Compensation and benefits test 1
The FLSA requires that overtime be paid on all hours worked in excess of ________ hours within a period of 7 consecutive days.
40
This law makes it illegal to discriminate against people with physical and mental disabilities both within and outside employment settings, including public transportation, public accommodations, and employment. A) Americans with Disabilities Act of 1990 B) Executive Order 11246 C) The Civil Rights Act of 1991 D) The Older Workers Benefit Protection Act
A) Americans with Disabilities Act of 1990
Which of the following is a reason many European and Japanese employees are better skilled and able to work more productively than American workers? A) Both European and Japanese economies provide a higher quality of academic preparation and workplace learning for the non-college portions of their work forces. B) Partnerships between public educators and employers are much stronger in the United States. C) Learning is accorded a higher standing in the operations of the U.S. economy than the European and Japanese economies. D) Americans do not have equal access to educational opportunities.
A) Both European and Japanese economies provide a higher quality of academic preparation and workplace learning for the non-college portions of their work forces.
This law made it illegal to pay women less for performing equal work as men. A) Equal Pay Act of 1963 B) Civil Rights Act of 1964 C) Davis — Bacon Act of 1931 D) Fair Labor Standards Act of 1938
A) Equal Pay Act of 1963
XYZ Manufacturing Co. uses a gain sharing plan that gives incentives to employees to finish products rather than to incentivize dollar savings. Therefore, this company measures productivity as the ratio of standard labor hours and actual labor hours. What kind of gain sharing program does XYZ Manufacturing Co. use? A) Improshare B) Rucher C) Scanlon D) SVOP
A) Improshare
Which gain sharing plan focuses on lowering the percentage of labor costs using a value-added formula? A) Rucker Plan B) Scanlon Plan C) behavior encouragement plan D) Improshare
A) Rucker Plan
This was enacted in order to allow employees who are terminated, laid off, or have a change in their employment status to temporarily remain on the employer-sponsored medical insurance plan. A) The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) B) The Older Workers Benefit Protection Act (OWBPA) C) The Americans with Disabilities Act of 1990 (ADA) D) The Civil Rights Act of 1991
A) The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)
The "equal benefit or equal cost principle" is part of which Act? A) The Older Workers Benefits Protection Act (OWBPA) B) The Americans with Disabilities Act (ADA) C) The Employee Retirement Income Security Act of 1974 (ERISA) D) The Fair Labor Standards Act of 1938 (FLSA)
A) The Older Workers Benefits Protection Act (OWBPA)
This act strengthened the Equal Pay Act of 1963 by now requiring employers to show that pay disparities are job related rather than sex-based. This act also prohibits employers from retaliating against employees who share their salary information. A) The Paycheck Fairness Act B) The Civil Rights Act of 1964 C) The Age Discrimination in Employment Act of 1967 D) The Davis Act
A) The Paycheck Fairness Act
This provision mandates that federal government agencies take affirmative action in providing jobs for individuals with disabilities. A) The Rehabilitation Act B) ADA C) Executive Order 11478 D) The Government Employee Rights Act of 1991
A) The Rehabilitation Act
Which of the following is true of most general stock compensation plans? A) The company stock shares represent equity segments of equal value. B) Employees own the stock upon purchase. C) Company stock represents partial equity in the company. D) Stock options refer to what an employee can do with the stock once they purchase it.
A) The company stock shares represent equity segments of equal value.
Among the various performance appraisal techniques, this appraisal system is the most defensible in court because it is based on actual observable job performance behaviors. A) behaviorally-anchored rating scales B) 360 degree performance appraisals C) paired comparison D) forced distribution
A) behaviorally-anchored rating scales
XYZ Company ranks its employees from the best performer to the poorest performer and the employee with the best performance receives the highest ranking. What type of performance appraisal method is used by this company? A) comparison system B) trait system C) behavioral system D) goal-oriented system
A) comparison system
Pay-for-knowledge and skill-based pay are two types of person-focused pay programs that fall under this pay category. A) competency-based B) innovation-based C) service based D) stair-step
A) competency-based
A company using this competitive strategy seeks to offer a product or service that is completely unique from other competitors in their market segment. A) differentiation strategy B) defender strategy C) prospector strategy D) lowest-cost strategy
A) differentiation strategy
Intentionally treating women less favorably than men solely based upon their gender would be what form of discrimination? A) disparate treatment B) disparate impact C) disparate causality D) situational discrimination
A) disparate treatment
This group incentive system was designed to provide employees with financial incentives for increasing customer satisfaction, increasing productivity, lowering costs, or improving safety. A) gain sharing B) team based C) small group D) profit sharing
A) gain sharing
Management by objective is part of which type of performance appraisal system? A) goal-oriented system B) trait system C) behavioral observation scale D) behaviorally-anchored rating scale
A) goal-oriented system
When a filing clerk is trained to maintain employee attendance records, it is an example of acquiring which type of skills? A) horizontal B) vertical C) depth D) breadth
A) horizontal
What do compensation managers use to recognize differences in the relative net worth of jobs and to establish pay differentials based upon management priorities? A) job evaluation B) internal consistency C) job analysis D) strategic analysis
A) job evaluation
This term is defined as added pay for employees who have reached the maximum of a pay grade and who are unlikely to move into higher grades. A) longevity pay B) merit pay C) seniority-based pay D) incentive pay
A) longevity pay
These build upon pay grades, and include maximum, minimum, and mid-point pay rates for jobs in particular pay grades. A) pay ranges B) pay slopes C) piece rates D) pay determinates
A) pay ranges
Which of these is a company sponsored program that provides income to workers throughout their retirement? A) pension plans B) severance plans C) loyalty plans D) longevity plans
A) pension plans
This type of pay system rewards employees for successfully acquiring new job-related knowledge. A) person-focused pay B) competency-based pay C) merit pay D) incentive pay
A) person-focused pay
Teams that have members learn scheduling, coordinating, training, and leading others are emphasized in what type of work team? A) self-regulating work groups B) supervisory work teams C) management teams D) non-supervised work teams
A) self-regulating work groups
Which of the following is based on the human capital theory? A) seniority pay system B) BOS C) merit pay system D) BARS
A) seniority pay system
Which of the following is NOT a protected characteristic by Title VII of the Civil Rights Act of 1964? A) sexual orientation B) race C) national origin D) gender
A) sexual orientation
This is another name for parallel teams. A) task forces B) innovation teams C) process teams D) work teams
A) task forces
A company that designs, manufactures, and sells only Halloween costumes would probably benefit most from this type of pay program. A) the cross-departmental model B) the skill blocks model C) the job-point accrual model D) the stair-step model
A) the cross-departmental model
Jamie earned a raise in pay when he finished the training for the Technician 2 position. He will receive another raise when he finishes the training for the Technician 3 position. The company is probably using which type of pay program? A) the stair-step model B) the skill blocks model C) the job-point accrual model D) the cross-departmental model
A) the stair-step model
If an employee is rated as outstanding on her leadership ability she was probably rated using which appraisal system? A) trait system B) goal-oriented system C) comparison system D) behavioral system
A) trait system
On which teams is membership relatively permanent, with the members working full-time on the team? A) work (process) B) project C) parallel D) innovative
A) work (process)
Which of the following is NOT one of the three broad categories that discretionary benefits fall into? A) worker's compensation laws B) paid time off C) protection programs D) services
A) worker's compensation laws
The General Schedule (GS) classifies federal government jobs into ________ classifications based on such factors as skill, education, and experience levels.
Answer: 15
The ________ in Employment Act of 1967 was passed by Congress in order to protect workers 40 years of age and older from unlawful discrimination.
Answer: Age Discrimination
Among the various performance appraisal techniques, ________ is the only one based on actual observable job behaviors.
Answer: BARS behaviorally anchored rating scales
The ________ Amendment allows female employees to charge employers with Title VII violations regarding pay only when the employer has violated the Equal Pay Act of 1963.
Answer: Bennett
________ systems evaluate a given employee's performance against the performance of other employees.
Answer: Comparison
________ profit sharing plans place cash awards in trust accounts for employees, and are set aside on employees' behalf as a source of retirement income.
Answer: Deferred
_______ of skills is the level of expertise or specialization an employee brings to a job.
Answer: Depth
The ________ of 1963 makes it illegal to pay one sex more than the other for equal work performed.
Answer: Equal Pay Act
The ________ of 1993 sought to provide employees with job protection in case of a family or medical emergency.
Answer: Family and Medical Leave Act
________ is the degree which an employee receives clear and direct information about job performance from his or her employer.
Answer: Feedback
During the ________, which took place in the 1930s, a great number of businesses failed and unemployment soared, forcing the government to intervene.
Answer: Great Depression
________ skills refer to similar skills or knowledge.
Answer: Horizontal
________ compensation refers to the mental state of employees as a result of their performance on the job.
Answer: Intrinsic
________ pay compensates employees for jobs they currently perform.
Answer: Job-based
________ pay increase refers to the minimum pay increase that employees will as making a worthwhile change in compensation.
Answer: Just-meaningful
________ by ________ is used mainly for managerial and professional employees, and typically evaluates employees' progress toward strategic planning objectives.
Answer: Management, objectives
_______ pay programs have been used most widely in service and manufacturing industries.
Answer: Person-focused
The ________ of 1978 was put in place to prohibit disparate impact discrimination from occurring against pregnant women in all employment practices, as well as to ensure that pregnancy was treated the same as any other form of disability.
Answer: Pregnancy Discrimination Act
________ teams consist of a group of people assigned to complete a one-time project.
Answer: Project
________ pay systems reward employees with base pay raises according to their length of service on the job.
Answer: Seniority
________ decisions are made in order to support the fulfillment of strategic decisions
Answer: Tactical
________ skills are those skills typically considered supervisory.
Answer: Vertical
________ refers to an employee acquiring non forfeitable rights to an employer's contribution to fund benefits.
Answer: Vesting
The ________ generation was born between roughly 1946 and 1964, and represents a big swell in the American population as the workforce gets progressively older.
Answer: baby boom
When supervisors rate all employees close to average, they commit errors of ________.
Answer: central tendency
Core ________ are often derived from the overall strategic statements of companies, and are very general knowledge and skills.
Answer: competencies
P&G uses ________ strategy based on brand image and price premium in between its Iams and Eukanuba brands.
Answer: differentiation
An appraisal system that requires all employees be placed in groups that span the spectrum from well above average to well below average performance is called a ________ performance appraisal.
Answer: forced distribution
The concept that employee's knowledge and skills can be used to generate superior productivity is known as ________ theory.
Answer: human capital
The ________ effect refers to a worker's willingness to work diligently to produce more quality output rather than simply attending work without putting in the effort.
Answer: incentive
Job analysis is vital to companies that wish to establish ________ comparison systems.
Answer: internally consistent
A ________ encourages employees to develop skills and learn to perform jobs from different job families.
Answer: job-point accrual
The Improshare bonus is based on a ________ ratio formula.
Answer: labor hour
Congress creates and passes laws within the ________ branch of the American government.
Answer: legislative
Stock ________ describe an employee's right to purchase company stock.
Answer: options
With the ________ comparative appraisal technique, supervisors compare each employee to every other employee, selecting the best performer in each dyadic instance.
Answer: paired comparison
Companies that are implementing ________ plans generally increase the amount of classroom and on-the-job training, as these types of plans make training necessary rather than optional.
Answer: pay-for-knowledge
Individual incentive plans help to promote the relationship between pay and ________.
Answer: performance
The sales value of production (SVOP) is the sum of sales ________ plus the value of goods in inventory.
Answer: revenue
In a "pay at ________" profit sharing compensation package, base bay is set below the average for competing employers, and employees' pay can be very meager or very large compared to a similar position elsewhere.
Answer: risk
Due to recent economic downturn, XYZ Co. decided to shut down one of its appliance manufacturing plants in the United States and therefore around 300 workers need to be laid off. XYZ Co. will award these laid off workers with 6 months of ________ pay.
Answer: severence
Both unions and contractors who employ carpenters use ________ pay plans.
Answer: skill-based
Human resource professionals are ________ employees, because they exist to provide support services for line employees.
Answer: staff
Competitive ________ is the use of company resources (such as capital, technology, and human resources) to promote and sustain competitive advantage.
Answer: strategy
Employment ________ occurs when an employee's agreement to perform work is ended, be it voluntarily or involuntarily.
Answer: termination
Strategic management involves distinguishing between ________ and ________ in attempting to achieve company goals, thus making strategic management an inexact process.
Answer: threats, opportunities
Person-focused pay programs depend in large part on well-designed ________ programs.
Answer: training
The main disadvantage of group incentive compensation is employee ________.
Answer: turnover
Another name for incentive pay is ________ pay.
Answer: variable
5) What is the typical annual Cost-of-living adjustments (COLAs) in recent years? A) 0 to 1 percent B) 2 to 3 percent C) 3 to 5 percent D) 8 to 10 percent
B) 2 to 3 percent
In 2011, employees were expected to earn average merit increases of what percent? A) 1.3% B) 2.9% C) 5.2% D) 8.3%
B) 2.9%
Jennifer works as a clerk in a company. The essential function of her job is producing memoranda using word processing software. If she develops crippling arthritis, which act requires her employer to make reasonable accommodations such as providing a voice-recognition input device? A) Family and Medical Leave Act of 1993 B) Americans with Disability Act of 1990 C) Davis-Bacon Act of 1931 D) Occupational Safety and Health Act of 1970
B) Americans with Disability Act of 1990
Title VII and ADEA do not protect federal government employees. Which one of the following executive orders and/or laws gives similar protection to federal government employees? A) Family and Medical Leave Act of 1993 B) Executive Order 11478 C) Executive Order 11935 D) The Rehabilitation Act
B) Executive Order 11478
Which amendment to the U.S. Constitution made it illegal to restrict the freedom of religion, speech, and press, as well as protect the right of people to peacefully assemble? A) Article 1, Section 8 B) First Amendment C) Fifth Amendment D) Fourteenth Amendment, Section 1
B) First Amendment
The collective bargaining system was established by passage of which federal Act? A) National Labor Regulations Act B) National Labor Relations Act C) Union Labor Regulations Act D) Union Labor Relations Act
B) National Labor Relations Act
Which of the following is true of incentive pay? A) Incentive pay is considered part of an employee's fringe compensation. B) The criteria for judging an award tends to be objective, such as quantity produced. C) Award levels are subjective. D) The amount of the award paid for attainment of goals is not communicated in advance.
B) The criteria for judging an award tends to be objective, such as quantity produced.
Sandra's position changed from supervisor at the planning department to supervisor at the new projects department. In terms of career development, which of the following is more applicable to Sandra's situation? A) maintaining focus with less responsibilities B) a lateral move across the company's hierarchy C) moving upward through a company's hierarchy D) maintaining the focus and assume greater responsibilities
B) a lateral move across the company's hierarchy
Which performance appraisal system displays illustrations only of positive behaviors shown by an employee in various job dimensions? A) behaviorally-anchored rating scales (BARS) B) behavioral observation scales (BOS) C) management by objectives (MBO) D) critical incident technique (CIT)
B) behavioral observation scales (BOS)
These describe the terms of employment that are set between management and union bargaining representatives. A) employee relationship agreements B) collective bargaining agreements C) joint employment agreements D) workplace requisite agreements
B) collective bargaining agreements
This type of bargaining occurs when unions shift from bargaining for large pay increases to simply bargaining for greater job security. A) guarded B) concessionary C) heightened D) compensationary
B) concessionary
This performance appraisal system is based on employees and supervisors identifying on-the-job behaviors and behavioral outcomes that distinguish successful from unsuccessful performances. A) behaviorally anchored rating scales B) critical incident technique C) behavioral observation scales D) forced distribution system
B) critical incident technique
These profit sharing plans award cash to employees on a quarterly or annual basis as part of their regular compensation. A) recent profit sharing plans B) current profit sharing plans C) deferred profit sharing plans D) anticipated profit sharing plans
B) current profit sharing plans
XYZ Company pays a portion of company profits to its employees. The management offers this incentive plan as one kind of retirement program. What kind of companywide incentive plan does XYZ Co. offer? A) employee stock ownership plan B) deferred profit sharing plan C) current profit sharing plan D) employee stock option plan
B) deferred profit sharing plan
This term refers to the level of specialization or expertise an employee possesses in a particular job. A) vertical skills B) depth of skills C) breadth of skills D) horizontal skills
B) depth of skills
A policy that applies to all company employees, but unintentionally hurts a protected group disproportionately would be what form of discrimination? A) disparate treatment B) disparate impact C) disparate causality D) situational discrimination
B) disparate impact
A manager expects high levels of performance from a newly hired employee, Ashley, as she graduated from a prestigious Ivy League university. A year later, the manager rates Ashley's job performance higher than her actual performance due to his initial belief. What kind of rater error was made by the manager? A) negative halo effect B) first-impression-effect C) positive halo effect D) contrast errors
B) first-impression-effect
There are 15 animal keepers working for the XYZ Company. Their supervisor is required to rate the performance of these workers based on the following criteria: 30% of the animal keepers will be rated as below-average, 40% of the animal keepers will be rated as average, and 30% of the animal keepers will be rated as above average. What type of performance appraisal is used? A) paired comparison B) forced distribution C) critical incident technique D) behavioral observation scale
B) forced distribution
Gunther Rohn was rewarded for making a suggestion that saved Ewe and Eye Electronics thousands of dollars. Which type of incentive compensation approach might have worked best? A) group incentive programs B) gain sharing plan C) management incentive plans D) employee stock ownership plan
B) gain sharing plan
Customer satisfaction, labor cost savings, materials cost savings, and reduction in accidents were listed as typical performance measures for which type of incentive plan? A) individual B) group C) company-wide D) executive
B) group
These ordered sets of jobs make it easy for compensation managers to give a clear relative value for all jobs within a company. A) externally consistent compensation systems B) internally consistent compensation systems C) market-wide consistent compensation systems D) comparably consistent compensation systems
B) internally consistent compensation systems
This term reflects an approach to job design that results in the development of more intrinsically motivating and interesting work. A) job security B) job enrichment C) job variety D) job identity
B) job enrichment
Which pay model promotes learning and skills development for a wide variety of jobs from different job families? A) cross-departmental B) job-point accrual C) stair-step D) skill blocks
B) job-point accrual
This group is directly involved in producing goods and delivering services for a company. A) staff employees B) line employees C) managers D) executives
B) line employees
Which performance appraisal tool is most often used with managers and professional employees? A) trait systems B) management by objectives C) comparison systems D) behavioral systems
B) management by objectives
These compensation systems go a long way in attracting and retaining the most qualified employees, and are based upon market surveys and compensation surveys. A) internally consistent compensation systems B) market-competitive pay systems C) job evaluation compensation systems D) externally consistent compensation systems
B) market-competitive pay systems
Protection programs are what type of compensation benefits? A) external B) non-monetary C) internal D) monetary
B) non-monetary
Construction contractors, working on government contracts valued at more than $2,000, must pay their laborers and mechanics what type of local area based wage according to the Davis-Bacon Act of 1931? A) minimum wage B) prevailing wage C) prevalent wage D) discretionary wage
B) prevailing wage
With which profit sharing formula does the profit sharing pool become funded only after profits exceed a predetermined level but fall below some established maximum level? A) fixed first-dollar-of-profits B) profitability threshold C) graduated first-dollar-of-profit D) equal payments
B) profitability threshold
This term refers to a difference between the output of a human judgment process and that of an objective, accurate assessment. This difference could be due to bias, prejudice, or other subjective, extraneous influences. A) content validity B) rating error C) the performance appraisal process D) a first-impression effect
B) rating error
This type of individual incentive plan rewards employees who recruit new customers or new employees. A) behavior encouragement B) referral C) management incentive D) piecework
B) referral
In this person-focused pay model, employees are rewarded for increasing their skills within a single job family, even if the skills do NOT build on each other. A) stair-step B) skill blocks C) job-point accrual D) cross-departmental
B) skill blocks
In the garment factory of XYZ Co., line workers are trained to be able to work at different manufacturing steps such as grading, cutting, sewing and assembling, pressing, etc. XYZ Co.'s strategy of training its workers to do different tasks is an example of which following term? A) task identity B) skill variety C) autonomy D) feedback
B) skill variety
1) What is the primary factor that will prevent companies from growing in the next decade? A) increased government regulations B) the inability to attract and retain employees C) caps on executive pay in some organizations D) increased global competition
B) the inability to attract and retain employees
Which person-focused model links pay levels to increased knowledge and skills within the same general job category? A) the cross-departmental model B) the skill blocks model C) the job-point accrual model D) the stair-step model
B) the skill blocks model
What is it called when the compensation practices in non-unionized companies mirror those found in unionized settings? A) progressive compensation B) the spillover effect C) concessionary bargaining D) inter-industry compensation differentials
B) the spillover effect
Which one of the following would be correct regarding person-focused pay programs? A) the skill blocks model only emphasizes horizontal skills B) the stair-step model addresses depth, while the skill blocks model emphasizes both horizontal and vertical skills C) employees do not progress to more complex jobs in the stair-step model D) stair-step models do not apply to jobs within the same family
B) the stair-step model addresses depth, while the skill blocks model emphasizes both horizontal and vertical skills
What strategy describes the use of benefit and compensation packages in order to support both HR and competitive strategies? A) worker welfare strategies B) total compensation strategies C) total quality management strategies D) worker satisfaction strategies
B) total compensation strategies
Employees would need to learn these types of skills in order to develop self-managed work teams. A) horizontal B) vertical C) depth D) breadth
B) vertical
These are positive employer gestures that beyond what was required by law, created in part to thwart potential union activity. A) employee benefit plans B) welfare practices C) scientific management practices D) compensable factors
B) welfare practices
Based upon the FLSA child labor provisions, what is the minimum age that a child must be in order to be legally employed? A) 10 B) 12 C) 14 D) 19
C) 14
The Americans with Disabilities Act of 1990 (ADA) applies to companies that employ at least how many workers? A) 50 B) 25 C) 15 D) 100
C) 15
XYZ Movers, a professional relocation company, has 3-person teams for their moving services. The company asks customers to complete a satisfaction survey regarding their recent move. For an employee's performance appraisal, customer satisfaction surveys are also considered in addition to his/her supervisor and team member ratings. Which of the following best describes this situation? A) paired comparisons B) positive halo effect C) 360-degree performance appraisals D) first-impression effect
C) 360-degree performance appraisals
An employee has a regular hourly rate equal to $10? S/he works 45 hours within a period of 7 consecutive days. How much should her/his employer pay this employee for 45 hours in total? A) 425 B) 450 C) 475 D) 500
C) 475
Which of the following is true concerning incentive pay? A) The award is earned only when the predetermined work objective is totally completed. B) Motivates employees to be more productive, but does little to control payroll costs. C) Awards are granted in one-time payouts. D) Incentive levels are generally subjective in nature.
C) Awards are granted in one-time payouts.
This incentive plan has a buy-back provision. A) ESOPs B) Rucker C) Improshare D) Scanlon
C) Improshare
Which of the following is a characteristic of job-based pay? A) It compensates employees for the number of jobs in which they possess the skills to perform. B) It rewards employees on their promise to make positive contributions to the work place. C) It compensates employees for the jobs they are currently performing. D) A reward is based on the successful acquisition of work-related skills or knowledge.
C) It compensates employees for the jobs they are currently performing.
Which gain sharing plan bases incentives on the ratio between labor costs and sales value of production (SVOP)? A) Rucker Plan B) referral plan C) Scanlon Plan D) Improshare
C) Scanlon Plan
As a result of this law enacted by Congress, employers must now show that employment practices that create disparate impact are a business necessity. This law also made it legal for U.S. citizens working abroad for U.S. companies to file suit. A) Americans with Disabilities Act of 1990 B) Executive Order 11246 C) The Civil Rights Act of 1991 D) The Older Workers Benefit Protection Act
C) The Civil Rights Act of 1991
This law was established in order to regulate the implementation of various employee benefits and pension programs. A) The Older Workers Benefit Protection Act (OWBPA) B) The Americans with Disabilities Act of 1990 (ADA) C) The Employee Retirement Income Security Act of 1974 (ERISA) D) The Fair Labor Standards Act of 1938
C) The Employee Retirement Income Security Act of 1974 (ERISA)
What U.S. federal law established a national minimum wage for employees involved in commerce (rather than just those employed by companies working for the U.S. government), as well as prohibit most employment of minors in oppressive child labor? A) The Equal Pay Act of 1963 B) The Civil Rights Act of 1964 C) The Fair Labor Standards Act of 1938 D) The Family and Medical Leave Act of 1993
C) The Fair Labor Standards Act of 1938
Which of the following is true about the level of risk involved with incentive pay? A) The level of risk decreases as incentive pay represents a greater proportion of total core compensation. B) The level of risk is lower for higher-level employees than those who are lower in the job structure. C) The level of risk depends on the extent to which employees control the attainment of a desired goal. D) The level of risk is dependent on subjective performance appraisals.
C) The level of risk depends on the extent to which employees control the attainment of a desired goal.
Which of the following example is NOT considered as a compensable work activity? A) a fireman who plays checkers while waiting for an alarm B) an employee attends an employer-mandated training C) an employee travels from home before the regular workday and returns to his/her home at the end of the workday D) an employee takes a 15-minute rest during work time
C) an employee travels from home before the regular workday and returns to his/her home at the end of the workday
According to the job characteristics theory, this core characteristic refers to the amount of freedom, independence, and discretion the employee enjoys in determining how to do the job. A) skill variety B) feedback C) autonomy D) task identity
C) autonomy
In the XYZ Corp. passenger car manufacturing plant, assembly line station team leaders are allowed to stop the assembly line by pulling a cord available at each station whenever they notice a serious quality problem in the assembly process. This is an example of which of the following terms? A) task identity B) skill variety C) autonomy D) feedback
C) autonomy
Who determines the particular objectives in a management by objectives (MBO) appraisal system? A) the employees B) the supervisors C) both the employees and supervisors D) the board of directors
C) both the employees and supervisors
Profit sharing plans and employee stock option plans are incentives on what level? A) individual B) group C) companywide D) executive
C) companywide
This is a way in which companies often trim their payroll responsibilities by encouraging higher paid workers with more seniority to voluntarily leave the company earlier than previously planned. A) resignation plans B) severance plans C) early retirement programs D) employee expenditure plans
C) early retirement programs
This method reinforces cooperation among team members except when team members perceive differences in other members' performances. A) differential incentive payments approach B) differential payments by ratio of base pay C) equal incentives payment approach D) small group incentive plans
C) equal incentives payment approach
This type of appraisal error takes place when managers rate employee's performance more highly than they should compared with objective criteria. A) errors of strictness B) errors of central tendency C) errors of leniency D) contrast errors
C) errors of leniency
Which one of these issues is NOT addressed by the Fair Labor Standards Act of 1938? A) minimum wage B) overtime pay C) executive compensation D) child labor provisions
C) executive compensation
This formula for calculating profit sharing awards gives the employees a higher percentage of the profits as the profits increase. A) fluctuating first-dollar-of-profits B) differed first-dollar-of-profits C) graduated first-dollar-of-profits D) fixed first-dollar-of-profits
C) graduated first-dollar-of-profits
Which of these actions would HR seek to encourage in attempting to create a lowest-cost competitive strategy? A) an employee long-term focus B) unpredictable employee behavior C) high concern for the quantity of output D) high concern for the quality of output
C) high concern for the quantity of output
The halo effect and similar-to-me effects are considered examples of which type of rating error? A) trait system errors B) contrast errors C) illegal discrimination errors D) bias errors
C) illegal discrimination errors
What type of pay system rewards employees for partially or completely attaining a predetermined work objective? A) seniority pay B) merit pay C) incentive pay D) skill-based pay
C) incentive pay
What is a systematic process for gathering, documenting, and analyzing information in order to describe jobs? A) job evaluation B) internal consistency C) job analysis D) strategic analysis
C) job analysis
Skill variety, task identity, autonomy, and feedback are the elements that make up this theory. A) job demands B) position requisite C) job characteristics D) position components
C) job characteristics
This term refers to the minimum pay increase that employees view as a significant change in their compensation amount. A) halo effect increase B) minimal pay incident C) just-meaningful pay increase D) satisfactory compensation payment
C) just-meaningful pay increase
Which type of individual incentive plan requires the achievement of multiple, complex objectives without compromising the quality and quantity of output that is generated by employees? A) piecework plans B) referral plans C) management incentive plans D) behavior encouragement plans
C) management incentive plans
Which pay system is most widely used in America today? A) skill based pay B) longevity pay C) merit pay D) seniority pay
C) merit pay
Which evaluation system requires that supervisors compare each employee to every other employee, identifying the better performer in each pair? A) forced distribution B) hierarchical C) paired comparison D) the critical incident technique
C) paired comparison
This type of pay program rewards employees for successfully learning specific criteria. A) skill-based B) person-based C) pay-for-knowledge D) incentive
C) pay-for-knowledge
In addition to the guaranteed hourly pay rate, John receives incentives for every item produced over the designated production standard. What kind of incentive plan is used in this situation? A) management incentive plans B) referral plans C) piecework plans D) behavioral encouragement plans
C) piecework plans
This occurs when a rater generalizes good performance behavior in one aspect of the job to all aspects of the job. A) similar-to-me effect B) first-impression effect C) positive halo effect D) negative halo effect
C) positive halo effect
Which of the following performance measures corresponds to individual/ group/ companywide incentive plans respectively? A) customer satisfaction/quantity of work/market share B) quantity of work/market share/customer satisfaction C) quality of work output/customer satisfaction/market share D) customer satisfaction/market share/quality of work
C) quality of work output/customer satisfaction/market share
A manager in a company gives higher performance appraisal rating to employees whose children attend the same elementary school as his/her children than employees without any children. What kind of rater error was made by the manager? A) negative halo effect B) first-impression effect C) similar-to-me effect D) contrast errors
C) similar-to-me effect
This type of pay system is used by unions and contractors to reward their carpenters for increasing their carpentry abilities. A) knowledge-based B) incentive C) skill-based D) merit-based
C) skill-based
The concept that a hard working employee is likely to stay at an incentive pay position is better known as this. A) representative effect B) structural effect C) sorting effect D) output effect
C) sorting effect
With these errors, supervisors tend to rate employees' performances lower than they would be if compared against objective criteria. A) critical errors B) leniency errors C) strictness errors D) contrast errors
C) strictness errors
Which of the following are the two main reasons given for adopting pay-for-knowledge programs? A) smaller labor markets and strategic outlines B) market monopolies and lower labor costs C) technological innovations and increased global competition D) market monopolies and company turnover
C) technological innovations and increased global competition
12) This term suggests that a loss is likely for the firm, and that the individual will be left with little control. A) reverse opportunity B) negative equity C) threat D) foreclosure
C) threat
PPACA and its amendment Health Care and Education Reconciliation Act of 2010 are considered to be the basis for health care reform in the United States. Which of the following is NOT considered to be one of the goals of this health care reform? A) to reduce the number of uninsured U.S. residents B) to help more children get health coverage C) to increase the fund for the Medicare program D) to give patients access to recommended preventive services without cost
C) to increase the fund for the Medicare program
This is considered "at the heart" of person-focused pay programs. A) innovation B) management C) training D) data
C) training
An employee has a regular hourly rate equal to $12. According to FLSA, how much should her/his employer pay this employee for each additional hour worked beyond the regular 40 hours within a period of 7 consecutive days? A) $12 B) $14 C) $16 D) $18
D) $18
The general rule of thumb is that short-term company goals last less than how long? A) 1 month B) 6 months C) 1 year D) 5 years
D) 5 years
This amendment to the U.S. Constitution gives Congress the power to regulate commerce with foreign nations, individual states, and Indian Tribes. A) The First Amendment B) The Fourteenth Amendment, Section 1 C) The Fifth Amendment D) Article I, Section 8
D) Article I, Section 8
Melissa has been working in XYZ Company for the last 8 years. She got a very attractive job offer from another company in the same industry and decided to leave her current company. She is one hundred percent vested. Which of the following acts guarantees that she cannot lose the pension benefits after she leaves her job in XYZ Company? A) HIPAA B) ADA C) COBRA D) ERISA
D) ERISA
What are the revised guidelines introduced in 2004 for determining whether jobs are exempt from FLSA overtime pay provisions called? A) Glass Ceiling Act B) Overtime Nonexempt Rules C) Bennett Amendment D) Fair Pay Rules
D) Fair Pay Rules
Which company discussed in the chapter tests its employees twice per year, and has abnormally high training costs in assessing the skill levels of its employees? A) McDonald's B) Wal-Mart C) Tiffany's D) Federal Express
D) Federal Express
Which branch of the federal government is responsible for interpreting laws? A) Service branch B) Legislative branch C) Executive branch D) Judicial branch
D) Judicial branch
3) Which of the following would be an example of a non-monetary reward? A) medical insurance B) vacations C) day care assistance D) all of the above
D) all of the above
Which of the following are stakeholders within a company? A) line managers B) executives C) unions D) all of the above
D) all of the above
Which of the following factors explain inter-industry wage differentials? A) the industry's product market B) the degree of capital intensity C) a large labor market D) all of the above
D) all of the above
Which of the following is a main reason for the increased costs associated with person-focused pay programs? A) higher payroll costs B) increased overhead costs C) higher training costs D) all of the above
D) all of the above
Which of these was given as a reason why union influence has diminished? A) foreign automobile manufacturers producing higher quality vehicles B) union companies demonstrating lower profits than non-union companies C) technological advances D) all of the above
D) all of the above
To have better safety records, XYZ Company gives monetary incentive awards to its workers for lower accident rates due to improper use of heavy equipment. A) management incentive plans B) referral plans C) piecework plans D) behavioral encouragement plans
D) behavioral encouragement plans
Which two factors should compensation professionals consider before endorsing the use of merit pay systems? A) supervisor's rating bias & stock price B) job design & supervisor's rating bias C) job analysis & stock price D) commitment from top management & job design
D) commitment from top management & job design
A company's ability to sustain market share and profitability for several years running is referred to by what term? A) differentiation B) personnel administration C) compensation practices D) competitive advantage
D) competitive advantage
This type of behavioral performance appraisal system requires the review of past performance behaviors and outcomes in order to identify them as either successful or unsuccessful. A) management by objectives (MBO) B) behavioral observation scales (BOS) C) behaviorally anchored rating scales (BARS) D) critical incident technique (CIT)
D) critical incident technique (CIT)
The level of specialization or expertise an employee brings to a job are what type of skills? A) work-team B) horizontal C) breadth D) depth
D) depth
Which performance appraisal error reflects the tendency to rate every employee at the low end of the rating scale, regardless of actual performance? A) error of central tendency B) contrast errors C) negative halo error D) errors of strictness
D) errors of strictness
This formula for determining the amount available for profit sharing uses a specific percentage of annual profits contingent upon the successful attainment of a specified profit goal. A) fluctuating first-dollar-of-profits B) differed first-dollar-of-profits C) graduated first-dollar-of-profits D) fixed first-dollar-of-profits
D) fixed first-dollar-of-profits
Jack works at an auto dealer as a sales professional. At the beginning of every year, he and his supervisor determine objectives for Jack together, which are tied to corporate objectives. One of the objectives is related to the customer satisfaction. Jack always remains in contact with customers to whom he sold cars even after six months following the sale. His performance appraisal partially depends on the customer satisfaction survey results. What kind of performance appraisal method does this auto dealer use for Jack? A) trait systems B) comparison systems C) behavioral systems D) goal-oriented systems
D) goal-oriented systems
Which of the following is true regarding group incentive plans as opposed to individual incentive plans? A) there are more groups in a company than individuals to measure B) individual group members usually work more efficiently alone than in cohesive groups C) it is easier to develop performance measures for individual incentive plans than group incentive plans D) it is easier to develop performance measures for group incentive plans than individual incentive plans
D) it is easier to develop performance measures for group incentive plans than individual incentive plans
Ryanair uses one type of aircraft in its fleet and requires their passengers to carry their luggage to the plane. Ryanair's decisions exemplify which of the following competitive strategies? A) differentiation strategy B) high quality strategy C) brand notoriety D) lowest-cost strategy
D) lowest-cost strategy
This type of performance rater's error occurs when the rater generalizes bad behavior on one aspect of the employee's job performance to the employee's over-all performance. A) negative impression errors B) negative leniency error C) error of strictness D) negative halo effect
D) negative halo effect
John is a design engineer working at an auto manufacturer research and development department. In addition to his normal duties, he is assigned to a team of other engineers developing a highly automated assembly line for the new model of a passenger car. What type of team is John assigned to? A) incentive teams B) project teams C) work (process) teams D) parallel teams
D) parallel teams
What represents the pay rate differences for jobs and employee contributions of unequal worth to a company? A) merit pay B) incentive pay C) retention pay D) pay structures
D) pay structures
Jason works at a call center for an insurance company and he has been answering calls regarding auto insurance. Recently, he started to attend a training program about home insurance. Upon successful completion of this training program, Jason will be able to handle home insurance questions and queries as well. If this insurance company has a compensation policy that rewards Jason's completion of this training, then what type of pay system does it employ? A) incentive pay B) merit pay C) seniority pay D) pay-for-knowledge
D) pay-for-knowledge
Which pay plan generally rewards employees for acquiring job-related competencies, knowledge, or skills rather than for demonstrating successful job performance? A) knowledge-based B) incentive C) merit D) person-focused
D) person-focused
This allows business professionals to determine where they currently stand in the market based on both the external market context and internal factors. A) market analysis B) comparative analysis C) 360 degree analysis D) strategic analysis
D) strategic analysis
In a TV set manufacturing facility of XYZ Inc., although there are different assembly lines in which workers focus on certain aspects of production, senior line workers are capable of producing the TV sets from start to finish. Senior workers' capability of doing the entire operation from start to finish is an example of which following term? A) vertical skills B) feedback C) autonomy D) task identity
D) task identity
This model is geared to promoting staffing flexibility in a company, by training employees in one department with some of the critical skills that are needed to perform effectively in another department. A) the skill blocks B) the stair-step C) the job-point accrual D) the cross-departmental
D) the cross-departmental
What is the main objective of Scanlon plans? A) to standardize the workforce B) to encourage unionization C) to increase workforce competitiveness D) to increase employee involvement
D) to increase employee involvement
Samuel is a recently hired HR professional working at XYZ Motor Co. His current project involves recording the time it takes assembly workers to complete their tasks. With the help of industrial engineers in the manufacturing plant, the aim of this project is to identify the most effective ways of assembly operations. Which of the following is NOT related to Samuel's project? A) scientific management practices B) time-and-motion studies C) job analysis D) welfare practices
D) welfare practices
These programs granted income to workers who were unable to work due to injuries sustained while on the job. A) sick leave B) FMLA C) workforce restitution D) workers' compensation
D) workers' compensation
Which company emphasizes globalization, product services, and six sigma quality improvements for corporate growth? This company also offers a renowned two-year global program for high potential HR professionals that includes the opportunity for cross-functional experience. A) Lincoln Electric B) General Electric C) Nabisco D) Wal-Mart
Which company emphasizes globalization, product services, and six sigma quality improvements for corporate growth? This company also offers a renowned two-year global program for high potential HR professionals that includes the opportunity for cross-functional experience. A) Lincoln Electric B) General Electric C) Nabisco D) Wal-Mart
Which of the following is an advantage of seniority pay systems? A) they reward exemplary performance B) they encourage employees to continue to increase their skillsets C) they help to promote product quality D) they reward employees on an objective basis
they reward employees on an objective basis
