A study of both U.S. and Slovenian MBAs found that risk taking was higher among
Slovenians.
Answer:
Surveys find 360-degree ratings are used for both development and pay decisions.
Answer:
The point of the behavior = f (M, A, E) model is that, though very important,
compensation alone cannot change employee behavior.
Answer:
Equity theory research shows that an egalitarian pay structure will be seen as more fair
than a hierarchical structure.
Answer:
Merit pay differs from other forms of incentive pay in that it must be “earned” every
year.
Answer:
All five dimensions of good appraisal formats are important for all organizations.
Answer:
Herzberg’s Two-factor theory argues success-sharing plans will be motivating while
at-risk plans will be demotivating.
Answer:
General Motors spends more than twice as much for employee health insurance as for
the steel that goes into each car they produce.
Answer:
The 1993 Revenue Reconciliation Act that limited employer deductions for executive
compensation to $1 million of executive compensation may have contributed to the
growth of executive compensation.
Answer:
An employee stock ownership plan exchanges part of an employee’s base wage for part
ownership in a company.
Answer:
The four factors of the global compensation guide are more important than
understanding the range of individuals within a country.
Answer:
All organizations that pay their employees have a compensation strategy even though it
may not be stated or written.
Answer:
Base pay for a Japanese employee of a major company varies between 60 and 80
percent of monthly pay.
Answer:
A job-based structure focuses on the skills, knowledge and competencies employees
possess.
Answer:
Compared to an on-demand review of certifications, scheduling fixed review points
makes it easier to budget and control payroll increases.
Answer:
Two ways organizations are dealing with equity issues for contingent workers are
“boundaryless” careers and hiring top performers as regular employees.
Answer:
Pay systems should fit well with other HR systems.
Answer:
Self-managed work teams and outsourcing can affect the pay structure.
Answer:
The main appeal of competencies is the direct link to the organization’s strategy.
Answer:
If the purpose of a survey is to price the entire structure, then benchmark jobs can be
selected to include the entire job structure.
Answer:
Paying above the market is an effective competitive strategy.
Answer:
The Hay plan is primarily used with professional and managerial jobs.
Answer:
A job structure based upon job value orders jobs on the relative contribution of job
content to the organization’s goals.
Answer:
A major reason for the proliferating cost of benefit programs is the narrow focus of
benefit administrators.
Answer:
An area that presents an ethical dilemma for compensation managers is the
manipulation of measures on which variable pay is based.
Answer:
In Malaysia and Mexico, egalitarian pay structures fit best with the culture.
Answer:
An advantage of paired comparison and alternate ranking is that they are more reliable
than simple ranking.
Answer:
360-degree feedback is used primarily with managers and other high-level employees.
Answer:
The primary criterion for scaling compensable factors is to use the number of degrees
necessary to distinguish among jobs.
Answer:
Teachers whose pay is relatively low in their pay structure will feel their pay structure is
fair if they work in a high-paying district.
Answer:
Members of boards of directors are not categorized as candidates for special
compensation.
Answer:
The number of job evaluation plans an organization uses depends upon the:
A.number of employees.
B.number of departments or verticals.
C.depth of work.
D.level of detail to make pay decisions.
Answer:
Which of the following pay structure procedures would not increase perceptions of pay
fairness?
A.Consistency across all employees
B.Use of accurate data
C.Consultants develop the pay structure
D.Including appeals procedures
Answer:
One of the main reasons the European Union is trying to provide common labor
standards for all members is to _____.
A.make mobility easier for workers
B.make it easier for companies to manage benefits
C.increase tax revenues for retirees
D.avoid social dumping
Answer:
According to Hofstede’s cultural dimensions, in Malaysia and Mexico where there is
high power distance, _____ pay structures are appropriate.
A.equitable
B.hierarchical
C.egalitarian
D.parallel
Answer:
The list of tasks, duties, and responsibilities that make up a job is a ________
A. job analysis.
B. job evaluation
C. job specification.
D. a job description
Answer:
All of the following are examples of inherent controls except _____.
A.range minimums and maximums
B.broad bands
C.budgets
D.performance evaluation
Answer:
Which of the following is not a reason for the recent decline in the use of stock options
in executive pay?
A.There has been growing pressure to expense stock options in annual reports.
B.Stockholders dissatisfaction with treating stock options as a free good.
C.Financial Accounting Standard number 313 raises the cost of using stock options.
D.Stock options do not pay for executive performance.
Answer:
_____ relieve an employer’s liability when a pre-employment injury combines with a
work-related injury to produce a disability greater than that caused by the latter alone.
A.Collateral funds
B.Second-injury funds
C.Insolvency fund
D.Pre-employment fund
Answer:
The average company match for 401K plans is ________ on the dollar up to six percent
of pay.
A.50
B.40
C.30
D.20
Answer:
In the regression equation, y = a + bx, job evaluation points are _____.
A.a
B.b
C.x
D.y
Answer:
Victoria says, “I don’t like it that those jobs that are a lot like mine pay more than my
job.” Victoria is expressing concern about _____.
A.external equity
B.exchange value
C.procedural justice
D.distributive justice
Answer:
Anyone hired through a temporary-help agency, on an on-call basis, or as an
independent contractor is a _____.
A.primary worker
B.regular worker
C.permanent worker
D.contingent worker
Answer:
When job analysis shows managers and employees disagree on parts of a job, what is
the best answer?
A.Collect more data
B.Use quantitative job analysis
C.Refer the problem to the compensation committee
D.Use an experienced compensation consultant
Answer:
Which of the following is not a part of the cost-centered approach for deciding to
provide a benefit?
A.Checking compliance
B.Evaluating competitiveness of current benefits
C.Examining employee preferences
D.Basing benefits on historical costs
Answer:
Which method of budgeting relies heavily on employee pay histories?
A.Unit-level budgeting
B.Bottom-up
C.Control to planned level rise
D.Top-down
Answer:
A job description is compared to class descriptions. This describes the _____ method of
job evaluation.
A.position analysis questionnaire
B.point
C.Hay Guide Chart-Profile
D.classification
Answer:
Marginal productivity theory argues that employers pay _______.
A.use value
B.exchange value
C.market value
D.capital value
Answer:
Which of the following is not one of the tests to determine if a pay strategy is a source
of competitive advantage?
A.Alignment of the pay system with the organization’s business strategy
B.Differentiation of an organization’s strategy from its competitors
C.Internal alignment of the pay strategy with the organization’s strategy
D.External competitiveness of the pay system
Answer:
Which form(s) of compensation is/are most likely to be involved in unethical practices?
A.Executive stock options
B.Employee medical benefits
C.Employee base pay
D.Worker pensions and retirement income
Answer:
Which of the following regarding child labor is not true?
A.Persons under 18 cannot work in hazardous occupations such as logging and mining
B.Persons under 16 cannot work in jobs involving interstate commerce unless working
for a parent or guardian
C.The ILO finds that on a global basis child labor is increasing
D.The highest rates of child labor are in sub-Saharan Africa
Answer:
When tasks are highly uncertain and it is not clear how to define successful
performance, the most appropriate rating format is:
A.BARS.
B.MBO.
C.standard rating scales.
D.ranking.
Answer:
Which of the following benefits is not tied to earnings?
A.Life insurance
B.Disability insurance
C.Vehicle loans
D.Pensions
Answer:
When employee performance is easily measured and the organization’s performance is
fairly stable over time, the most effective type of compensation is to offer _____.
A.large base and low-incentive pay
B.variety of rewards and base pay
C.a variety of rewards with significant incentive pay
D.monetary rewards with large incentives
Answer:
Which of the following is not a tradeoff that would be considered in setting a
compensation budget?
A.Seniority versus performance contingent pay
B.To pay overtime for exempt versus nonexempt
C.Employee contributions versus across the board increases
D.Cash compensation versus benefits
Answer:
_____ is not an example of an approach to customer-driven health care.
A.Tiered networks
B.Cafeteria plans
C.Managed competition
D.Full-defined contribution
Answer:
The two theories emphasizing line of sight are __________.
A. equity and reinforcement.
B. Maslow and Two-Factor.
C. expectancy and goal-setting.
D. agency and equity.
Answer:
Which of the following approaches to pay budgeting requires the most training of
managers?
A.Top-down
B.Forward cycle budgeting
C.Bottom-up approach
D.Unit-level budgeting
Answer:
A comparison of employee benefits for private and state and local government sector
reveals that:
A.private sector pays out better benefits in the long run.
B.both wages and benefits are higher in the state and local governments.
C.private sector paid out better wages than state and local governments.
D.state and government sector paid out better wages but benefits were relatively lesser.
Answer:
When an organization’s performance has frequent highs and lows and individual
performance is fairly stable and performance measures are clear, 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:
Which of the following is an ordering of jobs based on their content or relative value?
A.Job analysis
B.Job description
C.Job structure
D.Job evaluation
Answer: