Jack is a sales professional who is employed in an auto dealership. At the beginning of
every year, he and his supervisor determine objectives for Jack together, which are tied
to corporate objectives. One of the objectives is related to customer satisfaction. Jack
always remains in contact with customers to whom he sold cars even after six months
following the sale. His performance appraisal partially depends on the results of a
customer satisfaction survey. What kind of performance appraisal system does this auto
dealer use?
A) trait
B) comparison
C) behavioral
D) goal-oriented
Offering relevant employee benefits can lead to which of the following outcomes?
A) higher return on investment
B) overutilization of employee benefits
C) lower workforce diversity
D) lower hourly wage rates
Mary works at a pharmaceutical company as a customer service representative. Her
employer allows her to choose the set of benefits she will receive on top of
preestablished sets of benefits, such as medical insurance and term life insurance. The
company gave her credits equal to 6% of her salary with which she decided to purchase
dental and vision insurance. This pharmaceutical company uses what kind of benefits
plan?
A) cafeteria
B) flexible benefits
C) employee-financed
D) core plus option
To receive OASDI disability benefits, Sung Lee’s disability would have to be expected
to last at least how long?
A) 6 months
B) 12 months
C) 3 months
D) 18 months
With which sales compensation plan does the level of pay not vary when sales volume
does vary?
A) commission-only
B) salary-only
C) salary -plus-bonus
D) salary plus-commission
Universal compensable factors are derived from which federal Act?
A) Fair Labor Standards Act
B) Civil Rights Act of 1963
C) Equal Pay Act
D) Americans with Disabilities Act
________ is defined as an in-depth examination of the external and internal
environmental factors that are likely to have the greatest impact on the future of the
company.
A) Market-competitive pay structure
B) Regression analysis
C) Competitive strategy
D) Strategic analysis
Mexico can be defined as which of the following?
A) constitutional monarchy
B) federal republic
C) parliamentary democracy
D) autocracy
Which measure helps compensation professionals understand the standard of health
care in the United States and elsewhere?
A) per capita expenditure on legally required benefits
B) per company’s expenditure on health care
C) per country expenditure on health care
D) per capita expenditure on health care
Which one of the following factors has contributed to China’s labor shortage?
A) approximately 30 years of the one-child policy
B) mass emigration of Chinese citizens to various other countries
C) increases to minimum wage rates
D) imposed limit on the number of individuals who can work per family
In which sector are some unions more likely to support the use of contingent workers?
A) private
B) public
C) profit-oriented
D) non profit organizations
This formula for determining the amount available for profit sharing uses a specific
percentage of annual profits contingent upon the successful attainment of a specified
profit goal.
A) fluctuating first-dollar-of-profits
B) differed first-dollar-of-profits
C) graduated first-dollar-of-profits
D) fixed first-dollar-of-profits
Which of the following are the three measures of dispersion?
A) percentile standard, deviation, arithmetic mean
B) standard deviation, quartile, percentile
C) quartile, arithmetic mean, standard deviation
D) arithmetic mean, percentile, quartile
These are the salient job characteristics that are the general basis for job evaluations and
are used to establish relative pay rates.
A) job descriptions
B) compensable factors
C) occupation descriptions
D) ranking plans
Under the Family and Medical Leave Act, how many hours would Pierre have had to
work in the previous 12 months in order for him to take time off to care for his wife and
new child?
A) 1,000
B) 1,250
C) 1,600
D) 800
Sandra’s position changed from supervisor at the planning department to supervisor at
the new projects department. In terms of career development, which of the following
describes Sandra’s situation?
A) maintaining focus with less responsibilities
B) making a lateral move across the company’s hierarchy
C) moving upward through a company’s hierarchy
D) maintaining the focus and assuming greater responsibilities
This performance appraisal system is based on employees and supervisors identifying
on-the-job behaviors and behavioral outcomes that distinguish levels of job
performance.
A) behaviorally anchored rating scales
B) critical incident technique
C) behavioral observation scales
D) forced distribution system
Employees may differ in their perceptions of what they consider to be large enough pay
raises. Which of the following may be a consequence?
A) filing lawsuits on the basis of illegal discrimination
B) creating undesirable social structures
C) demotivating those employees who do not consider pay raises to be large enough
D) none of the above
Which strategy could help contain workers’ compensation costs?
A) implementing health promotion programs
B) raising employees’ share of health insurance costs
C) eliminating probationary waiting periods
D) requiring that employees purchase and appropriately use safety gear
Chris has been working in Vancouver, Canada at an accounting firm for the last 10
years. Which of the following is false regarding his paid time off benefits?
A) He is entitled to 8 weeks of paid leave to care for a seriously ill family member.
B) His paternity leave provisions are coordinated under the Federal Employment
Insurance Act.
C) He is entitled to 8 or 9 annual paid holidays.
D) He is entitled to 3 weeks of paid vacation time and a sum of money as vacation pay.
Which of the following questions should HR professionals consider when selecting
employees for expatriate assignments?
A) Are candidates willing to sacrifice job promotions in their home countries?
B) Are candidates able to fluently speak the language in multiple countries?
C) Are candidates’ families willing to adjust to foreign lifestyles?
D) Are candidates willing to sacrifice some of their compensation?
This act strengthened the Equal Pay Act of 1963 by requiring employers to show that
pay disparities are job related rather than sex-based. This act also prohibits employers
from retaliating against employees who share their salary information.
A) The Paycheck Fairness Act
B) The Civil Rights Act of 1964
C) The Age Discrimination in Employment Act of 1967
D) The Pension Protection Act of 2006
This model is geared to promoting staffing flexibility in a company by training
employees in one area of the company with some of the critical skills that are needed to
perform effectively in another area of the company.
A) the skill blocks
B) the stair-step
C) the job-point accrual
D) the cross-departmental
Which of the following represents the pay rate differences for jobs and employee
contributions of unequal worth to a company?
A) merit pay
B) incentive pay
C) retention pay
D) pay structures
Which of the following is a major challenge associated with the implementation of the
Fair Labor Standards Act for workers employed on a flexible basis?
A) ensuring that the equal pay provision is not violated
B) ensuring that workers are paid the minimum wage
C) ensuring that the child labor provisions are not violated
D) ensuring that overtime pay rates are calculated correctly
Which pay plan generally rewards employees for meeting work objectives?
A) knowledge-based
B) seniority
C) longevity
D) job-based
Which of the following is true concerning incentive pay?
A) The award is earned only when the predetermined work objective is totally
completed.
B) It motivates employees to be more productive, but does little to control payroll costs.
C) Awards are granted as one-time payments.
D) Incentive levels are generally subjective in nature.
Which organization has the authority to define a “year of service” for pension protection
purposes?
A) National Labor Relations Board
B) U.S. Equal Employment Opportunity Commission
C) U.S. Bureau of Labor Statistics
D) U.S. Department of Labor
Cash and equipment such as a mass spectrometer in a research lab are examples of
which of the following?
A) non liquid assets
B) organizational structure
C) capital
D) liquid assets
Which type of jobs provides reference points to judge against other jobs within a
company?
A) standardized jobs
B) high-value jobs
C) benchmark jobs
D) hierarchical jobs
IRS guidelines define ________ plans as “defined benefit plans that define benefits for
each employee by reference to the amount of the employee’s hypothetical account
balance.”
Expatriates receive ________ allowances when the cost of living is higher where they
work than in the home country.
________- by- ________ is used mainly for managerial and professional employees
and typically evaluates employees’ progress toward strategic planning goals.
The concept that employee’s knowledge and skills can be used to generate superior
productivity is known as ________ theory.
HR professionals rely on ________ jobs as reference points for setting pay levels.
________ is the increase in prices for consumer goods and services.
The market ________ policy most closely follows the typical market pay rates because
companies pay according to the market pay line.
________ describe the allocation of monetary resources to fund pay structures.
________ skills refer to similar skills or knowledge.
The concept that individuals evaluate their accomplishments by comparing themselves
to similar individuals is based on ________ theory.
What are the implications of discretionary benefits for strategic compensation?
________ refers to a job design approach that creates more intrinsically motivating and
interesting work environments.
What are three challenges employers face when using foreign service premiums?
The ________ pay value is the centrally located mark between the range minimum and
maximum rates.
Person-focused pay programs depend, in large part, on well-designed ________
programs.
________ protects the transfer, disclosure, and use of health care information.
The market ________ policy distinguishes a company from competition by
compensating employees less than most competitors.