MGMT 494 Test 1

By empowering​ employees, supervisors can strengthen the​ pay-for-performance link. In order for supervisors to empower​ employees, they need to​ ________. A. make sure employees work with few resources B. conduct formal performance appraisals only once a year C. delay addressing​ work-related problems as long as possible D. reprimand poor performers immediately E. take on a​ coach's role

E

Chipotle has been doing much better in the fast food industry than​ McDonald's in recent years. In terms of environmental scanning​ activities, what McDonalds is currently facing would best be termed as​ ________. A. a temporary decline in sales for​ McDonald's B. a lack of innovation C. a preference for Hispanic food D. an opportunity for​ McDonald's E. a threat to​ McDonald's

E

Establishing internally consistent compensation systems strengthens the​ pay-for-performance link. Of the​ following, which strategy is vital to establishing an internally consistent compensation​ system? A. Giving employees more authority B. Making customers key stakeholders C. Encouraging open communication D. Focusing employee efforts on organizational goals E. Conducting thorough job analyses and creating detailed job descriptions

E

In order for​ team-based incentives to work​ appropriately, work teams must be effective. Work teams are most effective when team members​ ________. A. are equally close to their supervisor B. have similar education and experience levels C. receive the same pay D. care for each other E. are​ cross-trained to perform each​ other's work

E

In order for​ team-based incentives to work​ appropriately, work teams must be effective. Work teams are most effective when team members​ ________. A. care for each other B. have similar education and experience levels C. are equally close to their supervisor D. receive the same pay E. are​ cross-trained to perform each​ other's work

E

Incentive pay helps cut payroll costs for companies. This is because incentive pay​ ________. A. is reserved for a select few in top​ management, and not for the majority of employees B. is given only on rare occasions C. is much smaller than annual seniority increases D. remains constant and is always a small portion of base pay E. is given instead of annual​ increases, and only when the company enjoys some measure of success

E

Many nonunion companies offer wages and benefits somewhat higher than those offered by unionized companies in an effort to discourage employees from seeking union representation. Which term is used to describe the nature of this union​ influence? A. COLA effect B. Cloning C. Concessionary bargaining D. Vesting E. Spillover effect

E

Many nonunion companies offer wages and benefits somewhat higher than those offered by unionized companies in an effort to discourage employees from seeking union representation. Which term is used to describe the nature of this union​ influence? A. Cloning B. COLA effect C. Concessionary bargaining D. Vesting E. Spillover effect

E

Of the following​ examples, which one best strengthens​ pay-for-performance by linking performance appraisal to a business​ goal? A. Using MBO as the​ performance-evaluation system B. Empowering employees to conduct periodic​ self-appraisals C. Establishing unrealistically high objectives for employees as an incentive to put forth more effort D. Offering merit increases to marketing research employees for developing new products E. Allowing employees to establish their own goals

E

One of the advantages of introducing incentive pay instead of merit pay for cyclical industries such as retail sales is that​ ________. A. incentive pay is always less than merit pay B. incentive pay is much easier to achieve for all types of performers C. supervisors can choose not to award incentive pay D. incentive pay is perceived as more valuable by employees than merit pay E. compensation expenses can be minimized with incentive pay

E

Since the passage of the​ ________, the federal government requires employers to enter into​ good-faith negotiations with workers over the terms of employment. A. Rehabilitation Act B. Family and Medical Leave Act of 1993 C. Americans with Disabilities Act of 1990 D. Government Employee Rights Act of 1991 E. National Labor Relations Act of 1935

E

The Equal Pay Act of 1963 stipulates that​ ________. A. pay should be equal to the quality of work produced by 1963 standards B. everyone should be compensated at the exact same rate C. CEOs decide how pay should be divided equally D. pay should be divided in equal ratios across all employee ranks E. there should be no sex discrimination in pay for employees performing equal work

E

The FLSA requires that workers be paid overtime pay for​ ________. A. any work done after 5​ p.m., which is considered the end of a normal business day B. any work done during the lunch​ hour, because workers are legally required to receive regular breaks C. any work done from​ home, as long as it is work related D. any work done over the​ weekend, because weekends are not considered part of the normal business week E. all hours worked in excess of 40 hours within a period of 7 consecutive days

E

The level of risk increases for employees as incentive pay becomes a greater proportion of total compensation. Generally this perceived level of risk​ ________. A. is lower for​ higher-rank employees B. can be controlled by supervisors C. increases for all employees regardless of their rank D. is subjective for most employees E. is higher for​ higher-ranked employees

E

Three examples of core compensation are​ ________. A. paid​ vacation, sick time​ benefits, and health insurance B. education expense​ reimbursement, childcare, and providing uniforms C. merit​ pay, pension​ plans, and paid vacation time D. public transportation​ passes, pay-for-knowledge, and pension plans E. annual​ salary, merit​ pay, and​ cost-of-living adjustments

E

Title VII of which act is designed to promote equal employment opportunities for underrepresented​ minorities? A. Older Workers Benefit Protection Act B. Fair Labor Standards Act C. Federal Insurance Contribution Act D. Equal Pay Act of 1963 E. Civil Rights Act of 1964

E

What two forms of core compensation are the most common types of pay used in a traditional pay​ system? A. Annual salary and commission B. Hourly wage and commission C. Commission and bonus D. Bonus and hourly wage E. Hourly wage and annual salary

E

When an employee receives a minimum pay increase that is perceived as​ significant, it is known as​ ________. A. progressive B. ​least-acceptable C. regressive D. ​most-available E. ​just-meaningful

E

When designing an incentive pay​ plan, the time horizon of the plan becomes a major issue. Of the​ following, which is​ true? A. Production​ workers' performance should be based on longer periods of time in order to accurately assess skills. B. Incentive programs for professionals and executives should have a​ short-term orientation. C. As a general rule of​ thumb, short-term goals can be achieved in two years or less. D. In​ general, incentives for​ lower-level employees should be based on​ long-term goals. E. Production​ workers' performance is sometimes judged on periods as short as one hour.

E

When workers in Los​ Angeles, California, make​ 20% more than workers​ nationwide, this is an example of​ ________. A. geographical rate differential .B. ​regional-based pay differential C. national rate differential D. pay rate differential E. relative pay differential

E

Which is the most common area of negotiation between management and union​ workers? A. Work hours per day B. Work hours per week C. Time off from work D. Training provided at work E. Pay raises and benefits

E

Which is true of the minimum​ wage? A. In​ general, state law regarding minimum wage supersedes federal law when the state minimum wage is less than the federal minimum wage. B. Employers do not need a consent from the Department of Labor in order to pay a trainee less than minimum wage. C. State minimum wage is always greater than federal minimum wage. D. Federal minimum wage is always greater than state minimum wage. E. In​ general, federal minimum wage law supersedes state minimum wage laws where the federal minimum wage is greater than the state minimum wage.

E

Which is true when comparing pay rate differentials and relative rate​ differentials? A. Pay rate differentials take into account whether the company is for profit or not for​ profit, but relative rate differentials do not. B. Pay rate differentials and relative rate differentials are both measured in dollars. C. Pay rate differentials and relative rate differentials statistics consider the same variables. D. There is no consistency between pay rate differentials and relative rate differentials. E. Relative pay differentials measure the control for the influence of various​ variables, but pay rate differentials do not.

E

Which of the following actions would most likely strengthen the​ pay-for-performance link? A. A sales manager reduces the geographic size of the​ organization's sales territories. B. A manager announces that the company would like to reduce labor costs by offering generous​ early-retirement incentives. C. A company employs a seniority pay program. D. A supervisor communicates his preference for scheduling appointments one week in advance. E. A company initiates a system that increases merit pay in relation to base pay.

E

Which of the following are the main stakeholder groups of a compensation​ system? A. ​Part-time employees, line​ employees, staff​ supervisors, staff​ employees, and administrative managers B. ​Owners, shareholders, labor union​ representatives, suppliers, and local government officials C. Corporate executives D. ​Employees, line​ managers, other​ competitors, and foreign governments E. ​Employees, line​ managers, executives,​ unions, and the federal government

E

Which of the following is NOT a cause for interindustry wage​ differentials? A. The profitability of the industry causes wages to be different in different industries. B. The type of product produced causes wages to be different in different industries. C. The degree of capital intensity used causes wages to be different in different industries. D. The unionization of the workforce causes wages to be different in different industries. E. The degree of worker safety required in an industry causes wages to be different in different industries.

E

Which of the following is a true statement regarding merit​ pay? A. Merit pay is not commonly used in the United States. B. Employees do not necessarily need to know in advance that their efforts will lead to merit pay. C. If employers do not have​ funds, they can still implement merit pay programs. D. Merit pay can be given to employees without any pay increase for inflation. E. Merit pay is given on both subjective and objective​ measures, but most​ supervisors, as a​ rule, rely on subjective measures.

E

Which of the following organizations will most likely utilize a longevity pay program 10 years from​ now? A. A​ small, locally owned coffee shop B. A​ yo-yo manufacturer C. A mechanical engineering organization D. A privately owned flower shop E. A public elementary school

E

Which of the following statements is​ true? A. Companies that rely on groups should offer more individualistic incentives. B. Merit and seniority pay are compatible with​ team-based work. C. Traditional pay programs are beneficial for work teams. D. Individualistic compensation practices encourage group behavior. E. ​Team-based pay plans should compensate employees for achieving group objectives as well as assuming their respective roles in a team.

E

Which statement about incentive pay is​ true? A. Incentive pay is motivating but tends to increase payroll costs. B. Incentive pay is only available to salaried​ workers, not hourly​ workers, due to wage laws. C. Incentive pay is based on the number of years a worker has been with a firm. D. Incentive pay is usually a larger amount than an​ employee's base pay. E. Incentive pay is given to employees in a​ one-time payment.

E

Which statement is​ true? A. Compensation professionals consider relative rate​ differentials, but not pay rate differentials. B. Compensation professionals are not concerned with pay rate and pay rate differentials. C. Pay rate differentials fully match relative pay differentials. D. The difference in pay rate differentials depends on relative rate differentials. E. Relative pay differentials are pay differences between different geographical areas.

E

Which statement regarding the time orientation of incentive pay plans is​ true? A. In​ general, short-term goals are considered achievable in six months or less. B. ​Long-term incentive plan goals can generally be achieved in less than five years. C. Legal standards clarify the difference between​ short-term and​ long-term goals. D. Incentive programs for executives typically have a​ short-term orientation. E. ​Long-term incentives, such as stock option​ plans, are commonly used in relation to professionals.

E

Which stipulation is NOT part of the National Labor Relations Act of​ 1935? A. Negotiating terms and conditions of employment B. ​Self-organization C. Collective bargaining D. Freedom of association E. ​Employer-appointed representative for workers

E

Why do compensation professionals offer merit pay​ programs? A. To attract employees to the company B. To increase entitlement pay C. To compensate for adequate performance D. To follow labor trends in the industry E. To reinforce excellent performance

E

Wilson Enterprises has implemented a gain sharing program based on improvements in company performance. Wilson employees would most likely receive gain sharing bonuses for all of the following EXCEPT​ ________. A. production cost decreases B. higher customer satisfaction ratings C. productivity increases D. worker safety record improvements E. employee social skill improvements

E

​Well-designed incentive programs are based on​ ________. A. the number of years of service B. a regular presence at work rather than absenteeism C. the relationship employees have with their supervisors D. creativity on the job E. performance on the job

E

____________ refers to sets of collective skills, knowledge, and abilities that employees can apply to create value for their employers

capital

______________ refers to the factors that enable companies to generate income, higher stock prices, economic value and reputation

capital

_____________ represents the rewards employees receive for performing their jobs.

compensation

Apple uses what strategy?

differentiation strategy

What are the 2 types of employee benefits?

discretionary benefits legally required benefits

______________: report directly to the corporation's CEO or head of a major division, perhaps responsible for the entire compensation program

executives

___________ compensation includes monetary and non-monetary rewards

extrinsic

What are the main building blocks of strategic compensation?

extrinsic and intrinsic compensation

_______________: perform tasks in a variety of HR-related areas such as involvement in most or all of the compensation functions such as building job structures, market competitive pay systems, and merit pay structures

generalists

Compensation professions can leverage the value of ______________.

human capital

____________ refers to sets of collective skills, knowledge, and abilities that employees can apply to create value for their employees

human capital

___________________ rewards employees for partially or completely attaining a predetermined work objective

incentive pay

_______________ is achieved when the value of each job is clearly defined

internal consistency

What are the 3 goals that compensation professionals use to promote effective compensation systems

internal consistency market competitiveness recognition of employee contributions

_____________ compensation represents employees' critical psychological states that result from perform their jobs

intrinsic

what are the 2 types of compensation?

intrinsic and extrinsic

internal consistency is achieved by using ___________ and ___________.

job analysis and job evaluation

internal consistency represents ___________ and __________.

job structure and hierarchy

______________________ directly involved in producing companies' goods or delivering their services such as manufacturing leaders

line employees

Ryanair is implements what strategy?

lowest cost strategy

________________ is vital in attracting and retaining employees

market competitiveness

____________________: compensation policies that fit with business objectives

market competitiveness

______________ programs assume that employees compensation over tie should be determined, at least in part, by differences in job performance

merit pay

___________: provides employees with pay for time when they are not working

paid time-off

_____________: based on compensable factors

pay grades

___________: built on grades, uses midpoint, minimum, and maximum pay rates

pay ranges

________________: determined by employees' credentials, job knowledge, and job performance

pay structures

What are the 3 types of individual contributions?

pay structures pay grades pay ranges

_______________ reward managerial, service, or professional workers, for successfully learning specific curricula

pay-for-knowledge plans

_______________: provide family benefits, promote health, and guard against income loss caused by such catastrophic factors as unemployment, disability, or serious illness

protection programs

what are the 3 types of discretionary benefits?

protection programs paid time-off services

_______________ pay system reward employees with periodic additions to base pay according to employee' length of service in performing their jobs

seniority pay

__________: provides such enhancements as tuition reimbursement and day care assistance to employees and their families

services

_______________ is used mostly for employees who perform physical work and increases these workers'pay as they master new skills

skills-based pay

______________: work within only one of the areas of compensation practice such as compensation survey development

specialists

_________________ support the line functions, human resource professionals and accountants are examples of staff employees

staff employees

what 2 things is market competitiveness based on?

strategic analyses compensation surveys

to the design and implementation of compensation systems to reinforce the objectives of both HR strategies and competitive business strategies.

strategic compensation

A fixed​ first-dollar-of-profits formula is based on​ ________. A. a specific percentage of profits contingent upon accomplishing a defined company goal B. the achievement of a company goal and a unanimous vote from company shareholders C. the company exceeding a predetermined minimum profit level D. a specific percentage of company profits contingent upon the input of supervisors E. a variable percentage of company profits based on corporate performance

A

A software company is launching its new product line. The performance standards of the salespeople responsible for promoting the software should be judged based on​ ________. A. linking their performance to the​ company's business strategy or goals .B. communicating clearly to them about merit increases C. making sure that effective appraisals are in place D. their job descriptions E. how they​ self-appraise themselves

A

A​ firm's compensation professionals can most likely help the CEO and CFO understand the importance of​ ________. A. employees within their business processes B. equipment capital C. production quotas and targets D. financial capital E. accurate accounting records

A

Bob is a compensation​ analyst, Maria is a training and development​ specialist, Linda is a​ recruiter, and Stephen is a benefits counselor. These jobs collectively define​ ________. A. the human resources management occupation B. ​full-time jobs C. the office support occupation D. the marketing occupation E. the compensation occupatio

A

Companies try to get the most qualified candidates interested in working for them by​ ________. A. communicating the positive features of the core compensation and benefits programs B. communicating the​ firm's superior benefits C. recruiting aggressively D. emphasizing the size of the company E. discussing what the firm produces

A

Compensation professionals use merit pay programs to​ ________. A. reward performance results B. promote worker safety C. build group and team morale D. treat everyone the same regardless of performance E. keep up with inflation

A

Competitive business strategy choices mainly focus on​ ________. A. achieving lowest cost or product differentiation B. competition within different divisions of the company C. achieving brand recognition D. building​ efficient-scale facilities E. providing the best service possible

A

How does a company decide between using group or​ individual-based incentives? A. It depends on whether the type of work and the specific objectives require independent performance or interdependent performance. B. It depends on whether workers want to work individually or in group settings. C. It depends on what type of a​ profit-sharing plan the company wants to institute​ (group vs.​ individual). D. It depends on whether management is trying to promote individual incentives or group incentives. E. It depends on the cost of instituting the group or​ individual-based incentives.

A

How does a company decide between using group or​ individual-based incentives? A. It depends on whether the type of work and the specific objectives require independent performance or interdependent performance. B. It depends on whether workers want to work individually or in group settings. C. It depends on whether management is trying to promote individual incentives or group incentives. D. It depends on what type of a​ profit-sharing plan the company wants to institute​ (group vs.​ individual). E. It depends on the cost of instituting the group or​ individual-based incentives.

A

How often does a current profit sharing plan distribute profits to​ employees? A. Typically on a quarterly or annual basis B. When employees retire C. Typically every couple of weeks D. Typically every five years E. Typically every month

A

Ideally, the interests of which two groups are brought closer together by instituting​ company-wide incentive​ plans? A. Workers and the owners of the company B. Customers and supervisors in the company C. Labor leaders and managers D. Administrative staff and manufacturing staff E. Workers and executives

A

If employees do not trust the merit pay​ system, they will most likely​ ________. A. lose motivation to work hard B. talk to customers about their lack of trust in the company C. support a union movement to demand merit pay D. work harder in the hope of receiving a merit pay increase E. try to get close to supervisors who give merit pay increases

A

In a behavioral encouragement​ plan, individuals are awarded incentives for​ ________. A. having exemplary attendance B. exceeding production and sales C. accomplishing specific objectives D. producing​ better-quality output E. showing hard​ work, diligence, and skill

A

In a merit pay​ program, there must be explicit​ ________ that specify the procedures or outcome against which​ employees' job performance can be clearly evaluated. A. performance standards B. job qualifications C. specifications D. outcome assessments E. job descriptions

A

It would be easiest for an employer to award individual incentive pay to​ a(n) ________. A. employee who works on the assembly line in a shoe factory B. employee who relies on three other departments to process paperwork correctly C. group of six employees who assess the safety measures for a utility company D. executive who works at an advertising firm E. customer service representative who handles defective product returns

A

John has just been employed by XYZ Company because of his expertise in international trade. An economist would describe​ John's expertise as​ ________. A. capital B. human capital C. financial capital D. an international trade skill set E. technical skills

A

John was disappointed when he saw a negligible increase in his paycheck after he was awarded merit pay. This problem can be attributed to which of the following problems with merit​ pay? A. Little motivational value of merit pay B. Lack of open communication between management and employees C. Undesirable competition among workers D. Mounting costs associated with merit pay E. ​Supervisor's biased ratings of​ employee's job performance

A

Maria and Jill have been employed for three years at an accounting firm. In the last​ quarter, both received the same merit​ raise, although Maria has been a star performer and has not missed any​ deadlines, while Jill has missed deadlines on multiple occasions. On which aspect of the​ pay-for-performance link should the supervisor focus in this scenario so that this situation does not occur in the​ future? A. Differentiate among performers. B. Establish effective appraisal. C. Communicate the way the merit pay was determined. D. Conduct a job analysis. E. Empower both Mary and Jill.

A

The best way supervisors can avoid arbitrary decisions regarding merit pay is to​ ________. A. compare employee performance against the job criteria based on job descriptions B. take the​ employee's input into consideration C. rely on their personal judgement regarding merit pay D. practice open communication E. differentiate among performers and​ non-performers

A

The passage of which law weakened the unions in the​ U.S.? A. Title VII of the Civil Rights Acts B. Americans with Disabilities Act of 1990 C. Equal Pay Act of 1963 D. Family and Medical Leave Act of 1993 E. Pregnancy Discrimination Act of 1978

A

The performance measures chosen for incentive pay should​ ________. A. relate to a​ firm's competitive strategy B. depend on a rival​ firm's market share C. consider the opinions of union leaders and supervisors D. be qualitative rather than quantitative E. be based primarily on employee input

A

What is NOT a common problem associated with merit pay​ programs? A. A​ supervisor's unwillingness to participate in a merit pay program .B. The failure of a supervisor to properly differentiate performers C. A​ supervisor's improper choice of performance​ standards/measures D. An employee not feeling that the merit pay is significant enough .E. A poor personal relationship​ (mistrust) between a supervisor and an employee

A

What is a key advantage of using market pricing to establish base pay? a. simplicity and cost b. compliance with pay equity legislation c. promotes internal equity d. source of competitive advantage

A

What is the benefit of including an incentive component in the core compensation program offered to employees in an industry that experiences cyclical​ demand, such as retail​ sales? A. Lowering payroll costs during lean periods B. Reducing absenteeism C. Attracting better educated applicants D. Reducing turnover E. Having tax advantages associated with the strategy

A

What is the chief limitation of the trait systems of​ appraisal? A. Trait systems are subjective. B. Trait systems are highly objective. C. Trait systems are difficult to use. D. Traits systems are difficult to quantify for merit pay purposes. E. Trait systems can be applied to a limited number of jobs.

A

What is the key advantage associated with the strategy of empowering employees to conduct performance​ self-evaluations as a means of strengthening the​ pay-for-performance link? A. The strategy should lead to more​ self-corrective actions rather than reactive courses of action to supervisory feedback. B. It partially relieves the supervisor of the appraisal task. C. It reduces costs. D. It increases morale among the sales force. E. It reduces the​ job-related stress salespeople often experience.

A

When a supervisor evaluates a given​ employee's performance against that of other​ employees, the supervisor is most likely using​ ________. A. a comparison system B. forced distribution C. a​ 360-degree appraisal D. BARS E. MBO

A

Which of the following is LEAST likely to explain why employees of​ Boeing, an aircraft​ manufacturer, receive higher wages than Walmart​ employees? A. Boeing operates in a​ non-capital-intensive industry. .B. Boeing operates in a profitable industry. C. Boeing employees must learn to use complex machinery. D. Boeing employees need extensive​ on-the-job training. E. Boeing employees are required to have an associate degree.

A

Which of the following is NOT a cause for interindustry wage​ differentials? A. The degree of worker safety required in an industry causes wages to be different in different industries. B. The type of product produced causes wages to be different in different industries. C. The unionization of the workforce causes wages to be different in different industries. D. The degree of capital intensity used causes wages to be different in different industries. E. The profitability of the industry causes wages to be different in different industries.

A

Which of the following is NOT a key factor to be considered when designing an incentive pay​ system? A. Who should be responsible for distributing incentive funds B. Whether the incentive plan should be based on individual or group performance C. The criteria by which either group or individual performance should be judged D. Whether company goals should be​ long-term or​ short-term E. The amount of risk employees will accept in their overall compensation plan

A

Which of the following is a job function of an HR​ specialist? A. Working on a special area of compensation practice B. Reporting directly and frequently to the CEO C. Designing​ market-competitive pay systems D. Designing merit pay structures E. Building job structures

A

Which of the following plans allows individuals to be more self-managing and better supports behaviours needed by high involvement firms? a. skill-based b. market pricing c. job evaluation d. competency-based

A

Which of the following statements is​ true? A. The globalization of business has contributed to declining union membership. B. Large companies with highly unionized workforces are increasingly moving away from states where unionization rates are higher. C. ​Currently, unions often intimidate employees to become members. D. Currently about​ 10% of all U.S. states have​ right-to-work laws in effect. E. The influence of labor unions in the United States has been increasing since the 1950s.

A

Which of the following three elements support the compensation building​ blocks? A. Job​ structures, pay​ structures, and structures that recognize employee contributions B. Pay​ structures, internally consistent communication​ structures, and structures that recognize employee contributions C. Job​ structures, pay​ structures, and structures that support organizational charts D. Pay​ structures, job​ structures, and structures that recognize incentive pay levels E. Job​ structures, market-cost​ structures, and structures that recognize employee contribution

A

Which statement about incentive pay is​ correct? A. Incentive pay is a​ one-time payment that augments an​ employee's base pay. B. Incentive pay replaces an​ employee's traditional pay at most firms. C. Incentive pay is more costly for firms than seniority and merit pay. D. Incentive pay is used to reward individual employees but not groups. E. Incentive pay is limited to production and nonsupervisory employees.

A

Which statement about stakeholders is​ FALSE? A. Every stakeholder within the compensation system has the same expectations. B. Stakeholder groups within the compensation system include​ employees, unions, and the federal government. C. Each stakeholder group within the compensation system has its own standards for effective performance. D. The success of an HR department depends on how well it serves the stakeholder groups within the compensation system. E. Stakeholders within the compensation system often compete for the attention of the personnel department.

A

Which statement about teams in the workforce is​ true? A. Innovation in the work environment is enhanced by​ team-based job design. B. Firms can use the same individualistic reward programs as incentives for teams. C. ​Seniority- and​ merit-based pay programs are effective incentives for work teams. D. The percentage of U.S. employers that use teams is declining due to poor results. E. German companies first made the team concept popular in the United States.

A

Which statement is true when it comes to understanding interindustry wage​ differentials? A. Equivalent workers performing similar work are paid more in some industries than in others. B. Interindustry wage differential implies that workers in all industries can expect to be paid differently because of inflation. C. Equivalent workers performing similar work are always paid the same in different industries. D. In a competitive labor​ market, companies in different industries can compete equally for labor. E. In a competitive labor​ market, companies in different industries can usually get away with paying lower wages.

A

Which statement is​ true? A. Relative pay differentials are pay differences between different geographical areas. B. Pay rate differentials fully match relative pay differentials. C. The difference in pay rate differentials depends on relative rate differentials. D. Compensation professionals consider relative rate​ differentials, but not pay rate differentials. E. Compensation professionals are not concerned with pay rate and pay rate differentials.

A

Which statement regarding minimum wage is​ FALSE? A. State minimum wage law supersedes federal minimum wage law when the federal minimum wage is higher than the state minimum wage. B. Federal minimum wage law supersedes state minimum wage law when the state minimum wage is lower. C. Employers can pay trainees less than minimum wage as long as they have explicit permission from the Department of Labor. D. State minimum wage rate prevails when it is higher than the federal minimum wage. E. FLSA exemptions permit employers to pay less than minimum wage in some exceptions.

A

Which statement regarding the​ seniority-based pay system is​ FALSE? A. ​Seniority-based pay systems do not provide automatic pay increases. B. In​ seniority-based pay​ systems, performance assessments tend to be subjective. C. ​Seniority-based pay can easily be indexed to time spent on the job. D. ​Seniority-based pay protects public sector employees from political ups and downs. E. Seniority pay in the public system is driven by political pressure.

A

Why do companies institute incentive pay​ programs? A. To motivate employee productivity and control payroll costs B. To increase the budgets associated with payroll C. To satisfy union​ leaders' requests for better pay for workers D. To produce loyal employees E. To satisfy upper​ management's goals for employees

A

Workers earning less than​ $23,600 a year are guaranteed overtime protection under what​ guidelines? A. Fair Pay Rules B. Lilly Ledbetter Fair Pay Act C. The Equal Pay Act of 1963 D. The Social Security Act of 1935​ (Title IX) E. Civil Rights Act of 1964

A

​Historically, what led to management instituting​ company-wide incentive​ plans? A. Management felt workers would be less likely to challenge management practices if profits were shared. B. Management wanted workers to be loyal to the company. C. Management felt that workers would work harder if given incentives. D. Management wanted workers to be financially well off. E. Management wanted workers to avoid being unionized.

A

​Mario, a manager with Birdwell​ Enterprises, is being transferred by the firm from​ Fargo, North​ Dakota, to New York City. Although​ Mario's job tasks and title will remain the​ same, his salary will be higher. The salary change is most likely due to​ ________. A. a​ cost-of-living adjustment B. the skills needed to do the job C. a status change D. the population of New York City E. anticipated inflation rates

A

​Typically, companies in profitable industries pay higher compensation than companies in less profitable industries. What is the main reasoning behind this​ phenomenon? A. Companies in profitable industries typically have productive employees with skills and abilities that contribute to company success. .B. Companies in profitable industries typically have low wages but better​ benefits, which means better compensation for workers. C. Companies in profitable industries have low overhead costs. D. Companies in profitable industries have stronger unions that ask for higher wages. E. Companies in profitable industries typically fall in the manufacturing​ category, which is known to pay higher wages.

A

A piecework plan is an example of​ ________. A. merit pay B. an individual incentive plan C. a​ company-wide incentive plan D. a seniority pay plan E. a group incentive plan

B

All of the following are examples of​ non-monetary compensation EXCEPT​ ________. A. medical insurance B. incentive pay C. ​employer-provided day care centers D. vacation days E. ​on-site gyms

B

Although popular with many prestigious​ firms, which appraisal system seems to be unpopular with many​ managers? A. Critical incident technique B. Forced distribution C. Behavioral systems D. BARS E. Trait systems

B

Although popular with many prestigious​ firms, which appraisal system seems to be unpopular with many​ managers? A. Critical incident technique B. Forced distribution C. Trait systems D. Behavioral systems E. BARS

B

Ash has worked hard and is expecting a merit pay increase at the end of the year.​ However, his supervisor Kaylie has never​ "clicked" with​ him, and Ash may not receive the merit pay he expects. In this​ scenario, the problem can be attributed to​ ________. A. undesirable competition due to merit pay B. the​ supervisor's biased rating of employee performance C. a lack of communication between employee and supervisor D. a lack of funds available for merit pay E. poor performance on the​ employee's part

B

Before merit pay can be​ awarded, it is important that companies first​ ________. A. consider the amount of time spent on the job by an employee B. make permanent adjustments to base pay for inflation .C. ignore the amount of available funds for merit pay D. consider whether the person was employed in a​ for-profit or​ not-for-profit company in the past E. make the employee realize that any pay increase is temporary

B

Compensation professionals must educate employees about available training options because​ ________. A. it is ethical to train employees B. employees will not necessarily recognize these opportunities unless they are clearly communicated C. CEOs demand that employees be trained D. employees demand to know about training options E. it is required by law

B

Employees are rewarded in a​ company-wide incentive plan​ ________. A. regardless of the prevailing profit levels and stock price of the company B. when the company exceeds the minimum acceptable performance standard C. to promote healthy individual competition among workers D. when the company perceives loyalty on the part of the employees E. when an individual worker exceeds the performance standard

B

Empowering employees to conduct​ self-appraisals is a strategy to strengthen the​ pay-for-performance link. What is the key advantage of this​ strategy? A. It increases morale among the sales force. B. It leads to​ self-corrective responses to supervisory feedback. C. It reduces cost. D. It reduces​ job-related stress for many employees. E. It partially relieves the supervisor of the appraisal task.

B

From the perspective of most​ employees, merit pay programs are appropriate when​ ________. A. performance standards are implicit rather than explicit B. employees feel in control of their performances and outside conditions have little impact C. employees believe that their supervisors determine their merit pay D. employees are awarded merit pay instead of​ cost-of-living pay adjustments E. all employees are awarded an equal amount of merit pay

B

George is a manager who regularly assesses the performance of his salespeople by putting them into one of three groups. The lowest 20 percent of sales performers are put in the​ "below average" category. The middle 60 percent are categorized as​ "average." The top 20 percent of sales performers are classified as​ "stars." What performance appraisal method is George​ utilizing? A. BARS B. Forced distribution C. Trait system D. The comparison system E. MBO

B

Higher profits for certain companies often mean higher wages for workers because​ ________. A. there is more competition from other companies B. there is less competition from other companies C. these companies operate where there are low barriers to entry in a particular product market D. workers demand more in those companies E. other companies more than likely are making the same product

B

Human capital theory is based on the assumption that​ ________. A. employees are motivated strictly by money B. employees become more valuable over time C. employees become less valuable over time D. ​on-the-job training for employees is not​ important, but formal education is E. employees generally stay in one​ place, regardless of pay levels

B

Human capital theory is based on the assumption that​ ________. A. employees generally stay in one​ place, regardless of pay levels B. employees become more valuable over time C. ​on-the-job training for employees is not​ important, but formal education is D. employees become less valuable over time E. employees are motivated strictly by money

B

If employees do not trust the merit pay​ system, they will most likely​ ________. A. work harder in the hope of receiving a merit pay increase B. lose motivation to work hard C. try to get close to supervisors who give merit pay increases D. talk to customers about their lack of trust in the company E. support a union movement to demand merit pay

B

Incentive pay helps cut payroll costs for companies. This is because incentive pay​ ________. A. is given only on rare occasions B. is given instead of annual​ increases, and only when the company enjoys some measure of success C. remains constant and is always a small portion of base pay D. is much smaller than annual seniority increases E. is reserved for a select few in top​ management, and not for the majority of employees

B

Incentive plans that promote collaborative behavior are called​ ________. A. ​team-based incentive plans B. group incentive plans C. ​team-building incentives D. cooperation incentives E. behavioral rewards

B

Joanna believes her employer is discriminating against her by paying her a lower salary than a male​ co-worker. Which legislation states that Joanna must file a pay discrimination charge within 180 days of receiving a discriminatory​ paycheck? A. Americans with Disability Act B. Lilly Ledbetter Fair Pay Act C. Age Discrimination in Employment Act D. Title VII of the Civil Rights Act E. Paycheck Fairness Act

B

Linda is a small business owner who uses a merit pay program because she believes it provides an incentive for her employees to be more customer focused. After a particularly slow​ year, her business is in trouble. She has decided to give her two employees the smallest pay raises that will provide them with satisfaction. What type of pay increase will the employees be​ receiving? A. ​Least-acceptable B. ​Just-meaningful C. Progressive D. Longevity E. Regressive

B

Management most often and typically relies on what measurement to determine incentive​ pay? A. An​ employee's length of employment B. The​ company's achievement of business objectives C. The educational level of an employee D. ​Management's subjective assessment of an employee E. An​ employee's level of technical skills

B

Management most often and typically relies on what measurement to determine incentive​ pay? A. The educational level of an employee B. The​ company's achievement of business objectives C. ​Management's subjective assessment of an employee D. An​ employee's length of employment E. An​ employee's level of technical skills

B

Mario, a manager with Birdwell​ Enterprises, is being transferred by the firm from​ Fargo, North​ Dakota, to New York City. Although​ Mario's job tasks and title will remain the​ same, his salary will be higher. The salary change is most likely due to​ ________. A. the skills needed to do the job B. a​ cost-of-living adjustment C. the population of New York City D. a status change E. anticipated inflation rates

B

Mary's employer rewards employees with periodic additions to base pay according to​ employees' length of service in performing their jobs. What type of pay system is the organization​ utilizing? A. ​Pay-for-performance B. Longevity pay C.. Comparison pay D. ​Just-meaningful pay E. Merit pay

B

Overtime provisions established by the FLSA require​ ________. A. employers to pay workers time and​ one-half for 30 hours worked within 7 consecutive days B. employers to pay workers time and​ one-half for all hours in excess of 40 hours worked within 7 consecutive days C. that nonexempt jobs are not eligible for overtime pay D. that workers get double pay for all hours in excess of 40 hours worked within 7 consecutive days E. that workers be paid overtime regardless of the type of job they work

B

The National Labor Relations Act of 1935 requires​ ________. A. workers to strike when their demands are not met B. ​private-sector employers to enter into​ good-faith negotiations with employees over employment terms C. government as an employer to enter into a​ good-faith agreement with employees D. ​private-sector employers to give benefits equal to or better than those of​ public-sector employers E. ​private-sector employers to guarantee employment

B

The difference in pay between occupations can be explained best by the​ ________. A. type of regulations associated with certain occupations B. complexity of​ knowledge, skills, and abilities required to do the job C. number of men versus women working in certain occupations D. use of technology in different occupations E. prestige associated with certain occupations

B

The disadvantage of​ profit-sharing plans for employees is that​ ________. A. ​profit-sharing plans generally replace​ cost-of-living increases B. employees find it difficult to predict their earnings from year to year C. management makes it harder to achieve the performance standards D. ​profit-sharing plans create unnecessary competition among workers E. employees do not see a significant increase in base pay

B

The flexibility of profit sharing plans for companies means that​ ________. A. employees are always in control of the level of profits B. companies can vary the amount of profit they distribute based on the amount of profits they earn C. companies are in a flexible position to forego all distribution of profits when profit levels are less than anticipated D. companies can reduce benefits or base pay to distribute profit levels E. companies always give a defined percentage of profits to their employees

B

Which best describes human capital​ theory? A. Pay increases should be tied to the productivity of workers. B. ​Employees' knowledge and skills generate human capital over​ time, making them increasingly more valuable. C. Employees should be viewed as assets and should all receive equal treatment when pay increases are considered. D. Employees should be viewed as assets and valued by their performance. E. When supervisors rate​ employees, they tend to rate all of them as average or close to average.

B

Which of the following is a disadvantage of using job evaluation for base pay? a. prevents centralized control of costs b. inhibits change, flexibility, and skill development c. violates pay equity legislation d. higher training costs

B

Which of the following questions is most important for a compensation professional to ask when seeking to provide a strategic contribution to the​ company? A. Do the choice and design of compensation practices match the union​ leader's vision? B. Does the compensation strategy fit well with the objectives of the competitive business and HR​ strategies? C. Does the compensation strategy fit well with the objectives of the​ employees? D. Does the implementation of compensation practices towards desired employee behavior support the​ employees' expectations? E. Does the implementation of compensation practices towards desired employee behaviors support environmental scanning​ activities?

B

Which of the following statements best describes a piecework​ plan? A. In piecework​ plans, the time for producing a unit is long and each unit is unique. B. In piecework​ plans, the time for producing a unit is short and production of units is repeated. C. Companies that use piecework plans pay little attention to profit levels. D. In a piecework​ plan, quantity is valued more than quality. E. In a piecework​ plan, an employer would never use subjective criteria.

B

Which of the following statements is​ correct? A. Companies in highly unionized industries pay low wages. B. Companies in profitable industries typically pay higher wages. C. On​ average, capital-intensive industries pay lower wages than those that are not​ capital-intensive. D. Most highly unionized companies are not​ capital-intensive. E. Companies in profitable industries often pay low wages.

B

Which of the following would NOT be considered a function of​ HR? A. Training B. Setting production goals C. Performance appraisal D. Recruiting E. Labordash-management relations

B

Which of the following would be considered an example of incentive​ pay? A. A toy store manager decides to give her employees a holiday bonus on the first of the year because of the scheduling flexibility they showed during the busy holiday season. B. A lawn care service owner pays his two salespeople a salary of​ $25,000 per year. On February​ 1, he informs them that for every 15 new clients one of them​ signs, that salesperson will earn a​ $200 bonus.​ Also, if the​ company's profits for the year increase by​ 15%, they each will be given​ $1,000 of the profit increase. C. At the annual sales convention held by a large marketing​ organization, the president of the organization announces that there will be a new policy. Each​ year, the five​ top-selling sales representatives will each win a​ week-long vacation for two in the Bahamas. In​ addition, each will be given​ $2,500 in spending money for the trip. D. After a particularly sluggish​ year, a restaurant owner decides to provide her customers an incentive to visit more often. She slashes prices on the menu by an average of​ 15% and offers a loyalty card that entitles card bearers a free meal after purchasing 10 meals. E. A pizza shop owner raises his​ employees' hourly wage by 50 cents in an effort to encourage them to increase their speed of service.

B

Which performance appraisal method involves a supervisor and an employee meeting to determine​ objectives, the supervisor monitoring the​ employee's progress, and the two meeting again at the end of the appraisal​ period? A. Paired comparisons B. MBO C. Forced distribution D. BARS E. Trait system

B

Which statement about​ cost-of-living adjustments​ (COLAs) is​ correct? A. COLAs are not related to compensation. B. COLAs are​ cost-of-living adjustments that represent base pay increases based on the Consumer Price Index​ (CPI). C. COLAs are part of a pension plan and is not a part of core compensation. D. A COLA is an example of an intrinsic reward. E. COLAs are used as a basis for merit increases.

B

Which type of incentive would be most applicable for a company that values employees with exemplary attendance​ records? A. Piecework plan B. Behavioral encouragement plan C. Referral plan D. Spot bonuses E. Management incentive plan

B

Why do highly unionized companies tend to pay higher​ wages? A. More manual work and less use of complex technology B. Collective power of workers in a union C. Individual power of workers D. Intensive use of noncapital resources E. Highly skilled workers in a union

B

​Generally, supervisors give merit raises based on a subjective assessment of the​ employee's performance. It is therefore essential that​ ________. A. supervisors do not give a high level of merit pay B. supervisors conduct accurate performance appraisals for merit pay to be effective C. supervisors become friendly with their employees D. employees get a commitment from the supervisor before extending any effort for merit pay E. employees not put much effort into obtaining merit pay

B

​White-collar public sector employees in the future can likely expect​ ________. A. to see seniority pay awarded regardless of how employees perform B. the government to consider whether its seniority pay system is effective C. the government to strengthen the seniority and longevity pay schedule D. seniority pay increases for​ white-collar workers only E. the government to eliminate seniority and longevity pay entirely

B

According to the Americans with Disabilities​ Act, employees​ ________. A. are protected from discrimination based on a​ disability, with the Supreme Court overseeing the enforcement of this law B. are protected from discrimination based on a​ disability, if the employer has less than 10 employees C. are protected from discrimination based on a​ disability, if they are​ qualified, with the employer providing reasonable accommodation D. are protected from discrimination based on a​ disability, only when initially hired for a job E. with only mental disabilities are protected from being discriminated at work

C

All of the following factors should be considered by HR professionals before designing an incentive plan EXCEPT​ ________. A. whether incentive pay should replace traditional pay B. whether the plan should be based on individuals or groups C. whether customers should have an input on the incentive plans given to employees D. how much risk employees can accept with their overall compensation E. the criteria for judging performance

C

As long as employees continue to remain​ employed, the only type of compensation that can be guaranteed is​ ________. A. a set base pay amount regardless of effort and responsibility B. incentive pay C. basic compensation in the form of wages and salaries D. generous allowances for vacation days E. tuition reimbursement

C

Bob is an installer in the San Francisco area who is employed by a national company. Compared to a counterpart in​ Lincoln, Nebraska, chances are that Bob is​ ________. A. getting higher relative pay but not a higher pay rate B. not getting a​ cost-of-living adjustment, but his counterpart is C. getting higher relative pay and a higher pay rate D. getting a higher pay rate but not higher relative pay E. getting paid the same

C

By empowering​ employees, supervisors can strengthen the​ pay-for-performance link. In order for supervisors to empower​ employees, they need to​ ________. A. reprimand poor performers immediately B. make sure employees work with few resources C. take on a​ coach's role D. conduct formal performance appraisals only once a year E. delay addressing​ work-related problems as long as possible

C

Companies generally institute incentive pay programs to control payroll costs and motivate employee productivity. Of the​ following, which would be an example of an incentive pay program element that could help an organization meet those​ objectives? A. Increasing sales commissions from​ 20% of sales to​ 25% of sales B. ​10% base pay increase for all employees C. ​Profit-sharing program .D. Overtime pay program E. Holiday bonus program

C

Companies often award incentive pay based on the volume of production. What is a common issue associated with incentive pay based on this type of​ measure? A. It makes incentive pay more time consuming to calculate and distribute. B. It makes it harder for operations managers to count the volume produced. C. It leads to workers who meet production quotas being intimidated by workers who do not. D. It makes it more difficult for businesses to determine production needs. E. It requires making costly changes in the production process.

C

Current​ profit-sharing plans pay cash awards to employees.​ Typically, how often are these​ awarded? A. On a monthly basis B. On a​ semi-annual basis C. On a quarterly or annual basis D. Every two or three years E. Every other year

C

Human resource professionals are considered​ ________. A. service employees B. line employees C. staff employees D. the same as production employees E. support employees

C

In the current business​ environment, most companies​ ________. A. rely on traditional pay systems more than incentive pay systems B. use incentive pay systems to increase employee loyalty to the firm C. use a mix of traditional and incentive pay methods D. use traditional pay systems to reward employees for creativity rather than longevity E. give a decreasing degree of importance to incentive pay methods

C

Incentive or variable pay is defined as​ compensation, other than​ ________ that​ fluctuate(s) according to​ employees' attainment of some​ standard, such as a​ pre-established formula, individual or group​ goals, or company earnings. A. ​group-based pay B. ​performance-based pay C. base wages or salaries D. bonus pay E. merit pay

C

Interindustry wage differentials depend on a number of factors that can lead to wage differentials. Which factor does NOT have an effect on interindustry wage​ differential? A. Level of unionization B. Product market C. Total number of female workers in an industry D. Profitability of an industry E. Capital intensity of an industry

C

Java Jazz is a company known for superior pay and good benefits. Java Jazz is having a hard time finding qualified​ employees, and it is experiencing high growth. Which type of incentive is it most likely to​ offer? A. Spot bonuses B. Individual incentive plans C. Referral plan D. Group incentive plan E. Management incentive plan

C

John is a salesperson for Big​ Pharma, and Lindy is an accountant. In HR​ terms, John would be classified as a​ ________ employee, and Lindy would be classified as a​ ________ employee. A. ​line; line B. ​support; line C. ​line; staff D. ​staff; staff E. ​staff; line

C

Matt is an anesthesiologist who makes​ $230,000 a​ year; Barbara is an administrative assistant who makes​ $40,000 a year. The chief reason for the difference in their salaries is due to​ ________. A. the practical training required to do their jobs B. their gender C. the complexity of​ knowledge, skills, and abilities required to do their jobs D. the status and prestige of their jobs E. the societal value of their jobs

C

Occasionally employees receive merit pay because​ __________. A. of the strength of the union in the company B. they demand merit pay increases C. supervisors want to avoid conflict with employees D. of the recommendation of fellow colleagues E. management likes to award merit pay instead of​ cost-of-living adjustments

C

One of the most efficient ways to contain compensation costs and to change the expectation of high pay rates by U.S. workers is by​ ________. A. not giving any pay raises B. providing medical benefits C. offering incentive pay D. laying off workers E. offering small pay raises

C

Strategic compensation is designed by compensation professionals in the context of an​ organization's ________. A. business strategy and compensation strategy B. human resource strategy and general tactical decisions C. competitive business strategy and human resource strategy D. human resource strategy and differentiation strategy E. competitive business strategy and specific tactical HR decisions

C

The FLSA requires that workers be paid overtime pay for​ ________. A. any work done over the​ weekend, because weekends are not considered part of the normal business week B. any work done during the lunch​ hour, because workers are legally required to receive regular breaks C. all hours worked in excess of 40 hours within a period of 7 consecutive days D. any work done after 5​ p.m., which is considered the end of a normal business day E. any work done from​ home, as long as it is work related

C

The difference in pay between occupations can be explained best by the​ ________. A. number of men versus women working in certain occupations B. type of regulations associated with certain occupations C. complexity of​ knowledge, skills, and abilities required to do the job D. prestige associated with certain occupations E. use of technology in different occupations

C

The error that occurs when a rater generalizes an​ employee's good or bad behavior on one aspect of the job to all aspects of the job is known as​ ________. A. first impression effect B. ​similar-to-me effect C. halo effect D. error of central tendency E. contrast error

C

The rationale behind seniority pay comes from​ ________. A. completing a predetermined work objective B. the entitlement mentality of workers C. human capital theory D. U.S. legislation E. the popularity of particular employees

C

The two categories of core compensation are​ ________. A. hourly pay and base pay B. base pay and salary C. base pay and base pay adjustments over time D. base pay and incentive pay E. hourly wage and salary

C

Unionization rates are higher​ ________. A. when there is a greater degree of globalization present B. in the private sector C. in the public sector D. in those states where there are​ right-to-work laws E. historically in the northern states

C

What two forms of core compensation are the most common types of pay used in a traditional pay​ system? A. Annual salary and commission B. Commission and bonus C. Hourly wage and annual salary D. Hourly wage and commission E. Bonus and hourly wage

C

When companies differentiate their products or services to create​ brand-loyal customers, they are generally expecting that these customers will​ ________. A. become​ price-conscious B. buy their products temporarily C. be less sensitive to price increases D. be sensitive to price decreases E. switch to a rival product

C

Which of the following best defines group​ incentives? A. Incentive pay based on individual group​ members' contribution B. Incentives paid to group members based on individual performance C. A program that rewards employees for their collective performance D. An incentive fund that can be distributed to individual team members based on supervisor appraisals E. A program that rewards groups on​ company-wide objectives

C

Which of the following factors is NOT a likely cause for the failure of a gain sharing​ plan? A. A company culture of working on an individual basis B. Good communication flow between and within departments C. ​Supervisors' lack of training in leading teams D. Companies that experience variable profits year to year E. A highly competitive product market

C

Which of the following is NOT one of the ways to adjust base pay over​ time? A. Incentive pay B. Seniority pay C. ​Industry-based pay D. Merit pay E. ​Cost-of-living adjustment

C

Which of the following is a true statement regarding geographic pay​ differentials? A. Compensation professionals typically do not offer an allowance for geographic pay differentials. B. Geographic pay differentials take relative pay​ differential, not pay rate​ differentials, into account. C. Relative pay differentials exist between geographic areas across the United States. D. Geographic pay differences are based on comparisons between two states. E. Overall there is no geographic pay difference across the United States.

C

Which of the following is a true statement regarding merit​ pay? A. If employers do not have​ funds, they can still implement merit pay programs. B. Merit pay can be given to employees without any pay increase for inflation. C. Merit pay is given on both subjective and objective​ measures, but most​ supervisors, as a​ rule, rely on subjective measures. D. Merit pay is not commonly used in the United States. E. Employees do not necessarily need to know in advance that their efforts will lead to merit pay.

C

Which of the following is typically used to determine incentive pay for​ managers? A. Number of days a manager is present versus absent from employment B. Number of years at work C. Ability to meet business objectives D. Perception of the manager by subordinates E. Personal history

C

Which of the following statements is true of an​ occupation? A. An occupation is a group of related duties found in only one company. B. An occupation is a group of unrelated tasks found in more than one company. C. An occupation is a group of jobs found at more than one company. .D. An occupation is a group of unrelated jobs found in only one company. E. An occupation is a group of jobs found in only one company.

C

Which of the following statements is​ correct? A. Companies in highly unionized industries pay low wages. B. On​ average, capital-intensive industries pay lower wages than those that are not​ capital-intensive. C. Companies in profitable industries typically pay higher wages. D. Companies in profitable industries often pay low wages. E. Most highly unionized companies are not​ capital-intensive.

C

Which of the following would be considered a​ long-term incentive​ plan? A. Spot award B. Bonus pay C. Stock option plan D. Profit sharing E. ​Team-based incentive

C

Which statement is​ correct? A. When employees get continual and ongoing​ feedback, they learn to dread performance appraisals. B. Administration of merit pay programs depends solely on the skills of the​ supervisor, not necessarily on the design and implementation of merit pay programs. C. Accurate and effective performance appraisals are key for effective merit pay programs. D. The frequency with which employees are provided feedback on their performance is not very critical. E. Supervisors are generally very objective when awarding merit pay.

C

Which type of performance appraisal method relies on many sources for information​ (employees, supervisors,​ coworkers, etc.)? A. BARS B. Comparison C. ​360-degree .D. Forced distribution E. Trait

C

Why has the federal government questioned the effectiveness of the General​ Schedule? A. Public sector organizations should exist to serve the​ public, not to make a profit. B. Public sector organizations are trying to attract new customers. C. Most federal employees receive raises regardless of how well they perform. D. The General Schedule is not an established compensation tactic. E. All federal employees receive the same pay.

C

Why is the U.S. government considered a stakeholder in​ compensation? A. Although considered a​ stakeholder, the U.S. government has very little​ "stake" in compensation policies. B. The U.S. government represents all consumers. C. Compensation professionals are responsible for compliance with all U.S. government employment legislation. D. The U.S. government demands to be named as a stakeholder. E. The only concern of the U.S. government relates to legislation under the Civil Rights Act of 1991 dealing with discriminatory practices.

C

With the group incentive​ plan, different payments are made to group members based on their contribution to the​ team's performance. What are these payments​ called? A. Unequal incentive payments B. Contribution incentives payments C. Differential incentive payments D. Ratio incentives payments E. Effort incentive payments

C

​Historically, what led to management instituting​ company-wide incentive​ plans? A. Management wanted workers to be financially well off. B. Management wanted workers to be loyal to the company. C. Management felt workers would be less likely to challenge management practices if profits were shared. D. Management wanted workers to avoid being unionized. E. Management felt that workers would work harder if given incentives.

C

HR and compensation professionals need to think like the __________.

CEO

__________ represent periodic base pay increases that are founded on changes in prices as indexed by the consumer price index (CPI)

COLAs

A file​ clerk, a department​ secretary, and an administrative assistant are jobs that would be classified as​ ________. A. internships B. apprenticeships C. professional jobs D. office support occupations E. ​high-paying occupations

D

A group of jobs classified as an occupation share all the tasks that are related in all of the following ways EXCEPT​ ________. A. materials B. worker actions C. worker characteristics D. pay E. similar objectives

D

According to​ studies, a common problem associated with merit pay programs is that​ ________. A. they weaken the​ pay-for-performance link most organizations seek B. they cause too much integration among workers C. labor unions frequently force organizations to use such programs D. ​supervisors' preferences for individual employees often influence the distribution of merit pay E. they are more costly than seniority pay systems

D

Ash has worked hard and is expecting a merit pay increase at the end of the year.​ However, his supervisor Kaylie has never​ "clicked" with​ him, and Ash may not receive the merit pay he expects. In this​ scenario, the problem can be attributed to​ ________. A. undesirable competition due to merit pay B. a lack of communication between employee and supervisor C. poor performance on the​ employee's part D. the​ supervisor's biased rating of employee performance E. a lack of funds available for merit pay

D

Bosch employs doctoral candidates in the​ firm's research facilities on a​ limited-term basis to work on their dissertations and to help Bosch research scientists with scientific projects. This is an example of the​ ________. A. importance of doctoral programs .B. strategic nature of HR C. self-interest of Bosch D. use of discretionary benefits E. use of capital

D

Collective bargaining​ ________. A. is a verbal agreement B. is applicable at the time of hiring C. is only used in the public sector D. describes the terms of employment E. does not address pay​ rates, but does address working conditions

D

Companies often award incentive pay based on the volume of production. What is a common issue associated with incentive pay based on this type of​ measure? A. It makes it harder for operations managers to count the volume produced. B. It requires making costly changes in the production process. C. It makes it more difficult for businesses to determine production needs. D. It leads to workers who meet production quotas being intimidated by workers who do not. E. It makes incentive pay more time consuming to calculate and distribute.

D

Compensation professionals establish monetary compensation programs by​ ________. A. offering nonmonetary rewards B. rewarding job performance levels and striving for monetary rewards C. establishing effective job design D. rewarding job performance levels and​ job-related knowledge and skills E. offering increasing pay rates

D

Current​ profit-sharing plans pay cash awards to employees.​ Typically, how often are these​ awarded? A. Every two or three years B. On a monthly basis C. Every other year D. On a quarterly or annual basis E. On a​ semi-annual basis

D

Dee Ann and her supervisor Andy both attend the same church and share similar points of view on many issues. It is possible for Andy to commit which type of error when judging Dee​ Ann's performance? A. Contrast error B. Error of central tendency C. ​First-impression effect bias error D. ​Similar-to-me bias error E. Positive or negative halo effect bias error

D

Each of the following is true of a​ company-wide incentive plan EXCEPT​ ________. A. ​company-wide incentive plans make​ employees' goals more compatible with corporate goals B. employees are rewarded based on stock values for publicly traded companies C. ​company-wide incentive plans are used to motivate employees to work toward increased profits D. individual performance is measured in support of company goals E. employees are rewarded based on company profits

D

Employees often perceive​ seniority-based pay as advantageous because​ ________. A. it leads to greater competition among​ co-workers B. they know their pay is based on subjective standards C. they know they will be paid based on how they are perceived by their supervisor D. of fairness in pay increases based on seniority E. they are not given advance information about pay increase amounts

D

From the perspective of most​ employees, merit pay programs are appropriate when​ ________. A. all employees are awarded an equal amount of merit pay B. performance standards are implicit rather than explicit C. employees believe that their supervisors determine their merit pay D. employees feel in control of their performances and outside conditions have little impact E. employees are awarded merit pay instead of​ cost-of-living pay adjustments

D

Group incentive plans​ ________. A. cannot be of different​ types; generally there is only one kind of plan B. often do not cultivate loyalty among​ employees, even though they may be​ well-designed C. work well when some of the members have a greater impact on achieving a goal D. can eventually increase productivity if​ well-designed. E. that are​ well-designed do not necessarily encourage teamwork

D

Harry has worked as a junior clerk for XYZ Company for three​ months, starting at​ $10 per hour. In the next five to seven​ years, if Harry continues to perform well and is willing and​ able, he can more than likely expect​ ________. A. an increase in seniority pay but not longevity pay B. an increase in longevity and seniority pay​ simultaneously, but not a promotion C. a​ cost-of-living increase with no increase in seniority pay D. an increase in seniority pay and a promotion E. an increase in longevity pay but not seniority pay

D

How does the introduction of new and improved methods at work pose a problem for management in instituting individual incentive​ awards? A. Employees lose focus on the incentives and focus on the newer methods. B. Employees need much greater incentives to be proficient with the newer methods. C. Employees become aware of how supervisors measure performance and perform accordingly. D. It takes time for employees to become proficient with newer​ methods, and incentives are harder to implement for management. E. Employees become uncertain about how the newer methods at work tie into incentives.

D

In 2015 Walmart increased its pay rate above the minimum wage. This was partially due to​ Wal-Mart experiencing​ a(n) ________. A. severe shortage of highly skilled labor B. bad reputation among workers C. decrease in the demand for qualified workers D. decrease in the supply of qualified workers E. increase in the supply of qualified workers

D

In order to establish an internally consistent compensation​ system, which of the following is absolutely​ necessary? A. Linking performance appraisals to business goals B. Establishing effective appraisals C. Establishing subjective performance measures D. Conducting job analyses .E. Communicating about merit pay

D

In their roles as strategic business​ partners, HR and compensation professionals should primarily focus on​ ________. A. managing pay rates B. monitoring legislative changes C. reducing work hours for employees D. achieving organizational results E. offering attractive benefits to employees

D

In traditional pay​ plans, employees are paid​ ________. A. in advance of work performed B. every two weeks C. based on performance D. a fixed hourly rate or annual salary E. for length of service to the company

D

Incentive pay plans are given to​ ________. A. management only B. teams only C. individuals only D. ​individuals, teams, or the entire company E. those who are in​ production, not​ management, roles

D

It would be easiest for an employer to award individual incentive pay to​ a(n) ________. A. group of six employees who assess the safety measures for a utility company B. customer service representative who handles defective product returns C. executive who works at an advertising firm D. employee who works on the assembly line in a shoe factory E. employee who relies on three other departments to process paperwork correctly

D

Lack of open communication between management and employees is often cited as a reason that a merit pay program may fail in its desired effect. The key reason why lack of communication causes a failure is because​ ________. A. it takes too long for employees to get any feedback from supervisors B. most training programs discourage new employees from approaching their supervisors with questions they can probably solve on their own C. managers are usually trained not to communicate with employees more than is necessary to assign tasks and handle problems D. it could lead to mistrust and a lack of understanding of the merit pay program E. communication opportunities between supervisors and employees arise only at the time of performance assessments

D

Merit pay programs are based on the assumption that compensation should in part be based on​ ________. A. retaining mediocre employees B. ​cost-of-living adjustment C. strictly objective evaluation D. differences in job performance E. seniority

D

Minimum​ wage, overtime​ pay, and child labor provisions are covered by which federal​ law? A. Equal Pay Act of 1963 B. The Social Security Act of 1935​ (Title IX) C. Civil Rights Act of 1964 D. The Fair Labor Standards Act of 1938 .E. The​ Portal-to-Portal Act of 1947

D

One of the threats unions face is​ offshoring, which is part of the globalization phenomenon. Offshoring refers to the migration of all or a significant part of the​ development, maintenance, and delivery of services to a company in another​ ________. A. state B. region of the United States C. geographical area near a sea or ocean D. country E. industry

D

One of the three assumptions of an effective incentive pay system is that​ ________. A. individuals and teams achieve the same amount and quality of work B. a company should create rewards for loyalty and seniority C. a​ company's overall performance depends on its financial situation D. a​ company's individual workers and work teams differ in what they contribute to the company and how well they perform E. a company needs to think of overall performance by all​ employees, rather than in relative terms for each employee or team

D

Organizational development professionals promote intrinsic compensation by​ ________. A. making employees realize that their work matters to them only B. offering both monetary and nonmonetary rewards C. providing employee benefits D. incorporating effective job design E. offering higher pay

D

The Rucker plan and the Scanlon plan are similar​ gain-sharing plans. What is the key difference between the two​ plans? A. The Scanlon plan does not emphasize monetary rewards as much as the Rucker plan does. B. The Scanlon plan provides no input from​ management, but the Rucker plan does. C. The Scanlon plan does not recommend employee​ involvement, but the Rucker plan does. D. The Rucker plan uses the​ value-added formula, and the Scanlon plan uses the sales value of production formula. .E. The Rucker plan emphasizes the suggestion system within the​ company, but the Scanlon plan does not.

D

The U.S. government is organized into how many different​ levels? A. One​ (federal) B. Two​ (federal and​ state) C. Four​ (federal, state,​ local, and​ municipal) D. Three​ (federal, state, and​ local) E. Five​ (federal, state,​ local, municipal, and​ council)

D

The best way supervisors can avoid arbitrary decisions regarding merit pay is to​ ________. A. rely on their personal judgement regarding merit pay B. practice open communication C. differentiate among performers and​ non-performers D. compare employee performance against the job criteria based on job descriptions E. take the​ employee's input into consideration

D

The planned use of company resources to maintain competitiveness is called​ ________. A. strategic decisions B. competitive advantage C. compensation strategy D. competitive business strategy E. human resources strategy

D

Utility companies generally pay higher wages than companies in other industries because​ ________. A. utility companies are forced by federal regulations to pay higher wages B. utility companies need highly educated workers C. everyone needs electricity D. utility companies have high barriers to​ entry, no foreign​ competition, and high profits .E. utility companies have low barriers to entry and high profits

D

Utility companies overall in 2007 paid their employees more than did companies in the leisure and hospitality industry. This phenomenon can be attributed to​ a(n) ________. A. yearly wage differential B. utility company wage differential C. intraindustry wage differential D. interindustry wage differential E. leisure and hospitality company wage differential

D

What are compensated absences? a. Unpaid time off. b. A form of healthcare. c. Payroll deductions. d. Paid time off.

D

What is the chief limitation of the trait systems of​ appraisal? A. Trait systems are difficult to use. B. Trait systems can be applied to a limited number of jobs. C. Traits systems are difficult to quantify for merit pay purposes. D. Trait systems are subjective. E. Trait systems are highly objective.

D

When considering​ relocation, ________ costs are the most significant financial obligations that employees must consider. A. insurance B. food C. transportation D. housing E. entertainment

D

When factoring​ cost-of-living adjustment into​ pay, compensation professionals often​ ________. A. try to maintain different standards of living for employees according to the geographic area B. do not consider health care cost differences C. do not think about recruiting and retention of qualified employees D. consider​ housing, food,​ utilities, transportation, and health care costs E. consider only housing expenses

D

When there is a low supply of highly qualified​ individuals, what is the best way for a company to fill empty​ positions? A. Give promotions to qualified individuals in order to retain them in the company B. Contact employment agencies because the company believes them to be worthwhile C. Give spot bonuses D. Give referral bonuses to increase the recruitment of highly qualified employees E. Give financial awards when highly qualified employees meet or exceed targeted objectives

D

Which is NOT a true statement regarding wage levels and supply and demand for​ labor? A. When the demand for qualified labor is greater than the​ supply, there is an upward pressure on wages. B. When the demand for qualified workers​ increases, the pool of qualified workers decreases. C. When the supply of qualified labor is greater than the demand for​ labor, there is a downward pressure on wages. .D. When the supply of qualified labor is greater than the demand for​ labor, there is an upward pressure on wages. E. The upward and downward pressure on wages is dependent on the supply and demand of qualified labor.

D

Which is a true statement regarding merit pay​ programs? A. For merit systems to​ work, employees should not know that their efforts in meeting production quotas or quality standards will lead to pay raises. B. Merit pay programs occur most often in​ not-for-profit organizations. C. Merit increases are not expressed as a percentage of hourly wages for nonexempt employees. D. Merit increases are usually expressed as a percentage of hourly wages for nonexempt employees. E. Merit increases are not usually expressed as a percentage of annual salaries for salaried employees

D

Which is true of​ profit-sharing plans? A. ​Profit-sharing plans include merit pay. B. There is only type of​ profit-sharing plan in use todaylong dash—the deferred​ profit-sharing plan. C. ​Profit-sharing plans do not pay cash awards. D. ​Profit-sharing plans pay a part of the​ company's profit to the employees. E. ​Profit-sharing plans are​ short-term in nature.

D

Which of the following compensation mix choices makes up the largest portion of an employee's pay package, is guaranteed by the employer, and paid on a weekly, monthly or annual basis? a. indirect pay b. performance pay c. variable pay d. base pay

D

Which of the following is NOT a key factor to be considered when designing an incentive pay​ system? A. Whether company goals should be​ long-term or​ short-term B. Whether the incentive plan should be based on individual or group performance C. The criteria by which either group or individual performance should be judged D. Who should be responsible for distributing incentive funds E. The amount of risk employees will accept in their overall compensation plan

D

Which of the following is NOT a reason why seniority pay is expected to disappear in the​ future? A. Increased global competition B. Skill deficits of current workers C. Skill deficits of new employees D. Employee belief that workers become more valuable over time E. Rapid technological advancements

D

Which of the following is NOT an internal stakeholder of the compensation​ system? A. Employees B. Line managers C. Collective bargaining unit D. U.S. government E. Executives

D

Which of the following is a disadvantage of base pay? a. Employees prefer predictable and certain rewards. b. It confines employee attention to only one or two behaviours. c. It does not indicate the relative importance of jobs within the organization. d. It is not self-correcting.

D

Which of the following pay programs rewards employees based on​ performance? A. Base pay B. Longevity pay C. Inflation pay D. Merit pay E. Seniority pay

D

Which of the following statements is​ true? A. ​Currently, unions often intimidate employees to become members. B. The influence of labor unions in the United States has been increasing since the 1950s. C. Currently about​ 10% of all U.S. states have​ right-to-work laws in effect. D. The globalization of business has contributed to declining union membership. E. Large companies with highly unionized workforces are increasingly moving away from states where unionization rates are higher.

D

Which of the following would be considered an example of incentive​ pay? A. A toy store manager decides to give her employees a holiday bonus on the first of the year because of the scheduling flexibility they showed during the busy holiday season. B. A pizza shop owner raises his​ employees' hourly wage by 50 cents in an effort to encourage them to increase their speed of service. C. After a particularly sluggish​ year, a restaurant owner decides to provide her customers an incentive to visit more often. She slashes prices on the menu by an average of​ 15% and offers a loyalty card that entitles card bearers a free meal after purchasing 10 meals. D. A lawn care service owner pays his two salespeople a salary of​ $25,000 per year. On February​ 1, he informs them that for every 15 new clients one of them​ signs, that salesperson will earn a​ $200 bonus.​ Also, if the​ company's profits for the year increase by​ 15%, they each will be given​ $1,000 of the profit increase. E. At the annual sales convention held by a large marketing​ organization, the president of the organization announces that there will be a new policy. Each​ year, the five​ top-selling sales representatives will each win a​ week-long vacation for two in the Bahamas. In​ addition, each will be given​ $2,500 in spending money for the trip.

D

Which statement is true of pay differences between​ occupations? A. Pay differences between occupations depend strictly on the use of technology. B. Pay differences between occupations depend on the geographical location of jobs. C. Pay differences between occupations depend on the amount of supervision needed in jobs. D. Pay differences between occupations depend on​ knowledge, skills, and abilities that define jobs. .E. Pay differences between occupations depend on the number of hours worked associated with jobs.

D

Which statement is true regarding the​ knowledge, skills, and abilities​ (KSAs) required to perform a​ job? A. Jobs that are based on KSAs that require higher education typically pay less. B. Jobs with less complex KSAs typically pay more. C. Jobs that require complex KSAs typically do not require formal education. D. Jobs that are based on KSAs that require higher education typically pay more. .E. Jobs that require internships pay the same as those that do not require internships.

D

With the group incentive​ plan, different payments are made to group members based on their contribution to the​ team's performance. What are these payments​ called? A. Ratio incentives payments B. Effort incentive payments C. Contribution incentives payments D. Differential incentive payments E. Unequal incentive payments

D

​Matt, Juan,​ Linda, and Ming are working on a new product for their company that will be launched in the near future. Management wants to reinforce cohesiveness among the team. Which type of group incentive plan would be best suited for attaining the management​ objective? A. Referral plans B. ​Gain-sharing plans C. Differential payments based on ratio of base pay D. Equal incentive payments approach E. Differential incentive payments

D

​White-collar public sector employees in the future can likely expect​ ________. A. the government to strengthen the seniority and longevity pay schedule B. the government to eliminate seniority and longevity pay entirely C. seniority pay increases for​ white-collar workers only D. the government to consider whether its seniority pay system is effective E. to see seniority pay awarded regardless of how employees perform

D

A file​ clerk, a department​ secretary, and an administrative assistant are jobs that would be classified as​ ________. A. professional jobs B. internships C. office support occupations D. apprenticeships E. ​high-paying occupations

c

A key difference between merit pay and incentive pay is that supervisors generally​ ________. A. offer greater merit pay than incentive pay B. offer greater incentive pay than merit pay C. base incentive pay on subjective assessment and merit pay on objective assessment of the employees D. communicate in advance about merit​ pay, but do not communicate in advance about incentive pay E. communicate in advance about the incentive pay​ amounts, but do not communicate in advance about the merit awards

E

An organization has agreed to give employees automatic pay increases that are based on changes in​ prices, as recorded by the consumer price index. Which term​ applies? A. Spillover B. Vesting C. Collective bargaining D. Reconciliation E. COLA

E

Because merit pay increases focus on individual​ performance, it is best suited for jobs where the employee works independently or is in a professional position​ (for example,​ accounting). Which is the best explanation for this​ opinion? A. Employees who work independently are more likely to be motivated by financial incentives. B. Clerical and professional positions are more likely to be represented by unions. C. Employees who work independently are more likely to understand the intricacies of a complicated merit pay program. D. Clerical and professional positions are less accustomed to receiving merit pay. E. Competition often emerges among​ employees, which is counterproductive if teamwork is essential.

E