WAS CHP 9-10 WARM UP AND QUIZZES
In the 1930s, how did unions influence businesses offering discretionary benefits to their employees? A. By pushing for the National Labor Relations Act, which legitimized bargaining for benefits B. By requiring businesses to share a minimum percentage of their profits for retirement plans C. By petitioning that all businesses be unionized in order to offer the most benefits possible to employees D. By requiring that all businesses, union and nonunion, give employees discretionary benefits E. By standardizing the discretionary benefits that businesses can offer employees
A. By pushing for the National Labor Relations Act, which legitimized bargaining for benefits
What is an advantage associated with offering discretionary benefits? A. They can promote particular employee behaviors that have strategic value. B. They can result in lower costs of production. C. They usually result in lower material acquisition costs. D. They lower the chance of product liability lawsuits. E. They typically increase profits by 20% in the first year of their use.
A. They can promote particular employee behaviors that have strategic value.
Skills assessment is a consideration when going from job-based pay to person-focused pay. Which of the following questions is NOT relevant to skills assessment? A. What input should customers provide in the skills assessment process? B. What input should employees provide in the skills assessment process? C. How often should a skills assessment be conducted? D. Who should conduct the skills assessment? E. What data should serve as the basis for the skills assessment?
A. What input should customers provide in the skills assessment process?
The chief reason that human resource and compensation professionals in today's work environment need to think like CEOs is to ________. A. accomplish strategic organizational goals B. ensure that salaries keep up with inflation C. achieve pay equity across all ranks D. overcome the negative image of the HR department E. communicate with organizational stakeholders
A. accomplish strategic organizational goals
If an employer offers a pension plan, employees must be allowed to participate in pension plans after they have reached ________ and have completed ________ of service. A. age 21; 1 year B. age 25; 3 years C. a certain status within the company; 1 year D. a certain status within the company; 5 years E. age 35; 5 years
A. age 21; 1 year
For many decades, discretionary benefits were ________. A. based on the needs of a homogenous workforce consisting mostly of males B. offered on the basis of an employee's years of service C. offered to workers for their exceptional performance D. offered to workers who were union members E. offered on the basis of an employee's age and physical condition
A. based on the needs of a homogenous workforce consisting mostly of males
Pay rates that fall along the market pay line represent ________. A. competitive pay rates based on relevant labor market B. incentive pay historically paid by the company C. bonus pay awarded to workers on a random basis D. minimum wage rates as determined by the government E. labor uniondash-determined pay rates negotiated and agreed upon by the company
A. competitive pay rates based on relevant labor market
When a company thoroughly examines its external market context and its internal factors, it is, in essence, ________. A. conducting a strategic analysis B. determining compensation policies C. conducting a management analysis D. conducting a compensation survey E. assessing competitors' pay practices
A. conducting a strategic analysis
Corporate strategy formulation is typically based on ________, which help determine threats and opportunities. A. environmental scanning activities B. competing businesses C. market forces D. financial outlooks E. historical insights
A. environmental scanning activities
Which statement about benchmark jobs is TRUE? A. Benchmark jobs are common across many different employers. B. Benchmark jobs increase the time required to determine pay levels. C. Benchmark jobs represent a limited number of jobs within a company. D. Benchmark jobs are used for determining appropriate employee benefits. E. Benchmark jobs are typically unstable over time in most industries.
A. Benchmark jobs are common across many different employers.
What is a notable drawback to flexible spending accounts (FSAs)? A. They place a limit on the amount an employee can allocate to an FSA. B. An employee must use the accumulated money in the account by a specific time or it will be lost. C. They motivate employees to be less vigilant regarding medical expenses. D. Hourly employees are not allowed to contribute to an FSA. E. Employees can only use money on themselves, not their dependents.
B. An employee must use the accumulated money in the account by a specific time or it will be lost.
How are HMO and fee-for-service plans similar? A. Both require the use of medical specialists B. Both have out-of-pocket maximums and coinsurance. C. Both require a primary care physician to determine the need for a specialist. D. Both have low coinsurance rates. E. Both offer prepaid services.
B. Both have out-of-pocket maximums and coinsurance.
How do compensation professionals serve executives in a company? A. By helping executives comply with labor legislation, but not with regard to pay and benefits B. By designing sound compensation systems C. By attracting employees for short-term employment D. By helping executives achieve low production costs E. By striving to change labor legislation
B. By designing sound compensation systems
Which of the following ensures that employees possess at least a minimally acceptable level of skill proficiency upon completion of a training unit? A. Pay ranges B. Certification C. Skill blocks D. Promotion E. Pay structure
B. Certification
Carissa and her colleagues have received an annual merit pay increase on June 15 for the last two years. What is the term used to define the date when Carissa and her colleagues receive the annual merit increase? A. Merit pay raise date B. Common review date C. Employee anniversary date D. Compensation budget date E. Performance review date
B. Common review date
Who is exempt from COBRA? A. Employers who agree never to disclose or transfer their employees' health information B. Companies with fewer than 20 employees, church plans, and plans maintained by the U.S. government C. Companies with fewer than 50 employees D. Employers and government plans that guarantee coverage for an employee's dependents E. Employers who agree to provide excellent health benefits to their employees
B. Companies with fewer than 20 employees, church plans, and plans maintained by the U.S. government
How can employers reduce the costs associated with required benefits? A. Employers should offer only limited types of benefits. B. Employers should try to reduce the chances of workers filing compensation claims. C. Employers should refuse to offer benefits to employees if the costs become too great. D. Employers should try to hire as few employees as possible. E. Employers should make the process of filing compensation claims difficult.
B. Employers should try to reduce the chances of workers filing compensation claims.
Why are several state legislatures considering integrating employer-sponsored medical insurance and workers' compensation programs? A. Employers' unwillingness to share the costs of workers' compensation programs B. Escalating cost increases in workers' compensation C. To provide health benefit provisions for hourly and part-time employees D. To eliminate coverage for employees with many dependents E. Employees' excessive demands for employers to pay for coverage
B. Escalating cost increases in workers' compensation
Which statement about extrinsic compensation is TRUE? A. Extrinsic compensation includes any reward that may be internal to the individual but external to the organization. B. Extrinsic compensation includes both monetary and nonmonetary rewards. C. Extrinsic compensation includes only monetary rewards. D. Extrinsic compensation includes any reward that makes employees feel better about themselves. E. Extrinsic compensation includes only nonmonetary rewards.
B. Extrinsic compensation includes both monetary and nonmonetary rewards.
What is the primary limitation of a two-tier pay structure? A. It limits a company's ability to retain senior, experienced workers. B. It limits the company's ability to recruit and retain qualified workers. C. It increases the total compensation costs for the company. D. It restricts the company's ability to award merit pay. E. It leads to discord between workers inside and outside the company.
B. It limits the company's ability to recruit and retain qualified workers.
Which two processes are used by compensation specialists to create internally consistent job structures? A. Job analysis followed by job training B. Job analysis followed by job evaluation C. Job design followed by job evaluation D. Job description followed by job analysis E. Job duties followed job orientation
B. Job analysis followed by job evaluation
What do compensation professionals use to establish pay differentials among employees within a company? A. Academic background B. Job evaluation C. Skills and qualifications D. Seniority in the company E. Job descriptions
B. Job evaluation
How are welfare practices defined? A. Lawful procedures or social efforts designed to stimulate the basic physical and material well-being of people in need B. Voluntary benefits paid by the employer that are for the intellectual or social development of the employees C. A person or group's health, happiness, and old age retirement D. Monetary support given to people in need E. Anything for the professional development of an employee to increase wage earning potential
B. Voluntary benefits paid by the employer that are for the intellectual or social development of the employees
Under noncontributory financing for benefits programs, ________. A. the state government and the firm share the costs of each discretionary benefit B. a firm assumes total costs for each discretionary benefit C. employers do not contribute to the financing of discretionary benefits D. a firm and its employees share the costs E. the federal government covers the benefits program
B. a firm assumes total costs for each discretionary benefit
When setting up an appeals process for employees to challenge the job evaluation process, it is best to have ________ be present. A. members of the union B. a group of compensation professionals, supervisors, and employees C. an external labor consultant D. as many employees as possible E. no more than one or two key individuals from HR
B. a group of compensation professionals, supervisors, and employees
What are the components of a pay mix? A. Core compensation cost compared to incentive pay B. Percentage of total pay and merit pay C. Employer compensation costs compared to core compensation and benefits D. Total cost of benefits and incentives E. Total cost of all bonuses
C. Employer compensation costs compared to core compensation and benefits
What is a short term disadvantage of legally required benefits? A. Employers are only allowed to contribute so much to any one benefits program. B. Employees are not given the option of full-time work. C. Employers must make substantial financial contributions. D. Employers receive no tax breaks. E. Employees receive compensation even after employment with their company has ended.
C. Employers must make substantial financial contributions.
What is a key principle of workers' compensation? A. For injuries and accidents that occur on the job, employers and employee assume the costs equally. B. For injuries and accidents that occur on the job, the labor union and the employer must equally share the medical costs. C. For injuries and accidents that occur on the job, employers must assume the costs. D. For injuries and accidents that occur on the job, medication costs are paid by the employer but any hospitalization costs are paid by the worker. E. For injuries and accidents that occur on the job, employees must assume the costs.
C. For injuries and accidents that occur on the job, employers must assume the costs.
What was a common occurrence during the early twentieth century that led to workers' compensation insurance? A. Employers demanding long working hours, which caused health issues for workers B. Workers being required to handle harmful chemicals, which caused many health concerns C. Industrial accidents and occupational illnesses among workers D. Many employers not allowing regular work breaks, which caused workers to have fatigue-related illnesses E. Industrial hygiene not being a concern for many employers, which caused work-related illnesses
C. Industrial accidents and occupational illnesses among workers
Under exclusion provisions for short-term disability plans, what kind of disability is almost always excluded? A. Injuries sustained at work B. Pregnancy C. Injuries that are self-inflicted D. All injuries sustained at home E. All stress-related illnesses
C. Injuries that are self-inflicted
Which of the following refers to knowing that one's work matters in the lives of others? A. Core compensation B. Employee benefits C. Intrinsic compensation D. Extrinsic compensation E. Psychological rewards
C. Intrinsic compensation
What major trend are companies following by using the broadbanding concept to consolidate existing pay grades and ranges into fewer pay grades and wider ranges? A. Keeping profit margins as drivers of all business operations B. Keeping the least-cost strategy central to all business operations C. Making the organizations flatter D. Thinking of employees as key assets of a business E. Making labor unions major partners of an organization
C. Making the organizations flatter
What can employers do to contain unemployment insurance costs? A. Only employ part-time hourly employees B. Only hire highly skilled and well-educated employees C. Monitor their reasons for terminating employees D. Make it a point to lay off workers when they do not need them E. Hire workers based on conditional contracts and stipulations
C. Monitor their reasons for terminating employees
___________ policies refer to the combination of core compensation and employee benefits components that make up an employee's total compensation package. A. Market match B. Central pay C. Pay mix Your answer is correct. D. Market lead E. Pay match
C. Pay mix
Many companies use market match or market lead policies for which types of employees? A. Administrative employees B. Unskilled employees C. Professional and managerial employees D. New employees E. Part-time employees
C. Professional and managerial employees
Which statement about compensation surveys is FALSE? A. Most companies lack qualified personnel who can design accurate surveys. B. Developing a customized survey requires specialized knowledge. C. Published compensation surveys are mostly inaccurate. D. Developing in-house surveys is expensive. E. The custom development of surveys involves potential risks for employers.
C. Published compensation surveys are mostly inaccurate.
Which is true of merit pay increases? A. Merit pay is not viewed by employees as having any relationship to cost-of-living adjustments. B. Merit pay can be administered regardless of the level of funding for merit pay. C. Research shows that boosting merit pay will not necessarily increase productivity. D. Merit pay should be substantive in the absolute sense, not a relative sense, for the employee. E. Merit pay should be awarded equally across the board for it to be meaningful.
C. Research shows that boosting merit pay will not necessarily increase productivity.
Which of the following is NOT a stipulation in fee-for-service plans? A. Coinsurance B. Pre-existing condition clauses C. Restrictions on choice of health care providers D. Maximum benefit limits E. Out-of-pocket maximums
C. Restrictions on choice of health care providers
Which of the following statements about the Social Security system is TRUE? A. Not all payroll amounts and wages are taxed under the Social Security system. B. The Medicare tax is subject to a wage base. C. Retirement benefits of today's retirees are funded by the current workforce and their employers. D. The Social Security system is not a pay-as-you-go system. E. Self-employed individuals have to pay only 15 percent of the amount required for the Medicare Part A program.
C. Retirement benefits of today's retirees are funded by the current workforce and their employers.
Of the following, which is NOT regulated by ERISA (Employee Retirement Income Security Act of 1974)? A. pension program B. medical benefits C. Social Security D. life insurance E. disability benefits
C. Social Security
Which act was established to regulate the implementation of employee benefits programs, thereby protecting employee benefits rights? A. The Civil Rights Act of 1964 B. The Patient Protection and Affordable Care Act of 2010 C. The Employee Retirement Income Security Act of 1974 D. The Fair Labor Standards Act E. The National Labor Relations Act
C. The Employee Retirement Income Security Act of 1974
After states have paid into the central unemployment tax fund, what happens to the money? A. The federal government uses the funds for the training and development of federal employees. B. The unemployed are able to ask for withdrawals from the central unemployment tax fund to help them buy whatever they need. C. The federal government invests the money and disburses it back to the states as needed. D. The federal government puts the money into an emergency account to be used only in times of severe need. E. The money is distributed to not-for-profit organizations dedicated to helping the unemployed.
C. The federal government invests the money and disburses it back to the states as needed.
Why has HR traditionally been viewed as an administrative or support function? A. HR was mostly about determining pay scales. B. Most HR professionals work in a support function. C. The financial or marketing value of HR was not as apparent. D. HR was mostly about assistance to CEOs. E. HR was mostly about recruiting.
C. The financial or marketing value of HR was not as apparent.
Which of the following best explains the concept of an internally consistent compensation system? A. The compensation system for internal full-time employees remains consistent over time, whereas the compensation paid to contractors and outside agents is subject to change depending on market fluctuations. B. Compensation systems do not change over time. When an employee is hired by an organization, the employee is guaranteed that the compensation system in place upon hiring will remain in place until separation. C. The relative value and corresponding compensation associated with each job is compared to all jobs within a company. D. The value of each job is determined by a cross-functional team, which then assigns compensation based on a formula incorporating both longevity and employee skill sets necessary to complete tasks. E. Every employee within an organization should be paid equally, regardless of duties and responsibilities.
C. The relative value and corresponding compensation associated with each job is compared to all jobs within a company.
Before investing time and money into compensation surveys, which question is most important for compensation professionals to consider? A. How long will the survey be valid? B. Should company employees be involved in constructing the survey? C. What does the company want to gain from the survey? D. Should the survey focus on benefits or compensation? E. How long will it take to conduct the survey?
C. What does the company want to gain from the survey?
Which of the following is a list of educational qualifications, KSAs, and other qualifications an individual must possess to perform a job adequately? A. Job duties B. Job content C. Worker specifications D. Job analysis E. Job summary
C. Worker specifications
Pay mix policy may be expressed in ________. A. total savings in compensation B. dollars expressing total payroll taxes paid in a given year C. a percentage of total dollars allocated for compensation D. hours spent on the job E. wages and benefits
C. a percentage of total dollars allocated for compensation
When companies strive to achieve the lowest cost of production or product differentiation, they are mainly trying to ________. A. please the customer B. beat inflation C. achieve competitive advantage D. strive for the lowest cost possible E. keep up with production demands
C. achieve competitive advantage
Monetary compensation is best described as ________. A. a small portion of a total compensation package B. a type of intrinsic reward C. an employee's core compensation D. a cost-of-living adjustment E. the experiential part of an employee's total compensation
C. an employee's core compensation
In a pay-effort bargain, the basis for employee compensation is ________. A. an employee's ability, skill, and knowledge B. the organizational culture regarding wages C. an employee's job performance level D. an employer's perception of what a job is worth E. labor market compensation studies
C. an employee's job performance level
The process of individuals actively working together to construct meaning and knowledge is _____. A. critical thinking B. knowledge application C. collaboration D. ethics E. analysis
C. collaboration
Currently, most of the benefits plans offered by companies are ________. A. a combination of noncontributory and employee-financed B. noncontributory C. contributory D. employee-financed E. a combination of contributory and employee-financed
C. contributory
Within the HR profession, a(n) ________ is a top-level manager who reports directly to the corporation's CEO or to the head of a major division. A. specialist B. generalist C. executive D. HR specialist E. vice president
C. executive
Economists call the sets of collective skills, knowledge, and abilities of employees ________. A. financial capital B. pay structures C. human capital D. employee benefits E. pure capital
C. human capital
A problem associated with ________ is that they often lead to bureaucracy that can lead to higher fixed costs and a less competitive position. A. hourly-wage-based pay systems B. flexible pay systems C. internally consistent compensation systems D. salary-based pay systems E. internally inconsistent compensation systems
C. internally consistent compensation systems
The difference between job analysis and job evaluation is that ________. A. job analysis is more specific than job evaluation B. job analysis is conducted to determine pay levels, whereas job evaluation is conducted to determine a ranking for different jobs C. job analysis is descriptive, whereas job evaluation reflects management's priorities for different positions D. job analysis requires committee approval, whereas job evaluation requires approval from the manager, the employee, and the union E. job evaluation is conducted by HR professionals, whereas job analysis is conducted by supervisors
C. job analysis is descriptive, whereas job evaluation reflects management's priorities for different positions
Noor, an HR specialist, has expertise in labor laws due to his master's degree in HR and years of experience in the field. According to the EEOC, Noor's HR expertise is considered ________. A. a skill B. a qualification C. knowledge D. an ability E. a benefit
C. knowledge
Seniority pay is based on ________. A. the time you have been associated with a certain department B. your position in the company C. length of service D. the perception of compensation professionals E. your age and service to the organization
C. length of service
When compensation analysts use regression analysis, they are trying to ________. A. establish the highest and lowest salary levels on the survey B. come up with an average of the salaries on a survey C. predict the values of one variable from another D. predict salary increases in the future E. study the amount of deviation in salaries
C. predict the values of one variable from another
All of the following are examples of differentiation strategies EXCEPT ________. A. creating a brand name B. providing superior use of technology C. producing low-cost, standardized goods D. offering superior customer service E. using low prices to attract customers
C. producing low-cost, standardized goods
Martina is a sales manager in a major department store. Two independent job analysts have listed Martina's duties, which match the sales manager job description. This approach is known as the ________. A. valid job analysis method B. interview method C. reliable job analysis method D. observation method E. data collection method
C. reliable job analysis method
A major limitation of the two-tiered pay system is that ________. A. lower pay levels of senior employees cause them to be resentful of new hires who get higher wages B. lower-level employees who are brought in at a lower pay level may be rewarded extra for doing extra duties C. the company has difficulty recruiting and retaining new hires who are brought in at a lower pay scale D. new hires get better bonuses than senior employees E. senior-level employees are not happy when they see new hires receiving lower pay than themselves
C. the company has difficulty recruiting and retaining new hires who are brought in at a lower pay scale
Individuals who meet the eligibility criteria for unemployment benefits receive ________ benefits. A. quarterly B. monthly C. weekly D. yearly E. daily
C. weekly
The social context within which waiters in a restaurant interact with guests, or tax accountants in a tax preparation office interact with clients, is known as the ________. A. KSAs B. job content C. working conditions D. job description E. worker requirements
C. working conditions
What are the three categories of discretionary benefits? A. Outplacement programs, wellness programs, and sick leave B. Disability insurance, life insurance, and retirement programs C. Protection, paid time off, and services D. Employee assistance programs, family assistance programs, and tuition reimbursement E. Disability insurance, sick leave, and employee assistance programs
C. Protection, paid time off, and services
Which term refers to a salesperson receiving a set salary plus a single payment for the achievement of specific, exceptional goals? A. Commission-only plan B. Salary-plus-commission C. Salary-plus-bonus plan D. Salary-plus-draw plan E. Salary-only-plan
C. Salary-plus-bonus plan
When determining pay structure based on geographical consideration, many employers consider the ________. A. sales taxes in a given area B. payroll taxes in a given area C. cost-of-living adjustment for a certain area D. insurance costs in a given area E. minimum wage in a given area
C. cost-of-living adjustment for a certain area
What is the first step in the job evaluation process? A. Training employees to conduct job evaluations B. Choosing the job evaluation committee C. Documenting the job evaluation plan D. Determining single versus multiple job evaluation techniques E. Setting up the appeals process
D. Determining single versus multiple job evaluation techniques
What change occurred with the passing of the PPACA? A. Coinsurance for employees is no longer an option. B. Employers can now purchase cheaper insurance plans with lower maximum benefits limits. C. There are now limits to benefits for health insurance plans. D. Employers are no longer able to purchase insurance plans with lower maximum benefits at a lower cost. E. Employers are required to self-fund the insurance plans they provide.
D. Employers are no longer able to purchase insurance plans with lower maximum benefits at a lower cost.
Which of the following is the correct equation that models the prediction of the market pay line? A. Predicted salary equals the X intercept plus the job evaluation points. B. Predicted salary equals the Y intercept plus the slope multiplied by job evaluation points. C. Job evaluation points equal the Y intercept plus the slope multiplied by the predicted salary. D. Predicted salary equals the total budget divided by the total number of employees. E. Predicted salary equals the Y intercept plus the slope multiplied by job evaluation points divided by the number of predicted employees.
B. Predicted salary equals the Y intercept plus the slope multiplied by job evaluation points.
Which of the following measures the purchasing power of a dollar? A. Market pay line B. Real compensation C. Central tendency D. Nominal compensation E. Standard deviation
B. Real compensation
What brought about the earliest social insurance programs? A. Governmental regulation requiring benefits be given to employees and the rapid growth of industrialization B. The rapid growth of industrialization and the Great Depression C. Workers demanding better treatment and the rapid growth of industrialization D. Workers demanding better treatment and businesses wanting an advantage over their competition E. The Great Depression and governmental regulation mandating benefits be given to employees
B. The rapid growth of industrialization and the Great Depression
What is a potential cost associated with extensive discretionary benefits programs? A. They usually lead to higher turnover rates. B. They may also undermine the imperatives of strategic compensation efforts. C. There are no tax advantages associated with discretionary benefits. D. They may make recruiting more difficult. E. They usually lead to higher absenteeism rates.
B. They may also undermine the imperatives of strategic compensation efforts.
Why would a company provide outplacement assistance to an employee? A. To comply with federal regulations during company layoffs B. To promote a positive image of the company C. To satisfy the demands of unions D. To avoid legal complications when terminating employees E. To address safety issues at work because laid off employees are a threat to a company
B. To promote a positive image of the company
Why do businesses use integrated paid time off policies, which group together holidays, vacation, sick leave, and personal leave into a single paid time-off policy? A. To meet increased union demands B. To provide incentives for workers in lieu of pay raises C. To comply with new government legislation D. To expand employee assistance programs E. To reduce the number of unscheduled employee absences
E. To reduce the number of unscheduled employee absences
What is a key difference between a health reimbursement account (HRA) and a flexible spending account (FSA)? A. Employees contribute to HRA accounts, but not to FSA accounts. B. FSAs allow employees to carry over unused amounts, but HRAs do not. C. Employees partially fund their FSAs, but they are required to fully fund HRA accounts. D. For FSAs, employees can make contributions, but in HRAs, they cannot E. HRAs require employees to forfeit the leftover amount within the account at the end of the year, but in an FSA account, the amount can be rolled over.
D. For FSAs, employees can make contributions, but in HRAs, they cannot
Which of the following statements is TRUE of core plus option plans? A. They allow an employee to have one core benefit plus two additional benefits of their choosing added on, making up the whole of their benefits plan. B. They allow employees to pay for their core benefits expenses with pretax dollars. C. They allow employees to choose only one kind of benefit. D. They allow an employee to have one core benefit plus one additional benefit of their choosing added on. E. They extend a preestablished set of benefits, such as medical insurance, as a program core.
E. They extend a preestablished set of benefits, such as medical insurance, as a program core.
What was the motivation behind the Social Security Act? A. Making employers responsible for the well-being of their employees B. Motivating employees to be more productive at work C. Complying with benefits requirements of the U.S. federal government D. Having employers assume the costs of injuries that happen on the job E. Preventing families from becoming financially overwhelmed once unemployed
E. Preventing families from becoming financially overwhelmed once unemployed
What statistical method makes it possible for compensation specialists to set pay rates for a set of jobs that are consistent with the pay rates in the market? A. Hypothesis testing B. Average deviation C. Normal distribution D. Standard deviation E. Regression analysis
E. Regression analysis
What entities are typically exempt from FUTA? A. Not-for-profit companies and for-profit companies that donate funds B. Private businesses with diversity hiring practices C. Any business that employs fewer than 20 employees D. International companies E. State and local governments and not-for-profit companies
E. State and local governments and not-for-profit companies
Which of the following would be the best source for providing information on the interrelationship among jobs when conducting a job analysis? A. New hires B. Compensation specialists C. Job incumbents D. Ex-employees E. Supervisors
E. Supervisors
Which of the following describes midpoint pay value? A. The vertical dimension of pay grades B. High pay rates for certain employees in order to retain valued individuals C. An index of the relative competitiveness of internal pay rates D. The difference between the maximum and minimum pay rates E. The halfway mark on the pay range of minimum and maximum rates
E. The halfway mark on the pay range of minimum and maximum rates
Which is the first step in constructing a pay structure? A. Evaluating the results B. Calculating pay ranges for each pay grade C. Determining a market pay line D. Deciding on the number of pay structures E. Defining pay grades
D. Deciding on the number of pay structures
Most short-term disability plans pay employees ________. A. 60-70 percent of employees' pretax salary on a monthly or weekly basis B. 100 percent of employees' pretax salary with a total limit of $30,000 on an annual basis C. 100 percent of employees' pretax salary on a monthly or weekly basis D. 50 percent of employees' pretax salary on a monthly or weekly basis E. 60-70 percent of employees' pretax salary with a total limit of $50,000 on an annual basis
A. 60-70 percent of employees' pretax salary on a monthly or weekly basis
Which term refers to money received by employees on a recurring basis for performing their jobs? A. Base pay B. Employee benefits C. Subsistence pay D. Minimum pay E. Performance pay
A. Base pay
Which statement about designing and planning benefits programs is TRUE? A. Companies and union representatives, when appropriate, should determine which benefits are most important for employees. B. Employee benefits programs must include at least two of these three functions: protection programs, paid time-off, and services. C. Employee benefits programs first must be approved by employees before being officially offered to them. D. All companies' benefits programs must meet the objective outline in the protection programs, paid time-off, and services functions. E. Employee input is required in the development of a company's benefits program.
A. Companies and union representatives, when appropriate, should determine which benefits are most important for employees.
________ are blueprints that describe the allocation of monetary resources. A. Compensation budgets B. Merit payments C. Bonuses D. Hiring budgets E. Incentive payments
A. Compensation budgets
Compensation professionals must be aware of certain characteristics of compensation surveys. Which statement about compensation surveys is FALSE? A. Compensation surveys represent real-time data. B. Compensation surveys become outdated quickly. C. Compensation survey data requires statistical analysis. D. Compensation surveys contain a wide range of pay rates across companies. E. Compensation surveys are loaded with information.
A. Compensation surveys represent real-time data.
________ refers to the job duties and tasks as well as such pertinent factors as the skill and effort needed to perform a job adequately. A. Job content B. A job specification C. Job analysis D. Job motivation E. A job requirement
A. Job content
With regard to financing programs, what are the three categories from which human resources managers can choose? A. Noncontributory programs, contributory programs, and employee-financed programs B. Cost-containment programs, government financing programs, and core plus options programs C. Employee-first programs, low-cost programs, and employee-financed programs D. Employee-first programs, low-cost programs, and contributory programs E. Noncontributory programs, contributory programs, and core plus options programs
A. Noncontributory programs, contributory programs, and employee-financed programs
What is the primary method used by companies to purchase the use of human capital? A. Paying wages and benefits B. Providing pension programs C. Providing discretionary benefits D. Hiring the best recruiters E. Offering health benefits
A. Paying wages and benefits
What is the sixth and final step in the job evaluation process? A. Setting up the appeals process B. Training employees to conduct job evaluations C. Choosing the job evaluation committee D. Documenting the job evaluation plan E. Communicating with employees
A. Setting up the appeals process
What are the categories of legally required benefits? A. Social Security programs, workers' compensation, unpaid family and medical leave, and health insurance B. Medical insurance, disability insurance, and retirement benefits C. Unemployment insurance, medical insurance, and disability insurance D. Retirement benefits, unemployment insurance, and disability insurance E. Life insurance, disability insurance, and unpaid family and medical leave
A. Social Security programs, workers' compensation, unpaid family and medical leave, and health insurance
How did providing subsistence payments to those who were unemployed or injured help boost the U.S. economy, especially after the Great Depression? A. Subsistence payments gave unemployed individuals consumption ability to keep the economy afloat. B. Subsistence payments gave subsidies to employers to keep the economy strong and growing. C. Subsistence payments helped unemployed workers start establishing their own businesses with the money they received. D. Subsistence payments went into funding programs that would help unemployed individuals find work. E. Subsistence payments helped the unemployed become retrained to find work.
A. Subsistence payments gave unemployed individuals consumption ability to keep the economy afloat.
Which two forces have contributed to a strategic approach towards HR? A. Technological advances and global competition B. Global competition and the declining use of robotics C. An increased use of robotics and a decline in imports D. Technological advances and increases in payroll processing E. A decline in global competition and a decline in technological advances
A. Technological advances and global competition
What is the biggest drawback for a company that follows a tightly defined job description based on an internally consistent pay system? A. The company ends up being less flexible in responding to its competitor's pay practices. B. The company ends up giving employees greater bargaining power in an internally consistent pay system. C. The company usually ends up paying more to its employees than its competitors do. D. It becomes difficult for supervisors to assess employees on narrowly defined job descriptions. E. The company ends up with fewer jobs than it normally would.
A. The company ends up being less flexible in responding to its competitor's pay practices.
Which statement about commissions is TRUE? A. The intrinsic motivation of some sales professionals is undermined by commission-only plans. B. Younger sales professionals typically prefer commission-only plans much more than older sales professionals. C. Commission plans generate cohesiveness among most sales professionals. D. Commissions interfere with the cost-cutting measures of most organizations. E. As incentives, commissions are considered the best tactic for compensating sales professionals.
A. The intrinsic motivation of some sales professionals is undermined by commission-only plans.
What is the best approach to producing valid job descriptions? A. The results obtained from multiple data sources and multiple methods should converge. B. Data from government websites and employee questionnaires should be gathered by job analysts. C. Employees should provide detailed information, as well as document their daily tasks and activities for one year. D. Supervisors should study jobs for a minimum of six months, and conduct extensive job interviews with employees. E. External HR consulting companies should communicate with supervisors and employees for one month.
A. The results obtained from multiple data sources and multiple methods should converge.
The first step in conducting a pointmethod valuation is to select benchmark jobs. A benchmark job can be defined as a job ________. A. found outside the company that is used as a reference point to judge jobs within the company B. found inside the company that is used to determine the pay levels for entry-level employees C. used to determine benchmark pay levels within the company to help supervisors and union leaders negotiate starting salaries D. performed by a new hire within the company who has been with the company six months or less E. used as a reference to write job descriptions and conduct job analysis so that any job's relative worth can be determined internally
A. found outside the company that is used as a reference point to judge jobs within the company
Custom compensation surveys designed by consulting firms for clients may be superior to existing surveys because they ________. A. include questions specifically designed to meet client needs, unlike existing surveys B. use multiple sources to collect data, unlike existing surveys, which use one source C. are not as out of date as existing surveys D. consider the total compensation package of the client, unlike existing surveys E. cost much less than existing surveys
A. include questions specifically designed to meet client needs, unlike existing surveys
The index component of National Compensation Data, the Employer Cost Index (ECI), measures changes in ________. A. labor costs B. pay relative to inflation C. hourly versus salaried wages D. pay raises E. benefits
A. labor costs
Knowledge application and analysis can be described as: A. learning a new concept and applying it in another setting to achieve a higher level of understanding. B. guiding principles that influence the way individuals behave within society. C. corporate sustainability that focuses on the future impact of an organization on society, including social welfare and the environment. D. the ability to use data to translate quantitative information for placement into the employment context. E. the ability to access, assess, interpret, manipulate, summarize, and communicate data.
A. learning a new concept and applying it in another setting to achieve a higher level of understanding.
The data collected on compensation by professional and industry association members tends to be accurate because ________. A. members themselves stand to benefit from the data Your answer is correct. B. it is valuable information, and therefore goes through several cycles of accuracy checks C. members are proficient in statistical techniques D. it takes a very long time to compile the data E. it is extremely expensive to purchase the data
A. members themselves stand to benefit from the data Your answer is correct.
When the pay spread between newly hired or less qualified employees and more qualified job incumbents is small, it is known as ________. A. pay compression B. a pay grade C. a green circle rate D. a red circle rate E. broadbanding
A. pay compression
Merit pay systems use ________ to determine employees' performance. A. performance appraisals B. seniority C. the labor union's input D. the employee's job title E. customer feedback
A. performance appraisals
The three broad areas in which employers provide discretionary benefits are ________. A. protection programs, paid time off, and services B. wellness programs, financial education, and outplacement assistance C. tuition reimbursement, outplacement assistance, and wellness programs D. disability insurance, employee assistance programs, and family assistance programs E. disability insurance, life insurance, and retirement programs
A. protection programs, paid time off, and services
Under the principle of social adequacy, benefits are designed to _____. A. provide subsistence income to all beneficiaries regardless of job performance B. help employees feel better about their total compensation package C. reward those who show superior interpersonal skills in the workplace D. provide motivation for superior performance by employees E. help employees who have no health issues to remain active and fit
A. provide subsistence income to all beneficiaries regardless of job performance
There is a basic principle that companies rely on for building an internally consistent compensation system. This principle states that ________. A. the greater the responsibilities and complexities of a job the greater the pay B. there is very little difference in job characteristics between jobs that fall within a job family C. jobs should be ranked on the basis of seniority D. all employees should be paid equally E. the relative value of each job should be based on the academic qualifications required to perform the job
A. the greater the responsibilities and complexities of a job the greater the pay
The first pension plan was established to specifically benefit ________. A. widows and children of Presbyterian ministers B. any soldier who fought in World War II C. individuals who were employed full-time D. widows and children of military veterans E. former railroad employees
A. widows and children of Presbyterian ministers
What is the reason many companies use a market-based evaluation plan when conducting job evaluation? A. Market-based evaluation plans determine appropriate pay rates relative to the market. B. Market-based evaluations plans are more accurate than job-content evaluations. C. Market-based evaluation plans do not rely on any questionnaires or surveys and therefore are easier to conduct. D. Market-based evaluation plans use companies' internal value system in establishing job worth. E. Market-based evaluation plans are preferred by compensation specialists.
A. Market-based evaluation plans determine appropriate pay rates relative to the market.
Compensation specialists hope to gain information regarding ________ from compensation surveys. A. competitors' base pay and mix of total monetary compensation B. competitors' benefits packages C. labor unions' preferences regarding pay D. employee preferences regarding pay E. competitors' hiring practices
A. competitors' base pay and mix of total monetary compensation
Dysfunctional turnover is best defined as the departure of ________. A. high-quality employees B. poor performing employees C. part-time employees D. senior level managers E. supervisors
A. high-quality employees
In a ________, employees earn a higher rate of commission for all sales made in a given period if the sales level exceeds a predetermined level. A. multiple-tiered commission plan B. salary-only plan C. draw-only plan D. graduated commission plan E. commission-only plan
A. multiple-tiered commission plan
Long-term disability plans usually state that _______. A. there should be no waiting period for an employee before the employee can apply for long-term disability income B. an employee has to wait three to six months before disability payments are made following an illness or injury C. employees are eligible only if they did not have a pre-existing condition at the start of the plan D. an employee should have a waiting period of three months after the expiration of short-term benefits E. an employer should cover the employee even before the sick leave or short-term benefits run out
B. an employee has to wait three to six months before disability payments are made following an illness or injury
The guiding principles that influence the way organizations behave within society are referred to as _____. A. social responsibility B. business ethics C. knowledge application D. strategic plans E. labor-management relations
B. business ethics
Income, higher company stock prices, economic value, strong positive brand identity, and reputation can all be generated by acquiring _________. A. compensable factors B. capital C. competitive advantage D. differentiation strategies E. capital equipment
B. capital
Questionnaires, interviews, observations, and participation are methods for ________. A. training job analysts B. collecting information for job analysis C. conducting job evaluation D. determining pay raises E. conducting job orientation
B. collecting information for job analysis
One of the limitations of an internally consistent compensation system is that it ________. A. creates additional work for supervisors B. creates a bureaucratic job structure C. leads to less-structured job descriptions D. leads to lower employee benefits over time E. creates strife among employees
B. creates a bureaucratic job structure
A relevant labor market can be defined on the basis of all of the following EXCEPT ________. A. product market competitors B. customer type C. occupational classification D. service market competitors E. geography
B. customer type
In recent years, ________ have become part of compensation surveys because they are key elements of market-competitive pay systems. A. pension plans B. employee benefits C. wage rates D. bonuses E. merit increases
B. employee benefits
The Standard Occupational Classification System, trade associations, professional societies, and trade unions are ________. A. external sources that HR professionals can use to develop performance appraisals B. external sources that job analysts can use to find pertinent job information to conduct job analysis C. internal sources from which pertinent information on labor laws can be determined D. external sources from which pertinent information on pay raises can be determined E. excellent sources that companies can use when developing training programs for employees
B. external sources that job analysts can use to find pertinent job information to conduct job analysis
Employee assistance programs (EAPs) are established by companies to help employees ________. A. manage conflicts between workers and supervisors B. handle personal problems that affect job performance C. provide child care and elder care programs for workers D. receive additional job training at no cost E. facilitate flexible scheduling
B. handle personal problems that affect job performance
One of the provisions of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) is that _________. A. employees must take mandatory time off for a period of six months if diagnosed with a life-threatening disease B. it protects the transfer, disclosure, and use of health care information C. employees must disclose their health history to the HR office before an employment offer is made D. employees, upon changing employment, cannot have health care coverage for a dependent from the new employer if the dependent has a life-threatening disease E. employees cannot make claims against Social Security benefits if they continue to receive health care coverage from their employer
B. it protects the transfer, disclosure, and use of health care information
All of the following are effective goals and objectives for sales professionals EXCEPT ________. A. expanding overall sales B. keeping current distribution channels C. acquiring new direct customers D. improving sales productivity E. achieving customer objectives
B. keeping current distribution channels
All of the following activities are part of designing a market-competitive pay system EXCEPT ________. A. determining compensation policies B. matching job descriptions to pay levels C. assessing competitors' pay practices with surveys D. integrating internal job structures with external market pay rates E. conducting strategic analyses
B. matching job descriptions to pay levels
Coinsurance refers to ________. A. when the employer and the employee split equally the medical expenses incurred by the employee B. the percentage of the covered expense that the insured person will pay C. the maximum amount a policy holder must pay out of pocket D. the amount a policy holder must pay before insurance benefits are applicable E. where the employer is responsible for 25 percent of incurred medical expenses of the employee
B. the percentage of the covered expense that the insured person will pay
What are the key aspects of vesting? A. Cliff vesting provides full vesting after 1 year of service for full time employees and gradual vesting for 3 years for part-time employees. B. Employees' contributions to pension plans are always vested and a company is required to give full vesting rights to employer contributions based on a predetermined schedule. C. Employees' contributions to pension plans are always vested, a company is required to give full vesting rights to employer contributions, and it must use a gradual vesting schedule. D. Cliff vesting requires 2 years of service and gradual vesting requires 3 years of service; 100% vesting occurs after 6 years of service. E. Cliff vesting begins after 6 years of service and gradual vesting begins after 3 years of service.
B. Employees' contributions to pension plans are always vested and a company is required to give full vesting rights to employer contributions based on a predetermined schedule.
Which of the following is important for successful pay-for-knowledge programs? A. Making training optional rather than necessary B. Offering competitive pay rates C. Developing and implementing systematic training programs D. Establishing mentorship programs E. Hiring and retaining superior employees
C. Developing and implementing systematic training programs
What is the key advantage associated with nonrecurring merit pay increases? A. Non-recurring merit pay increases are costly for the company but save money in both the short and long term. B. Non-recurring merit pay increases strengthen the pay-for-performance link and contain costs for the company. C. Non-recurring merit pay increases give much smaller amounts in raises than do permanent merit increases. D. Employees prefer non-recurring merit pay increases to permanent merit increases. E. In recent years, non-recurring merit pay increases have been gaining favor with supervisors.
B. Non-recurring merit pay increases strengthen the pay-for-performance link and contain costs for the company.
Which type of plan spreads the risk of selling between the company and its sales professionals? A. Salary-plus-bonus B. Salary-plus-commission C. Commission only D. Salary only E. Multi-tiered commission
B. Salary-plus-commission
Which of the following is NOT a step that compensation professionals use to begin plans for setting the merit pay grid? A. Determine if the projected merit increase totals are within the budgeted amount B. Ask managers for the performance distribution of their employees C. Ask managers for the names of employees receiving merit pay increases D. Calculate the expected number of employees who will fall into each cell E. Gather data on employee positions in the pay range
C. Ask managers for the names of employees receiving merit pay increases
Which term refers to the set of data that clusters around a typical numerical value? A. Quartile B. Variation C. Central tendency D. Standard deviation E. Regression analysis
C. Central tendency
According to the Civil Rights Act of 1991, who is responsible for proving that alleged discriminatory pay practices are not discriminatory? A. Company executives B. Employees C. Compensation professionals D. Labor courts E. Labor unions
C. Compensation professionals
What is the end result of a reliable job analysis method? A. Precise job descriptions B. An equitable pay system C. Consistent results under similar conditions D. Less work for supervisors E. An internally inconsistent compensation system
C. Consistent results under similar conditions
The ________ survey is a monthly survey of the payroll records of businesses establishments that provides national estimates of average weekly hours and average hourly earnings for the private sector for all employees and for production and nonsupervisory employees. A. Consumer Price Index B. National Estimates C. Current Employment Statistics D. National Compensation E. Bureau of Labor Statistics
C. Current Employment Statistics
Which of the following is NOT a step in the job analysis process? A. Selecting and training analysts B. Directing job analyst orientation C. Determining a plan for the pay structure D. Determining data collection methods E. Writing a job description
C. Determining a plan for the pay structure
Up to what percentage can an employer charge COBRA beneficiaries a premium for continuation coverage? A. 50 percent above the cost of the coverage of the plan B. 90 percent above the cost of the coverage of the plan C. 36 percent of the cost of the coverage of the plan D. 102 percent of the cost of the coverage of the plan E. 102 percent of the cost of health expenses incurred by the employee
D. 102 percent of the cost of the coverage of the plan
How long can individuals have insurance coverage under COBRA? A. 1 year B. 3 years C. 28 months D. 18 months E. 3 months
D. 18 months
A cliff vesting schedule requires that an employee be 100 percent vested after ________ years of service. A. 10 years B. 7 years C. 2 years D. 3 years E. 5 years
D. 3 years
With regard to FUTA, the amount that an employer contributes is equal to ________ of the first ________ earned by each employee. A. 6.2 percent; $40,900 B. 2 percent; $40,900 C. 5.2 percent; $5,500 D. 6.2 percent; $7,000 E. 5 percent; $7000
D. 6.2 percent; $7,000
What is one of the most difficult tasks managers face when they guide employees towards person-focused pay? A. Making employees understand the incentive pay structure B. Making employees understand the base pay structure C. Trying to help employees understand the connection between seniority and person-focused pay systems D. Aligning employee pay with the knowledge structure E. Helping employees understand how training relates to the performance appraisal system
D. Aligning employee pay with the knowledge structure
What is one of the reasons for the significant growth of companies who began offering discretionary benefits to employees even though they were not required to do so? A. To comply with government requirements regarding worker benefits B. To compensate for the low wages offered in many industries C. For the improvement of intellectual or social comfort of employees D. Because of the favorable tax treatment of the plans and government-imposed wage increase controls E. To offer employees financial assistance for home purchases and improvements
D. Because of the favorable tax treatment of the plans and government-imposed wage increase controls
How can employers involve employees in the benefits determination process? A. By asking employees to design surveys to gather data about employee benefits preferences B. By asking employees to conduct benchmark studies on benefit plans C. By requiring that all employees understand the kinds of benefits they are allowed to receive D. By conducting employee interviews and focus groups E. By having employees compose their own benefits plans and submitting them for review to an HR manager
D. By conducting employee interviews and focus groups
Which term refers to an incentive compensation based on the percentage of the selling price of a product or service? A. Draw B. Recoverable draw C. Nonrecoverable draw D. Commission E. Salary
D. Commission
Why are commission-only sales plans best suited for companies that are pursuing lowest-cost strategies? A. Companies using commission-only plans can avoid paying commission to salespeople if they do not meet their required quota of sales. B. Companies using commission-only plans are not required to give pay raises to employees on a regular basis. C. Companies using commission-only plans can pay smaller and smaller commissions on incremental sales. D. Companies using commission-only plans have compensation expenditures that vary with sales revenue. E. Generally, in commission-only plans, companies pay draws to salespeople but do not provide any incentive pay.
D. Companies using commission-only plans have compensation expenditures that vary with sales revenue.
Which of the following is a TRUE statement about compensation? A. Compensation offers only monetary rewards. B. Compensation offers only subjective rewards. C. Compensation offers only intrinsic rewards. D. Compensation offers both intrinsic and extrinsic rewards. E. Compensation offers only extrinsic rewards.
D. Compensation offers both intrinsic and extrinsic rewards.
What is one of the requirements of the Davis-Bacon Act? A. It requires private companies to match wages paid by government agencies. B. It requires private contractors who employ more than 15 workers to pay $10 above the minimum wage rate. C. It requires private contractors to give the minimum wage as set by the state. D. It requires private contractors to provide wages that are equal to or above the prevailing wage rates in the area where work is being performed. E. It requires government agencies to match the wage rates to prevailing wages paid by private contractors.
D. It requires private contractors to provide wages that are equal to or above the prevailing wage rates in the area where work is being performed.
Which of the following refers to the actual activities that an employee must perform on the job? A. Job evaluation B. Internally consistent job structure C. Job description D. Job content E. Job analysis
D. Job content
________ is when companies make corrections for differences between their jobs and external benchmark jobs. A. Subjective correction B. Point factor leveling C. Objective correction D. Job leveling E. Occupational classification
D. Job leveling
In which type of selling situation will salary represent a significant pay component? A. Furniture store B. Home electronics sales C. Cosmetic sales D. Pharmaceutical sales E. Auto sales
D. Pharmaceutical sales
Which of the following evaluation methods is most popular because it gives compensation professionals better control over balancing internal and market considerations.? A. Balanced evaluation B. Job-content evaluation C. Compensation evaluation method D. Point method E. Market-based evaluation
D. Point method
Under which of the three broad categories for discretionary benefits does disability insurance fall? A. Services B. Paid time off C. Safety programs D. Protection programs E. Voluntary programs
D. Protection programs
Which is TRUE of using ranking as an alternative job-content evaluation approach? A. Ranking plans use objective data. B. Qualitative methods used to study job content assign numerical values to rank jobs. C. Simple ranking plans use different criteria to rank jobs. D. Ranking plans use neither job analyses nor job descriptions, which makes them harder to defend legally. E. Private-sector organizations use classification plans extensively.
D. Ranking plans use neither job analyses nor job descriptions, which makes them harder to defend legally.
The point method is a job-content valuation technique. What is the first step when using this technique? A. Defining factor degrees B. Choosing compensable factors based on a benchmark C. Determining point values for each factor D. Selecting benchmark jobs E. Determining the weight of each factor
D. Selecting benchmark jobs
Which of the following best describes what a well-designed pay structure promotes? A. A reduction in payroll costs B. Identification of which pay system is the best to use C. A company-wide balanced budget D. The retention of valued employees E. Limiting the number of excess employees
D. The retention of valued employees
What does the term market pay line imply when conducting a regression analysis? A. The lowest wages paid in the market B. The highest wages paid in the market C. The deviation in pay rates D. The typical market pay rates expressed as a mean or median E. Insignificant pay rate increases in the market
D. The typical market pay rates expressed as a mean or median
How are HMOs and fee-for-service plans the same? A. They both have low coinsurance rates. B. They both use primary care physicians as a cost-control measure. C. They both operate on a reimbursement basis. D. They both have out-of-pocket maximum limits. E. They both offer prepaid services.
D. They both have out-of-pocket maximum limits.
Who is ultimately responsible for making compensation policy decisions? A. Employees B. HR specialists C. Supervisors D. Top management E. Labor unions
D. Top management
What programs did the Social Security Act establish? A. Profit-sharing, stock bonus, and employee ownership plans B. Benefits for tuition reimbursement and professional accreditations C. Employee ownership plans, unemployment insurance, and Medicare D. Unemployment insurance and old Old age, Survivor, and disability insurance (OASDI) E. Vacation, sick leave, and personal day benefits
D. Unemployment insurance and old Old age, Survivor, and disability insurance (OASDI)
Which of the following statements about coverage for disability benefits is FALSE? A. Disability is based on the inability to do the original work assigned or any type of new work because of the medical condition of the disabled worker. B. The disability must be expected to last for at least one year or to result in death. C. Becoming disabled at 29 would mean needing credit for four years of employment. D. Younger workers need more quarters of coverage because of their young age and inexperience. E. Young workers need fewer quarters of coverage because they have had fewer years to accumulate them.
D. Younger workers need more quarters of coverage because of their young age and inexperience.
A committee created to design, oversee, and evaluate jobs would include representatives from all of the following groups EXCEPT ________. A. supervisors B. rank-and-file employees C. managers D. customers E. labor unions
D. customers
A job evaluation committee frequently uses the point method as a job valuation technique. When using the point method, an evaluation committee examines the importance of a factor to the overall value of the job, which means the committee is ________. A. defining factor degrees B. verifying factor degrees and point values C. selecting benchmark jobs D. determining the weight of each factor E. determining the point value of each compensable factor
D. determining the weight of each factor
When there is a collective bargaining agreement, compensation professionals ensure that ________. A. labor legislation is not violated B. union workers are treated fairly C. collective bargaining terms are part of the labor contract D. employees receive cost-of-living adjustments and seniority pay increases as negotiated E. pay is equitable across all ranks
D. employees receive cost-of-living adjustments and seniority pay increases as negotiated
The Patient Protection and Affordable Care Act of 2010 requires that ________. A. employers are responsible for the safe retirement of their employees if they have worked a minimum of 10 years B. employers provide health-care coverage to employees, even if the employees work fewer than 15 hours a week C. employers absorb the full cost of catastrophic illnesses of their employees D. employers offer health insurance to their employees, and if individuals do not have insurance from employers, they should get insurance on their own E. individuals contribute at least 20 percent of their paychecks towards health benefits to avoid a financial penalty
D. employers offer health insurance to their employees, and if individuals do not have insurance from employers, they should get insurance on their own
One of the ways companies can use discretionary benefits is to _________. A. pursue lowest-cost strategies to gain market share B. lower employee expectations regarding future pay raises C. limit the amount of overtime pay given to workers D. encourage certain worker behaviors that have strategic value to the firm E. reduce the firm's chances of compensation-related lawsuits
D. encourage certain worker behaviors that have strategic value to the firm
The Pension Benefit Guaranty Corporation (PBGC) was created to _______. A. ensure that employers offer defined benefits to those workers who have been with the company 10 years or more B. help employees obtain permanent retirement income from companies in case of disability C. help the government collect revenue from companies for unemployment protection payments D. insure retirement income for workers covered under a private-sector defined benefit plan E. help employees file legal claims against their employers when employers fail to make retirement payments
D. insure retirement income for workers covered under a private-sector defined benefit plan
Marco is employed as a production worker at TVX Industries. Marco is best described as a ________. A. specialist B. generalist C. staff employee D. line employee E. contingent worker
D. line employee
Companies emphasize some elements relative to others such as merit pay and short-term incentives focused on individual performance in formulating ____________. A. core benefits B. pay match C. stock options D. pay mix E. long-term compensation awards
D. pay mix
Cost-of-living adjustments represent ________. A. changes in retirement benefits B. changes in health care benefits C. increases based on geographical location D. periodic base pay increases E. pay increases based on industry
D. periodic base pay increases
A key piece of information that compensation specialists hope to gain from compensation surveys is about ________. A. the cost-of-living adjustments being given at other companies B. the types of benefits their competitors are offering C. the role supervisors play at other companies regarding pay D. the pay practices of their competitors and employee preferences for different forms of compensation E. the type of on-site facilities employees want
D. the pay practices of their competitors and employee preferences for different forms of compensation
Rita has applied for an entry-level position in a marketing firm. She believes she meets the minimum qualifications for the job and that she has the knowledge, skills, and abilities to perform the job well. In other words, Rita believes she has the necessary ________. A. job content B. worker certification C. work ethic D. worker requirements E. background check
D. worker requirements
Which of the following is a stipulation for fee-for-service plans? A. Fee-for-service plans require employers to pay 100 percent of covered expenses. B. Fee-for-service plans require that insured employees are of a certain age. C. Fee-for-service plans do not have a set deductible for all insurance plans. D. Fee-for-service plans have no preexisting condition clauses. E. Fee-for-service plans require the employer to pay all costs up front for employees.
D. Fee-for-service plans have no preexisting condition clauses.
Juan works as a salesperson for a major farming equipment manufacturer. Usually, there is considerable lead time between when he approaches a prospective client and when the sale is finalized. Juan typically generates demand for the product and another member of the sales team closes the sale. What type of commission would be most appropriate for Juan? A. Commission-plus-draw plan B. Salary-plus-commission plan C. Commission-only plan D. Salary-only plan E. Salary-plus-bonus plan
D. Salary-only plan
Which of the following rewards newly hired employees less than established or tenured employees? A. Pay compression B. Broadbanding C. Salary-only plans D. Two-tier pay structures E. Commission-only plans
D. Two-tier pay structures
When determining who receives coverage, companies usually withhold discretionary benefits to probationary employees, which are typically employees working at a company for a period no longer than ________. A. 2 months B. 6 weeks C. 5 months D. 1 year E. 6 months
E. 6 months
What is the balance that companies must strike when it comes to designing a differentiation pay strategy? A. Providing employees generous benefits while keeping compensation costs to a minimum B. Paying employees lower pay than competitors and keeping employees from joining unions C. Trying to match their overhead costs to their competitors while keeping up with productivity levels D. Paying employees competitively while pursuing a lowest-cost strategy E. Attracting and retaining qualified candidates with sufficient pay and giving them adequate resources with which to work
E. Attracting and retaining qualified candidates with sufficient pay and giving them adequate resources with which to work
Which of the following is TRUE in regard to benefits? A. Benefits costs have been falling for most companies. B. Benefits are becoming a smaller component of total compensation packages. C. Benefits are currently far less important to employees than base pay. D. Compensation surveys do not take into account benefits; they concentrate on base pay. E. Benefits costs have increased, giving rise to greater variability in benefits among companies.
E. Benefits costs have increased, giving rise to greater variability in benefits among companies.
How has the government encouraged employers to provide retirement benefits to employees since as early as the 1900s? A. By imposing a maximum tax rate limit of 10 percent on corporate earnings as long as they provided employee retirement plans B. By giving employers an incentive to disallow a union or collective bargaining as long as they provide employee retirement plans C. By giving employers the assurance that they would not be audited as long as they provided employee retirement plans D. By giving employers a tax break on any benefits paid to employees in lieu of a retirement plan E. By giving employers a tax break on the amount paid out as employees' retirement payments
E. By giving employers a tax break on the amount paid out as employees' retirement payments
If you are self-employed, what does the Self-Employment Contributions Act (SECA) require you to do? A. Contribute equally to your fund and your employees' funds B. Partner with nonprofit companies to reduce tax burdens C. Design and implement health and fitness programs for your workers D. Provide facilities that support the ideal working conditions to minimize chances of employee injuries E. Contribute to Medicare and OASDI at a higher tax rate
E. Contribute to Medicare and OASDI at a higher tax rate
An appropriate pay mix should consider the relative worth of jobs within a structure. Keeping this in mind, most of the bonus compensation in a technology company like Intel would likely be given to which of the following groups? A. Custodial staff B. Sales and marketing staff C. Blue collar workers D. Administrative staff E. Engineers
E. Engineers
Which statement about flexible spending accounts (FSAs) is TRUE? A. FSAs can be funded on an after-tax basis only. B. FSAs are matched dollar for dollar by employers. C. FSAs have no dollar limits per year. D. FSAs allow unused funds to be rolled over to another year. E. FSAs allow certain benefits (like child care) to be paid with pretax dollars.
E. FSAs allow certain benefits (like child care) to be paid with pretax dollars.
Which law established criteria for determining whether employees should be paid hourly or by salary? A. Equal Pay Act of 1963 B. National Labor Standards Act C. Social Security Act D. Davis-Bacon Act of 1931 E. Fair Labor Standards Act
E. Fair Labor Standards Act
A hospital that has been looking to fill the position for a neurosurgeon (a highly skilled and specialized job where demand is high and supply is low). Which of the following would the relevant labor market be based on? A. Occupational classification B. Product market competitors C. Service market competitors D. The local area where the hospital is located E. Geography
E. Geography
What are the three key laws that have influenced discretionary benefits practices? A. Internal Revenue Code, National Labor Relations Act, and ERISA B. ERISA, Internal Revenue Code, and Fair Labor Standards Act C. National Labor Relations Act, Fair Labor Standards Act, and Civil Rights Act of 1964 D. National Labor Relations Act, Fair Labor Standards Act, and Internal Revenue Code E. Internal Revenue Code, ERISA, and Pension Protection Act of 2006
E. Internal Revenue Code, ERISA, and Pension Protection Act of 2006
Who should be involved in job leveling in a company? A. Employees and HR professionals B. Employees and union leaders C. Compensation professionals D. Compensation professionals and HR specialists E. Job incumbents and supervisors
E. Job incumbents and supervisors
Following which type of pay level policy would enable a company to follow a lowest-cost strategy? A. Market match B. Market lead C. Pay mix D. Base wage E. Market lag
E. Market lag
What is a draw? A. A bonus payment B. An increase in base pay C. A type of merit pay D. An employee incentive E. Money to cover basic living expenses
E. Money to cover basic living expenses
________ group jobs based on similar compensable factors for the purpose of pay policy application. A. Pay compressions B. Red circle rates C. Green circle rates D. Compa-ratios E. Pay grades
E. Pay grades
COBRA was designed to ________. A. set limits on the amount of time that health plans and insurance issuers may impose pre-existing health conditions B. protect the transfer of health care information C. prevent employees from continuing their medical coverage through their employer for an extended period of time if coverage must discontinue because of layoffs D. guarantee employees' health insurance coverage under a different employer's health plan should they choose to leave their previous employer's group health plan E. allow employees to continue with their medical coverage through their employer temporarily
E. allow employees to continue with their medical coverage through their employer temporarily
Companies traditionally competed for qualified candidates on the basis of ________. A. sign-up bonuses B. generous relocation allowances C. quality pension plans D. benefits E. base pay
E. base pay
Skill blocks are sets of skills (knowledge) necessary to perform a job. Before grouping skills into blocks, a company needs to ________ and ________. A. develop job descriptions; conduct skills development training B. conduct job analyses; determine pay raise structures C. conduct job analyses; meet with supervisors to determine job skills D. conduct performance appraisals; determine merit and incentive pay levels E. develop job descriptions; organize jobs into job families
E. develop job descriptions; organize jobs into job families
When sales professionals are required to perform a significant amount of nonsales duties, they should be compensated primarily with ________. A. incentive pay B. bonus pay C. draws D. frequent promotions E. fixed pay
E. fixed pay
Equity assessments become more difficult when ________. A. competitors change their pricing practices B. the company uses an externally consistent compensation program C. costs and benefits are fixed D. the number of employees increases E. job definitions become more fluid
E. job definitions become more fluid
Internally consistent compensation systems facilitate the use of lowest cost strategy for companies when ________. A. job descriptions are broadly defined and focus on quality B. jobs are placed on a hierarchy, with most jobs placed on the lower-paid levels C. jobs are valued numerically, with most jobs being assigned lower points D. merit pay is not part of the compensation E. job duties and responsibilities are clearly defined with a focus on efficiency
E. job duties and responsibilities are clearly defined with a focus on efficiency
Generally, the greater the influence of the salesperson on the buying decision, the ________. A. less likely that the salesperson will serve as a consultant to the buyer B. less emphasis on incentive pay in the compensation mix C. greater the likelihood of receiving a straight salary-only plan D. less effort will be exerted by the salesperson E. more emphasis on incentive pay in the compensation mix
E. more emphasis on incentive pay in the compensation mix
Participation requirements are applicable to ________. A. distribution plans B. qualified plans C. non-qualified plans D. retirement plans E. pension plans
E. pension plans
The largest percentage of total compensation costs incurred by companies currently is due to ________. A. a lack of growth in the amount of funds available to support compensation B. paying insurance premiums for legal protection from compensation-related lawsuits C. employees demanding increasingly more compensation from their employers D. employers wanting to provide more benefits to improve employee productivity E. rising health care costs and a lack of growth in the amount of funds available to support compensation programs
E. rising health care costs and a lack of growth in the amount of funds available to support compensation programs
The job-content evaluation technique that rates all jobs from the lowest to the highest on a single criterion is known as a(n) ________. A. alternation ranking B. job-content plan C. classification plan D. paired comparison E. simple ranking plan
E. simple ranking plan
What type of a compensation plan is best suited for a salesperson who dislikes having to attain a specific volume of sales and who prefers concentrating on presale and post-sale activities? A. Salary-plus-bonus plan B. Commission-only plan C. Commission-plus-draw plan D. Salary-plus-commission plan E. Salary-based sales plan
E. Salary-based sales plan