A 401(k) plan is which of the following types of retirement benefits?
A) defined contribution
B) defined benefit
C) qualified benefit
D) nonqualified benefit
In May 2014, the typical CEO earned approximately how much more annually than fast
food cooks?
A) 100 times more
B) 120 times more
C) 160 times more
D) approximately 180 times more
The gap between productivity and real hourly compensation was the highest during
which of the following periods?
A) 1947-1973
B) 1979-1990
C) 1990-2000
D) 2000-2011
Compared to the duration of most training in capital intensive industries, service
industry training tends to be which of the following?
A) the same cost
B) shorter
C) longer
D) higher cost
Which of the following countries has the highest per capita GDP?
A) United States
B) Brazil
C) Germany
D) Canada
Which compensation approach refers to three types of person-focused pay programs?
A) competency-based
B) innovation-based
C) service based
D) stair-step
Which of the following is a reason why unions tend not to support telecommuting
arrangements?
A) difficulty monitoring workers while at home
B) accusing workers of not performing their jobs while at home
C) lower travel costs than for workers in attendance at the work facility every day
D) likelihood of telecommuters not receiving merit pay increases
Suppose that a compensation professional would like to calculate the median salary. He
orders four salaries as follows: $20,000, $22,000, $24,000, $26,000. What is the median
salary for this data set?
A) $21,000
B) $22,000
C) $23,000
D) $24,000
Midpoint, minimum, and maximum are values used to define which of the following?
A) pay grades
B) pay ranges
C) pay structures
D) pay levels
In 2015, employees were expected to earn average merit increases of what percent?
A) 1.3%
B) 3.1%
C) 5.2%
D) 8.3%
What type of pay system rewards employees for partially or completely attaining a
predetermined work objective?
A) seniority pay
B) merit pay
C) incentive pay
D) skill-based pay
These compensation systems go a long way in attracting and retaining the most
qualified employees and are based upon market and compensation surveys.
A) internally consistent compensation systems
B) market-competitive pay systems
C) job evaluation compensation systems
D) externally consistent compensation systems
Companies pursuing a differentiation strategy are most likely to use which pay level
policy?
A) market lead
B) market average
C) market lag
D) market match
About how many countries are deemed as hardship locations by the U.S. State
Department?
A) 300
B) 150
C) 750
D) 25
Which arrangement represents a long-term company-wide incentive plan that provides
employees with the option to purchase ownership in the company?
A) employee stock option plans
B) company equality awards
C) profit sharing plans
D) gain sharing plans
The XYZ Company provides a program for its employees who need help dealing with
the effects of domestic violence. The XYZ Company can offer this kind of service
through which of the following programs?
A) family assistance program
B) employee assistance program
C) wellness program
D) employer assistance program
Which of the following is a commonly used employer-sponsored retirement plan
design?
A) defined contribution
B) qualified contribution
C) Roth IRA
D) IRA
What is gross domestic product (GDP)?
A) GDP describes the amount a country spends on health care.
B) GDP describes the amount of a country’s debt.
C) GDP describes the size of a capitol city.
D) GDP describes the size of a country’s economy.
ARAMARK, a company which provides cafeteria service workers to a client company,
is an example of the use of which type of employees?
A) part-time employees
B) leased employees
C) temporary employees
D) independent contractors
Which individual incentive plans require the achievement of multiple, complex
objectives without compromising the quality and quantity of output?
A) piecework
B) referral
C) management incentive
D) behavior encouragement
Which of the following effects describe the concept that a hard working employee is
likely to stay at an incentive pay position?
A) representative
B) structural
C) sorting
D) output
Chrysler, General Motors, and Ford have departed from which of the following
bargaining patterns as they seek to secure higher hourly pay rates for automobile
workers?
A) guarded
B) concessionary
C) heightened
D) compensationary
In the end, Yolanda beat Tristen and Michel in a series of competitions among top-level
managers to become CEO of National LemGlass. Which compensation theory did the
company probably use?
A) tournament
B) competition
C) comparison
D) agency
Which of the following is an example of a monetary reward?
A) medical insurance
B) vacations
C) day care assistance
D) spot bonus
Which of the following is NOT one of the top three largest economies in Asia as of
2015?
A) Philippines
B) China
C) India
D) Japan
Until recently, ACME Manufacturing granted every employee one week of paid
vacation each year. The company switched its policy, offering substantially more weeks
of paid vacation to employees with high seniority (more than 5 years, in this case). The
average seniority of female employees at ACME is 2.5 years and 7.75 years for male
employees. Which form of discrimination is this policy at risk of creating?
A) disparate treatment
B) disparate impact
C) disparate causality
D) situational discrimination
Since U.S. citizen David became an employee of American Eyeful Pictures, Inc.,
headquartered in Los Angeles, he has worked in Japan, China, and Thailand. The
company has probably based his base pay using which method?
A) host country
B) home country
C) headquarters
D) third countr
Which factors account for considerable variation in pay within occupations?
A) employment laws
B) interindustry wage differentials
C) relevant labor market
D) knowledge, skills, and abilities
This type of account does not permit employees to carry over any remaining balance
from year to year.
A) health reimbursement account
B) health savings account
C) flexible spending account
D) flexible savings account
Claudia works for a pharmaceutical company in Germany as a blue-collar worker. She
used to opt out of the state insurance plan and purchased private insurance. Due to
increasing health insurance premiums this year, she decided to get the state insurance
plan. Which of the following is true regarding her state health insurance?
A) Claudia bears the entire cost of the health insurance.
B) Her company bears the entire cost of the health insurance.
C) 50% of health insurance costs are borne by the company, and the other 50% of the
costs are borne by the insured.
D) 75% of health insurance costs are borne by the company, and the remaining 25% of
the costs are borne by the insured.
The general rule of thumb is that short-term company goals last less than how long?
A) 1 month
B) 6 months
C) 1 year
D) 5 years
Which of the following entails an examination of a company’s external market context
and internal factors?
A) compensation survey
B) strategic analysis
C) regression analysis
D) compensation plan
________ requires employers to offer affordable health insurance to employees.
Which stakeholder group turns to compensation professionals for advice about
appropriate pay rates for jobs?
Briefly summarize right-to-work laws as well as the impact on unionization and
compensation.
________ skills information describes developed capacities that facilitate learning or
the more rapid acquisition of knowledge.
________ rights refer to nonforfeitable rights to retirement benefits.
________ analyses enable compensation professionals to establish pay rates for a set of
jobs that are consistent with typical pay rates for jobs in the external market.
________ bonuses are awarded to executives by boards of directors on an elective
basis.
An ________ is the price at which one country’s currency can be swapped for another.
Who are the key players in setting executive compensation? Detail their different roles.
How does the SEC affect their roles?
The ________ of 1963 makes it illegal to pay one sex more than the other for equal
work performed.
Briefly discuss the components of legally required benefits. How can HR managers
minimize the costs that are associated with legally required benefits?
Explain the three reasons why companies often choose not to develop their own
compensation surveys.
In an auto manufacturing company, installing a windshield on the assembly line
represents a ________.
Summarize the five main activities of job analysis work.
A ________ is a collection of tasks constituting the total work assignment of a single
worker.
When employees take advantage of ________ benefits, they are more likely to
contribute to the strategic imperatives of product or service differentiation or cost
reduction.
In China, the minimum wage rates are set for each ________.
Stock ________ describe an employee’s right to purchase equity in the company.
