MGT386 Exam 3

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

a) point-of-service; preferred provider organization

which of the following often go for extended periods in the field with little supervision? a) sales staff b) top management c) supervisors d) professional employees

a) sales staff

In an attempt to reduce the employee benefits cost to the company, GrindStop Corp restricts the number of visits to the dentists covered in the dental plan to two per year for each employee. Which of the following cost-containment strategies is being used by GrindStop? a) copay b) benefit limitation c) administrative cost containment d) wellness programs

b) benefit limitation

Which of the following face the possibility that disgruntled stockholders may sue over corporate strategies that do not "pan out"? a) supervisors b) board of directors c) professional employees d) sales staff

b) board of directors

which of the following is the least popular executive perk offered by most companies? a) payment of club dues b) housing allowance c) supplemental life insurance d) home security

b) housing allowance

pay-for-knowledge plans do all of the following EXCEPT: a) make employees less expendable to their firms b) increase the probability of work being subcontracted out to nonunion organizations c) make each individual employee more valuable d) pay employees more for learning a variety of different jobs or skills

b) increase the probability of work being subcontracted out to nonunion organizations

Company A and Company B are in the same industry, but Company A is unionized and Company B is not. Therefore, a) it can be argued with assurance that any wage differences between the two firms are due to the presence of a union in Company A and the absence of a union in Company B. b) it is difficult to argue with assurance that wage differences between the two firms are attributable to the presence of a union, although the possibility exists. c) Company B has to form a union to compete with Company A. d) any wage differences between the two firms can never be attributed to the presence of a union in Company A.

b) it is difficult to argue with assurance that wage differences between the two firms are attributable to the presence of a union, although the possibility exists.

with easily sold products, a) companies prefer a more aggressive sales force b) the base compensation tends to be more important c) the incentives provided in the form of commissions tend to be more important d) companies tend to set lower sales targets

b) the base compensation tends to be more important

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

d) 0 months - company size

allowing nonperformance factors to affect performance scores is known as: a) a horn error b) affirmative action c) straight ranking d) criterion contamination

d) criterion contamination

in recent years, some firms have tried to deal with the plateau effect and also accommodate the different career motivations of mature scientist and engineers through a(n): a) individual career ladder b) alternative career path c) military-style career ladder d) dual-career ladder

d) dual-career ladder

surveys show that the most highly valued employee benefit is: a) dental coverage b) life insurance c) paid vacation and holidays d) medical insurance

d) medical insurance

which of the following involves periodic adjustments based typically on changes in CPI? a) a COLA clause b) a deferred wage increase c) a reopener clause d) an annual improvement adjustment

a) a COLA clause

When a job involves very routine, mechanistic tasks, the most appropriate appraisal format is: a) behaviorally anchored rating scales b) management by objectives c) standard rating scales d) alternation ranking

a) behaviorally anchored rating scales

Leah, the CEO of SteadyResults Corp., feels that she is underpaid, so she hires a compensation consultant to survey actual competitors of the company. According to agency theory, if SteadyResults performs poorly, her salary will most likely: a) remain the same as CEO salary is based only on performance. b) be withheld and paid at a later date as the company is doing poorly. c) be increased in order to retain her. d) remain the same as the company is doing poorly.

c) be increased in order to retain her.

a deferred wage increase a) specifies that wages will be renegotiated at a specified time b) specifies that such non wage items as pension and benefits will be renegotiated under certain conditions c) is negotiated at the time of initial contract negotiations with timing and amount specified in the contract d) involves periodic adjustments based typically on changes in CPI

c) is negotiated at the time of initial contract negotiations with timing and amount specified in the contract

Which of the following types of rankings would be least preferred by managers of more than 10-15 employees? a) straight ranking b) alternation ranking c) paired-comparison ranking d) forced ranking

c) paired-comparison ranking

during the performance review of her employees, Sarah gives higher rankings to employees from her hometown, Oklahoma, as she believes that people from Oklahoma are hardworking and trustworthy. Which of the following rating errors is Sarah exhibiting? a) severity error b) horn error c) spillover error d) clone error or similar to me

d) clone error or similar to me

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

a) determine whether the accident actually happened

which of the following is the most popular executive perk offered by most companies? a) executive physicals b) payment of club dues c) family spousal travel d) corporate housing

a) executive physicals

Which of the following is a benefit under social security? a) lump-sum death payments b) job security c) work-life balance d) overtime pay

a) lump-sum death payments

two-tier wage structures differentiate pay based upon the a) type of work b) hiring date c) place of work d) length of contract, if applicable

b) hiring date

The most common form of outcome-based appraisal is: a) the essay method b) management by objectives c) the performance standards review d) behaviorally anchored rating scales

b) management by objectives

the first issue in setting up a benefits package is: a) finding out who should be protected or benefited b) figuring out how much choice should employees have among benefits c) determining how benefits should be financed d) choosing legally defensible benefits

a) finding out who should be protected or benefited

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

b) Jacob is not eligible for pension as he is not over 21

In the context of benefits communication methods, which of the following is mostly true about an information portal? a) it fosters open communication b) it requires ongoing maintenance and an intuitive user interface c) it primarily allows for personalized communication methods d) it essentially requires coordination and planning

b) it requires ongoing maintenance and an intuitive user interface

which of the following is NOT a disadvantage of flexible benefit programs? a) administrative burdens and expenses increase b) adverse selection of benefits by employees results in increase in costs c) new benefits are highly difficult to introduce d) flexible benefits are subject to nondiscrimination requirements in section 125 of the internal revenue code

c) new benefits are highly difficult to introduce

which of the following is an objective of the unemployment insurance program? a) to cover injuries and diseases that arise out of the course of employment b) to offset lost income during voluntary unemployment c) to help employed workers plan for retirement d) to provide an incentive for employers to stabilize employment

d) to provide an incentive for employers to stabilize employment