What percentage of gross earnings do Brazilian employees put towards social
insurance?
A) 8%
B) 11%
C) 8% to 11% regardless of earnings
D) 8% to 11% based on earnings
Abilities, interests and work styles are elements for which O*NET category?
A) occupation
B) experience
C) worker characteristics
D) worker requirements
Alejandro Martinez is responsible for setting up the pay structure for his company. He
believes that newly hired employees should not be paid as much as established
employees. Which type of pay structure should Mr. Martinez use?
A) broadbanding
B) sales incentives
C) two-tiered
D) merit pay
For the purpose of applying pay policies, this term refers to the groupings of jobs based
on compensable factors.
A) market lines
B) market-competitive pay structures
C) pay grades
D) pay ranges
Wherever proprietary information is the subject of training, a company most often relies
on which of the following sources of expertise?
A) expertise in university professors
B) expertise within the company
C) both expertise within and outside the company to provide training
D) expertise in competitor companies
Developing internally consistent job structures affects the competitive strategy of a
company. Which of the following is a potential constraint on competitive strategy?
A) reducing a company’s rigidity to respond to moves by the competition
B) potentially causing the definition of jobs to become less fluid
C) leading to less routinization
D) potentially creating far more bureaucratization within an organization
Poorly designed performance evaluation processes do little to achieve which of the
following?
A) discourage employees from referring friends for possible employment in the
company
B) influence in any way the perception among employees that pay reflects performance
C) encourage employees to refer friends for possible employment in the company
D) create the perception among employees that pay reflects performance
Which stakeholder group most strongly opposes the engagement of contingent
workers?
A) U.S. government
B) line employees
C) unions
D) executives
This type of pay rate applies to an employee who is demoted but is paid more than the
maximum rate for the pay grade he is now in.
A) graduated
B) green circle
C) red circle
D) multi-tier
U.S. citizen John is an employee of GE, which is headquartered in the United States.
His job responsibilities require him to work in Belgium for at least three years. Which
method of pay is most appropriate?
A) expatriate-based
B) host-country-based
C) home-country-based
D) headquarters-based
The tax advantage afforded companies from offering particular discretionary benefits
has strategic value for which of the following reasons?
A) It translates into cost savings to companies.
B) It may adversely undercut company profits.
C) It helps companies retain talented employees.
D) It may lead to a decrease in the number of benefits a company chooses to offer.
Tuition reimbursement and day care assistance fall under which of the following
categories?
A) boosted enhancements
B) protection programs
C) paid time off
D) service practices
Robert prefers to work full-time as a business analyst, but he is forced to work part-time
for economic reasons because he is unable to find a full-time job. Which of the
following best describes this situation?
A) underemployment
B) malemployment
C) underutilization
D) discrimination
The Improshare bonus is based on a ________ ratio formula.
Typically, what is the number of skill blocks used in skill-based pay programs?
A) 1
B) 1 to 2
C) 1 to 3
D) 2 or more
Which of the following group is a stakeholder within a company?
A) Equal Employment Opportunity Commission
B) Department of Labor
C) prospective employees
D) line managers
Which organization has as one of its main goals to help prospective investors
understand the financial matters of importance to companies?
A) U.S. Department of Labor
B) Public Company Accounting Oversight Board
C) Securities and Exchange Commission
D) Dodd-Frank Commission
John and Mark hold equivalent secretarial jobs, but John, who makes 20 percent more
than Mark, is employed by a manufacturing firm while Mark is employed by a
department store. Based on this information, which of the following best explains this
pay differential?
A) interindustry wage differentials
B) differences in human capital intensity
C) merit exception of the Equal Pay Act of 1963
D) John’s stronger negotiation skills
Which of the following are reference points against which jobs within the company are
judged?
A) benchmark jobs
B) relevant labor markets
C) internal labor markets
D) human resource capabilities
These are used as reference points for setting pay levels.
A) mean pay
B) median pay
C) market-competitive pay
D) benchmark jobs
Which of the following is an advantage of seniority pay systems?
A) They reward exemplary performance.
B) They encourage employees to continue to increase their skill sets.
C) They help to promote product quality.
D) They reward employees on an objective basis.
Which amendment to the U.S. Constitution made it illegal to restrict the freedom of
religion, speech, and press, as well as protect the right of people to peacefully
assemble?
A) Article 1, Section 8
B) First Amendment
C) Fifth Amendment
D) Fourteenth Amendment, Section 1
Which of the following is NOT a provision of the Employee Retirement Income
Security Act?
A) vesting rights
B) fiduciary responsibilities
C) employer matching contributions
D) reporting and disclosure duties
Intentionally treating women less favorably than men based upon their gender would be
what form of discrimination?
A) disparate treatment
B) disparate impact
C) disparate causality
D) situational discrimination
The XYZ Company tries to influence employee food choices by stocking vending
machines with l healthy food. They also offer programs to teach stress reduction
techniques. Which kind of discretionary benefit program does this company sponsor?
A) family assistance program
B) employee assistance program
C) wellness program
D) employer assistance program
This term refers to the level of specialization or expertise an employee possesses in a
particular job.
A) vertical skills
B) depth of skills
C) breadth of skills
D) horizontal skills
Which of the following is typically the case for companies that operate in product
markets where there is relatively little competition from other companies?
A) lower wages and lower profits
B) lower wages and higher profits
C) higher wages and higher profits
D) higher wages and lower profits
George owns a small public relations firm and customer courtesy is considered to be the
most important factor in all of the jobs. Which job-content evaluation approach is
George likely to use?
A) alternation ranking
B) simple ranking plans
C) paired comparison
D) classification plans
Managing staffing levels to avoid layoffs due to poor business conditions can help
control which type of benefits cost?
A) unemployment insurance
B) health care continuation coverage
C) Medicare Part A coverage
D) Social Security disability coverage
Which of the following is a characteristic of job-based pay?
A) It compensates employees for the number of jobs in which they possess the skills to
perform.
B) It rewards employees on their promise to make positive contributions to the work
place.
C) It compensates employees for the jobs they currently perform.
D) A reward is based on the successful acquisition of work-related skills or knowledge.
In general, which of the following is an incentive plan design consideration?
A) profitability
B) the outcome of an employee election about willingness to participate in one or more
incentive plans
C) the level of risk employees will accept in their overall compensation package
D) workforce unionization
A recently opened car dealership uses an incentive compensation plan for its sales
people. The dealer provides money to its salespeople to cover basic living expenses and
then shares a fixed percentage of the selling price of each car sold. However, the
salesperson should repay the subsistence pay component within a year; otherwise
he/she cannot continue in the employment of this dealer. Which type of sales
compensation plan does this dealer adopt?
A) salary-plus-bonus
B) salary-plus-commission
C) commission-plus-draw
D) commission only
Which factors account for considerable variation in pay between occupations?
A) employment laws
B) interindustry wage differentials
C) relevant labor market
D) knowledge, skills, and abilities
________ teams consist of a group of people assigned to complete a one-time task.
________ profit sharing plans place cash awards in trust accounts for employees and
are set aside on employees’ behalf as a source of retirement income.
Workers join unions to influence ________-related decisions, especially when they are
dissatisfied with job security, wages, benefits, and supervisory practices.
With ________ arrangements, temporary employees generally do not work for more
than one year, and the hiring companies are the temporary workers’ legal employers.
________ is the transition process of working in a domestic assignment in a worker’s
home country after having worked on an international assignment abroad.
________ refers to a general slowdown in economic activity.
________, or lump sum bonuses, lend themselves well to cost containment since these
bonuses are not permanent percentage increases.
On average, Gina would be more likely to earn ________ money if she were to work as
a sales clerk for a department store rather than as an assembly technician in an aircraft
engine manufacturing plant.
Companies that implement ________ and ________ plans generally increase the
amount of classroom and on-the-job training as these types of plans make training
necessary rather than optional.
A ________ plan encourages employees to develop skills and learn to perform jobs
from different job families.
According to the ________ in Brazil, the minimum wage rate is nationally uniform and
set by law.
The actions of executives on behalf of their own self-interest are known as the
________ problem.
Money that covers the basic living expenses of sales professionals is better known as a
________.
________ is a descriptive process.
A special kind of part-time employment agreement, whereby two or more part-time
employees perform a full-time job, is better known as ________.
Many of the companies known to be using person-focused pay systems generally
employ no fewer than ________ employees.
Manufacturing is considered to be a ________ intensive industry.
________ physicians determine when patients need the care of specialists and help to
control costs by reducing the number of unnecessary visits to specialists.