the R2 value turns out to be 0.85?
A) All of the variation in market pay
B) None of the variation in market pay
C) A large amount of the variation in market pay
D) A small amount of the variation in market pay
John has agreed to teach a statistics course on an adjunct basis while the professor who
regularly teaches the course is on sabbatical. This example represents which of the
following?
A) independent contractor
B) on-call arrangement
C) job sharing
D) leased employee
Which of the following pay systems is used by unions and contractors to reward their
carpenters for increasing carpentry abilities?
A) knowledge-based
B) incentive
C) skill-based
D) merit-based
Which of the following are used by the State Department to determine per diem
schedules?
A) length of stay, family size
B) location, family size
C) cost of living, family size
D) length of stay, location
Which one of the following is NOT considered a long-term implication of
underemployment?
A) a slowdown in the economic recovery from recession
B) higher spending by companies
C) reduced consumption of goods and services
D) reduced business production
________ represents the amount of spread or dispersion in a set of data.
The U.S. Bureau of Labor Statistics does not monitor pay levels for which type of
temporary workers?
A) part-time employees
B) leased employees
C) temporary employees
D) independent contractors
Pertaining to CEO compensation, under classic economic theory, which of the
following is true?
A) The price is obtained through negotiations that are at arm’s length.
B) The CEO names her price.
C) Compensation is based on a market survey and job evaluation.
D) The board of directors set CEO compensation.
As a strategic business partner, HR and compensation professionals today need to think
most like whom?
A) vice president of human resources
B) chief financial officer (CFO)
C) chief executive officer (CEO)
D) comptroller
This term refers to the minimum pay increase that employees view as a significant
change in their compensation amount.
A) halo effect increase
B) minimal pay incident
C) just-meaningful pay increase
D) satisfactory compensation payment
What decision did Wal-Mart make due to the difficulty of hiring well-qualified workers,
since the unemployment rate has declined?
A) Wal-Mart has increased advertising to inform the public that it is a good place to
work.
B) Wal-Mart introduced incentive pay to augment base pay.
C) Wal-Mart decided to offer employees health insurance.
D) Wal-Mart substantially increased its starting pay rate.
This causes compensation survey data to become obsolete fairly quickly.
A) the lag time between data collection and data usage
B) pay compression
C) changes in the unemployment rate
D) changes in the company’s geographic location
Protection programs are what type of compensation benefits?
A) external
B) non-monetary
C) internal
D) monetary
Why do pay rate differentials not fully match relative pay differentials?
A) Pay relative differential measures control for the influence of various variables, and
pay rate differentials do not.
B) Pay rate differential measures control for the influence of various variables, and
relative pay differentials do not.
C) It is difficult to determine the reason for these measures not fully matching.
D) The Fair Labor Standards Act of 1938 (FLSA) minimum wage provision influences
relative pay differentials.
Which of the following describe categories of international employees?
A) expatriates, third country national, headquarter national
B) host country national, third country national, expatriates
C) repatriates, host country national, third country nationals
D) headquarter national, expatriates, home country nationals
In 2014, approximately what percentages of private-sector employees and government
employees, respectively, had access to an EAP?
A) 24 percent, 94 percent
B) 39 percent, 54 percent
C) 54 percent, 74 percent
D) 74 percent, 39 percent
Jasmine Black believes that the company should share part of the risk for her sales
position. Which sales compensation plan should she pursue?
A) salary-plus-bonus
B) salary-plus-commission
C) commission-plus-draw
D) commission-only
Many nonunion companies offer higher compensation than they would if unions were
nonexistent. What is this phenomenon called?
A) progressive compensation
B) the spillover effect
C) concessionary bargaining
D) inter-industry compensation differentials
When considering cost-of-living differences between locations, which type of costs
stand out?
A) housing
B) education
C) health care
D) food and energy
The first 4 quarters of the last 5 completed calendar quarters in the previous year is the
base period for which benefit?
A) OASDI
B) Medicare Part A
C) unemployment insurance
D) workers’ compensation
Which of the following examples is NOT considered a compensable work activity?
A) A fireman plays checkers while waiting for an alarm.
B) An employee attends an employer-mandated training.
C) An employee travels from home before the regular workday and returns home at the
end of the workday.
D) An employee takes a 15-minute rest during work time.
This term reflects an approach to job design that results in the development of more
intrinsically motivating and interesting work.
A) job security
B) job enrichment
C) job variety
D) job identity
Which practice enables HR professionals to develop performance measures?
A) job evaluation
B) job analysis
C) performance appraisal
D) position analysis
Which is the fundamental principle of internally consistent compensation systems?
A) Pay rates should mirror pay rate differences among the competition.
B) Jobs that require higher qualifications should be paid more than jobs that require
lower qualifications.
C) All jobs should be valued equally because every job directly contributes to
competitive advantage.
D) All jobs should be valued according to need.
In which type of document do compensation professionals represent the selection and
implementation of pay level and pay mix policies over a specified time period, usually
one year?
A) compensation plan
B) job structure reports
C) strategic compensation plan
D) pay structure reports
Evidence suggests that person-focused pay programs lead to which of the following?
A) diminished employee commitment
B) no significant change in employee satisfaction
C) increased employee commitment
D) higher competitive advantage