This is considered “at the heart” of person-focused pay programs.
A) innovation
B) management
C) training
D) data
In Canada, Maria earns an annual salary of $50,000. The amount of Maria’s vacation
pay is equal to what amount?
A) $1,000
B) $1,500
C) $1,750
D) $2,000
Which of the following contributed to the use of flexible benefits plans?
A) greater workforce diversity
B) cost savings initiatives
C) unions
D) global competition
Compensation professionals integrate the internal job structure with the external market
pay rates identified through compensation surveys, and this integration reveals which of
the following?
A) pay rates that reflect both the company’s and the external market’s valuations of jobs
B) changes in wages and salaries over time
C) changes in employee benefits over time
D) changes in labor costs between geographic locations
Which type of professional is involved in the compensation functions such as building
job structures, market competitive pay systems, and merit pay structures?
A) compensation generalist
B) HR specialist
C) compensation specialist
D) HR generalist
Jamie earned a raise in pay when he finished the training for the Technician 2 position.
He will receive another raise when he finishes the training for the Technician 3 position.
The company is probably using which type of model?
A) stair-step
B) skill blocks
C) job-point accrual
D) cross-departmental
Market match policies are generally set to which quartile in the salary survey?
A) 1st
B) 2nd
C) 3rd
D) 4th
Jennifer works as a clerk in a company. The essential function of her job is typing on a
keyboard. If she develops crippling arthritis that interferes with her ability to type,
which act requires her employer to make reasonable accommodations, such as
providing a voice-recognition input device?
A) Family and Medical Leave Act of 1993
B) Americans with Disabilities Act of 1990
C) Davis-Bacon Act of 1931
D) Occupational Safety and Health Act of 1970
Using this executive compensation theory, shareholders negotiate the compensation
contracts with the executive in hopes of aligning the executive’s interests with theirs.
A) agency
B) tournament
C) social comparison
D) strategic
These represent a series of payments for the life of the participant and beneficiary.
A) collateral payments
B) periodic payments
C) lump sum distributions
D) annuities
Which pay model promotes learning and skills development for a wide variety of jobs
from different job families?
A) cross-departmental
B) job-point accrual
C) stair-step
D) skill blocks
Which of the following competitive strategies does Apple Computer use?
A) lowest-cost strategy
B) differentiation strategy
C) total quality management strategy
D) human capital strategy
How many days will Jamal have to work to complete a “year of service”?
A) 125
B) 100
C) 185
D) 270
Hui has worked for one month in Guangxi province where the monthly minimum wage
is 830 yuan. What is the minimum allowable wage that Hui can earn in that period?
A) 830 yuan
B) 664 yuan
C) 415 yuan
D) 500 yuan
A 10 percent merit pay increase budget tells us which of the following?
A) The minimum pay increase amounts to 10 percent.
B) The maximum pay increase amounts to 10 percent.
C) The average pay increase amounts to 10 percent.
D) The standard deviation of any pay increase cannot be more than 10 percent below or
above the average.
Under which law must former employees be given the choice to continue their
coverage, as well as coverage for their spouses and dependents, for up to 18 months?
A) Health Maintenance Act
B) Patient Protection and Affordable Care Act
C) Consolidated Omnibus Budget Reconciliation Act
D) Employee Retirement Income Security Act
Which one of the following racial groups is expected to have the slowest labor force
participation growth rate through the year 2022?
A) mixed races
B) Asian
C) African American
D) Caucasian
The People’s Republic of China Labor Law of 1995 resulted in which of the following?
A) shift to state-owned enterprises
B) collective contracts
C) state controlled benefits
D) break from “iron rice bowl” employment
Canadian retirement plans are most similar to retirement plans in which of the
following countries?
A) Brazil
B) Italy
C) U.S.
D) Germany
Which of the following surveys are tools used by employers to determine the pay levels
needed to recruit highly qualified employees?
A) strategic
B) external market
C) compensation
D) internal market
With which type of sales commission plan does an employee earn a higher rate for all
sales made in a given period if the sales level exceeds a predetermined level?
A) commission-plus-draw
B) straight
C) multiple-tiered
D) graduated
Which job evaluation method entails ordering jobs on the basis of extremes?
A) paired comparison
B) alternation ranking
C) classification
D) factor comparison
James, who is a clerical employee of a university, has been trained to perform several
kinds of record-keeping tasks. He maintains employee attendance records, schedules
salespeople’s work shifts, and monitors the use of office supplies for reordering. Which
type of knowledge is necessary to perform all three of these tasks?
A) work-team
B) horizontal
C) breadth
D) depth
This formula for calculating profit sharing awards gives the employees a higher
percentage of the profits as the profits increase.
A) fluctuating first-dollar-of-profits
B) differed first-dollar-of-profits
C) graduated first-dollar-of-profits
D) fixed first-dollar-of-profits
Differences in employee preferences and needs based on life stage and life
circumstances call for which of the following?
A) comprehensive health insurance plans
B) generous paid vacation allowances
C) flexible benefits
D) child care benefits
Canada has two state-run pension plans: one for ________ provincial residents only and
one for the rest of Canada.
Which amendment to the U.S. Constitution gives Congress the power to regulate
commerce with foreign nations, individual states, and Indian Tribes?
A) First Amendment
B) Fourteenth Amendment, Section 1
C) Fifth Amendment
D) Article I, Section 8
This term refers to the distance of each salary figure from the mean.
A) standard deviation
B) quartile
C) percentile
D) deviated mean
Outplacement assistance programs are best suited for which condition?
A) new plant openings
B) mergers and acquisitions
C) workforce increases
D) global operations
This type of pay program rewards employees for successfully learning specific
curricula.
A) skill-based
B) person-based
C) pay-for-knowledge
D) incentive
Richard’s job has a compa-ratio of 0.85. What does this ratio tell about Richard’s pay
rate?
A) It is highly competitive with the market.
B) It is not competitive with the market.
C) There is no way to judge its competitiveness.
D) You need more information to judge it.
Which of the following are the two types of central tendency measures that are
pertinent to compensation?
A) mode and arithmetic mean
B) median and mode
C) mode and quartile
D) arithmetic mean and median
The ________ common law doctrine establishes temporary workers’ rights to receive
workers’ compensation.
What is the balance sheet approach? When is its use most appropriate?
A health insurance plan would lose its grandfathered status if it were to change
________.
In response to government-imposed wage freezes, many companies began offering
________ as an alternative to motivate employees through greater work benefits.
The General Schedule (GS) classifies federal government jobs into ________
classifications based on such factors as skill, education, and experience levels.
Identify and describe the four steps for establishing market competitive pay systems.
Explain the reasons why employers hire temporary workers.
Are CEOs compensated commensurately with their companies’ performance?
Another name for incentive pay is ________ pay.
Define what an occupation is. Using the example of pharmacists and a pharmacy
technician in Chapter 2, explain the rationale for differences in pay within this
occupation.
Individual incentive plans help to promote the relationship between pay and ________.
Both employers and employees finance Medicare Part A benefits through payroll taxes
of ________ percent on all earnings.
________ allows for an alternative work arrangement in which employees are able to
work at home or at an alternate location besides the office.
________ is a situation in which a worker possesses more qualifications, skill, and
education than is required by his/her existing job.
Both unions and contractors, who employ carpenters, use ________ pay plans.
Briefly define and discuss the importance of considering gross domestic product
(GDP), per capita GDP, and per capital expenditure on health care when considering
wages and benefits in multiple countries. What role do purchasing power parity (PPP)
exchange rates play?
