Egalitarian pay structures have all but which of the following characteristics?
A.Few levels
B.Small differentials
C.Supports equal treatment
D.Supports individual performers
Answer:
All the following are true of compensable factors except:
A.reinforce an organization’s culture.
B.support the business direction.
C.represent the nature of work.
D.are common within an industry type.
Answer:
Which of the following is one of the reasons that a union may increase employee
benefits?
A.Increased management control
B.Unions discourage the development of two-tier pay plans
C.Strong union-worker preference for benefits
D.Unions lead to a reduction in wage differentials
Answer:
Contingent workers receive _____ benefits than regular workers; contingent workers’
benefits cost employers _____ than regular workers.
A.more, less
B.fewer, more
C.more, more
D.fewer, less
Answer:
All of the following are advantages of flexible benefits except:
A.costs of benefits are contained.
B.employee understanding of benefits increases.
C.introduction of new benefits is less costly.
D.administrative expenses increase.
Answer:
The social, competitive and regulatory environment factors are most important for
which type of strategy?
A.Corporate
B.Business unit
C.HR
D.Strategic compensation
Answer:
One of the reasons 8 in 10 working families have no health insurance is because ______
A. many large employers do not offer health insurance
B. health insurance is more costly at large employers
C. many small employers do not offer health insurance
D. most workers decline health insurance when offered by their employer
Answer:
The study referred to in the text on how managers make wage adjustment decisions
found:
A.level of unemployment had a major effect
B.profitability affected the overall pay budget
C.managers believed efficiency wage theory
D.managers believed higher pay makes supervision easier
Answer:
Which of the following is not a factor indicating a pay structure is aligned?
A.Fits the external labor market
B.Supports organization strategy
C.Is fair to employees
D.Motivates behavior toward organization objectives
Answer:
A _____ approach controls costs by paying only as much as the work performed is
worth, regardless of any greater skills the employee may possess.
A.performance-based
B.competency-based
C.job-based
D.skill-based
Answer:
Which of the following tests of competitive advantage is the easiest test to pass?
A.Alignment
B.Differentiation
C.Integration
D.Adding value
Answer:
Choices among pay for performance, flat rate pay and profit sharing are examples of
_____ policy decisions.
A.internal alignment
B.efficiency
C.employee contributions
D.management
Answer:
_____ plans are more favorable to long-term than to short-term employees.
A.401 K
B.Cash balance
C.Profit sharing
D.Traditional defined benefit
Answer:
By answering the question, “How does this job add value?” job evaluation best:
A.supports work flow.
B.supports organization strategy.
C.reduces disputes over pay differences.
D.motivates behavior toward organizational objectives.
Answer:
In a _____ pay plan, a contract is negotiated that implements two wage scales, a lower
one for employees hired after a given date and a higher scale for those hired before.
A.person-based
B.efficiency-based
C.one-tier
D.two-tier
Answer:
When employees can see the relationships between their work, the work of others and
the organization’s objectives, this is called
A.procedural justice.
B.line-of-sight.
C.goal congruence.
D.path-goal-congruence.
Answer:
The modern concept of a “living wage” is most similar to _____.
A.marginal productivity wage
B.exchange value
C.just wage doctrine
D.bourse
Answer:
Which of the following is not a defined contribution plan?
A.401 K
B.ESOP
C.Cash-back
D.Profit sharing
Answer:
Alternatives to financing benefit plans include all of the following except:
A.contributory
B.401K
C.noncontributory
D.employee financed
Answer:
The approach to international compensation in which headquarters and foreign units are
networked and share ideas is the _____.
A.globalizer
B.matrix
C.exporter
D.”think global, act local”
Answer:
Which of the following is not true of tariff agreements in Germany?
A.Small organizations use them as guidelines
B.Managerial jobs are covered by the agreements
C.Job evaluation methods are part of the agreements
D.Tariff agreements are different for each industrial sector
Answer:
Employers were more likely to offer bonuses, gain-sharing, and stock options after the
passage of the _____.
A.FLSA
B.Davis-Bacon Act
C.Sarbanes-Oxley Act
D.Worker Economic Opportunity Act
Answer:
A downside of the localization approach to expat compensation is _____.
A.it is more expensive than the balance sheet approach
B.it is more complex than the lump-sum cafeteria approach
C.that salaries will vary by location
D.it is more difficult for expats to understand
Answer:
_____ prohibits discrimination on the basis of race, color, religion, sex, or national
origin.
A.Executive Order 11458
B.The FMLA
C.Executive Order 11246
D.The Rehabilitation Act
Answer:
A compensation system using market-based pay is most likely to be part of a _____
strategy.
A.innovator
B.cost-cutter
C.global
D.customer-focused
Answer:
The best variable pay plan for employees when company financial performance is poor
is _____.
A.profit sharing
B.a balanced scorecard
C.stock ownership
D.gain sharing
Answer:
The most obvious sorting factor is _____.
A.seniority
B.ability
C.experience
D.educational qualification
Answer:
_____ is a common effect of layoffs.
A.Lower financial gains than expected
B.Unfavorable short-term stock prices
C.Higher morale among remaining employees
D.Productivity gains
Answer:
_____ have (has) advantages of having minimal impact on the company’s financial
statements.
A.Cash profit sharing
B.A balanced scorecard
C.Stock options
D.Deferred profit sharing
Answer:
The second step of developing a total compensation strategy is to:
A.implement strategy.
B.assess total compensation implications.
C.estimate the cost of the strategy.
D.map a total compensation strategy.
Answer: