Ch. 5 - Practice Questions
In most cases, ________ employees work at companies that use person-focused pay systems.
150 - 2,000
Studies have shown that the majority of firms that use person-focused pay programs are in the manufacturing industry. Typically, these firms employ between ________. A. 200 and 300 people and have been around for 20 years B. 5,000 and 6,000 people and have been around for 5 years C. 100 and 200 people and have been around for 3 years D. 150 and 2,000 people and have been around for 10 years E. 3,000 and 6,000 people and have been around for 50 years or more
150 and 2,000 people and have been around for 10 years
Which statement about the stair-step model is FALSE? A. In a stair-step model, the steps represent jobs from a particular job family. B. A company can only have one stair-step model. C. Jobs on higher steps call for more skills than jobs on lower steps. D. Jobs that necessitate more skills are more complex than jobs that require fewer skills. E. The stair-step model resembles a series of achievements.
A company can only have one stair-step model.
In the job-point accrual method, why do companies limit the number of jobs that an employee is allowed to learn? A. Learning many jobs makes the employee an expert in all areas, which makes it harder to be placed in a specific job. B. The employer has to pay higher wages if an employee learns most of the jobs. C. There is a chance that an employee will be hired by a competitor. D. The employer wants to maintain the job structure and classification at all cost. E. An employee becomes a "jack of all jobs and master of none."
An employee becomes a "jack of all jobs and master of none."
How does the job-point accrual method create organizational flexibility and promote company goals? A. By assigning variable points to those skills that are important for the company B. By emphasizing those skills that are important to both labor and management C. By assigning more points to those skills that are important to the company D. By not linking points based on skills to compensable factors E. By giving greater weight to those skills that are in common demand in the industry
By assigning more points to those skills that are important to the company
Why do employees who participate in person-focused pay systems exhibit greater productivity? A. Employees know for which compensable factors they are being paid. B. Employees can rely on a number of other employees, since staffing levels are high. C. Employees are focused on goal attainment. D. Employees are focused on getting a good performance appraisal in the current cycle. E. Employees know entire production processes, which can be valuable.
Employees know entire production processes, which can be valuable.
What implication does person-focused pay have for employees? A. Employees should view compensation as inequitable. B. Employees should view pay raises as their right. C. Employees should stop considering pay an entitlement. D. Employees should consider job-relevant knowledge and skills as optional. E. Employees should allow managers to direct their skills development.
Employees should stop considering pay an entitlement.
Why are employers able to have leaner staffing in a person-focused pay system? A. Employers using person-focused pay systems develop multiskilled employees, which means a leaner staff. B. Employers using person-focused pay systems do not need staff to cover in emergencies and therefore can get away with leaner staffs in this system. C. Employers using person-focused pay systems offer less training and therefore need less staff to cover for each other in this system. D. Employers have trained workers on goal achievements and therefore need fewer people. E. Employers have staff who are concerned with getting good performance appraisals and therefore employers need fewer workers.
Employers using person-focused pay systems develop multiskilled employees, which means a leaner staff.
In a person-focused pay system, which of the following would most likely NOT be rewarded? A. Exhibiting successful job performance B. Gaining job-related knowledge C. Acquiring work-related competencies D. Acquiring job-related experience E. Developing new job skills
Exhibiting successful job performance
What is the most likely goal of firms that increase their use of robotics? A. Improving worker productivity B. Replacing as many workers as possible C. Employing workers to maintain the robots D. Reducing the number of necessary employee skills E. Making workers as similar to machines as possible
Improving worker productivity
Why has the term competency become increasingly important in the world of HR? A. It is a current buzzword in the world of HR. B. It is due to new work-related legislation from the government. C. It is because of the changing nature of jobs. D. It is needed for rapid pay increases. E. It is being demanded by top executives.
It is because of the changing nature of jobs.
Which is a true statement regarding person-focused pay programs? A. Person-focused pay programs generally work like seniority pay programs. B. Person-focused pay programs at most places replace merit pay programs. C. Person-focused pay programs apply in a more limited context than do job-focused pay programs. D. Person-focused pay programs do not encourage acquisition of new skills. E. Person-focused pay programs are applied organization-wide.
Person-focused pay programs apply in a more limited context than do job-focused pay programs.
Of the following phrases, which would apply best to person-focused pay? A. Market basis for evaluating the job an employee performs B. Employees' performance based on how long the employee has remained with the company C. Pay raises based on current performance of an employee D. Potential job performance of an employee to make positive job contributions E. Job performance of an employee as determined by a job description
Potential job performance of an employee to make positive job contributions
Sheila's employer offers a person-focused pay program, which has led Sheila to acquire multiple skills and be flexible in the types of jobs she can handle. Presently, Sheila's company is facing slow sales. What can Sheila more than likely expect? A. Sheila should expect her employer to offer outplacement services. B. Sheila should expect to receive a pay raise because of her seniority. C. Sheila should expect a permanent pay cut. D. Sheila should expect to be laid off due to the declining valuation of her job. E. Sheila should expect to keep her job because of her flexibility.
Sheila should expect to keep her job because of her flexibility.
Of the following organizations, which one would be most likely to utilize a person-focused pay program? A. TV manufacturer B. Landscaping company C. Collection agency D. Architectural design firm
TV manufacturer
What is the key advantage to an employee who works for an employer that awards job-based pay as opposed to person-focused pay? A. The employee is rewarded for job performance. B. The employee acquires new knowledge and skills. C. The employee is rewarded for taking additional classes. D. The employee is rewarded on the proficiency of past work. E. The employee can look forward to automatic pay raises.
The employee is rewarded for job performance.
Which statement regarding person-focused pay systems is FALSE? A. Person-focused pay systems offer reward for the potential of future job performance. B. Person-focused pay systems are found in companies that employ between 150 and 2,000 employees. C. There is ample published evidence regarding the effectiveness of person-focused pay systems. D. Person-focused pay systems offer rewards for knowledge, skills, and abilities. E. Person-focused pay systems are mainly found in the manufacturing industry.
There is ample published evidence regarding the effectiveness of person-focused pay systems.
As jobs become more automated, what are many employers doing as far as workers are concerned? A. They are combining jobs and giving broader responsibilities to workers. B. They are hiring more workers. C. They are absorbing additional costs for employee education. D. They are offering more employee benefits. E. They are giving more frequent pay raises.
They are combining jobs and giving broader responsibilities to workers.
One of the reasons why employees prefer person-focused pay systems is because such systems provide job security. How does this occur? A. The person-focused system creates workers who can perform a variety of jobs. B. The person-focused system lets workers know that as long as they stay with the firm, they will be given pay raises. C. The person-focused system lets the workers know the compensable factors of a job. D. The person-focused system makes the employee focus more on achieving the stated goals of a job. E. The person-focused pay system emphasizes the market basis for valuing jobs.
The person-focused system creates workers who can perform a variety of jobs.
Generally, Western European cultures are considered much better than the American culture in providing the workforce with ________.
applied vocational education
A(n) ________ refers to an individual's capability to orchestrate and apply combinations of knowledge and skills consistently over time to perform work successfully in required work situations.
competency
Limited case studies on pay systems suggest that ________. A. employers dislike person-focused pay systems B. employees and employers enjoy the benefits of person-focused pay systems C. employers and employees both prefer job-focused pay systems more than person-focused pay systems D. employees are unhappy with person-focused pay systems E. employers prefer person-focused pay systems, and employees prefer job-focused pay systems
employees and employers enjoy the benefits of person-focused pay systems
According to the U.S. Department of Labor Competency Model, academic competencies are considered ________ competencies.
foundational
________ pay is based on the attainment of goals that have been communicated in advance.
incentive
Technological innovation has been an important force behind person-focused pay. Employers today, as a result, not only expect technical skills, but also ________ from work teams.
interpersonal skills
The chief advantage to an employer who uses a job-based pay system is that ________. A. an employer does not have to reward a person on a goal achieved rather than the value of an employee's skill level B. it emphasizes skills and knowledge acquisition for employees, which makes it beneficial for the employer C. it is an easy pay system to administer D. an employer can arbitrarily determine the value of a skill rather than using the market as a basis for skill valuation E. an employer can have work scheduling flexibility
it is an easy pay system to administer
The stair-step model is a type of person-focused pay. What do the steps represent in the stair-step model?
job levels
A majority of the firms using person-focused pay systems operate in which type of industry?
manufacturing
Greater use of technology means that workers ________. A. need to be autonomous and work in a team-based environment B. need to be dependent on others C. must be ready to work in isolation D. no longer require superior time management skills E. now have little to no use for communication skills
need to be autonomous and work in a team-based environment
A manufacturing company emphasizes that vertical skills be used in a high-functioning team-based approach. Workers are expected to learn how to perform functional tasks and managerial tasks. Which type of pay system would be most effective?
person focused pay
The type of pay plan that rewards employees for acquiring job-related competencies, knowledge, or skills rather than demonstrating successful job performance is known as ________.
person focused pay
One of the key advantages of person-focused pay for employers is that employers can ________. A. almost guarantee the work performance of employees B. be assured of little to no absenteeism C. rely on leaner staffing D. reduce the workforce during slow cycles E. reduce employee training costs
rely on leaner staffing
Which of the following refers to pay received mostly by those who do physical work?
skill based pay
In a skill blocks model of a person-focused pay program, ________. A. a person will have to go through each step sequentially to achieve better rewards B. skills do not necessarily build on each other C. skills build on each other D. a person does not depend on curricula, as with the stair-step model, to acquire new skills E. acquiring knowledge is emphasized
skills do not necessarily build on each other
Which type of courses would a company offer in-house as opposed to asking employees to take at an educational institution? A. Financial courses B. Mathematical courses C. Language courses D. Specialized courses E. Management courses
specialized courses
Person-focused pay systems ________. A. use seniority as a basis for job promotion B. use market basis for skill valuation C. apply in a general context throughout the organization D. would be appropriate for those jobs that require basic skills E. use compensable factors of a job to determine base pay
use market basis for skill valuation