Companies can control costs by replacing annual merit or seniority increases or fixed
salaries with which type of plans?
A) incentive
B) longevity pay
C) pay-for-knowledge pay
D) base pay
You broke your neck at work. The company called to inform you that they had to switch
your benefits from the short-term disability account to the long-term disability account.
Based on this decision, how long have you been off work?
A) at least 3 to 6 months
B) at least 1 to 2 months
C) 12 months
D) 18 months
This agreement describes the terms of employment that are set between management
and union bargaining representatives.
A) employee relationship agreement
B) collective bargaining agreement
C) joint employment agreement
D) workplace requisite agreement
Ensuring the financial solvency of individuals during periods of temporary
unemployment and following work-related injuries helps to do which of the following?
A) promote tax revenue
B) promote the well-being of the economy
C) provide competitive advantage to some employers, but not to others
D) enhance organizational commitment
Xue has been working at an electronics manufacturing plant located in Beijing, China
for the last 3 years. Her parents live in Shanghai. Which of the following is true
regarding her paid time off benefits?
A) Xue is entitled to “home leave” because her parents live in another city in China and
she has met the minimum service requirement.
B) Xue is not entitled to “home leave” because she has not met the five-year service
requirement.
C) Xue is not entitled to “home leave” because there is no such government policy in
China.
D) “Home leave” is granted at the discretion of the employer.
What is the main objective of Scanlon plans?
A) to standardize the workforce
B) to encourage unionization
C) to increase workforce competitiveness
D) to increase employee involvement
When companies’ merit increases don’t clearly reflect differences in actual job
performance, they may need to provide which of the following?
A) a promise to allocate more money toward providing merit pay increases
B) an apology
C) alternative rewards such as a vacation
D) justification in a court of law
Which of the following represent additional paid time off for employees working in
hardship locations?
A) rest and relaxation leave benefits
B) permissible premiums
C) foreign service premiums
D) chillaxtion time
Jane holds a doctoral degree in sociology and works as a taxi driver. Which of the
following best describes this situation?
A) malemployment
B) overstaffing
C) discrimination
D) unemployment
The XYZ Company is a world leader in medical device manufacturing. Aiming to
continue its market position in this industry, the XYZ Company pursues a
differentiation strategy. As a result, this company compensates its employees higher
than competitors in order to attract and retain the best employees. What kind of pay
level policy does the XYZ Company follow?
A) market match
B) market lag
C) market lead
D) market pay line
Which of the following is the difference between the stock price at the time of purchase
and the lower stock price at the time an executive receives the stock option?
A) disposition value
B) discounted value
C) fair market value
D) capital gains
Which of the following represents the horizontal dimension of pay structures?
A) pay ranges
B) pay grades
C) job evaluation points
D) pay spreads
Which best describes incentive pay?
A) Incentive pay is considered part of an employee’s fringe compensation.
B) The criteria for judging an award tend to be objective, such as quantity produced.
C) Award levels are subjective.
D) The amount of the award paid for attainment of goals is not communicated in
advance.
Which type of plan appeared as one of the first discretionary benefits practices?
A) wellness plans
B) employee discounts
C) educational assistance
D) retirement plans
Which type of organizations use classification plans most prevalently?
A) private sector organizations
B) non-profit organizations
C) multi-national organizations
D) public sector organizations
If an employee is rated as outstanding on her leadership ability, she was probably rated
based on which appraisal system?
A) trait
B) goal-oriented
C) comparison
D) behavioral
Which term is used to describe the situation where the pay spread between newly hired
employees and more qualified job incumbents is small?
A) pay structures
B) pay compression
C) red circle pay rates
D) green circle pay rates
About how often do companies pay hardship allowances to expatriates?
A) paid over a two year period
B) added to monthly salary amount
C) added in several small payments
D) paid in a single lump sum
Which of the following is one of the four “universal compensable factors”?
A) cognitive ability
B) personality
C) effort
D) motivation
Nowadays, most companies use a mix of which types of pay plans?
A) seniority pay plans and incentive pay plans
B) merit pay plans and merit bonus pay plans
C) traditional pay plans and incentive pay plans
D) traditional pay plans and person-focused pay plans
Which performance appraisal error reflects the tendency to rate every employee at the
low end of the rating scale, regardless of actual performance?
A) error of central tendency
B) contrast errors
C) negative halo error
D) errors of strictness
Management by objective is part of which type of performance appraisal system?
A) goal-oriented system
B) trait system
C) behavioral observation scale
D) behaviorally anchored rating scale
On which group of employees do U.S. companies rely as a pay referent when
developing international compensation packages?
A) domestic
B) host country national
C) third country national
D) employees who work in Washington, D.C.
A manager in a company gives 5 percent merit pay increases each year to employees
who perform well. Some of those employees started with substantially lower base pay
raises. Over time, which of the following could be a result?
A) negative halo effect
B) desire to be promoted
C) undesirable social structures
D) contrast errors
Which of the following is the arrangement where Tanesha and Jaunita both work
part-time to complete the duties of one full-time position?
A) job sharing
B) freelancing
C) dual staffing
D) safe harboring
Employment costs were highest in which two countries?
A) Germany and the United States
B) Mexico and the United States
C) Brazil and the United States
D) Canada and the United States
Based upon the FLSA child labor provisions, what is the minimum age that a child must
be in order to be legally employed?
A) 10
B) 12
C) 14
D) 19
Under SEC rules, which of the following is true?
A) Shareholders may be subject to personal liability for paying excessive executive
compensation.
B) Publicly held corporations must disclose executive compensation information to
shareholders, but not the public.
C) Board of director members can sue a corporation for excessive executive
compensation.
D) Board of director members may be subject to personal liability for paying excessive
executive compensation.
A company using this competitive strategy seeks to offer a product or service that is
completely unique from other competitors in their market segment.
A) differentiation strategy
B) defender strategy
C) prospector strategy
D) lowest-cost strategy
In 2022, how old will Cary have to be to receive full Social Security benefits?
A) 57
B) 62
C) 65
D) 67
Which of the following are the two main reasons given for adopting person-focused
programs?
A) smaller labor markets and strategic outlines
B) market monopolies and lower labor costs
C) technological innovations and increased global competition
D) market monopolies and company turnover
Manufacturing companies that use assembly lines where one employee’s job depends on
the work of at least one other employee can be described as which of the following
settings?
A) ad hoc work team
B) semi-autonomous work team
C) continuous process
D) bureaucratized
Which type of pay program applies to an organization-wide context because employees
earn base pay rates for the jobs they perform?
A) person-focused
B) competency-based
C) company-based
D) job-based
This type of person-focused pay plan can result in lending an employee from one area
in the company to other areas.
A) stair-step
B) cross-departmental
C) job-point accrual
D) skill blocks
Carlos works at XYZ Innovations Inc. as a computer scientist. ________ schedules
enable Carlos to work four 10-hour days.
What is broadbanding? What are its limitations?
Among the various performance appraisal techniques, ________ is the only one based
on actual observable job behaviors.
________ represent the fields of potentially qualified candidates for particular jobs.
The ________ ranking method orders jobs by extremes as committee members
determine most and least valuable jobs until all jobs have been evaluated.
Identify the countries that are part of NAFTA and NAFTA’s main provisions.
Compare and contrast the concepts of job-based pay and person-focused pay.
What is an appropriate pay policy mix?
Summarize the findings of studies and anecdotal information about the characteristics
of employers that use person-focused pay programs as well as the effectiveness of these
programs.
________ occurs when all members of a group agree on mistaken conclusions due to
conformity in sharing the same mind-set.
________ skills are those skills typically considered supervisory.
What are the two most important reasons for adopting person-focused pay?
Briefly describe the three categories of incentive pay plans and give an example of
each.
What are the strategic issues involved with contingent and flexible workers for a
company pursuing a lowest cost strategy?
What is a constituency? How does it affect the HR department?
Merit pay systems primarily rely on ________ performance measures.
________ premiums reward employees for moving from one assignment to another.
Compare Social Security disability benefits with the workers’ compensation disability
benefits.
To which group of workers does the issue of working condition fringe benefits apply?
Describe working condition fringe benefits.
