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Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
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Chapter 12: Performance Management, Compensation,
Benefits, Payroll, 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; long-term goals
c. rewards; punishments
d. none of these
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
4. Which of the following best describes the inputs for performance management
systems?
a. individual data
b. individual data and job data
c. job data and organizational data
d. individual data, job data, and organizational data
5. The most important standardized reports produced by the HRIS are ______.
a. performance contracts for each employee
b. annual summary appraisals for each employee
c. aggregate performance data by unit
d. performance contracts for each employee and annual summary appraisals for each
employee
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
7. Employers must pay ______ for time worked in excess of 40 hours 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,
a. How much should he or she be paid?
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. In what way(s) do benefits differ from compensation?
a. The employee usually pays all or part of the cost of most benefits.
b. Government regulations make benefit offerings very rigid, leaving organizations with
little flexibility.
c. Benefits are relatively easy to administer.
d. Legal requirements for benefits programs are relatively relaxed.
10. For benefits reporting, the most common required report is the annual benefits
report to employees for tax-qualified plans under ______.
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. incentive pay
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
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
b. Compensation is
c. Benefits are
d. none of these
14. Which of the following provides regulations regarding executive pay?
a. ERISA
b. Sarbanes-Oxley
c. TARP
d. EEO
True/False
1. Retention awards are continuous annual awards for staying with the organization.
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.
4. Incentive pay can be either short or long term, depending on the purpose of the
incentive.
5. Job evaluation is a rating or ranking system designed to create an internal hierarchy
of job value.
6. Websites with salary data are very accurate at giving the market rate of most jobs.
7. Employers of nonexempt employees must pay them at least minimum wage, pay
overtime of one and one-half base pay rate for every hour worked in 1 week in excess
of 40 hours, keep track of hours worked, and file reports with the U.S. Labor
Department demonstrating compliance.
8. Compensation data is collected in house for benchmarking.
9. Web-based services can offer decision support to employees deciding what levels of
coverage to sign up for.
10. A perquisite is a reward based on job status (e.g. preferential parking).
11. “Employee of the Month” is an example of a recognition award.
12. Payroll systems only need to be linked to internal data.
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
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,
corrective feedback is used.
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.
2. Briefly describe the differing components that make up total compensation for an
employee?
3. Briefly explain why all compensation programs should be integrated.
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.
6. Briefly describe the data outflows of payroll.
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
7. Describe what is included in an annual compensation report.
8. Discuss how a manager might make sure that the performance plan for each of her
direct reports was driven by organizational strategy and the business plan. How can
information systems support this goal?
