C236 Compensation and Benefits

Human beings have an inherent need for justice in social exchanges. A. True B. False

A

Location is one of the largest pieces of the intangible rewards pie. A. True B. False

A

When you think about a company's health benefits or retirement plan, you are thinking about employee benefits. A. True B. False

A

Having a panel: A. Helps ensure consistency of standard across employees B. increases an employee's perception of the procedural justice of the system C. Both A & B D. None of the above

C

Which of the following is not an example of a job family? A. Biology B. Accounting C. All are considered job families D. Engineering

C

Cost leadership focuses more on: A. Strategy B. Cost C. Leadership D. Price

D

Job analysis needs to be _____________ to achieve buy in. A. Incredible B. Credible C. Understandable D. Respectable

B

State, county, or city governments conduct some form of compensation survey. These sources would have great utility for smaller, local labor markets. This data is very specific and provides data on most benchmark jobs. A. True B. False

B

With the principle of overlap, it is impossible that an employee in pay grade three could be paid more than an employee in pay grade four. A. True B. False

B

Intensive communication can be damaging if there is: A. Poor participation B. Unrealistic expectations C. Both A & B D. None of the above

C

Organizations get work done through: A. Dollars B. Customers C. People D. Product

C

The advantage of the job comparison approach is that it is: A. Intuitive B. Holistic C. Intuitive and holistic D. None of the above

C

Within the cost leadership strategy, a business will have a ____________ cost structure. A. Frugal B. Higher C. Lower D. Expensive

C

Human Resource Strategy is to ______ business strategy and CSFs. A. Separate B. Investigate C. Analyze D. Align

D

The Law of Unintended Consequences can appear in the: A. Reinforcement theory B. Tournament theory C. Justice theory D. Expectancy theory

D

Employee perception of the organization has potential to lead to turnover and performance. A. True B. False

A

Fringe benefits have become quite ____________ to compensation plans. A. Central B. Unimportant C. Conditional D. Proven

A

Having a panel ___________the reliability of the system as having multiple people viewing the performance creates a more accurate picture of the employee's behavior. A. Increases B. Decreases C. Slows D. Speeds

A

If pay rates are set based upon what a job was three years ago and not what it is today, then it will not meet the needs of the employees doing the job today. A. True B. False

A

Of the following, which most aligns with the Person-Organization Fit stye? A. Recruiting for talent as well as match to the organization B. Leading through directions, stories, & actions C. Being willing to learn and adapt new skills D. Being involved in business with a value-driven purpose

A

Pay grades are useful as they allow organizations to simplify reward systems because similar jobs can all be treated in the same way. A. True B. False

A

The quality of these peer and team relationships can have a significant influence on employees experiences at work. A. True B. False

A

A company cannot have a hybrid strategy. A. True B. False

B

A compensable factor is a: A. Statement of what the organization has B. Statement of what the organization values C. Statement of what the organization needs D. Statement of what the organization wants

B

A drawback to designing your own survey is: A. Accuracy B. Time C. Price D. Industry specific

B

Central tendency is: A. A group of numbers to represent one number B. A single number that best represents a group of numbers C. Both A and B D. None of the above

B

In the development stage it is not important to also design a training support system that is customized to the skills or competencies in the system. A. True B. False

B

Individual characteristics should be categorized into two categories: A. Strategic utility, job frequency B. Job analyses, strategic utility C. Job analyses, job frequency D. Strategic utility, employer frequency

B

Intangible rewards include all except: A. Recognition B. Paid time off C. Meaning D. Culture

B

It is not important to have both the internal reward alignment process and the external reward alignment process in place. A. True B. False

B

Reliable measurement means that an employee's level of skill, competency, or experience can be measured ___________ across employees and raters. A. Congruently B. Consistently C. Curatively D. Capably

B

When employees have a ___________ in the design of the compensation system they are more likely to see the system as procedurally fair. A. Idea B. Voice C. Memory D. Thought

B

__________________ are an important part of the modern workplace. A. Benefits B. Social relationships C. Paid time off D. All of the above

B

A sunset clause specifies a program's temporary nature in order to allow the organization to ____________ the program according to the results it produces. A. Shift B. Create C. Adapt D. None of the above

C

Distributive justice is also known as the: A. Equality theory B. Grace theory C. Equity theory D. Quantity theory

C

For compensation levels a ___________________ needs to be established. A. Floor B. Ceiling C. Both A & B D. None of the above

C

In order to understand total rewards, managers need to understand both the ________ and _____________ value of those rewards. A. Ethnocentric, informational B. Economic, ethnocentric C. Economic, informational D. None of the above

C

Red circle rates refer to: A. Employees whose pay is at market range B. Employees whose pay is below market range C. Employees whose pay is above market range D. None of the above

C

Relationships can either add to or reduce the ___________ employees receive from their employment and performance. A. Rewards B. Desire C. Value D. All of the above

C

Self-reported information is important because: A. It provides an additional source of data that can help make your overall reward estimates more reliable B. Data sources often are the exact sources that employees use to define market rates and their own reward expectations C. Both A & B D. None of the above

C

The job value structure represents: A. The structure of jobs internally positioned according to their immediate value B. The structure of jobs internally positioned according to their natural value C. The structure of jobs internally positioned according to their relative value D. None of the above

C

The mean can be heavily influenced by: A. Organizational cultures B. Market trends C. Outliers D. Median

C

The median is the: A. Lowest number B. Average number C. Middle number D. Highest number

C

Transformational Leaders inspire employees in a way that they see: A. Values B. Purpose C. Both A & B D. None of the above

C

Understanding threats can help ask the question: A. What can we do that our competitors can't? B. What can we not do? C. What societal flaws can hurt the organization? D. Where can we improve?

C

What is the total rewards content strategy? A. A negotiation between management and the employee for total rewards offered B. Market-driven levels of rewards offered C. Type, Level, and Combination of rewards offered D. Experienced-based rewards offered

C

When distributive justice is low, procedural justice receives a lot of_________________. A. Managerial attention B. Psychological attention C. Employee attention D. None of the above

C

When employees have quality relationships with their peers, it can create a climate of ________________________ that provides Intangible Rewards to employees. A. Acceptance B. Collectiveness C. Both A & B D. None of the above

C

When jobs were grouped into________________, it was for the purpose of treating them the same for compensation purposes. A. Bands and threads B. Bands and threats C. Grades and bands D. Grades and threads

C

A traditional interview does not consist of: A. Skills B. Time spent on activities on the job C. Content D. Asking about family history

D

Broadbanding allows employees to do all of the following except: A. Manage lateral changes in their career B. Join and exit multiple organizational teams C. Modify their role in the organization D. Be promotable within a given time period

D

A benchmark job is: A. A sample of jobs that is representative of the type, content, and level of jobs in the organization B. A sample of jobs within the organization that are to be addressed for compensation levels C. A sample of jobs provided by government to control wage decreases D. None of the above

A

The goal of job analysis is to understand the work involved in creating value for the organization. A. True B. False

A

Total Rewards are one of those decisions that businesses make that influences their cost structure and their ability to provide those low costs to customers. A. True B. False

A

Using pay grades is useful because it allows the organization to establish different pay strategies for different pay grades. A. True B. False

A

When a reward system explicitly attempts to vary rewards based upon the capabilities of the employee, it is referred to as capability-based Pay. A. True B. False

A

A downside to the comparison approach is it: A. Becomes inefficient as management shinks B. Becomes inefficient as size of company grows C. Becomes inefficient as management grows D. Becomes inefficient as size of company shrinks

B

A graphic rating scale is: A. Where raters rate the extent to which the job involves the un-compensable factor B. Where raters rate the extent to which the job involves the compensable factor C. Both A & B D. None of the above

B

A job incumbent is: A. An employer that is seeking to hire new employees B. An employee that is currently working in a job that you are studying C. An employee agency seeking new part time workers D. None of the above

B

Choose the answer which does not complete the blank: internal reward alignment is how _______ the relative value of all jobs in an organization is. A. Fair B. Enjoyable C. Clear D. Coherent

B

Meaningful work would be considered a discretionary employee benefit. A. True B. False

B

Understanding opportunities can help ask the question: A. What societal flaws can hurt the organization? B. Where can we improve? C. What can our competitors do that we can't? D. What can we do that our competitors can't?

B

Understanding the total rewards system will not allow you to create a meaningful total rewards plan. A. True B. False

B

Understanding weaknesses can help ask the question: A. What can we do that our competitors can't? B. What can we not do? C. Where can we improve? D. What societal flaws can hurt our organization?

B

What is the longest a job description should be? A. 3 pages B. 1 page C. 2 pages D. 4 pages

B

When low distributive justice occurs, which of the following changes will employees not make? A. Changing inputs B. Earning lower rewards C. Leaving the organization D. Seeking higher rewards

B

Which of the following industries best demonstrates the cost leadership strategy? A. Fine dining B. Fast food C. Technology D. Manufacturing

B

Which of the following would not be included as an intangible reward? A. Meaningful work B. Salary C. Positive working relationships D. Location

B

A Reference ID is: A. A series of numbers and letters that is used to reference a company B. A series of numbers and letters that is used to reference an employee C. A series of numbers and letters that is used to reference the job D. A series of numbers and letters that is used to reference a government agency

C

Total rewards includes: A. Benefits, base salary, paid time off B. Benefits C. Base salary and benefits D. Base salary

C

______________________exist within the range of the broad band and are applied to specific job families to provide guidance on appropriate compensation levels. A. Shadow entrances B. Shadow exits C. Shadow ranges D. Shadow pillars

C

KSAO's stand for: A. Kindness, Skills, Ability, and Other B. Kindness, Skills, Agility, and Other C. Knowledge, Skills, Agility, and Other D. Knowledge, Skills, Ability, and Other

D

What is a communication strategy? A. The plan for sharing coworkers' salary data B. The plan for communicating with employees about competitive salaries C. The plan for communicating with other HR professionals to understand market data D. The plan for sharing the compensation strategy with employees and receiving their ongoing feedback

D

Which approach is not a way to establish internal reward alignment? A. Classification approach B. Job comparison approach C. Point factor approach D. All of the above

D

Which of the following is not a readily available way of obtaining reward information: A. Self-report B. Government C. Popular press D. Competitors compensation plan

D

A job family is: A. A grouping of jobs that have similar functions or content B. A grouping of employees that have similar functions C. A grouping of management that have similar functions to other management in other companies D. None of the above

A

Absolute level refers to: A. Base salary B. Experience salary C. Fair salary D. Competitive salary

A

All capability-based pay systems require sources of skill- or competency-related information. A. True B. False

A

All organizations use some form of hierarchy to organize employees. A. True B. False

A

As organizations systematically define their activities in light of their values, there will be a gradual shift towards being involved in businesses with a more value-driven purpose. A. True B. False

A

Base pay includes: A. Salary or hourly wages B. Hourly and benefits C. Benefits and salary D. None of the above

A

Broadbanding allows organizations to: A. Use a few broad bands to organize work for pay purposes B. Use many broad bands to organize work for pay purposes C. Both A and B D. None of the above

A

By using pay form-specific strategies, organizations can create more customized reward systems that are more likely to differentiate them from their competition in the labor market. A. True B. False

A

CSFs take into account both internal strengths of the organization and the external values of customers and markets. A. True B. False

A

Cash compensation can have an influence on the employee's perception of how much they are valued at the firm. A. True B. False

A

Cash compensation is monetary pay from ____________ to __________________. A. Employers, employees B. Employees, employers C. Government, citizens D. None of the above

A

Data aging refers to: A. The adjustment of market reward information to take into account how inflation has likely changed the market rates since the data were collected B. The adjustment of market reward information from 10 years ago C. The adjustment of market reward information to guess the rewards for 3 years from a certain starting point D. None of the above

A

Employees attribute their own behavior to being ______________ or ________________. A. self-chosen; imposed B. self-chosen; automatic C. imposed; exposed D. imposed; unavoidable

A

Every reward system should be reviewed to ensure that there are policies in place to address each driver of procedural justice. A. True B. False

A

Geography has a significant impact on how an organization should define its labor market. A. True B. False

A

Green circle rates refer to: A. Employees whose pay is below market range B. Employees whose pay is above market range C. Employees whose pay is at market range D. None of the above

A

In which approach are jobs compared and "winning" or more "important" jobs get points? A. Job comparison approach B. Point factor approach C. Classification approach D. None of the above

A

In which approach would it appear that jobs are ordered based on rank and file? A. Job comparison approach B. Point factor approach C. Classification approach D. None of the above

A

It is better to have a _____________ approach in job analysis. A. Quantitative B. Qualitative C. Both A & B D. None of the above

A

It is wise to leave a buffer zone around the current pay rates to ensure that the range is adequate. A. True B. False

A

Job descriptions are simple and cannot contain every detail relating to the job. A. True B. False

A

Job descriptions can also reference any _______ involved in doing the job. A. Tools B. Necessities C. Both A & B D. None of the above

A

Job evaluation is a tool to help organizations create internal reward alignment that is both equitable and conducive to effective employee performance. A. True B. False

A

Justice theory has three types of justice. Which is not included? A. Interchangeable B. Distributive C. Interactional D. Procedural

A

Key personnel throughout the organization should be involved in the data's collection, synthesis, and documentation. A. True B. False

A

Managing total rewards is an art and a science. A. True B. False

A

Many forms of employee benefits and intangible rewards are difficult to quantify. A. True B. False

A

Markets are one way to establish the price for any good or service. A. True B. False

A

Once jobs are broadly organized into such a job structure, the next step is to create a mechanism for assigning their relative value in the organization. A. True B. False

A

Organizations would be wise to recognize that employee choices are often driven more by what they perceive reality to be than what reality actually is. A. True B. False

A

Reinforcement and expectancy theory would both recommend that contingencies in pay be made very clear. A. True B. False

A

Rewards strategies that work in the ______ term, while the firm is niche focused, may be forced to change in the _______ term. A. Short, long B. Long, short C. Short, short D. Long, long

A

Team performance: A. Comprises the collective actions of groups of employees B. Comprises senior management level of performance C. Comprises customer feedback regarding employees D. Comprises the star employees' level of performance

A

The bulk of job descriptions do not include which of the following: A. Requirements B. Responsibilities C. Tasks D. Duties

A

The employment relationship is: A. An agreed-upon basis for organizations and people meeting each other's needs B. A disagreed-upon basis for organizations and people meeting each other's needs C. An agreed-upon basis for organizations and government meeting each other's needs D. None of the above

A

The first challenge in creating a capability-based pay plan (or "system") is to define those individual characteristics that create value for the organization. A. True B. False

A

The goal of job evaluation is to create a way to measure the value (and relative value) of each job in the organization. A. True B. False

A

The larger, overlapping ranges make it ______likely that employees can make such moves without having to dramatically raise or lower their pay. A. More B. Less C. Somewhat D. None of the above

A

The primary reasons that organizations use performance-based pay is to provide an incentive for the types of behaviors and outcomes that enable higher performance. A. True B. False

A

The rollout of capability-based pay systems, like all reward system changes, should be accompanied by: A. Intensive communication B. Expensive communication C. No communication D. Expressive communication

A

The total rewards perspective is broad enough to capture leadership styles in the organization, one of the intangible drivers of employee satisfaction and motivation. A. True B. False

A

This theory explains why people purchase lottery tickets: A. Tournament theory B. Expectancy theory C. Reinforcement theory D. Justice theory

A

Through transformational leadership, employees can receive greater ________________from their membership in the organization. A. Intangible rewards B. Internal rewards C. Domestic rewards D. Extrinsic rewards

A

When the core purposes of a business align with the values of an employee, then that employee will perceive value in ________________his or her relationship with the organization. A. Maintaining B. Moving C. Ignoring D. None of the above

A

Within individual-based systems value is assumed to derive from the characteristics of the person within the job, and therefore pay should be driven by the knowledge, skills, experience, or competencies of that individual. A. True B. False

A

Without any grade structure, a job-based pay strategy could involve ___________ of different reward strategies in one organization. A. Hundreds B. Zero C. Thousands D. Tens

A

Dispersion represents: A. The gap between the highest and lowest data point B. The gap between two data points C. The gap between lower and higher level employees D. The gap between industries

B

Distributive justice perceptions are based upon __________ views of the distribution of rewards in the organization. A. Customers' B. Employees' C. Governments' D. Employers'

B

Having a scale that would rank abilities from Unable, Somewhat Able, Able, Very Able, Extremely Able, is an example of: None of the above Level definitions Likert Scale Likert Definitions

B

If an employee can leave your organization and retain the benefits of living in a particular location, this will expand the benefits your organization can accrue from positive externalities. A. True B. False

B

In a dynamic-role based job: A. Compensation plans do not need to facilitate change B. Compensation plans need to facilitate change C. Compensation plans are able to stay static D. Compensation plans need to be evaluated

B

In choosing benchmark jobs, organizations should be careful to ensure adequate representation for all of the following, except: A. Organizational levels B. Government mandates C.Different job families D. Career points

B

In the differentiation strategy, the costs of the organization will be passed on to the: A. Employees B. Customer C. Organization D. Government

B

Job analysis will be _____________ if management and employees do not buy-in to it. A. Useful B. Useless C. Understandable D. None of the above

B

Job-value structure does not answer the question of: A. How important are jobs B. Whom to recruit for jobs C. How jobs are related D. What jobs are

B

Organizations use pay grades and ranges to monitor how well pay rates are conforming to the pay plan. _____________ is frequently used to measure this conformity. A. Compa-stats B. Compa-ratio C. Statistical analysis D. None of the above

B

Pay is not a broad category that refers to the monetary compensation that is provided to an employee in exchange for their work. A. True B. False

B

The ________ states that people are highly motivated to receive extremely valuable rewards, even when the probability of receiving the reward is quite small. A. Reinforcement theory B. Tournament theory C. Intrinsic motivation theory D. Justice (equity) theory

B

The mean is also known as the: A. Metrics B. Average C. Median D. Mode

B

The purpose of grades is to: A. Allow jobs creating a different amount of value for the organization to be treated in the same way. B. Allow jobs creating the same amount of value for the organization to be treated in the same way C. Allow jobs creating the same amount of value for the organization to be treated in a different way D. None of the above

B

There is not a degree of correspondence between pay grade size and range size. A. True B. False

B

This is a benefit to using generic questions in an interview: A. Number of interviewers B. Efficient in time C. Length of interview D. Financial cost

B

Through the use of __________________, an organization is going to create a link between its reward structures and the external markets. A. Exit intervie B. Benchmark jobs C. Interviews D. Surveys

B

To create a strategic total rewards plan, you need to understand all of the following except: A. Market B. Benefits C. Customers D. None of the above

B

Total Reward Systems do not need to be reviewed to ensure that they are not penalizing such OCBs and instead provide a degree of encouragement for those helpful behaviors. A. True B. False

B

________________________ refers to the direct monetary pay given to an employee in exchange for their contributions to the organization. A. Total rewards B. Cash compensation C. Benefits D. Time off

B

A pay-form specific rewards strategy is: A. Varying pay level strategy among the organization B. Varying pay level strategy within job families C. Varying pay level strategy across reward types D. Varying pay level strategy within job functions

C

Employees should always be provided an ___________ for the reward decision. A. Evaporation B. Evacuation C. Explanation D. Evaluation

C

Employees will compare their rewards to those both __________ and ___________ to the organization. A. Aligned, misaligned B. Functioned, malfunctioned C. Internal, external D. None of the above

C

Generally, an organization that follows the differentiation strategy will be able to pay their employees: A. Less B. Higher benefits C. More D. A higher overall total compensation package

C

In a traditional interview, one advantage would be: A. Allowing for exploration B. Asking for clarification C. Both A & B D. None of the above

C

In the United States, the _________conducts a National Compensation Survey to measure broad reward practices and levels. A. Society of Human Resources Management B. Bureau of Animal Rights C. Bureau of Labor Statistics D. American Management Associates

C

In which approach would it appear that jobs are categorized by job descriptions? A. Job comparison approach B. Point factor approach C. Classification approach D. None of the above

C

Job analysis is gathered by ____________. A, Computer graphics B. Guessing C. People D. Data

C

Job descriptions often contain information about the _________ that are important for accomplishing the job. A. Understanding B. Monetary values C. Relationships D. Strengths

C

Job evaluation provides the basis for developing a network or configuration of ________ that make up a rewards structure. A. Pay decreases B. Pay increases C. Pay rates D. Pay differences

C

Of the following, which most aligns with Transformational Leadership? A. Recruiting for talent as well as match to the organization B. Being willing to learn and adapt new skills C. Leading through directions, stories, & actions D. Being involved in business with a value-driven purpose

C

One advantage of using subscription information from a third party is: A. Relative B. Price C. Industry specific D. Accuracy

C

Organizational performance includes all but: A. Profits B. Meeting customer needs C. Employee satisfaction D. New market share

C

Overlapping grades allow for ___________ career management as employees are promoted up through their own function or take a lateral position in a different function. A. Difficult B. Robust C. Easier D. Similar

C

The most fundamental question of internal reward alignment relates to the number of ____________ in an organization. A. Distinct benefit plans B. Distinct business goals C. Distinct reward structures D. Distinct business strategy

C

The point factor approach does all except: A. Measures the extent to which each job has that element B. Defines valuable elements of jobs C. Developes revolutionary ideas for job analysis D. Specifies the importance of each element of a job

C

The primary outcome of SWOT analysis is to list out: A. Critical Summation Factors B. Critical Sample Factors C. Critical Success Factors D. Critical Series Factors

C

This is a disadvantage to using generic questions in an interview: A. Amount of people in an interview B. Efficient in time C. Financial cost D. Length of interview

C

Which of the following is not a Purpose Principle? A. Person-Organization Fit B. Transformational Leadership C. Transformational Management D. Strategy Shift

C

Which of the following is not a primary concern when integrating data from multiple rewards surveys? A. Matching benchmark jobs B. Pay forms C. Understanding government mandates D. Aging the data

C

Within the cost leadership strategy, the customers will be charged ________________. A. More B. Less C. Nothing D. All of the above

C

A reward survey is: A. A survey published by the AMA to employers to understand rewards offered B. A survey designed to understand employees' desire for rewards C. A survey published by the government to employers to understand rewards offered D. Aggregations of reward information gathered from other market organizations

D

An employees' satisfaction with work is heavily influenced by ____________________. A. Management B. Colleagues C. Amount of work D. Immediate supervisor

D

Eligibility refers to: A. Certifying on each skill or competency B. Understanding for participation in the system C. The ability to participate in the health insurance program D. Being able to participate in the system and to certify on each skill or competency

D

Generally speaking, the eligibility should be ____________ to ensure that the number of employees certifying is in line with current and future needs for that capability. A. Changed B. Enforced C. Altered D. Restricted

D

In a niche-focused strategy, an organization will have to compete with the following strategies: A. Cost leadership B. Differentiation strategy C. Hybrid D. None of the above

D

Interactional justice perceptions grow out of whether or not managers and other personnel show _________________________ to employees in their pay-related interactions. A. Kindness and respect B. Professionalism and love C. Admiration and respect D. Professionalism and respect

D

It is important that multiple people had input into the process. This can be done through all except: A. Market prices established B. Competencies rated C. Performance assessed D. Government mandates

D

Of the following, which most aligns with the Strategy Shift? A. Leading through directions, stories, & actions B. Being willing to learn and adapt new skills C. Recruiting for talent as well as match to the organization D. Being involved in business with a value-driven purpose

D

Reward form combination strategy refers to: A. Rewards (cash, benefits, etc.) and how they compete in the market B. Rewards (cash, benefits, etc.) and how they compete with departments within the organization C. Rewards (cash, benefits, etc.) and how they differ from each other D. Rewards (cash, benefits, etc.) and how they relate to each other

D

Reward forms include: A. Salary B. Retirement C. Intangibles D. All of the above

D

SWOT stands for: A. Supply, Weakness, Opportunities, Threats B. Supply, Weakness, Opportunities, Transfer C. Strengths, Weaknesses, Opportunities, Transfer D. Strengths, Weaknesses, Opportunities, Threats

D

Strategic measurement means that that the definition of criteria are all conceptually and empirically connected to the: A. Employee B. Unit C. Organizational outcomes D. All of the above

D

The purpose of a pilot program is to better understand: A. The design parameters B. How the program is received C. The impact of the program D. All of the above

D

The relative level involves which of the following: A. Leading the market B. Lagging the market C. Matching the market D. Any of the above

D

The value in having policies that slow the process of topping out include all except: A. Organization can control costs B. Better understand the system implementation C. Allow for growth potential D. Employee development

D

Which of the following job families would not be affected by total rewards? A. Engineers B. Finance C. Marketing D. All job families are affected by total rewards

D

_________________ can have an important impact on employees and the meaning they perceive in work. A. Managers B. Government C. Senior management D. Leaders

D