HRM Chapter 9

Which of the following is a disadvantage of the classification system for job evaluation? A. It assumes that a constant and inflexible relationship exists between job factors and their value to an organization. B. It provides rigid standards for compensation and cannot accommodate changes in the value of various individual jobs in an organization. C. It is difficult to communicate to employees. D. It is difficult to construct.

A. It assumes that a constant and inflexible relationship exists between job factors and their value to an organization.

Which of the following statements is true of the classification system as a job evaluation method? A. It can easily accommodate changes in the value of various individual jobs in an organization. B. It is difficult to communicate to employees. C. It assumes that a flexible relationship exists between job factors and their value to an organization. D. It is difficult to construct.

A. It can easily accommodate changes in the value of various individual jobs in an organization.

Which of the following statements is true of internal equity? A. Problems with internal equity can result in conflict, feelings of mistrust, and low morale. B. Overpaying individuals for the value of their contributions can effectively solve internal equity issues. C. Much of the information concerning internal equity comes from a pay survey. D. It occurs when lower-level employees in a firm receive the same incentives as the top executives.

A. Problems with internal equity can result in conflict, feelings of mistrust, and low morale.

Tessy, a senior accountant at a private bank in Massachusetts, retired at the age of 62. Upon retirement, she received a benefit amount from the bank. This benefit amount equaled the total sum of money she had added to her pension plan each year plus the amount that the bank added to it every year. In this scenario, the sum of money that Tessy received post retirement comes from the _____. A. defined contribution plan B. Social Security program C. Workers' Compensation Insurance Program D. cafeteria-style benefits plan

A. defined contribution plan

The Social Security system is aimed at providing a minimum sustenance amount to individuals who are between jobs. A.false B. true

A.false

Which of the following statements is true of a maturity curve? A. It is used to identify benchmarks or key jobs in an organization. B. It is used when the annual increase in pay varies based on the actual number of years of service a person has accumulated. C. It is used when collecting information on compensation paid to employees by other employers in a particular geographic area, industry, or occupational group. D. It is used to express the relationship between pay and job responsibilities.

B. It is used when the annual increase in pay varies based on the actual number of years of service a person has accumulated.

A leading placement consultancy firm gathers and presents information about the average compensation for attorneys to its clients. This information includes data on the compensation paid by other law firms in a specific geographic region. The firm uses this information to inform its clients about the companies that have the most external equity. In the given scenario, the placement consultancy firm has most likely used _____ to gather information about compensation rates at different firms. A. job evaluation B. a pay survey C. the point system D. a maturity curve

B. a pay survey

Unlike pay for knowledge plans, skill-based pay plans: A. have the potential to clash with more traditional incentive systems. B. are more likely to be associated with hourly workers. C. reward employees for learning new material. D. reduce the flexibility of scheduling for management.

B. are more likely to be associated with hourly workers.

In the context of nonmandated benefits, a _____ is an extra benefit that may or may not have any direct financial value but is considered an important reward by employees. A. remuneration B. perquisite C. wage D. bursary

B. perquisite

A(n) _____ is established to give senior managers of a company the option to buy the company shares in the future at a predetermined, fixed price. A. life-cycle benefit B. stock-option plan C. social security system D. employee assistance plan

B. stock-option plan

Which of the following statements is true of the Fair Labor Standards Act? A. It allows an employee to carry a portion of his or her benefits to another job. B. It provides protection for the funding underlying pension plans. C. It includes provisions for the minimum wage and overtime. D. It makes vesting rights operational after 6 years of service at the most.

C. It includes provisions for the minimum wage and overtime.

In the context of cafeteria-style benefits plans, _____ refers to the fact that the employee most likely to select a benefit is also most likely to use the benefit, which tends to drive up benefit costs. A. blowback B. the cobra effect C. adverse selection D. the Peltzman effect

C. adverse selection

The third step in the factor-comparison method for job evaluation is: A. developing a job-comparison chart to display the benchmark jobs in an organization. B. identifying benchmark or key jobs in an organization. C. ranking the benchmark jobs in an organization on each compensable job factor. D. selecting and defining the comparison factors to be used.

C. ranking the benchmark jobs in an organization on each compensable job factor.

_____ is mostly concerned with establishing internal pay equity. A. Pay inversion B. A maturity curve C. A pay survey D. Job evaluation

D. Job evaluation

Which of the following is the first step in the factor-comparison method for job evaluation in an organization? A. Benchmark or key jobs in the organization are identified. B. A job-comparison chart is developed to display benchmark jobs. C. All jobs in the organization are grouped into grades. D. The job factors to be used are selected and defined.

D. The job factors to be used are selected and defined.