Which of the following is a major challenge in setting up skill-based pay programs?
A) determining the number of skill blocks
B) convincing shareholders that this type of pay system can facilitate competitive
advantage
C) demonstrating that the benefits of adopting a pay-for-knowledge program outweighs
the costs
D) pricing individual skill blocks
Which of the following is based on the human capital theory?
A) seniority pay system
B) BOS
C) merit pay system
D) BARS
Which legally required document reveals detailed information about the compensation
of the CEO and named executive officers (NEOs)?
A) company’s annual report
B) compensation and benefits scorecard
C) definitive proxy statement (DEF 14(A))
D) say-on-pay summary statement
Due to a recent merger with another major airline, ABC Airlines decided to lay off
some of its employees. ABC Airlines offers training sessions to teach job search and
interviewing techniques to those laid off employees. Which kind of service was
provided by this airline?
A) employee assistance program
B) tuition reimbursement
C) wellness program
D) outplacement assistance
Which types of companies are most likely to utilize two-tier wage systems?
A) unionized firms
B) sales firms
C) public sector companies
D) private sector companies
The ________ is the middle value in an ordered sequence of numerical data.
Which of the following is NOT a financial measure?
A) operating efficiency
B) revenue
C) earnings per stock share
D) operating income
In the garment factory of the XYZ Co., line workers are trained to work at different
manufacturing steps such as grading, cutting, sewing and assembling, pressing, etc.
XYZ Co.’s strategy of training is an example of which of the following?
A) task identity
B) skill variety
C) autonomy
D) feedback
The halo effect and similar-to-me effects are considered examples of which type of
rating error?
A) trait system
B) contrast
C) illegal discrimination
D) bias
Consumer driven health care strives to achieve which of the following objective?
A) provide employees with a list of acceptable primary care physicians
B) provide employees with greater choices while also containing costs
C) increase the cost of health insurance
D) maintain low copayments and coinsurance amounts
Which of the following is rationale to apply a probationary period prior to permitting
participation in an employee benefits plan?
A) Companies view such periods as an opportunity to ensure that they have made sound
hiring decisions.
B) Companies enable new employees to decide whether they wish to remain employed
on a long-term basis before completing extensive paperwork.
C) Companies attempt to reduce employee entitlement.
D) Companies attempt to discourage long-term employment.
Employees would need to learn these types of skills in order to develop self-managed
work teams.
A) horizontal
B) vertical
C) depth
D) breadth
Successful business endeavors rely on whom?
A) host country nationals
B) the right people
C) third country nationals
D) expatriates
Which benefit might part-time workers be less likely to need?
A) life insurance
B) day care
C) health insurance
D) paid vacation
A company that designs, manufactures, and sells only Halloween costumes would
probably benefit most from this model.
A) cross-departmental
B) skill blocks
C) job-point accrual
D) stair-step
As a result of this law enacted by Congress, employers must now show that
employment practices that create disparate impact are a business necessity. This law
also made it legal for U.S. citizens working abroad for U.S. companies to file suit.
A) Americans with Disabilities Act of 1990
B) Executive Order 11246
C) The Civil Rights Act of 1991
D) The Older Workers Benefit Protection Act
The XYZ Company pays a portion of company profits to its employees. The
management offers this incentive plan as one kind of retirement program. Which kind
of companywide incentive plan does XYZ Co. offer?
A) employee stock ownership
B) deferred profit sharing
C) current profit sharing
D) employee stock option
Which of the following benefits was previously offered on a discretionary basis, but, is
now mandatory?
A) health insurance
B) retirement plans
C) paid time off
D) employee assistance programs
Ashley was working as a part-time employee in a private company and she received
employer-sponsored health care. She has just been laid off. Under which act could she
choose to continue receiving employer-sponsored health care insurance coverage?
A) Consolidated Omnibus Budget Reconciliation Act
B) Emergency Economic Stabilization Act
C) Family and Medical Leave Act
D) Equal Pay Act
Which of the following is NOT true for internally consistent compensation systems?
A) Jobs that require higher qualifications and more responsibilities should be paid more
than jobs that require lower qualifications and fewer responsibilities.
B) Internally consistent compensation systems are created through job analysis and job
evaluation.
C) Internally consistent compensation systems may increase a company’s flexibility to
respond to changes in competitor’s pay practices.
D) Internally consistent compensation structures result in bureaucracy.
This type of telecommuting involves executives that travel extensively and maintain
control over projects through the use of telephones, faxes, and e-mail.
A) neighborhood work center
B) satellite work center
C) nomadic executive office
D) electronic remote work center
Andre is going to be stationed overseas for about 18 months. Andre’s foreign service
premium will increase his base pay by about how much?
A) 5 – 10 %
B) 10 – 30 %
C) 40 – 60 %
D) 50 – 75 %
Which of the following is a possible advantage of raising the overtime pay threshold?
A) lower income tax rate
B) higher employee motivation to move into upper-level management positions
C) pay increases for all employees
D) higher discretionary income for the additional workers who meet the new exemption
criteria
Which is believed to be one of the reasons for President Obama’s call to increase the
overtime pay threshold?
A) Companies believe that increasing the overtime pay threshold will promote
competitive advantage.
B) Labor unions have threatened to strike.
C) New York and California have already set thresholds that are higher than the federal
level (as of July 2015).
D) Raising the threshold will directly lead to a lower unionization rate in the private
sector.
The XYZ Manufacturing Co. uses a gain sharing plan that gives incentives to
employees to finish products rather than to incentivize dollar savings. Therefore, this
company measures productivity as the ratio of standard labor hours and actual labor
hours. Which kind of gain sharing program does XYZ Manufacturing Co. use?
A) Improshare
B) Rucher
C) Scanlon
D) SVOP
Which of the following arguments do labor unions use regarding the substantial pay
discrepancies between CEOs and non CEOs?
A) Discrepancies are socially unjust and promote economic inequality.
B) Discrepancies contribute to labor strikes.
C) Discrepancies undermine global competitiveness.
D) Discrepancies decrease which promotes effective companies seek to recruitment and
retention.
Common review dates provide which of the following advantage?
A) The company can equate all employees’ job performance at the same time.
B) The company minimizes the administrative burden of the plan.
C) The company trains supervisors about the most effective way to conduct
performance reviews.
D) Common review dates ensure that some employees’ reviews will be overlooked.
Which of the following describes CEO compensation that is deemed ineffective?
A) pay-for-status
B) pay-for-nonperformance
C) seniority-based pay
D) person-focused pay
Safe harbor rules limit the number of leased employees up to which percentage of a
company’s total workforce?
A) 20%
B) 10%
C) 25%
D) 33%
A company adopting a commissions-oriented sales compensation plan would most
likely pursue which type of competitive strategy?
A) highest quality
B) lowest-cost
C) differentiation
D) fairest-price
The XYZ Co. plans to open a new facility in Canada to be able to reach its Canadian
customers more quickly. Which of the following is true regarding labor-related
considerations of the new facility?
A) Canada does not possess a statuary minimum wage law.
B) Federal legislation in Canada can override provincial laws.
C) Both individual and collective employment relationships are controlled at the
province level.
D) There is one common law governing individual employment contracts for all
provinces.
Construction contractors, working on government contracts valued at more than $2,000,
must pay their laborers and mechanics what type of local area-based wage to be in
compliance with the Davis-Bacon Act of 1931?
A) minimum wage
B) prevailing wage
C) prevalent wage
D) discretionary wage
Which of the following occurs under tax equalization?
A) Expatriates realize tax benefits whenever actual taxes are less than the hypothetical
tax.
B) The employee pays the foreign income tax, but not the U.S. government tax.
C) Employers reimburse expatriates for the difference between the hypothetical tax and
the actual income tax.
D) The employer takes the responsibility for paying the income tax on behalf of the
expatriates.
Since the 1970s, ________ has lagged behind labor productivity growth.
U.S. citizens employed in U.S. companies with work assignments outside the United
States are better known as ________.
________ provide pay and benefits to executives after a termination that results from a
change in ownership or merger.
How does globalization affect HR departments?
Describe the within-step increase structure in the General Schedule (GS).
How can empowering employees help strengthen the pay-for-performance link?
What is pay compression and how can companies minimize the occurrence of it?
What are some of the issues companies should consider to increase the likelihood of
successful repatriation?
Under which three conditions are individual incentive plans most appropriate?
Strategic management involves distinguishing between ________ and ________ in
attempting to achieve company goals, thus making strategic management an imprecise
process.
PPACA distinguishes between health plans that existed prior to the March 23, 2010,
enactment date and those that come into existence afterward. Individual and group
health plans already in existence prior to enactment are referred to as ________ plans.
________ is a form of compensation based upon a percentage of the selling price of a
product or service.
The concept of just-meaningful pay increases applies to ________ pay programs.
________ assign different pay rates for jobs of unequal worth and provide the basic
framework for recognizing differences in individual contributions.
List and discuss four possible limitations of merit pay programs.
Companies in such ________ industries as retail sales could benefit by including an
incentive component in the core compensation programs they offer to employees.
________ represent the vertical dimension of pay structures.