HRM 324T: Total Compensation TOPICS 1 -12
Within the ACA, the employer mandate requires that organizations with ________ or more people either offer health insurance to their employees or pay an additional tax for not having done so.
00 50 75 25 FEEDBACK 1 / 1 (100.0%)
FMLA allows up to ________ weeks of time off to recuperate from medical conditions or to handle qualified family needs.
8 15 12 10 FEEDBACK 1 / 1 (100.0%)
Since its inception, Fresh Munchables has given its various managers free reign to manage the total rewards of their respective departments. Recently, however, the HR manager has received complaints from employees in multiple departments complaining that they are not being paid equally. What kind of total rewards approach has Fresh Munchables likely taken that has led to this problem?
A broad approach, because the company gave managers free reign over a broad range of rewards A centralized approach, because the same problems are faced by multiple departments A decentralized approach, because rewards are determined by immediate supervisors A hybrid approach, because supervisors determined the rewards but the rewards were centralized in each department
Unlike other healthy food producers in the local market that sell low-quality and cheap products, Fresh Munchables wants to provide premium food products at a high cost. In fact, Fresh Munchables has become known in its community for placing a high priority on always providing great food and superior customer service. In order to continue to facilitate Fresh Munchables' goals and reputation, what competitive strategy should HR implement?
A cost leadership strategy, because the company desires to lead the market in providing the best products at a high cost A niche-focused strategy, because the company is targeting a small group of people in a segmented market A differentiation strategy, because this approach justifies spending more money to stand out from competitors A value proposition strategy, because this approach focuses on the value that the company's products adds to its customer base
Chris and Becky are the managers of two respective Fresh Munchables restaurants that recently opened in Wichita, Kansas, and Oklahoma City, Oklahoma. Chris is currently trying to come up with a business strategy that best prepares his location to stay competitive within the Wichita health food marketplace. Becky is trying to decide if she is compensating her employees fairly in her own location. Chris is trying to make ________, while Becky is trying to make ________.
A fairness equity decision; a comparative decision An internal equity decision; an external equity decision A comparative equity decision; a fairness equity decision An external equity decision; an internal equity decision
What is a benchmark job?
A sample of jobs that is representative of the type, content, and level of jobs in the organization A sample of jobs within the organization that are to be addressed for compensation levels A sample of jobs provided by government to control wage decreases A sample of jobs provided by the government to act as standards for all jobs FEEDBACK 2 / 2 (100.0%)
What is a compensable factor?
A statement of what the organization has A statement of what the organization needs A statement of what the organization values A statement of what the organization wants FEEDBACK 2 / 2 (100.0%)
What is a reward survey?
A survey published by the government to employers to understand rewards offered A survey designed to understand employees' desire for rewards Aggregations of reward information gathered from other market organizations Aggregations of reward information given to employers to understand rewards offered
An organizational citizenship behavior is ________.
A value-creating activity engaged in by employees, but not as part of the job
Reward surveys are ____________.
Aggregations of reward information gathered from other market organizations Aggregations of all employees' paid time off in a year Aggregations of perks and other valuable factors used by employees in a year Aggregations of the lump sum of employees' yearly salaries FEEDBACK 2 / 2 (100.0%)
11. The purpose of pay grades is to __________.
Allow jobs that create a different amount of value for the organization to be treated in the same way Allow jobs that create the same amount of value for the organization to be treated in the same way Allow jobs that create the same amount of value for the organization to be treated in a different way Allow jobs that create a different amount of value for the organization to be treated in a different way
In a job-based system, pay changes occur when ________.
An employer changes jobs An employee changes jobs A new hire starts his or her first day An employee performs well FEEDBACK 1 / 1 (100.0%)
The performance management system refers to all of the following EXCEPT __________.
Analyzing trends in the market Creating performance plans Appraising performance Providing support and resources FEEDBACK 1 / 1 (100.0%)
In which industry is skill-based pay most often used?
Automotive industry Education industry Bio-pharmaceutical industry Manufacturing industry FEEDBACK 1 / 1 (100.0%)
A downside to the comparison approach is that it ________.
Becomes inefficient as the size of company grows Becomes inefficient as management shrinks Becomes inefficient as the size of company shrinks Becomes inefficient as management grows FEEDBACK 2 / 2 (100.0%)
The reinforcement theory says what?
Behavior predicts consequences Consequences predict behavior Consequences follow behavior Behavior follows consequences FEEDBACK 1 / 1 (100.0%)
Through the use of ________, an organization can create a link between its reward structures and external markets.
Benchmark jobs Interviews Surveys Exit interview
Which of the following is NOT an example of a job family?
Biology Consultant Accounting Engineering FEEDBACK 2 / 2 (100.0%)
Which of the following is NOT a reason a corporation would want to incorporate individual-based pay into its total rewards system?
Builds a more flexible workforce Creates a culture of learning Allows the organization to build its capacity Demonstrates good faith in employees FEEDBACK 1 / 1 (100.0%)
Strategic human resource management ensures that HR practices are aligned with ________ ________ in general and critical success factors in particular.
Business strategy FEEDBACK 1 / 1 (100.0%)
According to the text, what is one way that a compensation manager can effectively age data?
Calculate the time value of money Calculate for inflation Calculate stock market prices There is no effective way FEEDBACK 2 / 2 (100.0%)
The instrumentality perception asks ____________.
Can I perform at the level required for the reward? Do I value the reward? How long will it take to receive the reward? If I perform, will I receive the reward? FEEDBACK 1 / 1 (100.0%)
The expectancy perception asks ___________.
Can I perform at the level required for the reward? If I perform, will I receive the reward? Do I value the reward? How long will it take to receive the reward? FEEDBACK 1 / 1 (100.0%)
Which of the following is NOT considered an intangible reward?
Cash bonuses
________ refers to the direct monetary pay given to an employee in exchange for their contributions to the organization.
Cash compensation FEEDBACK 2 / 2 (100.0%)
The individual-based approach assumes that rewards should be based on what?
Characteristics of a person holding a job The job a person holds Results by an employee Merit-based pay for end-of-year company performance FEEDBACK 1 / 1 (100.0%)
Which approach is a way to establish internal reward alignment?
Classification approach Job-comparison approach Point factor approach Job-based approach FEEDBACK 2 / 2 (100.0%)
Choose the answer that does NOT complete the blank: Internal reward alignment is how ________ the relative value of all jobs in an organization is.
Clear Coherent Enjoyable Fair FEEDBACK 2 / 2 (100.0%)
Rucker plans provides incentives for _________.
Collaboration FEEDBACK 2 / 2 (100.0%)
15. Organizations use pay grades and ranges to monitor how well pay rates are conforming to the pay plan. What is frequently used to measure this conformity?
Compa-stats Compa-ratio Statistical analysis Shadow range
Managers should remember that the process of ________ is important and also consider any legal ramifications of the historic pay disparity.
Compensation Change Static Equality FEEDBACK 1 / 1 (100.0%)
2. In a dynamic, role-based job, __________.
Compensation plans need to be evaluated Compensation plans need to facilitate change Compensation plans do not need to facilitate change Compensation plans are able to stay static
Team performance ________.
Comprises the collective actions of groups of employees FEEDBACK 2 / 2 (100.0%)
What are competencies?
Configurations of knowledge, skills, and traits that enable market strategy Configurations of knowledge, skills, and traits that enable government strategy Configurations of knowledge, skills, and traits that enable employee performance Configurations of knowledge, skills, and traits that enable organizational discipline FEEDBACK 1 / 1 (100.0%)
As the compensation team at Fresh Munchables develops a new compensation strategy, they begin to consider the impact it will have on company culture. The current culture values high-quality products and high performance from employees but doesn't necessarily emphasize teamwork or openness. When it comes to organizational culture fit, which of the following would be the best practice at Fresh Munchables?
Consider the cultural elements of quality and employee performance within the total rewards design, because a dramatic paradigm shift will increase the chance of rejection by employees. Integrate norms from companies like Google and SASS, because they apply to most organizations across the board and have proven successful in increasing employee satisfaction. Build a compensation system that deviates from the emphasis on product quality, because it will help the company reach new strategic goals of decreasing costs and increasing productivity. Introduce new cultural norms of teamwork and openness, because this will improve how well a compensation system that includes team-based pay will be received.
Reliable measurement means that an employee's level of skill, competency, or experience can be measured ___________ across employees and raters.
Consistently FEEDBACK 2 / 2 (100.0%)
Product and service markets are where organizations compete to ________ through the production of products or the provision of services for customers in exchange for money and loyalty.
Create value Create industry rivalries Create a great culture Create organizational completeness FEEDBACK 1 / 1 (100.0%)
The primary outcome of SWOT analysis is to list out what?
Critical success factors FEEDBACK 2 / 2 (100.0%)
In the differentiation strategy, the costs of the organization will be passed on to the __________.
Customer FEEDBACK 2 / 2 (100.0%)
12. Differentiations in pay should only be made when they are clearly ________ and worth the potential tradeoffs.
Defensible Expensive Understandable Forgettable
The CEO of Fresh Munchables wants to enter the online marketplace and sell select snack products online. As a member of the HR department, you are given the task of creating new departments to manage Fresh Munchables' online business activities. Using a job-based approach, what do you need to do first before creating a pay structure for these new departments?
Determine how much each employee should be paid, because employees who are better qualified should be paid more Determine the value of each job, because employees who do their job better provide more value and should be paid more Determine who will manage each department, because managers' salaries should be determined first Determine what new jobs will be created and managed, because compensation depends on what types of jobs are created
Which of the following is NOT a step in creating a capability-based pay structure?
Develop protocols Define competency sets Create training support structure Implement the structure FEEDBACK 1 / 1 (100.0%)
Which of the following does organizational performance NOT include?
Developing employees
The value in having policies that slow the process of topping out include all of the following EXCEPT _______.
Developing the employees FEEDBACK 2 / 2 (100.0%)
When low distributive justice occurs, which of the following changes will employees NOT make?
Earning lower rewards FEEDBACK 2 / 2 (100.0%)
In order to design effective performance-based pay systems, managers must have a good understanding of ________.
Employee merit Employee metrics Employee management Employee motivation FEEDBACK 1 / 1 (100.0%)
The job-based approach assumes that organizations will reward employees based on what?
Employee merit and end-of-year company performance The job a person holds Characteristics of a person holding a job Results by an employee FEEDBACK 1 / 1 (100.0%)
Cash compensation influences ________.
Employee perception
A dynamic-based role would describe which of the following situations?
Employees aren't as expected to become more dynamic in the workplace. The work that employees do changes on a regular basis. Employees are expected to become more dynamic in the workplace. The work that employees do does not change on a regular basis. FEEDBACK 0/ 1 (0.0%)
Linear careers are where ________.
Employees begin their career floating and then settle into a single organization Employees can expect to move in and out of different jobs throughout their career Employees can expect to spend the duration of their careers with a single organization Employees spend the first part of their career in one organization and then float to other organizations FEEDBACK 2 / 2 (100.0%)
What is a networked career?
Employees change jobs frequently, sometimes changing functions and industries Employees stay in a static job, moving up in their career with one company Employees change jobs frequently because they are not satisfied with their career Employees stay in a static job because they have no need to change jobs FEEDBACK 2 / 2 (100.0%)
What is employer matching?
Employees make contributions to the retirement account even if the organization chooses not to contribute. Employees make contributions to the retirement account contingent on the organization also electing to contribute to it. Organizations make contributions to the retirement account even if the employee chooses not to contribute. Organizations make contributions to the retirement account contingent on the employee also electing to contribute to it. FEEDBACK 1 / 1 (100.0%)
_____________ are said to receive red circle rates.
Employees whose pay is above the range for their job Employees whose pay is below the range and who get negative feedback on the performance review Employees whose pay is below the range for their job Employees whose pay is above the range and who get positive feedback on the performance review FEEDBACK 2 / 2 (100.0%)
__________ are said to be paid at red circle rates.
Employees whose pay is at market range Employees whose pay is above market range Employees whose pay is below market range Employees whose pay is far below market range
__________ are said to receive green circle rates.
Employees whose pay is below the range and who get poor performance reviews Employees whose pay is above the range and who get positive performance reviews Employees whose pay is below the range for their job Employees whose pay is above the range for their job FEEDBACK 1 / 1 (100.0%)
To have an effective rewards system, you will NOT need to understand what?
Employees' previous salary
Cash compensation is monetary pay from ________ to ________.
Employers; employees FEEDBACK 2 / 2 (100.0%)
The shipping division at one of Fresh Munchables' facilities has been struggling with both absenteeism and high regrettable turnover. The facilities manager at this location is not sure what to do. What steps can HR take to address this concern?
Ensure that employees in this division can receive promotions; employees won't stick around unless they have a clear career path. Ensure that wages in the unit are just and fair; the perception of justice plays an important role in absenteeism and turnover. Ensure that employees aren't being poached by other companies; many companies will actively steal talented people, and organizations must be aware of it. Ensure that wages are at least average or above; wages that are even slightly below average cause absenteeism and turnover.
Distributive justice is also known as what?
Equity theory FEEDBACK 2 / 2 (100.0%)
One way to define a job-specific reward level strategy could be what?
Establishing multiple reward level strategies that government agencies require the organization to implement Establishing different reward level strategies for different job families or hierarchical levels Establishing multiple reward level strategies that the market requires Establishing one reward level strategy and making it equal in all job families FEEDBACK 1 / 1 (100.0%)
When Fresh Munchables started out, it used spreadsheets to manage wages, sales, and inventory. Although the company has grown exponentially, it still uses an outdated system. The compensation team is now looking for a computer systems analyst to manage the company's disorganized system and solve any computer-related issues. Due to the nature of this role, the compensation team will consider this employee exempt from the overtime provisions of the Fair Labor Standards Act (FLSA). Why would it be beneficial for the company for this employee to be exempt?
Exempt employees usually work fewer hours and are paid lower wages than nonexempt employees. Exempt employees work longer hours but are paid the same as nonexempt employees. Exempt employees are paid more than nonexempt employees but are not required to work overtime, unlike nonexempt employees. Exempt employees work flexible hours and are not paid overtime, unlike nonexempt employees.
Of the following, which is NOT considered a guide to fairness in total rewards?
Extreme
In a ________, managers are given a cash budget from which they can immediately draw to provide employees with instant recognition of a high performance.
Filtered award system Dark award system Scattered award system Spot award system FEEDBACK 2 / 2 (100.0%)
What is the purpose of central tendency?
Find one single number that best represents another single number Find a whole group of numbers to best represent one single number Find a whole group of numbers to best represent another group of numbers Find one single number that best represents a whole group of numbers FEEDBACK 1 / 1 (100.0%)
Without a variable pay component, ________ remain the same even when revenues, sales, or profits drop.
Fixed costs Variable costs Labor costs Utility costs FEEDBACK 1 / 1 (100.0%)
________ provide employees the right to purchase a set amount of shares of stock for a set price.
Gain sharing Team-based plans Profit-sharing plans Stock options FEEDBACK 1 / 1 (100.0%)
________ are designed to distribute a portion of the firm's annual profits back to the firm's employees.
Gain sharing Team-based plans Stock options Profit-sharing plans FEEDBACK 1 / 1 (100.0%)
The benefits benchmark survey is used to ___________.
Gauge the type and level of benefits offered recently within the organization Gauge the type and level of benefits offered by other companies Gauge the type and level of benefits mandated by the government Gauge the type and level of benefits that the market expects FEEDBACK 1 / 1 (100.0%)
Which of the following is NOT a readily available source of rewards information?
Government compensation plans Popular press Self-report Competitors' compensation plans
It is important that multiple people have input into the process of procedural justice. This can be done through all of the following EXCEPT ________.
Government mandates FEEDBACK 2 / 2 (100.0%)
________ are one way to establish the price for any good or service.
Governments Markets Stock markets International trades FEEDBACK 1 / 1 (100.0%)
According to the reading, as recruited employees negotiate for higher salaries, they are more likely to receive such salaries if they have ________.
Greater work experience More competencies More education Higher goals FEEDBACK 1 / 1 (100.0%)
Which of the following is NOT an approach to an internal reward alignment?
Group-based approach Individual-based approach Performance-based approach Job-based approach FEEDBACK 1 / 1 (100.0%)
What is a cost leadership strategy?
Having a lower-cost product or service at the highest priority throughout an organization's processes FEEDBACK 1 / 1 (100.0%)
Organizational performance includes all of the following EXCEPT ____________.
Having employee satisfaction FEEDBACK 2 / 2 (100.0%)
HIPAA stands for __________.
Health Insurance Portability and Accountability Act Health Insurance Portability and Affordability Act Health Insurance Probability and Accountability Act Health Insurance Probability and Affordability Act FEEDBACK 1 / 1 (100.0%)
The valence perception asks _____________.
How long will it take to receive the reward? If I perform, will I receive the reward? Can I perform at the level required for the reward? Do I value the reward? FEEDBACK 1 / 1 (100.0%)
All of the following are components of an organization's strategy that should be accounted for when developing a total rewards strategy, EXCEPT ___________.
How the company was founded FEEDBACK 2 / 2 (100.0%)
Rewards strategies that work in the ________ term while the firm is niche-focused may be forced to change in the ________ term.
Immediate; short Long; immediate Short; long Long; short FEEDBACK 2 / 2 (100.0%)
Scanlon plans focus on ________.
Improvements in labor costs FEEDBACK 2 / 2 (100.0%)
The HR department at Fresh Munchables is considering a job comparison approach for establishing internal alignment. Fresh Munchables has been around for several decades, but it has always struggled with determining appropriate compensation for different levels of jobs. What is true about a job comparison approach that would benefit Fresh Munchables?
In the job comparison approach, jobs are placed in a nonhierarchical system to avoid complaints of unfairness, which is important when increasing organizational complexity. In the job comparison approach, jobs are valued in comparison to other jobs in a company using a point system, which allows for pay to be determined by a job's importance to the organization. In a job comparison approach, pay is set by how well employees in different jobs perform over a set period of time, which is easily determined in an established organization. The point factor approach involves defining valuable elements of jobs and determining their relative importance, which helps managers know how to train their employees to receive promotions faster.
Which of the following is NOT a historically used structured pay grade?
Individualistic environments Static immobility Upward mobility Linear careers FEEDBACK 2 / 2 (100.0%)
Labor markets are where ____________ are the sellers and ____________ are the buyers.
Individuals; organizations Governments; organizations Individuals; governments Organizations; governments FEEDBACK 1 / 1 (100.0%)
The rollout of capability-based pay systems, like all reward system changes, should be accompanied by what?
Intensive communication FEEDBACK 2 / 2 (100.0%)
Justice theory has three types of justice. Which of the following is NOT included?
Interchangeable FEEDBACK 2 / 2 (100.0%)
________ are one way to establish the price for any good or service.
International trades Markets Stock markets Governments FEEDBACK 2 / 2 (100.0%)
What is an advantage to broadbanding?
It allows for stronger relationships. It allows for greater flexibility. It allows for a better training guide in an organization. It allows for more productive work results. FEEDBACK 2 / 2 (100.0%)
Why is the list of benchmark competitors important?
It creates the standard by which the company adds value to the industry. It creates the standard around which the rewards system fluctuates according to the market. It creates the standard by which the company adds value to the community. It creates the standard to which the rewards system is anchored. FEEDBACK 1 / 1 (100.0%)
Because Fresh Munchables has grown so much since its inception, the CEO wants to revisit the company's methods for establishing internal reward alignment. The executive team has advised the HR department to use a job classification approach. However, you disagree. What information could you use to show the executive team one primary disadvantage of using a job classification approach?
It is impossible to determine all the tasks done in each position, so classification is also impossible. It is difficult to hire qualified employees because the recruitment and selection process becomes more generalized. It is impossible to assign value to each job without first analyzing how other companies have valued similar jobs. It is difficult to create distinctions between jobs as the number and types of jobs in an organization grows.
Through what method do you understand how valuable a job is?
Job analysis Job evaluation Job devaluation Job creation FEEDBACK 1 / 1 (100.0%)
The ________ allocates points to jobs based upon the job's value to the organization.
Job comparison approach Classification approach Point factor approach Hybrid approach FEEDBACK 1 / 1 (100.0%)
In which approach are jobs compared and then the "important" jobs get points and "win"?
Job comparison approach Point factor approach Classification approach Hybrid approach FEEDBACK 2 / 2 (100.0%)
In which approach would it appear that jobs are categorized by job descriptions?
Job comparison approach Point factor approach Classification approach Hybrid approach FEEDBACK 2 / 2 (100.0%)
In which approach would it appear that jobs are ordered based on rank and file?
Job comparison approach Point factor approach Classification approach Hybrid approach FEEDBACK 2 / 2 (100.0%)
Using job analysis, all work in business is organized into __________.
Jobs Job families Job classes Job approaches FEEDBACK 1 / 1 (100.0%)
What happens when jobs are static?
Jobs are easier to get. Jobs are quick to change over time. Jobs don't change much over time. Jobs move freely. FEEDBACK 1 / 1 (100.0%)
Within the cost leadership strategy, a business will have a(n) ________ cost structure.
Lower FEEDBACK 2 / 2 (100.0%)
What industry is commonly known for using the piece rate system?
Manufacturing FEEDBACK 2 / 2 (100.0%)
Within ________, value is assumed to derive from the characteristics of the person holding the job, and therefore pay should be driven by the knowledge, skills, experience, or competencies of that individual.
Market-based systems Group-based systems Government systems Individual-based systems FEEDBACK 1 / 1 (100.0%)
14. Which of the following is NOT a primary concern when integrating data from multiple rewards surveys?
Matching benchmark jobs Understanding government mandates Pay forms Aging the data
Which of the following is NOT an example of an intangible reward?
Meaning Recognition Culture Base salary FEEDBACK 1 / 1 (100.0%)
The point factor approach does all of the following EXCEPT __________.
Measures the extent to which each job has an important element Specifies the importance of each element of a job Defines valuable elements of jobs Develops revolutionary ideas for job analysis FEEDBACK 2 / 2 (100.0%)
The magnitude of the reward overwhelms the perception of ________ odds.
Minimum Small Large Maximum FEEDBACK 1 / 1 (100.0%)
There are three measures of central tendency used to compare compensation. Which of the following is NOT one of those measures?
Mode Mean Median Weighted mean FEEDBACK 1 / 1 (100.0%)
Broadbanding allows employees to do all of the following EXCEPT
Modify their role in the organization Be promotable within a given time period Manage lateral changes in their career Join and exit multiple organizational teams
Pay compression is when ________.
New employees and long-tenured employees have large gaps in pay New employees and senior management employees are paid very similar amounts Long-tenured employees and senior management employees are paid very similar amounts New employees and long-tenured employees are paid very similar amounts FEEDBACK 1 / 1 (100.0%)
Pay inversion occurs when __________.
New employees are paid the same as those employees with substantial experience in the organization New employees are paid as much as senior management New employees are paid more than those employees with substantial experience in the organization Senior management is paid less than new employees FEEDBACK 1 / 1 (100.0%)
Draymond is a machine operator who recently quit his job at Fresh Munchables. He would often arrive at work only to find that, due to unexpected mechanical issues, he would be unable to do his job and would be sent home (over an hour's drive away) without pay. Other factory workers have complained for similar reasons. Fresh Munchables wants to improve employee satisfaction and prevent such situations from occuring in the future. What is the best compensation-related action to take to achieve these goals?
Offer reporting time pay to employees just for showing up to work. Institute a call-back pay differential for factory workers. Pay the transportation costs for employees to get to and from work. Provide increased overtime pay for hourly employees.
The mean can be heavily influenced by
Organizational cultures Median Outliers Market trends
Fresh Munchables has traditionally paid minimum wage for low-level positions. However, the company is having difficulty attracting employees to work in its food processing facilities. Some of these jobs require night and weekend hours. Which of the following types of compensation would be most helpful for the company to offer to potential employees in the Fresh Munchables food processing plant, and why?
Overtime pay, because it provides an incentive for employees to work additional hours Shift pay, because it provides additional compensation for hours worked at undesirable times Reporting time, because it gives employees more control over the hours they work Paid vacation time, because it shows employees that the company is generous with its benefits
Reward surveys are __________.
Paid time off Aggregations of the lump sum of employees' yearly salaries Aggregations of reward information gathered from other market organizations Perks and other valuable factors FEEDBACK 1 / 1 (100.0%)
Organizations get work done through ___________.
People FEEDBACK 2 / 2 (100.0%)
Interactional justice refers to what?
Perceptions of the extent to which the customers were treated with due respect Perceptions of the extent to which the management are treated with due respect Perceptions of the extent to which the families of employees are treated with due respect Perceptions of the extent to which the employee was treated with due respect FEEDBACK 1 / 1 (100.0%)
What is variable pay?
Performance-based rewards and long-term equity
In a ________, the job itself is the fundamental unit for designing the rewards system.
Performance-based system Group-based system Job-based system Individual-based system FEEDBACK 1 / 1 (100.0%)
What is another term for "fringe benefits"?
Perks
What is a differentiation strategy?
Placing a high priority on providing innovative, exceptional, and high-quality products and/or services to customers FEEDBACK 1 / 1 (100.0%)
Indemnity plans __________.
Prevent employees from going to physicians outside a defined network and create costs for the organization only when health services are utilized Allow employees to go to any physician and create costs for the organization only when health services are utilized Allow employers to go to any physician but do not reimburse any health care costs Allow employers to go to any physician outside the defined network but do not reimburse these costs FEEDBACK 1 / 1 (100.0%)
What does cost leadership focus most on?
Price FEEDBACK 2 / 2 (100.0%)
________ systems reward employees with a fixed amount of compensation with each unit of work they produce.
Profit-sharing Team-based bonus Gain sharing Piece rate FEEDBACK 1 / 1 (100.0%)
________ specify an exercise price that is above the current market price to take into account that the organization expects the employees to outperform expected market returns.
Profit-sharing plans Gain sharing tests Incentive stock options Team-based plans FEEDBACK 1 / 1 (100.0%)
________ is a system of establishing a baseline of unit-level results and sharing improvements above that baseline with employees in that unit.
Profit-sharing plans Team-based plans Gain sharing Stock options FEEDBACK 1 / 1 (100.0%)
What kind of analysis is best to use when finding out how much a job family should be paid?
Regression analysis Suppression analysis Job performance analysis Point factor analysis FEEDBACK 1 / 1 (100.0%)
Spot awards draw upon ________ in that they allow for very short gaps between the demonstrated performance and the reception of the reward.
Reinforcement theory FEEDBACK 2 / 2 (100.0%)
Which of the following measurements is more successful than the others?
Reliable measurement Strategic measurement Transparent management Each has its own unique strengths FEEDBACK 1 / 1 (100.0%)
As a compensation manager, what will you NOT do?
Require the organization to implement a market-standardized compensation plan
Generally speaking, eligibility should be ________ to ensure that the number of employees certifying is in line with current and future needs for that capability.
Restricted FEEDBACK 2 / 2 (100.0%)
What is variable pay?
Rewards that grow based on government regulations Rewards that move in and out depending on market trends Rewards that are dependent on a team Rewards earned independently FEEDBACK 1 / 1 (100.0%)
Which of the following is NOT a function of Human Resources?
Risk management FEEDBACK 1 / 1 (100.0%)
When graphing the salaries in a value reward line, what type of graph would give the best picture of salaries?
Scatterplot Line graph Pie chart Bar graph FEEDBACK 1 / 1 (100.0%)
________ exist within the range of the broad band and are applied to specific job families to provide guidance on appropriate compensation levels.
Shadow pillars Shadow ranges Shadow entrances Shadow exits FEEDBACK 2 / 2 (100.0%)
When creating a benchmark, a company should compare itself to ____________.
Similar organizations in the same industry The government International companies Itself FEEDBACK 1 / 1 (100.0%)
When creating a benchmark, a company should compare themselves to ________.
Similar organizations in the same industry The government International companies Their own company's internal reward alignment FEEDBACK 2 / 2 (100.0%)
What does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats FEEDBACK 2 / 2 (100.0%)
8. A collaborative environment is one where ________.
Teams of employees work in concert to be creative, solve problems, and produce results Teams of employees work together, but tend to not be creative, solve problems, or produce results Individuals work by themselves to be creative, solve problems, and produce results Individuals work by themselves, but struggle to be creative, solve problems, and produce results
The Principle of Inclusiveness states what?
That a pay range does not need to be large enough to capture the pay range of all jobs in that grade or band That a pay range needs to be large enough to capture the pay range of all jobs in that grade or band That a gap needs to be large enough to capture the pay range of all jobs in that grade or band That a gap does not need to be large enough to capture the pay range of all jobs in that grade or band FEEDBACK 2 / 2 (100.0%)
What does eligibility refer to?
The ability to participate in the system and certify each skill or competency FEEDBACK 2 / 2 (100.0%)
What is strategic management?
The ability to provide specific goals for your employees The definitions of criteria are all conceptually and empirically connected to employee, unit, and organizational outcomes The definitions of criteria are not conceptually and empirically connected to employee, unit, and organizational outcomes The ability to provide goals and aspirations for your organization FEEDBACK 1 / 1 (100.0%)
What is a business strategy?
The collection of decisions, approaches, and activities that allow an organization to compete and win FEEDBACK 1 / 1 (100.0%)
After carefully considering different approaches for internal alignment at Fresh Munchables, the compensation team has officially decided to use a point factor approach. After choosing compensable factors, developing factor measures, and determining factor weights, you are now ready to pilot test the job evaluation system. This is an important step in which the compensation team can make sure that all parts of the system come together effectively. Another concern the team wants to address during this step is evaluating employee satisfaction with the new system. Fresh Munchables has not used a system like this before, and some employees have raised questions and concerns about it. Because one of the company's biggest goals with this change is to ensure employee satisfaction, what is an important element to keep in mind as you pilot test the system?
The extent to which the system produces relative job values that will ensure all employees get raises. The extent to which the system produces relative job values that make sense to each employee who views the results The extent to which the system produces relative job values that are better than the previously used system. The extent to which the system produces relative job values that make sense to the company's financial department.
The principle of parity suggests what?
The fewer grades that are used, the larger the ranges will be. The more grades that are used, the smaller the ranges will be. The more grades that are used, the larger the ranges will be. The fewer grades that are used, the smaller the ranges will be. FEEDBACK 1 / 1 (100.0%)
The Principle of Parity suggests what?
The fewer grades that are used, the smaller the ranges will be. The fewer grades that are used, the more unpredictable the ranges will be. The more grades that are used, the more unpredictable the ranges will be. The more grades that are used, the smaller the ranges will be. FEEDBACK 2 / 2 (100.0%)
A psychological contract refers to __________.
The formal expectations and agreements between an employee and an organization The positive expectations that a company expects from employees The negative expectations that a company expects from employees The informal expectations and agreements between an employee and an organization 0/0
Cost-sharing is when ________.
The insurance pays for only a portion of medical expenses The insurance pays for a mandated 10% of medical expenses The insurance pays for all medical expenses The insurance pays for a mandated 25% of medical expenses FEEDBACK 1 / 1 (100.0%)
The performance-based approach assumes that rewards should be based on what?
The job a person holds Merit-based pay for end-of-year company performance Characteristics of a person holding a job Results by an employee FEEDBACK 1 / 1 (100.0%)
What is the median?
The last number The first number The highest number The middle number FEEDBACK 1 / 1 (100.0%)
What is the median?
The lowest number The highest number The average number The middle number
What is an outlier?
The number that is the weighted mean of the distribution Numbers that are similar to other numbers Numbers that are far above or below most of the other numbers The mode times the mean FEEDBACK 1 / 1 (100.0%)
The benefit mix strategy refers to ___________.
The particular combination of benefit types that competitor organizations offer The particular combination of benefit types that the market expects The particular combination of benefit types that the government requires The particular combination of benefit types that an organization offers FEEDBACK 1 / 1 (100.0%)
What is a communication strategy?
The plan for sharing the compensation strategy with employees and receiving their ongoing feedback FEEDBACK 1 / 1 (100.0%)
The HR department at Fresh Munchables is considering a point factor approach for establishing internal alignment. The company is mid-sized but is growing steadily, and it is projected to become a large organization within the next 10 years. What is true about the point factor approach that would benefit Fresh Munchables?
The point factor approach allocates points to jobs based on how much value the people who hold those jobs provide, which allows the company to reward individual employees. The point factor approach ranks each job in a company from "most important" to "least important," which is key for a company with a growing number of positions. The point factor approach provides a method for calculating points for each job based upon the job's value to the organization, which is easily scalable for use in a large company. The point factor approach gives each job in the organization a quantitative rating of its overall value, which is a quick and simple way to develop a pay structure.
What is human resource strategy?
The policies, practices, and systems that manage the interface between the organization and its employees in order to enable long-term organizational performance FEEDBACK 1 / 1 (100.0%)
An internal rewards alignment is best defined as what?
The rewards with which competitive employers compensate their employees The extent to which an organization's total rewards system aligns each employee's rewards with those received by others in the organization A rewards system that allows for bonuses for executive-level managers A system designed to show compensation managers the market rates for specific jobs FEEDBACK 1 / 1 (100.0%)
What is base pay?
The salary or hourly wage in exchange for the employee's contribution to the organization
The principle of control states what?
The size of pay ranges should be kept fairly large to enable an organization to control labor costs. The size of pay ranges should be kept sufficiently small to enable an organization to control labor costs. The size of pay ranges should be kept sufficiently large to enable an organization to control fixed costs. The size of pay ranges should be kept sufficiently small to enable an organization to control fixed costs. FEEDBACK 1 / 1 (100.0%)
The job value structure represents __________.
The structure of jobs internally positioned according to their immediate value The structure of jobs internally positioned according to their natural value The structure of jobs internally positioned according to their relative value The structure of jobs internally positioned according to their potential value FEEDBACK 2 / 2 (100.0%)
Which of the following is NOT a primary concern when integrating data from multiple rewards systems?
The use of different metrics in market surveys measuring reward types and compensation levels Data aging and the process of removing old data from storage Fabricated third-party websites and self-reported information The matching of benchmark jobs in the survey to benchmark jobs within your organization FEEDBACK 2 / 2 (100.0%)
After a hugely successful marketing campaign, demand for Fresh Munchables' products has increased rapidly. More demand means more manufacturing and more employees. The company needs to hire many new employees—and quickly. Why would it be beneficial for Fresh Munchables to use a job-based approach in this situation?
The value of each job is flexible; diverse people with varying skill sets can apply for any position. The value of each job is fixed; all employees are paid the same regardless of their qualifications. The value of each job is flexible; managers, not HR, determine how much each employee is paid. The value of each job is fixed; all employees will always be paid the same amount.
Once jobs are broadly organized into a job structure, the next step is to create a mechanism for assigning their relative value in ________.
Their respective departments The marketplace The organization Their respective fields FEEDBACK 2 / 2 (100.0%)
1. Without any grade structure, a job-based pay strategy could involve how many different reward strategies in one organization? Thousands One Hundreds Zero
Thousands One Hundreds Zero
An area competitor of Fresh Munchables, Tio's Foods, has good, hardworking employees—many of whom could be valuable employees at Fresh Munchables. In fact, the executive team has been trying to poach Tio's employees for some time now. Tio's, in many ways, has neglected to take care of its employees, which could potentially lead to the formation of a union. If the compensation team at Fresh Munchables were to perform a SWOT analysis, this situation is likely considered to be a(n) ________.
Threat, because Fresh Munchables is now likely to experience union activity as well Strength, because Fresh Munchables can use this information to add value for its customers Opportunity, because Fresh Munchables can leverage the information to target desired talent Weakness, because Fresh Munchables must now consider whether it is also treating its employees poorly
What is the goal of job evaluation?
To create a way to determine the usefulness of each job To create a way to discover how each job relates to each other To create a way to measure the value of each job in the organization To create a way to evaluate each employee's performance FEEDBACK 2 / 2 (100.0%)
Total compensation can be calculated as __________.
Total Compensation = Salary + Benefits + Perks Total Compensation = Salary + Variable + Benefits Total Compensation = Salary + Variable Total Compensation = Salary + Benefits FEEDBACK 2 / 2 (100.0%)
What theory explains why people purchase lottery tickets?
Tournament theory FEEDBACK 2 / 2 (100.0%)
What is the total rewards content strategy?
Type, level, and combination of rewards offered FEEDBACK 1 / 1 (100.0%)
The advantage of the job comparison approach is that it is __________.
Universal Simple Holistic Encompassing FEEDBACK 2 / 2 (100.0%)
13. A pay-form-specific rewards strategy means __________.
Varying pay level strategy among the organization Varying pay level strategy within job functions Varying pay level strategy across reward types Varying pay level strategy within job families
Total rewards plays a(n) ________ role in the business strategy.
Vital FEEDBACK 1 / 1 (100.0%)
Which of the following will NOT enhance procedural justice?
Voice Device strategy Correcting mechanism Explanation FEEDBACK 1 / 1 (100.0%)
Which item can job evaluation, job analysis, market surveys, and performance measurement assist with?
Voice Multiple sources Correcting mechanism Explanation FEEDBACK 1 / 1 (100.0%)
Job-value structure does NOT help to answer what question?
What are jobs? How are jobs related? How important are jobs? Who should be recruited for jobs? FEEDBACK 2 / 2 (100.0%)
Understanding weaknesses can help organizations ask what question?
What can we not do? FEEDBACK 2 / 2 (100.0%)
Understanding opportunities can help organizations ask which particular question?
What societal flaws can hurt the organization? What can our competitors do that we can't? What can we do that our competitors can't? Where can we improve? FEEDBACK 0 / 2 (0.0%)
What is capability-based pay?
When a reward system explicitly attempts to vary rewards based upon an employee's ability to add value to the organization When a reward system explicitly attempts to vary rewards based upon the market trends When a reward system explicitly attempts to vary rewards based upon the capabilities of the organization When a reward system explicitly attempts to vary rewards based upon the capabilities of the employee FEEDBACK 1 / 1 (100.0%)
What is a niche-focused strategy?
When an organization chooses a small and segmented market and competes only in that small arena FEEDBACK 1 / 1 (100.0%)
The Employment Retirement Income Security Act was established to ________.
Work as a liaison between organizations and the government Regulate the retirement plans offered by organizations Regulate the retirement plans offered by the government Regulate the retirement plans offered through unions
In an individualistic environment, ________.
Work is done dependently by single employees reporting to a single supervisor Work is done dependently by multiple employees reporting to a single supervisor Work is done independently by multiple employees reporting to a single supervisor Work is done independently by single employees reporting to a single supervisor FEEDBACK 1 / 1 (100.0%)
What is the most obvious downside to a capability-based pay?
XXX __Wages and salaries paid to employees will level off. Wages and salaries paid to employees will rise. Wages and salaries paid to employees will decrease. There are no downsides. FEEDBACK 0 / 1 (0.0%) Wages and salaries paid to employees will rise.
The value-reward line can best be explained by which mathematical equation?
y = mx + b y = sx + a y = ax + b y = ax + m FEEDBACK 2 / 2 (100.0%)