Compare health benefits and paid time off benefits in India and People’s Republic of
China.
This concept describes a company’s success when the company acquires or develops
capabilities that facilitate outperforming the competition.
A) differentiation
B) capital
C) compensation practices
D) competitive advantage
Which of the following type of job evaluation plans is used when the company chooses
to assign job pay rates that are neither too low nor too high relative to the market?
A) market-based
B) internally consistent
C) job-based
D) hybrid
Which law defines hours worked?
A) National Labor Relations Act
B) Davis-Bacon Act
C) Equal Pay Act
D) Portal-to-Portal Act
Nora has been working at a manufacturing plant in Mexico for the last 18 months.
Which of the following regarding her paid time off benefits is false?
A) She is entitled to paid time off during public holidays.
B) She is entitled 6 weeks’ leave prior to giving birth and 6 weeks’ leave after birth on
half salary.
C) She is entitled to 6 vacation days.
D) If she works during a public holiday, she is entitled to double pay.
Which of the following is the most common type of life insurance policy offered by
companies?
A) group life
B) term life
C) whole life
D) universal
Valid and reliable job evaluations result from which two conditions?
A) consistent results; using multiple collection methods
B) consistent results; data obtained under similar conditions
C) data from multiple sources; using multiple collection methods
D) data from multiple sources; data obtained under similar conditions
What is the status of employee benefits in Brazil?
A) Benefits that are not stated in collective bargaining agreements are subject to
possible cancellation.
B) Only health care protection cannot be eliminated.
C) Any and all benefits habitually granted by the employer cannot be eliminated.
D) Employee benefits are not protected by Brazilian law.
Which of the following would be considered part of a company’s wellness program?
A) putting a soda machine in the break room
B) giving out cigars to expecting fathers
C) offering anti-smoking courses
D) giving employees free pizza at lunch
This type of behavioral performance appraisal system requires the review of past
performance behaviors and outcomes in order to identify them as either successful or
unsuccessful.
A) management by objectives (MBO)
B) behavioral observation scales (BOS)
C) behaviorally anchored rating scales (BARS)
D) critical incident technique (CIT)
India’s labor force has approximately how many million people?
A) 350
B) 400
C) 450
D) 500
How often is the Consumer Price Index calculated for the United States?
A) daily
B) weekly
C) monthly
D) twice a year
The R2 statistic tells us how well the variation in the company’s valuation of jobs based
on job evaluation points explains the variation in market pay rates from the
compensation survey. What does it mean when the R2 = 1?
A) All of the variation in market pay can be explained by the company’s job structure.
B) None of the variation in market pay can be explained by the company’s job structure.
C) All of the variation in market pay can be explained by the company’s external pay
rates.
D) All of the variation in market pay can be explained by the benchmark rates.
Relying on demographic characteristics as the basis for awarding pay increases tells us
which of the following?
A) The supervisor is thorough in his determination of pay increases.
B) The supervisor endorses seniority.
C) The supervisor is relying on factors other than merit.
D) The supervisor has adopted a person-focused pay approach.
What was the median annual earnings for all U.S. civilian workers in 2014?
A) $47,230
B) $51,980
C) $46,230
D) $41,778
Which of the following is considered an enhanced benefit for expatriates?
A) emergency leave
B) education reimbursement for expatriates’ children
C) host country holiday pay
D) pay for host country vacation days
In Germany, how long must an employee work before becoming eligible for paid
vacation?
A) 4 weeks
B) 6 months
C) 6 weeks
D) 4 months
What is coinsurance?
A) Both parents have employer-sponsored insurance coverage for their children.
B) Two insurance companies combine to offer group insurance coverage.
C) An employee pays all out-of-pocket expenses before the insurance takes effect.
D) The insured pays a percentage of covered expenses.
Which of the following is a reason many European and Pacific Rim employees are
better skilled and able to work more productively than American workers?
A) Both European and Pacific Rim economies provide a higher quality of academic
preparation and workplace learning for the non-college portions of their work forces.
B) Partnerships between public educators and employers are much stronger in the
United States.
C) Learning is accorded a higher standing in the operations of the U.S. economy than in
the European and Pacific Rim economies.
D) Americans do not have equal access to educational opportunities.
One study about the minimum wage in particular cities concluded which of the
following?
A) Those cities suffered job losses in both the retail and food service industries.
B) Those cities suffered job losses in the retail industry, but not in the food service
industry.
C) Those cities didn’t suffer job losses among low-wage restaurant workers.
D) Those cities didn’t suffer job losses at any job level.
Which of the following is NOT one of the direct or indirect reasons of rising wages in
China?
A) Chinese policy makers’ support of increased wages
B) one-child policy
C) labor shortages
D) increasing cost of exports
Jason works at a call center for an insurance company, and he has been answering calls
regarding auto insurance. Recently, he started to attend a training program about home
insurance. Upon successful completion of this training program, Jason will be able to
handle home insurance questions and queries as well. If this insurance company has a
compensation policy that rewards Jason’s completion of this training, then what type of
pay system does it employ?
A) incentive pay
B) merit pay
C) seniority pay
D) pay-for-knowledge
In theory, the CEO hires the consultant to perform an objective analysis of the
company’s executive pay package and to make whatever recommendations the
consultant feels are appropriate; however, in practice, which tends to be the case?
A) Shareholders’ interests are often placed secondary to the interests of the CEO.
B) This relationship generally leads to a compensation package that is higher than
expected.
C) This relationship generally leads to a compensation package that is lower than
expected.
D) This relationship has the potential to promote a conflict of interest.
The origins of the common law governing individual employment contracts in Canada
were based on the laws of which country?
A) Italy
B) Spain
C) Sweden
D) England
Which term best describes the extent to which companies’ operations are based on the
use of large-scale equipment?
A) manufacturing capital intensity
B) human capital intensity
C) capital intensity
D) financial capital intensity
When a filing clerk is trained to maintain employee attendance records, it is an example
of acquiring which type of skills?
A) horizontal
B) vertical
C) depth
D) breadth
How often will Jill receive an unemployment check?
A) daily
B) weekly
C) bi-monthly
D) monthly
Which of the following describes job duties, tasks, and relevant factors needed to
perform a job adequately?
A) job content
B) job structure
C) job summary
D) job context
Which process can companies use to make corrections for differences between their
jobs and external benchmark jobs?
A) job evaluation
B) job leveling
C) job analysis
D) compensation surveys
There are 15 animal keepers working for the XYZ Zoo. Their supervisor is required to
rate the performance of these workers based on the following criteria: 30% of the
animal keepers will be rated as below-average, 40% of the animal keepers will be rated
as average, and 30% of the animal keepers will be rated as above average. What type of
performance appraisal is used?
A) paired comparison
B) forced distribution
C) critical incident technique
D) behavioral observation scale
This is a systematic process for gathering, documenting, and analyzing information in
order to describe jobs.
A) job characterization
B) job description
C) job evaluation
D) job analysis
Jose invested $2,000 in pre-tax income into this healthcare plan but lost the $780
unspent balance remaining at the end of the year. What type of plan was it?
A) health savings account
B) flexible spending account
C) health reimbursement arrangement
D) fee-for service plan
Which of these actions would HR encourage in attempting to create a lowest-cost
competitive strategy?
A) an employee’s long-term focus
B) unpredictable employee behavior
C) high concern for the quantity of output
D) high concern for the quality of output
In India, the Minimum Wages Act of 1948 generally applies to which of the following?
A) occupations that are largely nonunionized or have little bargaining power
B) occupations that are largely unionized or have little bargaining power
C) employees who work in the private sector
D) employees who work in the public sector
The SEC requires compensation information about the CEO and how many of the
highest paid executives?
A) 10
B) 7
C) 4
D) 2
________ of skills is the level of expertise or specialization an employee brings to a
job.
The main disadvantage of group incentive compensation is employee ________.
________ pay increase refers to the minimum pay increase that employees will
consider to be a worthwhile change in compensation.
What are the differences between pay grades and pay ranges?
In an effort to increase the productivity of its employees, a manufacturing company is
considering adopting an incentive pay program. List and discuss the five factors the HR
professionals should consider in the adoption of an incentive program.
Saudi Arabia, which is one of the top oil producing countries in the world, continues to
pump crude oil even as demand for oil decreases. This activity is considered to be a(n)
________ to other oil producing countries such as the United States.
Summarize the four activities that can help minimize discriminatory performance
appraisal practices.
________ nationals are foreign national citizens who work in U.S. companies’ branch
offices or manufacturing plants in countries other than the United States or their own
home countries.
Describe golden parachute and platinum parachute practices. How are they similar to
each other? How are these different from each other?
________ are career and personal programs designed to develop the job-hunting skills
and strategies of employees being laid off or terminated.
Congress enacted the Civil Rights Act of 1991 to overturn several U.S. Supreme Court
rulings. Identify three cases and discuss their relevance to compensation practice.
________ makes sure that employees have at least a minimally acceptable level of skill
proficiency upon completion of a training unit.
What are three advantages to using flextime schedules?
Executives receive ________ as 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.
The ________ Amendment allows female employees to charge employers with Title
VII violations regarding pay only when the employer has violated the Equal Pay Act of
1963.