434 - E3 - Chap 9, 10, 12, 13

Which of the following is a feature of defined contribution plans? A) They are faster to vest than defined benefit plans. B) They are characterized by high contribution rates. C) They are less portable than defined benefit plans. D) They are fully funded by employers.

A) They are faster to vest than defined benefit plans.

An employee who changes jobs four or more times during his or her career will likely receive a pension that is approximately ________ as that of an employee whose working career is spent with one employer, assuming that both employees have the same starting salary and receive annual increases equal to inflation rate. A) twice as large B) the same size C) one-fourth the size D) half the size

D) half the size

1The ________ theory of motivation states that employee motivation is the product of instrumentality and valence. A) equity B) expectancy C) reinforcement D) agency

B) expectancy

The most widely used benefit survey is conducted by: A) the U.S. Chamber of Commerce. B) Watson Wyatt. C) the Society for Human Resource Management. D) the American Compensation Association.

A) the U.S. Chamber of Commerce.

How many weeks of leave does the Family Medical Leave Act (1993) mandate for all workers at companies that employ 50 or more people? A) 4 weeks B) 8 weeks C) 12 weeks D) 16 weeks

C) 12 weeks

Components identified as vital to the success of both Scanlon and Rucker plans are: A) top management support and primary focus on wage incentives. B) a flexible payout formula and low turnover rates. C) union and top management support. D) a productivity norm and effective worker committees.

D) a productivity norm and effective worker committees.

The ________ is designed to lessen an employer's ability to deny coverage to an employee for a preexisting condition. A) Consolidated Omnibus Budget Reconciliation Act B) Contract with America Advancement Act C) Health Insurance Portability and Accountability Act D) Family and Medical Leave Act

C) Health Insurance Portability and Accountability Act

________ is employees' beliefs that higher job performance will be rewarded by the organization. A) Valence B) Expectancy C) Instrumentality D) Utility

C) Instrumentality

The majority of defined benefit plans calculate average earnings over the last ________ years of service for a prospective retiree. A) 2 to 4 B) 3 to 5 C) 6 to 8 D) 7 to 9

B) 3 to 5

Jacob, an 18-year-old, has been working at HoldVille Corp. for over a year. If HoldVille offers full vesting after one year, which of the following statements is true? A) Jacob is eligible for full pension as he has worked for over a year at HoldVille. B) Jacob is not eligible for pension as he is not over 21. C) Jacob is eligible for 20 percent of his pension if he has dependents. D) Jacob is not eligible for a pension if he quits of his own volition.

B) Jacob is not eligible for pension as he is not over 21.

Menthorp, Inc. wants to design a variable pay plan that fosters teamwork and increases the business knowledge of its employees. In order to ensure maximum motivation, Menthorp wants its variable pay plan to show a clear performance-reward link. Which of the following plans is most suitable for Menthorp? A) A gain-sharing plan B) The Rowan plan C) A stock ownership plan D) The Merrick plan

A) A gain-sharing plan

Steve has a small company with 12 employees. One of his employees, Larry, has been laid off because his work has been outsourced. Larry had health coverage through Steve's company and wants to continue that coverage. According to the Consolidated Omnibus Budget Reconciliation Act, how long can Larry continue his coverage through Steve's company after being laid off? A) 36 months B) 24 months C) 18 months D) 0 months

D) 0 months

Today, ________ percent of workers participate in the pension plan coverage provided by their employers. A) 98 B) 12 C) 28 D) 53

D) 53

________ are defined benefit plans that look like a defined contribution plan. A) Cash balance plans B) Profit-sharing plans C) Employee stock ownership plans D) Qualified deferred compensation plans

A) Cash balance plans

Which of the following benefits communication methods allows for personalized communication methods and requires current contact information? A) Face-to-face methods B) Virtual methods C) Use of materials D) Use of information portals

C) Use of materials

An employer experiencing high turnover and seeking to reduce pension costs is likely to prefer: A) full vesting after three years. B) full vesting after six years. C) full vesting after seven years. D) partial vesting after two years.

A) full vesting after three years.

Maxford Corp. offers full vesting after two years. However, it does not offer portability of pension to its employees. Which of the following statements is true in this scenario? A) Employees of Maxford will receive 20 percent of their pension if they quit after one year. B) Maxford does not have to provide vested benefits to employees who quit before six months. C) Employees of Maxford who quit can have their pension benefits transferred to the new employer. D) Maxford does not have to provide vested benefits if employees quit of their own volition after two years.

B) Maxford does not have to provide vested benefits to employees who quit before six months.

Michael was laid off by his company owing to budget cuts. Before being laid off, he earned $1,000 per week. If he has been receiving unemployment insurance benefits for 26 weeks, which of the following statements is true in this scenario? A) Michael can continue to avail unemployment benefits for another 26 weeks. B) Michael is eligible for $1,000 per week if he can show that he has been earnestly searching for jobs. C) Michael is no longer eligible for unemployment benefits. D) Michael will now only be eligible for 20 percent of his previous income as unemployment benefits.

C) Michael is no longer eligible for unemployment benefits.

Company X pays for performance. Allan, an employee of the company, is not in favor of this reward system and, therefore, leaves Company X in search of another company with different rules for getting rewards. This is an example of the: A) design effect. B) compensation effect. C) sorting effect. D) incentive effect.

C) sorting effect.

The first issue in setting up a benefits package is: A) finding out who should be protected or benefited. B) figuring out how much choice should employees have among benefits. C) determining how benefits should be financed. D) choosing legally defensible benefits.

A) finding out who should be protected or benefited.

All of the following factors are reasons for the growth of benefits EXCEPT: A) foreign lawsuits. B) unions. C) cost effectiveness of benefits. D) government impetus.

A) foreign lawsuits.

Most experts agree that employees do not begin to consider changing their behavior unless payouts are at least ________ percent higher. A) 5 B) 8 C) 20 D) 10

D) 10

What is the first question that should be asked when determining the amount of retirement income an employer should provide? A) Should Social Security payments be factored in when considering the level of income an employee should have during retirement? B) How should seniority be factored into the payout formula? C) What level of retirement compensation would the employer like to set as a target, expressed in relation to preretirement earnings?D) Should other postretirement income sources be integrated with the pension payment?

C) What level of retirement compensation would the employer like to set as a target, expressed in relation to preretirement earnings?

In a(n) ________, employees have a hypothetical account into which is deposited what is typically a percentage of annual compensation. A) qualified deferred compensation plan B) employee stock ownership plan C) cash balance plan D) profit-sharing plan

C) cash balance plan

Which of the following is a reward that recognizes outstanding past performance? A) Insurance B) An allowance C) A remittance D) Merit pay

D) Merit pay

Which of the following is an example of the sorting effect in action? A) An employee leaving a high-paying job for one that provides more work/life balance B) The provision of across-the-board pay increases by a company C) The provision of cost-of-living increases by a company D) An employee choosing fewer incentives in his flexible compensation plan

A) An employee leaving a high-paying job for one that provides more work/life balance

Which of the following statements is true of the Halsey 50-50 method? A) It derives its name from the shared split between worker and employer of any savings in direct cost. B) In this method, a worker's bonus increases as the time required to complete a task decreases. C) In this method, the standard time for a task is purposely set at a level requiring high effort to complete. D) It is usually offered to top managers and professionals to get them to focus on long-term organization objectives.

A) It derives its name from the shared split between worker and employer of any savings in direct cost.

Which of the following is a benefit under Social Security? A) Lump-sum death payments B) Job security C) Work/life balance D) Overtime pay

A) Lump-sum death payments

The ________ requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship. A) Patient Protection and Affordable Care Act B) Family Medical Leave Act C) Maintenance Act D) Consolidated Omnibus Budget Reconciliation Act

A) Patient Protection and Affordable Care Act

Which of the following motivational theories states that performance-based payments work best when they closely follow performance? A) Reinforcement theory B) Equity theory C) Expectancy theory D) Agency theory

A) Reinforcement theory

Maxwell Construction Corp. employs a lot of uneducated laborers. The company wants to introduce a variable pay plan that is easy to understand and does not cost much to administer. Which of the following variable pay plans is Maxwell most likely to introduce? A) A balanced scorecard plan B) A gain-sharing plan C) A stock ownership plan D) A cash profit-sharing plan

D) A cash profit-sharing plan

In the context of a pay-for-performance plan, which of the following questions is related to equity? A) Does the plan help improve quality of service? B) How far down the organization will the plan run? C) Does the reward system maintain and enhance the reputation of the firm? D) Do employees view the amount of compensation received as fair?

D) Do employees view the amount of compensation received as fair?

________ is a variable pay plan where payout depends not on company level performance such as profitability, but rather on performance at some subunit such as a plant or facility. A) Individual incentive B) Profit sharing C) Merit bonus D) Gain sharing

D) Gain sharing

A person with low self-esteem is likely to seek A) a small, hierarchical organization with pay plans based upon individual performance. B) a flat organization with a significant amount of pay based upon performance. C) a small organization with large benefits based on group performance. D) a large, decentralized organization with little pay for performance.

D) a large, decentralized organization with little pay for performance.

The corporate performance of Yellow Corp. is fairly stable. However, it is difficult to measure individual performance. In this case, the most effective compensation mix is to offer A) a high base pay with high incentives. B) monetary rewards alone. C) a large base pay and low incentive pay. D) a wide range of awards beyond just money.

D) a wide range of awards beyond just money.

If a benefit forecast suggests future cost containment may be difficult, the benefit should: A) be completely paid for by employees. B) be offered on a noncontributory basis. C) not be used. D) be offered to employees only on a cost-sharing basis.

D) be offered to employees only on a cost-sharing basis.

The amount of fairness given to employees refers to A) total justice. B) quantitative justice. C) procedural justice. D) distributive justice.

D) distributive justice.

Various studies have found that only two specific benefits curtailed employee turnover, namely ________ and ________. A) vacation days; dental plans B) profit-sharing plans; life insurance C) retirement benefits; paid vacations D) pensions; medical coverage

D) pensions; medical coverage

Which of the following is a disadvantage of gain-sharing plans? A) Payouts can occur even if a company's financial performance is poor. B) Pay-performance links are indirect. C) Employees are required to put up money to exercise grants. D) Mandatory stock ownership required by gain-sharing plans can increase turnover rates.

A) Payouts can occur even if a company's financial performance is poor.

Jennifer is hurt at work while driving a forklift. Her employer claims that she was injured as a result of her careless driving and is therefore not eligible for workers' compensation. What will be the outcome of the employer's challenge to her worker's compensation claim? A) She will likely receive workers' compensation benefits. B) She will get nothing. C) Jennifer and her employer will share the blame and split the costs. D) The employer has the final word in determining Jennifer's eligibility.

A) She will likely receive workers' compensation benefits.

In the context of the Consolidated Omnibus Budget Reconciliation Act, which of the following statements is true? A) The biggest concern for individuals getting health insurance under the Consolidated Omnibus Budget Reconciliation Act is the relatively brief qualifying period. B) The Consolidated Omnibus Budget Reconciliation Act is designed to lessen an employer's ability to deny coverage for a preexisting condition. C) The Consolidated Omnibus Budget Reconciliation Act was enacted when stringent new privacy provisions added considerable compliance problems for HR people charged with enforcement. D) Employers having 50 or more employees are covered under the Consolidated Omnibus Budget Reconciliation Act, which entitles all eligible employees to receive unpaid leave up to 12 weeks per year for specified medical reasons.

A) The biggest concern for individuals getting health insurance under the Consolidated Omnibus Budget Reconciliation Act is the relatively brief qualifying period.

Which of the following is an advantage of team incentives? A) They are effective in stimulating ideas and problem solving. B) They are administratively easy to implement. C) They can easily set equitable targets for all teams. D) They are effective in isolating the impact of a team.

A) They are effective in stimulating ideas and problem solving.

Which of the following is true of merit bonuses? A) They are viewed as less of an entitlement than merit pay. B) They are more expensive than merit pay in the long run. C) Cost-conscious firms avoid using merit bonuses. D) Employees receive merit bonuses that build into base pay.

A) They are viewed as less of an entitlement than merit pay.

When an organization's performance has regular and large swings and individual performance is unclear and hard to measure, the most effective compensation mix is to offer A) a base pay with low incentives and a wide array of awards. B) monetary rewards with large incentives. C) a large base pay and low incentive pay. D) a wide range of rewards and significant incentives.

A) a base pay with low incentives and a wide array of awards.

When a company moves from an individual incentive plan to a group incentive plan, the company is most likely to experience A) higher turnover among high performers. B) an increase in instrumentality. C) higher turnover among poor performers. D) an increase in perceived equity.

A) higher turnover among high performers.

Grabhouse, Inc. is experiencing an increase in the turnover rates of its top employees. Upon consulting with its managers for the reasons for this increase, Grabhouse finds that employees are uneasy about the current pay mix as it involves too many risky elements. In order to make its pay mix less risky, Grabhouse needs to: A) increase the base pay component of its pay mix. B) introduce a profit-sharing plan to its pay mix. C) introduce a risk-sharing plan to its pay mix. D) increase the merit bonus component of its pay mix.

A) increase the base pay component of its pay mix.

The rising costs of Social Security have been covered by: A) increases in the maximum earnings base and the rate at which that base is taxed. B) a reduction in Social Security benefits by providing market-driven options. C) progressive reduction in coverage under the scheme. D) welfare grants and annual supplements from Congress.

A) increases in the maximum earnings base and the rate at which that base is taxed.

When pay is based on individual performance, turnover tends to be highest among A) poor performers. B) good performers. C) single women with children. D) ethnic minorities.

A) poor performers.

A survey shows that most employers are responding to increased benefit costs by A) requiring employees to pay higher deductibles and copays. B) laying off employees. C) dropping health care plans. D) relying on the Patient Protection and Affordable Care Act.

A) requiring employees to pay higher deductibles and copays.

The ability triangle includes A) selection. B) performance management. C) compensation. D) organization development.

A) selection.

TreeDen Corp. experiences an increase in its employee turnover rate. Upon investigating, it discovers that employees are dissatisfied with the company's pay. Employees cannot see a direct link between their performance and their pay. They are also unhappy about having to pay out of their pockets to obtain grants. In this case, TreeDen is most likely using a A) stock ownership plan. B) cash profit-sharing plan. C) gain-sharing plan. D) team incentive plan.

A) stock ownership plan.

One of the most preferred benefits is A) stock plans. B) profit sharing. C) shorter working hours. D) early retirement.

A) stock plans.

Horizon Inc. wants its employees to focus on organizational as well as individual goals. It also wants to motivate its employees to contribute toward increasing the company's shareholder value. It has implemented a variable pay plan that links incentive payouts to the company's financial targets. Horizon believes that this plan would help it clearly communicate its priorities to its employees. However, the downside of this plan is that the employees receive reduced payouts if the company's financial targets are not fulfilled. Which of the following variable pay plans is Horizon most likely using? A) The Rowan plan B) A balanced scorecard plan C) A stock ownership plan D) The Merrick plan

B) A balanced scorecard plan

In an extensive review of employee preference literature, Glueck traced patterns of group preferences for particular benefits. Identify the results of the study. A) Among the benefits available, profit sharing and early retirement are highly preferred benefits. B) Among the benefits available, health/medical and stock plans are highly preferred benefits. C) Contrary to expectations, families with no dependents have stronger preferences for health/medical coverage than families with dependents. D) Contrary to expectations, younger workers show stronger preferences than older workers for pension plans.

B) Among the benefits available, health/medical and stock plans are highly preferred benefits.

In an attempt to reduce the employee benefits cost to the company, GrindStop Corp. restricts the number of visits to the dentists covered in the dental plan to two per year for each employee. Which of the following cost-containment strategies is being used by GrindStop? A) Copay B) Benefit limitations C) Administrative cost containment D) Wellness programs

B) Benefit limitations

Which of the following companies uses probationary periods as a cost-containment measure? A) Alpha Corp., which combines the benefits offered for couples who work within the organization B) DLG Corp., which excludes its new recruits from benefit coverage until they complete a year C) Kimberly Corp., which requires employees in the lowest salary quartile to pay for 20 percent of their benefits D) Amethyst Corp., which limits its employees to coverage for only two dentist visits every six months

B) DLG Corp., which excludes its new recruits from benefit coverage until they complete a year

Which of the following theories states that people choose the behavior that leads to the most satisfactory exchange? A) Maslow's need hierarchy B) Expectancy theory C) Herzberg's two-factor theory D) Goal-setting theory

B) Expectancy theory

In the context of pay influencing turnovers, which of the following is a result of too little pay? A) Higher individual performance among employees B) Feelings of unfair treatment among employees C) More employees requesting for training D) Employees finding the company more attractive

B) Feelings of unfair treatment among employees

For any task completed in standard time or less, earnings are pegged at 120 percent of the time saved under the A) Merrick plan. B) Gantt plan. C) Taylor plan. D) Rowan plan.

B) Gantt plan.

Which of the following statements is true of employee benefits? A) Employers can substitute insurance benefits for job security. B) Group insurance has relatively easy qualification standards. C) Most employee benefits are taxable. D) Many group-based benefits are obtained at a higher rate than could be obtained by employees acting on their own.

B) Group insurance has relatively easy qualification standards.

In the context of benefits communication methods, which of the following is mostly true about an information portal? A) It fosters open communication. B) It requires ongoing maintenance and an intuitive user interface. C) It primarily allows for personalized communication methods. D) It essentially requires coordination and planning.

B) It requires ongoing maintenance and an intuitive user interface.

Which of the following are an example of a long-term incentive plan? A) Merit bonuses B) Performance plans C) Bedeaux plans D) Spot awards

B) Performance plans

Which of the following is the most commonly used team incentive performance standard? A) Quality of goods B) Productivity improvements C) Financial performance D) Quality of services

B) Productivity improvements

________ relieve an employer's liability when a preemployment injury combines with a work-related injury to produce a disability greater than that caused by the latter alone. A) Collateral funds B) Second-injury funds C) Insolvency funds D) Preemployment funds

B) Second-injury funds

Which of the following benefits is a federally administered program? A) Workers' compensation B) Social Security C) Job security D) Occupational Safety and Health Act

B) Social Security

Droppiece, Inc. is a company that provides more performance-based pay and less base pay than its competitors. Who among the following is most likely to join Droppiece? A) George, a recently married man who wants a stable income B) Stella, a recent college graduate who loves to take on a challenge C) Mark, a musician who wants to supplement his income D) Sara, a senior citizen who wants a job only to keep herself busy

B) Stella, a recent college graduate who loves to take on a challenge

1If you had repair work done on your car, the shop most likely used ________ to pay the mechanic. A) a Bedeaux plan B) a standard hour plan C) the Halsey 50-50 method D) a straight piecework plan

B) a standard hour plan

The most frequently implemented incentive system is: A) a standard hour plan. B) a straight piecework system. C) the Merrick system. D) the Taylor differential piece-rate plan.

B) a straight piecework system

The most obvious sorting factor is A) seniority. B) ability. C) experience. D) educational qualification.

B) ability.

Limiting the liability for an employee's extended hospital stay costs to $200,000 is a cost-containment measure known as: A) dual coverage. B) benefit ceiling. C) coinsurance. D) deductible.

B) benefit ceiling.

The trend in recent variable-pay design is to combine the best of A) individual and group incentive plans. B) gain-sharing and profit-sharing plans. C) the Halsey and Rowan plans. D) balanced scorecard and cash profit-sharing plans.

B) gain-sharing and profit-sharing plans.

The typical employee can recall ________ percent of the benefits he or she receives. A) almost 50 B) less than 15 C) over 30 D) 40

B) less than 15

A team leader with a free-rider problem in his team can most likely maximize the performance of his team by: A) instructing the team to do their best. B) specifying performance levels and due dates. C) assigning tasks only to the top performers in the team. D) punishing free riders who fail to meet standards.

B) specifying performance levels and due dates.

Which of the following is an advantage of providing stock ownership as variable pay to employees? A) It reinforces team identity. B) It is the simplest type of variable pay plan. C) It defers a portion of taxes to employees. D) It provides a direct pay-performance link.

C) It defers a portion of taxes to employees.

Which of the following statements is true of the Rowan plan? A) It is an individual incentive plan that motivates top managers and professionals to focus on long-term organization objectives. B) In this plan, the standard time for a task is purposely set at a level requiring high effort to complete. C) It is an individual incentive plan that provides for variable incentives as a function of a standard expressed as time period per unit of production. D) In this plan, a worker's bonus remains constant irrespective of the time required to complete a task.

C) It is an individual incentive plan that provides for variable incentives as a function of a standard expressed as time period per unit of production.

Which of the following is NOT a disadvantage of flexible benefit programs? A) Administrative burdens and expenses increase. B) Adverse selection of benefits by employees results in increase in costs. C) New benefits are highly difficult to introduce. D) Flexible benefits are subject to nondiscrimination requirements in Section 125 of the Internal Revenue Code.

C) New benefits are highly difficult to introduce.

A key provision of the ________ allows employees in publicly traded companies the freedom to sell off any employer stock purchased through deferrals or after-tax contributions. A) Consolidated Omnibus Budget Reconciliation Act B) Affordable Care Act C) Pension Protection Act D) Employee Retirement Income Security Act

C) Pension Protection Act

________ have indirect pay-performance links and require employees to put up money to exercise grants. A) Bedeaux plans B) Balanced scorecard plans C) Stock options plans D) Merit pay plans

C) Stock options plans

Which of the following statements is true of individual spot awards? A) They are an example of long-term incentives. B) They are more expensive than merit pay increases. C) They are given to employees for exceptional performance as an add-on bonus. D) They are given to all employees as a one-time cost-of-living adjustment.

C) They are given to employees for exceptional performance as an add-on bonus.

________ is the value employees attach to the organization rewards received for job performance. A) Equity B) Instrumentality C) Valence D) Reinforcement

C) Valence

When an organization's performance has frequent highs and lows, but individual performance is fairly stable and performance measures are clear, the most effective compensation mix is to offer A) a base pay with low incentives and a variety of rewards. B) monetary rewards with large incentives. C) a large base pay and low incentive pay. D) a wide range of rewards and significant incentives.

C) a large base pay and low incentive pay.

Paying a dime for every bottle collected and turned to a collection center is an example of: A) a standard hour plan. B) the Merrick system. C) a straight piecework system. D) the Rowan plan.

C) a straight piecework system.

When employee performance measures are ambiguous and vary from time to time, but the organization's performance is fairly stable over time, the most effective type of compensation is to offer A) a large base pay and low incentive pay. B) an increase in base pay. C) a variety of rewards with significant incentive pay. D) monetary rewards with no benefits.

C) a variety of rewards with significant incentive pay.

According to the ________ theory of motivation, employees prefer certain or fixed income flows, such as wage or salary, to variable income flows, such as performance-based pay. A) reinforcement B) equity C) agency D) expectancy

C) agency

The motivation triangle includes A) selection. B) organization design. C) culture. D) organization development.

C) culture.

Experts attribute the stabilization in the dollar cost of workers' compensation since 2010 to: A) the increased variable component of base wage. B) the devaluation of the dollar. C) employer safety programs. D) relaxed federal regulations.

C) employer safety programs.

A benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called a ________ plan. A) select choice B) no-deductible C) flexible benefit D) flat dollar benefit

C) flexible benefit

The biggest cost-containment strategy in recent years is the movement to: A) benefit limitations. B) HMOs. C) outsourcing. D) high deductibles.

C) outsourcing.

Which of the following statements is true of merit pay? A) Merit pay differentials based on performance are usually large enough to motivate performance. B) Merit pay decreases fixed compensation costs over time. C) Merit pay is inexpensive even when too many high-performance ratings are awarded. D) Merit programs are commonly designed to pay different amounts depending on the level of performance.

D) Merit programs are commonly designed to pay different amounts depending on the level of performance.

An incentive system with three piecework rates is the A) Taylor plan. B) Gantt plan. C) Rowan plan. D) Merrick plan.

D) Merrick plan.

________ allows employees who resign or are laid off through no fault of their own to continue receiving health coverage under their employer's plan at a cost borne by the employee. A) The Maintenance Act (1973) B) The Fair Labor Standards Act (1938) C) The Tax reforms of 1982 D) The Consolidated Omnibus Budget Reconciliation Act (1984)

D) The Consolidated Omnibus Budget Reconciliation Act (1984)

Which of the following requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship? A) The Maintenance Act (1973) B) The Fair Labor Standards Act (1938) C) The Consolidated Omnibus Budget Reconciliation Act (1984) D) The Patient Protection and Affordable Care Act (2010)

D) The Patient Protection and Affordable Care Act (2010)

Which of the following is a disadvantage of team incentives? A) They fail to reflect how work is performed. B) They maximize distinctions between team members. C) They are ineffective in stimulating ideas and problem solving. D) They are administratively complex to implement.

D) They are administratively complex to implement.

Which of the following is an advantage of gain-sharing plans? A) They are the simplest type of variable pay plan. B) They prevent payouts if a company's financial performance is poor. C) They are administratively easy to implement. D) They increase employees' knowledge of business.

D) They increase employees' knowledge of business.

Which of the following is an advantage of flexible benefit plans? A) They require no expenditure from the employers. B) They decrease the administrative burdens of employers. C) They ensure that employees pick only those benefits that they will use, thereby reducing costs. D) They increase the involvement of employees in choosing benefit plans.

D) They increase the involvement of employees in choosing benefit plans.

Which of the following is an objective of the unemployment insurance program? A) To cover injuries and diseases that arise out of the course of employment B) To offset lost income during voluntary unemployment C) To help employed workers plan for retirement D) To provide an incentive for employers to stabilize employment

D) To provide an incentive for employers to stabilize employment

All of the following are advantages of flexible benefits EXCEPT: A) containment of benefit costs. B) increased understanding of benefits by employees. C) reduced expense of introducing new benefits. D) decreased administrative expenses.

D) decreased administrative expenses.

In gain-sharing plan formulas, A) productivity measures are in the numerator and revenues are in the denominator. B) productivity measures are in the numerator and labor inputs are in the denominator. C) costs are in the numerator and revenues are in the denominator. D) labor inputs are in the numerator and productivity outcomes are in the denominator.

D) labor inputs are in the numerator and productivity outcomes are in the denominator.

Surveys show that the most highly valued employee benefit is: A) dental coverage. B) life insurance. C) paid vacation and holidays. D) medical insurance.

D) medical insurance.

Which of the following is an individual incentive plan? A) A balanced scorecard system B) A stock ownership plan C) A gain-sharing plan D) A straight piecework system

D) A straight piecework system

Available evidence indicates that managers believe the most important factor for pay increases is A) experience. B) nature of the job. C) seniority. D) performance.

D) performance.

One common feature of all types of incentive plans is: A) an established standard of performance that is used to determine the magnitude of the incentive pay. B) a sharing contract between the employees and employers, which stipulates that the losses incurred by the companies will be shared by both employees and employers. C) an established formula that specifies the maximum percentage of base pay allocated as incentives. D) a risk-sharing plan that increases pay depending upon the turnover rate of a company.

A) an established standard of performance that is used to determine the magnitude of the incentive pay.

Trumbrella Corp. is a pharmaceutical company. One of its employees reports that he has suffered an on-the-job injury caused by the slippery factory floor that resulted in severe damage to his backbone. When Trumbrella initiates its claims processing, it should first: A) determine whether the accident actually happened. B) determine if the employee is eligible for any benefit. C) calculate the payment required to be paid to the employee. D) contact the insurance companies to enquire about the possibility of a joint payment.

A) determine whether the accident actually happened.

According to ________ theory, relative pay is important as employees evaluate the adequacy of their pay via comparisons with other employees. A) equity B) expectancy C) agency D) reinforcement

A) equity

In the context of cost containment, which of the following best describes the practice of "copay"? A) Controlling costs through policies such as seeking competitive bids for program delivery B) Requiring that employees pay a fixed or percentage amount for coverage C) Negotiating the lowest possible fees by providers D) Limiting disability income payments to some maximum percentage of income

B) Requiring that employees pay a fixed or percentage amount for coverage

Which of the following benefits is NOT mandated by either the state or federal government? A) Workers' compensation B) Work/life balance C) Social security D) Unemployment insurance

B) Work/life balance

Which of the following best describes the impact of the Maintenance Act (1973) on employee benefits? A) It ensured that benefits were administered in a manner that did not discriminate against protected groups. B) It created time-and-a-half overtime pay. C) It required employers to offer alternative health coverage options to employees. D) It mandated 12 weeks of leave for all workers at companies that employed 50 or more people.

C) It required employers to offer alternative health coverage options to employees.

DrenchFort Corp. is a small company that pays high wages. As its wages are high, it does not provide any benefits. Recently, it has noticed that its employee turnover has increased, so it decides to provide benefits to retain employees. Which of the following benefits is most likely to reduce turnover? A) Counseling services B) An early retirement plan C) Medical coverage D) A profit-sharing plan

C) Medical coverage

________ is a nonpermanent (variable) payment (bonus or lump sum) form of variable pay granted to employee as function of some (typically primarily subjective) assessment of individual employee performance. A) Risk sharing B) Gain sharing C) Merit bonus D) Success sharing

C) Merit bonus

Almost ________ percent of the companies offering child care assistance to employees also offer elder care assistance. A) 10 B) 30 C) 50 D) 90

C) 50

________ requires division of a task into simple actions and determination of the time required by an average skilled worker to complete each action. A) A standard hour plan B) The Rowan plan C) A Bedeaux plan D) The Merrick plan

C) A Bedeaux plan

________ theory argues that pay should be based on outcomes if monitoring of behaviors is difficult or costly and if risk due to variability in outcomes is not large. A) Reinforcement B) Goal-setting C) Agency D) Expectancy

C) Agency

The ________ was enacted by the Congress to provide current and former employees and their spouses and dependents with a temporary extension of group health insurance when coverage is lost due to qualifying events. A) Health Insurance Portability and Accountability Act B) Social Security Act C) Consolidated Omnibus Budget Reconciliation Act D) Family and Medical Leave Act

C) Consolidated Omnibus Budget Reconciliation Act

When employee performance is easily measured and the organization's performance is fairly stable over time, the most effective type of compensation is to offer A) a large base pay and low incentive pay. B) a variety of rewards in addition to base pay. C) a variety of rewards with significant incentive pay. D) monetary rewards with large incentives.

D) monetary rewards with large incentives.

In the majority of states, unemployment insurance is financed exclusively by: A) joint contributions by employee unions. B) the philanthropy of coworkers. C) federal, state, and employee contributions. D) employers that pay federal and state unemployment insurance.

D) employers that pay federal and state unemployment insurance.

Contingent workers receive ________ benefits than regular workers; contingent workers' benefits cost ________ for employers than it does for regular workers. A) more; less B) fewer; more C) more; more D) fewer; less

D) fewer; less

A health maintenance organization pulls together a group of providers willing to provide services at an agreed upon rate in exchange for employers: A) limiting employees to these providers for health services. B) paying 30 percent of employee salary to the health maintenance organization. C) laying off all contingent workers who are not eligible for insurance. D) providing free child care assistance to employees.

A) limiting employees to these providers for health services.

A ________ plan is a hybrid health plan combining the benefits of a health maintenance organization and a ________. A) point-of-service; preferred provider organization B) managed care; preferred provider organization C) managed care; point of service D) consolidated health; preferred provider organization

A) point-of-service; preferred provider organization

Roughly ________ of all employees have access to paid life insurance. A) three-fourths B) half C) one-third D) a quarter

A) three-fourths

Which of the following is true of the Affordable Care Act? A) It helps an employer receive an income tax deduction even though employees may not yet have received any benefits. B) It is aimed at expanding health care coverage through an individual mandate to purchase health insurance and an employer mandate to provide qualifying health insurance coverage. C) It applies to all employers having 50 or more employees and entitles all eligible employees to receive unpaid leave up to 12 weeks per year for specified family or medical reasons. D) It requires a worker to meet the state requirements for wages earned or time worked during an established period of time referred to as a "base period."

B) It is aimed at expanding health care coverage through an individual mandate to purchase health insurance and an employer mandate to provide qualifying health insurance coverage.