An important criteria for determining the value of research is/are there alternative An
80. An important criteria for determining the value of research is/are there alternative
explanations for the research findings?
Answer:
Most organizations rely upon the market to determine how to pay their employees since
compensation strategy is uncertain and complex.
Answer:
Human capital theory assumes that people are paid at the value of their marginal
product.
Answer:
The major challenge in the design of future pay systems is reducing the pay gap
between top executives and low-level employees.
Answer:
Employees in companies with open pay systems express higher satisfaction with their
pay system but not their pay than employees in more secret pay systems.
Answer:
Supply and demand for labor, but not supply and demand for products and services
affect internal structures.
Answer:
The content of a job refers to the relative contribution of skills, tasks and
responsibilities to the organization’s goals.
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During recessions, top salespeople’s compensation is likely to increase.
Answer:
The is the average actual pay divided by the midpoint of the pay grade.
Answer:
Wages in labor-intensive industries are generally lower than in technology intensive
industries.
Answer:
For managers, the most important issue regarding job evaluation is the statistical
validity of job evaluation.
Answer:
A higher proportion of women are employed by small versus large firms.
Answer:
A job ad stating generous benefits leads applicants to place higher value on benefits in
choosing among jobs.
Answer:
Medicare is not part of social security.
Answer:
The U.S. has the highest hourly compensation costs for manufacturing workers of any
industrialized nation.
Answer:
Compensable factors are aspects of work that add value to the organization.
Answer:
Work load and work variety are both components of a total reward system.
Answer:
Negotiating (dealing with others in order to reach an agreement on solution, for
example labor bargaining, diplomatic relations, etc.) is an example of a task inventory.
Answer:
“Reviewing existing documents to get a big picture of a job” is the first step in the
government job analysis method.
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Line of sight is highest in individual incentive plans.
Answer:
A Japanese employee who receives “A” performance ratings will move to the next class
faster than an employee who receives “C” or “D” ratings.
Answer:
Individual incentives yield higher productivity gains.
Answer:
Recent research shows that use of on-line job evaluation by independent managers is
more reliable than traditional job evaluation committees.
Answer:
Employers prefer the noncontributoryapproach to financing benefits because this allows
greater control of costs.
Answer:
The number of job evaluation plans required depends upon the number of employees in
the organization.
Answer:
ERISA and the tax code specify that the average value of benefits for low-paid
employees must be at least 75 percent of those of highly paid employees.
Answer:
The emphasis of job content data is the purpose of each task.
Answer:
The policy choice of management means ensuring that the right people get the right pay
for achieving the right objectives in the right way.
Answer:
Market lines may be constructed by either freehand drawing or linear regression.
Answer:
When pay raises are based on events over which employees lack significant control,
they are likely to regard the system as unfair.
Answer:
The overall effect of immigration is an increase in wages for low skilled workers.
Answer:
Which of the following plans gives employees part ownership in the company?
A.ESOPs
B.Pay-for-knowledge plans
C.Gain-sharing
D.Profit-sharing
Answer:
Which of the following benefits is a federally administered program?
A.Workers’ compensation
B.Social Security
C.Unemployment insurance
D.Occupational Safety and Health Act
Answer:
Whole Foods’ decision to seek and engage employees who are going to help the
company make money is an example of which strategic pay decisions?
A.Objectives
B.Employee contributions
C.Internal alignment
D.Management
Answer:
The second major decision in pay-level determination is _____.
A.specify relevant market
B.define purpose of survey
C.design and conduct survey
D.select product and labor market competitors
Answer:
The major complaint of both managers and employees regarding the appraisal process
is that:
A.appraisals were not helpful in guiding improvement.
B.reviews don’t differentiate between poor, average and good performance.
C.appraisals are too subjective.
D.rating forms are too complex and time consuming.
Answer:
_____ is a hybrid health plan combining features of HMO and _____.
A.Point-of-service, preferred provider organization
B.POS, Blue-Cross
C.Managed care, POS
D.Consolidated health, PPO
Answer:
First impression error is to _____ error as leniency error is to severity error.
A.halo
B.horn
C.recency
D.clone
Answer:
A compensable factor of working conditions has a weight of 15%. If working
conditions has a degree rating of 3, how many points does it receive?
A.3
B.15
C.30
D.45
Answer:
All of the following are cost containment practices except:
A.probationary periods.
B.physical exams of all new hires.
C.copay.
D.seeking competitive bids for benefit delivery.
Answer:
Tiers can be used as a cost-cutting device to allow _____.
A.economic survival
B.expansion
C.investment
D.accretion
Answer:
Which of the following is not a major benefits planning and design issue?
A.Benefit adequacy
B.Competitiveness of benefits
C.Cost effectiveness
D.Diversity compliance
Answer:
If improved account retention became a major focus of attention, the performance
measure stressed would be _____.
A.gross margin on sales or price per unit
B.percentage account erosion
C.a volume measure
D.a customer satisfaction index
Answer:
The proportion of outside-to-inside the company members of the board of directors in
two-thirds of companies is _____.
A.more insiders than outsiders
B.approximately the same of each
C.more outsiders than insiders
D.there is no clear trend
Answer:
The first major decision in job analysis is _____.
A.how to collect information
B.who to involve
C.what information is needed
D.why perform job analysis
Answer:
In most companies a union would prefer to implement a _____ than some form of
_________
A. pay-for knowledge pay system; gain-sharing plan
B.gain-sharing plan; pay-for knowledge
C.merit pay system; pay-for knowledge
D.reward-sharing system; merit pay system
Answer:
Which of the following is not true of task inventories?
A.It describes actual tasks.
B.A task inventory can be used for many different jobs.
C.It measures the purpose of tasks.
D.It uses an objective rating format.
Answer:
Denial of jobs, promotions, or training opportunities to qualified women or minorities
are examples of _____ discrimination.
A.access
B.valuation
C.disparate treatment
D.preferential treatment
Answer:
_____ refers to the average of the array of rates paid by an employer.
A.Cost to the company
B.Remuneration
C.Compensation
D.Pay level
Answer:
Research shows that the best predictor of executive pay, by far, is _____.
A.firm size
B.the number of “insiders” on the board of directors
C.the industry in which the firm operates
D.firm performance
Answer:
Implication of the _____ theory is that pay level affects an employer’s ability to recruit.
A.human capital
B.reservation wage
C.signaling
D.efficiency
Answer:
The mix or forms of pay compared to competitors is a part of _____________
A. internal alignment
B. contributions
C.competitiveness
D. management
Answer:
A useful tool for determining the true worth of an entire executive compensation
package is _____.
A.the balance sheet
B.a tally sheet
C.the executive’s tax return
D.an audit of the executive’s income and expenses
Answer:
A study of unions in 114 companies concluded that _____.
A.unions made a difference in wages in half of the companies
B.unions made a difference in wages in only a few industries
C.unions made a difference in wages across all studies and time periods
D.unions were not responsible for any differences in wages
Answer:
Dental insurance is provided by _____ percent of all employers with above 500
employees.
A.30
B.90
C.70
D.85
Answer:
If Company A and Company B pay the same total compensation for a job, which of the
following is most likely true?
A.Base pay is same
B.Benefits costs are the same
C.The pay mix differs
D.The pay mix is the same
Answer:
Output associated with hiring an additional person, holding constant other production
factors, is referred to as:
A.productivity.
B.the marginal product of labor.
C.incremental productivity.
D.the marginal revenue product of labor.
Answer:
Approximately _____ percent of social security benefits go to retirees and their
dependents.
A.20
B.40
C.50
D.70
Answer:
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
Answer:
Under the _____ Act, executives cannot retain bonuses or profits from selling company
stock if they mislead the public regarding their company’s financial condition.
A.Worker Economic Opportunity
B.Davis-Bacon
C.Walsh-Healey
D.Sarbanes-Oxley
Answer:
In a hiring situation, considering that other potential costs will not change in the short
run, the level of demand that maximizes profits is that level at which the _____ of the
last hire is equal to the _____ for that hire.
A.demand factor; supply factor
B.marginal output; market price
C.incremental output; marginal output
D.marginal revenue; wage rate
Answer:
A _____ is a cash or stock award earned through achieving specific goals and is taxed
as ordinary income.
A.nonqualified stock option
B.phantom stock plan
C.restricted stock plan
D.performance share/unit plan
Answer:
Explain the concept of pay ranges.
Answer:
Explain how personality characteristics can influence an employee’s preference for
rewards.
Answer:
Which of the following is most likely to motivate employees to perform better?
A.Across-the-board increases common in unionized firms
B.Raises based on demonstration of competencies
C.Raises based on the CPI
D.Seniority-based pay increases
Answer:
Turnover tends to be highest among _____.
A.poor performers
B.good performers
C.single women with children
D.ethnic minorities
Answer:
How do you define a good appraisal format?
Answer:
Does skill-based pay systems reduce the requirement for supervision?
Answer:
What is broad banding? What are some of its advantages?
Answer:
Explain the expectancy theory of motivation.
Answer:
Some companies have dropped the use of “rank and yank” because _____.
A.of law suits charging age discrimination.
B.they can hurt morale.
C.they are not effective in getting rid of “deadwood.”
D.managers resist this rating format.
Answer:
Is the underlying purpose of job-based structures different from that of person-based
structures?List the purpose of each.
Answer:
Distinguish the concepts of the cost of living, changes in prices in the product and
service markets, and changes in wages in labor markets.
Answer:
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
Answer:
Hourly compensation costs for manufacturing workers are higher in _____ than the
U.S.
A .Germany
B.Czech Republic
C.Spain
D.Singapore
Answer:
What are the different ways in which employees see compensation?
Answer:
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
Answer:
How do skill-based plans motivate employees?
Answer:
Discuss the types of conflict faced by professional employees with an example.
Answer:
_____ theory contends that we choose to do those things that we believe are most likely
to lead to desired rewards.
A.Expectancy
B.Reinforcement
C.Agency
D.Equity
Answer: