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SAGE Publishing, 2021
Chapter 11: Rewarding Employees and HRIS
Test Bank
Multiple Choice
1. In support of the performance management process, what serves as a basis for
performance planning for the next period while providing data for a variety of HR
decisions, including rewards, staffing, training, and other decisions affecting the
employee’s relationship with the organization?
A. performance planning
B. performance observations
C. periodic performance summaries
D. none of these
2. Which of the following statements about performance planning is NOT accurate?
A. Performance dimensions, measures, and standards are unique to each position.
B. Attempts should be made to develop common standards for employees with identical
job titles.
C. For each performance dimension, the manager must develop specific outcomes and
behaviors that will be used to measure the direct report’s performance.
D. All of these are accurate statements.
3. The set of performance measures, with ______ and ______, becomes the
performance “contract” for the period.
A. standards; goals
B. short-term goal; long-term goal
C. rewards; punishments
D. none of these
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4. When companies do payroll in-house, what is the payroll module typically part of?
A. the benefits system
B. the performance management system
C. the HRIS
D. the accounting system
5. Which of the following HRM functions is the most heavily outsourced?
A. incentive pay
B. executive compensation
C. performance management
D. payroll
6. Examples of ______ as a form of compensation include club memberships, first-class
travel, and executive dining rooms.
A. retention awards
B. perquisites
C. short-term incentives
D. recognition awards
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7. Employers must pay ______ for time worked in excess of 40 hr a week at an
overtime rate of 1.5 times the normal pay.
A. exempt workers only
B. nonexempt workers only
C. exempt and nonexempt workers
D. all full-time workers
8. The major rewards decision that has to be made about every employee is which of
the following?
A. How much should he or she be paid to be seen as fair by the employee?
B. What type of reward will best motivate him or her?
C. Is the reward system fair for the level of individual performance?
D. Is the reward system equitable among employees holding similar positions?
9. What is a “rewards scorecard?”
A. a report to each employee showing the total value of all compensation and benefits
received by the employee during the year
B. a comparison of employee pay rates
C. a type of performance management
D. rewards that are a function of organizational status
10. For benefits reporting, the most common required report is the annual benefits
report to employees for tax-qualified plans under ______.
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A. FLMA
B. EEO
C. FLSA
D. ERISA
11. Performance management is connected to which of the following other areas of
talent management?
A. recruiting (external)
B. staffing (internal)
C. career management
D. all of these
12. A goal of long-term ______ is to align the interests of employees with those of
shareholders and to motivate aligned performance over periods of more than 1 year.
A. incentives
B. base pay
C. merit pay
D. competitive pay
13. ______ the transactional process through which compensation is transferred to
employees and federal, state, and local income and payroll taxes are withheld from
employees’ checks.
A. Payroll is
B. Compensation is
C. Benefit is
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D. None of these is
14. Which of the following provides regulations regarding executive pay?
A. ERISA
B. Sarbanes-Oxley
C. TARP
True/False
1. Employees receive a retention awards every year that they work for a company.
2. For each performance dimension being evaluated, a manager should develop
specific outcomes and behaviors that will be used to measure the direct report’s
performance.
3. Flex plan is a benefits plan in which an employee can then purchase additional
coverage or benefits at cost.
Johnson, Human Resource Information Systems, 5e
SAGE Publishing, 2021
4. The process of performance management is based on goal setting theory.
5. Job evaluation is a rating or ranking system designed to create an internal hierarchy
of job value.
6. Equity theory predicts that people will always be happy and motivated at work.
7. Employers of nonexempt employees must pay them at least minimum wage, pay
overtime of one and one-half normal pay rate for every hour worked in 1 week in excess
of 40 hr, keep track of hours worked, and file reports with the federal government
demonstrating compliance.
Johnson, Human Resource Information Systems, 5e
SAGE Publishing, 2021
8. The bulk of compensation data is collected in house for benchmarking.
9. Web-based services can offer decision support to employees deciding what levels of
benefits coverage to sign up for.
10. A perquisite is a reward based on job status (e.g., executive dining room).
11. A recognition award has no cost or low cost.
12. Payroll systems only need to be linked to internal data.
Johnson, Human Resource Information Systems, 5e
SAGE Publishing, 2021
13. The performance management process consists of three parts: performance
planning, performance observation, and providing positive feedback and/or corrective
feedback.
14. When performance is below standard or below the goal set by the direct report,
Essay
1. What are the different sets of benefit programs that are common in U.S. companies?
Please list and explain the purpose of each set of benefit programs. Be sure to give
examples of each.
Johnson, Human Resource Information Systems, 5e
SAGE Publishing, 2021
2. Briefly describe the differing components that make up the basic compensation
system.
3. Briefly explain why equity theory is important.
Johnson, Human Resource Information Systems, 5e
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4. Please explain the significance of the Fair Labor Standards Act (FLSA) for
compensation programs.
5. There are HRIS benefits modules with different purposes, and each requires a
different type of data input. Briefly describe the four sets of functions and what type of
data input is needed.
Johnson, Human Resource Information Systems, 5e
6. Briefly describe the data outflows of payroll.
7. Describe what is included in an annual compensation report.
8. How can artificial intelligence (AI) contribute to a better employee performance
management experience?
Johnson, Human Resource Information Systems, 5e