Discrepancies in job analysis information may indicate that more than one job has been
lumped under one title.
Answer:
Vacation and holiday entitlements are among the clauses frequently found in holiday
contracts.
Answer:
Job-based and person-based job analysis methods use similar methods but have
different purposes.
Answer:
The text argues validity should be expanded to include impact on pay decisions.
Answer:
Less than 10 percent of compensation professionals strongly agree that employees
know their own pay range and the one above them.
Answer:
Many employers achieve flexibility and control employment costs by utilizing
contingent workers rather than expanding and contracting the core workforce.
Answer:
From 1983 to 2011, union membership increased slightly to approximately 20 percent.
Answer:
Organizations are more likely to be successful when their pay structures are in internal
alignment.
Answer:
Contingent workers are usually considered candidates for special compensation.
Answer:
A potential problem in egalitarian pay structures is high performing employees may feel
underpaid and quit.
Answer:
In the proper sequence of strategic decisions, HR strategies are made before business
unit strategies.
Answer:
Since peers and co-workers have good knowledge of the work of their peers, peer
ratings have become more common than ratings done by supervisors.
Answer:
Understanding international compensation begins with recognizing differences and
similarities and figuring out how to best manage them.
Answer:
Blue-collar workers feel pay increases should be based upon performance.
Answer:
A compensation strategy map shows which strategy is best for an organization.
Answer:
Gain sharing poses greater risk to individual employees than profit sharing.
Answer:
An organization’s strategy is defined by the tradeoffs in choices of what to do and what
not to do.
Answer:
Reliability of job evaluations can be improved by using evaluators who are neutral third
parties or by employing consumer evaluation committees.
Answer:
Defining the compensable factors and scales to include the content of jobs held
predominantly by women is one of the methods to ensure that job evaluation plans are
bias-free.
Answer:
Egalitarian pay structures may be characterized as delayered or compressed.
Answer:
One of the main advantages of a skill-based plan is that it facilitates matching people to
a changing work flow.
Answer:
Exit incentives frequently lead to loss of high performing employees.
Answer:
One problem with using stock options for executives is they may not be paying the
executive for performance.
Answer:
The phenomenon of turnover effect means that organizations must budget additional
money for next year’s budget to cover effects of turnover.
Answer:
Independent contractors typically earn less than other contingent workers.
Answer:
Fair Labor Standards Act wage and hour settlements are generally significantly smaller
than those in employment discrimination suits.
Answer:
Many employers use market surveys to validate their own job evaluation results.
Answer:
Skill-based plans are generally well accepted by employees because it is easy to see the
connection between the plan, the work, and the size of the paycheck.
Answer:
Incentive stock options may be deducted as a company expense.
Answer:
Talented individuals have a higher marginal value in larger organizations.
Answer:
Managers have more control over distributive justice than procedural justice.
Answer:
Reducing the number of job titles in a pay structure tends to raise morale and reduce
turnover.
Answer:
When an organization uses pay for performance and performance is improving, this is a
virtuous circle.
Answer:
A pure market pricing strategy tends to ignore internal alignment.
Answer:
Lower-tier employees, those hired after the contract is ratified, receive wages 50 to 80
percent lower than employees in the higher tier.
Answer:
A company changes its strategy to be more “lean” and efficient, which may include
some resizing in terms of employee strength. What should the company do about the
compensable factor ‘scope of responsibility” that is measured by the 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.
Answer:
The most common form of outcomes-based appraisal is:
A.the essay method.
B.MBO.
C.the performance standards review.
D.the BARS.
Answer:
Which of the following is an advantage of hiring LCNs?
A.The company incurs relocation expenses and other substantial expenses associated
with the use of expatriates.
B.The company has concerns about employees adapting to the local culture.
C.Only rarely do organizations decide that hiring LCNs is appropriate.
D.Employment of LCNs satisfies nationalistic demands for hiring locals.
Answer:
All of the following are recommended steps in the compensation communication cycle
by WorldatWork except _____.
A.defining the objectives of the communication program
B.a communication program that will convey the information needed to accomplish the
original objectives
C.collecting information from executives, managers, and employees
D.operate an informal communication network
Answer:
Which of the following is a factor determining base pay in the Japanese national
system?
A.Job evaluation
B.Career category
C.Market pricing
D.Specific job title
Answer:
The primary reason for considering purchasing power for compensation policy is to
A.met tax laws in various countries.
B.to prevent unionization.
C.to determine mix of benefits packages.
D.maintain equity for expatriates.
Answer:
All of the following are criteria used in determining exempt status for executives
regarding overtime pay provisions except _____.
A.engage in semi-routine activities
B.primarily undertake management duties
C.supervise two or more employees
D.authority to hire or fire other employees
Answer:
Replacing merit grids with _____ eliminates the link between the pay increase and the
employees’ salary position in the range and performance rating.
A.banding
B.skill- or competency-based plans
C.job evaluation
D.bonuses
Answer:
Aging market data to a point halfway through the plan year is called _____.
A.leveling
B.updating
C.lead/lag
D.lag
Answer:
_______ is to increasing variable pay as innovator is to market based pay.
A. Cost-cutter
B. Customer-focused
C. Efficient
D. Competitive
Answer:
Executives, supervisors and sales staff often receive special compensation treatment
because _____.
A.these jobs face conflicting demands
B.these jobs are exempt under FLSA
C.recruiting and retention is difficult for these jobs
D.these jobs are covered under the Sarbanes-Oxley Act
Answer:
Range minimums and maximums reflect the _____.
A.market value of the output produced
B.market value of the employee’s skills and abilities
C.market fluctuations in wage rates
D.value to the organization of the output of a job
Answer:
The final major decision in pay-level determination is _____.
A.interpret and apply results of survey
B.obtain top-management acceptance of final decisions
C.design grades and ranges or bands
D.draw policy lines
Answer:
Customer satisfaction indices are increasingly popular because of _____.
A.a greater emphasis on quality
B.the loss of accounts
C.sustaining profit improvement
D.decreasing employee satisfaction
Answer:
When cooperation is important for successful organization performance, the best form
of pay is _____.
A.tournament
B.egalitarian
C.hierarchical
D.institutional
Answer:
The trend in recent variable-pay design is to combine the best of _____ and _____
plans.
A.individual, group
B.gain-sharing, profit-sharing
C.short-term, long-term
D.long-term, short-term
Answer:
A deferred wage increase _____.
A.specifies that wages will be renegotiated at a specified time
B.specifies that sometimes such nonwage items as pension and benefits will be
renegotiated under certain conditions
C.is negotiated at the time of initial contract negotiations with the timing and amount
specified in the contract
D.involves periodic adjustments based typically on changes in the consumer price index
Answer:
The _____ pay strategy emphasizes external competitiveness and deemphasizes internal
alignment.
A.job structure
B.broad banding
C.reference rate
D.market pricing
Answer:
The best way to establish _____ is to account for competing explanations, either
statistically or through control groups.
A.causation
B.profitability
C.correlation coefficient
D.internal alignment
Answer:
The growing view of competencies is they are a set of _____.
A.traits
B.skills and knowledge
C.self-concepts and motives
D.behaviors requiring no assumptions
Answer:
Lockheed’s structure of 6 levels of engineers illustrates all of the following except )
____________
A. company strategy
B. the work flow
C. line of sight
D. external equity
Answer:
The differential between supervisors’ base pay and their highest paid subordinate is
typically _____ percent.
A.10-20
B.5- 30
C.15- 20
D.15- 35
Answer:
The pay policy associated with increased productivity is the _____ policy.
A.lead
B.match
C.hybrid
D.employer of choice
Answer:
The motivation triangle includes _____.
A.selection
B.organization design
C.culture
D.organization development
Answer:
Potential problems with using one method of job analysis to collect information for
most HR purposes include all but which of the following?
A.It is very expensive
B.Information collected may be too general
C.Information may not be accurate
D.It violates the Americans with Disabilities Act
Answer:
Popular stereotypes of salespeople characterize them as being heavily motivated by
_____.
A.financial compensation
B.personal growth and job security
C.recognition and appreciation
D.promotional opportunities
Answer:
According to government procedures of the job analysis process, the first interview
should be conducted with the _____.
A.incumbent’s supervisor
B.incumbent
C.HR manager
D.incumbent’s co-workers
Answer:
The rising costs of Social Security have been covered by:
A.increases in the maximum earnings base and the tax rate at which it is taxed.
B.reduction in Social Security benefits by providing market-driven options.
C.progressive reduction in the coverage.
D.welfare grants and annual supplements from Congress.
Answer:
In which of the following situations would engineering jobs most likely be treated as a
special compensation group?
A.Mechanical and civil engineers employed at a large city
B.Computer engineers employed at a software firm
C.Mechanical engineers employed at a farm equipment manufacturer
D.Environmental engineers at a waste disposal company
Answer:
In analyzing a firm’s competencies under “impact and influence”, what are “direct
persuasion”, “multiple attempts to persuade”, and “multiple actions to influence”?
A.Competency indicators
B.Competency factors
C.Competency sets
D.Core competency scales
Answer:
When selling the product requires a long training time and also considerable time to
develop an effective sales presentation, the compensation system should _____.
A.set specific and challenging sales goals
B.have low base pay and high commissions
C.be straight commission
D.have a large base-pay component
Answer:
Variable pay may also be called
A.exempt
B.non-exempt
C.stock options
D.incentives
Answer:
A negative outcome of MBO is ________
A. managers attitudes tend to decline with continued use.
B. superior/subordinate communication becomes more challenging.
C. performance pressure and stress increases.
D. organizational performance improvements are short-lived.
Answer:
The highest rates of child labor are in _______
A.China.
B.India.
C.Latin America.
D.sub-Saharan Africa.
Answer:
How is validity important in judging job analysis?
Validity examines the convergence of results among sources of data and methods. It
helps answer the question: Does the analysis create an accurate portrait of the work?
Answer:
Describe the strategy for moving employees through wage ranges based on merit.
Answer:
Employers prefer contributory benefits financing for all except which of the following?
A. more favorable tax treatment
B. A “free good,” is less valuable to an employee.
C. Employees have little personal interest in controlling the costs of a free good.
D. It helps control benefit costs.
Answer:
What are the usual steps in a conventional job analysis procedure?List them in their
order of occurrence.
Answer:
Pay ranges for clerical and production jobs commonly range between _____ and _____.
A.5, 15
B.15, 30
C.30, 40
D.40, 60
Answer:
List the areas of errors in the performance appraisal process.
Answer:
Briefly describe the role of contingent workers. Why are most U.S. employers hiring
contingent workers? What is the compensation challenge for contingent workers?
Answer:
Explain the eligibility for unemployment insurance.
Answer:
List the major decisions in designing a job analysis.
Answer:
A recent survey shows that the majority of employers are responding to increased
benefit
costs by______
A.requiring employees to pay higher deductibles and copays.
B. raising premiums.
C. dropping health care plans.
D. relying on the Patient Protection and Affordable Care Act
Answer:
Which of the following benefits are not mandated by state or federal legislation?
A.Workers’ compensation
B.Pensions
C.Social security
D.Unemployment insurance
Answer:
When an organization’s performance has regular and large swings and individual
performance is unclear and hard to measure, the most effective compensation mix is to
offer _____.
A.base pay with low incentives and a variety of rewards
B.monetary rewards with large incentives
C.large base and low-incentive pay
D.a wide range of rewards and significant incentives
Answer:
What is the importance of the demographic approach in determining employee
preferences?
Answer:
Because employers are raising employee pay at various times during the year, survey
data must be updated using a process called _____ or _____.
A.aging, trending
B.aging, smoothing
C.trending, leveling
D.gaining, smoothing
Answer:
Briefly describe profit-sharing plans.
Answer:
Data from WellPoint shows that __ percent of its customers’ accounts for over 60
percent of its medical costs.
A. 7
B. 17
C. 27
D. 37
Answer:
Which of the following statistical measures shows how similar or dissimilar the market
rates are from each other?
A.Weighted mean
B.Mean
C.Standard deviation
D.Median
Answer:
According to _________ theory, ensuring fairness and consistency of
performance-based pay across employees is important.
A. equity.
B. instrumentality
C. expectancy
D. reinforcement
Answer:
Write short notes on the different types of benefits discussed in the text.
Answer:
Explain the dimensions of national cultural attributes proposed by Hofstede.
Answer: