mgmt 494 chapter 1
Which of the following three elements support the compensation building blocks? A. Job structures, pay structures, and structures that recognize employee contributions B. Pay structures, internally consistent communication structures, and structures that recognize employee contributions C. Job structures, market-cost structures, and structures that recognize employee contribution D. Pay structures, job structures, and structures that recognize incentive pay levels E. Job structures, pay structures, and structures that support organizational charts
A. Job structures, pay structures, and structures that recognize employee contributions
One of the efficient ways to contain compensation costs and to change the expectation of high pay rates by U.S. workers is by ________. A. offering incentive pay B. offering small pay raises C. providing medical benefits D. not giving any pay raises E. laying off workers
A. offering incentive pay
Why is the U.S. government considered a stakeholder in compensation? A. Although considered a stakeholder, the U.S. government has very little "stake" in compensation policies. B. Compensation professionals are responsible for compliance with all U.S. government employment legislation. C. The U.S. government demands to be named as a stakeholder. D. The only concern of the U.S. government relates to legislation under the Civil Rights Act of 1991 dealing with discriminatory practices. E. The U.S. government represents all consumers.
B. Compensation professionals are responsible for compliance with all U.S. government employment legislation.
Which statement about stakeholders is FALSE? A. The success of an HR department depends on how well it serves the stakeholder groups within the compensation system. B. Every stakeholder within the compensation system has the same expectations. C. Stakeholder groups within the compensation system include employees, unions, and the federal government. D. Each stakeholder group within the compensation system has its own standards for effective performance. E. Stakeholders within the compensation system often compete for the attention of the personnel department.
B. Every stakeholder within the compensation system has the same expectations.
Which of the following would NOT be considered a function of HR? A. Performance appraisal B. Setting production goals C. Training D. Labor-management relations E. Recruiting
B. Setting production goals
In their roles as strategic business partners, HR and compensation professionals should focus on ________. A. managing pay rates B. achieving organizational results C. reducing work hours for employees D. monitoring legislative changes E. offering attractive benefits to employees
B. achieving organizational results
Three examples of core compensation are ________. A. education expense reimbursement, childcare, and providing uniforms B. annual salary, merit pay, and cost-of-living adjustments C. public transportation passes, pay-for-knowledge, and pension plans D. paid vacation, sick time benefits, and health insurance E. merit pay, pension plans, and paid vacation time
B. annual salary, merit pay, and cost-of-living adjustments
When companies differentiate their products or services to create brand-loyal customers, they are generally expecting that these customers will ________. A. be sensitive to price decreases B. be less sensitive to price increases C. switch to a rival product D. buy their products temporarily E. become price-conscious
B. be less sensitive to price increases
Strategic compensation is designed by compensation professionals in the context of an organization's ________. A. business strategy and compensation strategy B. competitive business strategy and human resource strategy C. human resource strategy and general tactical decisions D. competitive business strategy and specific tactical HR decisions E. human resource strategy and differentiation strategy
B. competitive business strategy and human resource strategy
Compensation professionals must educate employees about available training options because ________. A. employees demand to know about training options B. employees will not necessarily recognize these opportunities unless they are clearly communicated C. it is ethical to train employees D. CEOs demand that employees be trained E. it is required by law
B. employees will not necessarily recognize these opportunities unless they are clearly communicated
A firm's compensation professionals can most likely help the CEO and CFO understand the importance of ________. A. production quotas and targets B. employees within their business processes C. accurate accounting records D. financial capital E. equipment capital
B. employees within their business processes
John is a salesperson for Big Pharma, and Lindy is an accountant. In HR terms, John would be classified as a ________ employee, and Lindy would be classified as a ________ employee. A. support; line B. line; staff C. line; line D. staff; staff E. staff; line
B. line; staff
Which important skill for career success includes listening? A. Data literacy B. Collaboration C. Communication D. Knowledge application E. Critical thinking
C. Communication
Of the seven skills that are important to develop and practice, which of them represents involves a purposeful and goal-directed skills used to define and solve problems and to make decisions or form judgments? A. Collaboration B. Business ethics and social responsibility C. Critical thinking D. Data literacy E. Information technology and computing skills
C. Critical thinking
Which of the following questions is most important for compensation professional to ask when seeking to provide a strategic contribution to the company? A. Does the implementation of compensation practices towards desired employee behaviors support environmental scanning activities? B. Do the choice and design of compensation practices match the union leader's vision? C. Does the compensation strategy fit well with the objectives of the competitive business and HR strategies? D. Does the implementation of compensation practices towards desired employee behavior support the employees' expectations? E. Does the compensation strategy fit well with the objectives of the employees?
C. Does the compensation strategy fit well with the objectives of the competitive business and HR strategies?
Ryanair, an airline based in Ireland, offers only one toilet on each of its airplanes and requires passengers to carry their luggage to the airplanes to reduce service costs. Ryanair is following which of the following strategies? A. Ryanair's strategy B. Competitive strategy C. Lowest-cost strategy D. Price leadership strategy E. Efficient-scale strategy
C. Lowest-cost strategy
Which of the following is not a job function of an HR specialist? A. Working on a special area of compensation practice B. Building job structures C. Reporting directly and frequently to the CEO D. Designing merit pay structures E. Designing market-competitive pay systems
C. Reporting directly and frequently to the CEO
The rationale behind seniority pay comes from ________. A. U.S. legislation B. the popularity of particular employees C. human capital theory D. completing a predetermined work objective E. the entitlement mentality of workers
C. human capital theory
Bosch employs doctoral candidates in the firm's research facilities on a limited-term basis to work on their dissertations and to help Bosch research scientists with scientific projects. This is an example of the ________. A. self-interest of Bosch B. use of capital C. use of discretionary benefits D. strategic nature of HR E. importance of doctoral programs
C. use of discretionary benefits
Which of the following is NOT one of the ways to adjust base pay over time? A. Incentive pay B. Merit pay C. Industry-based pay D. Cost-of-living adjustment E. Seniority pay
C. Industry-based pay
Which statement about cost-of-living adjustments (COLAs) is correct? A. COLAs are not related to compensation. B. A COLA is an example of an intrinsic reward. C. COLAs are used as a basis for merit increases. D. COLAs are cost-of-living adjustments represent base pay increases based on the Consumer Price Index (CPI). E. COLAs are part of a pension plan and are not a part of core compensation.
D. COLAs are cost-of-living adjustments represent base pay increases based on the Consumer Price Index (CPI).
Andrea's job requires her to analyze quantitative data to facilitate problem solving. Which skills is she using? A. Data literacy B. Knowledge application C. Communication D. Critical thinking E. Collaboration
D. Critical thinking
Which of the following is the ability to access, assess, interpret, manipulate and translate quantitative information in order to use it in the employment context? A. Collaboration B. Critical thinking C. Knowledge application D. Data literacy E. Communication
D. Data literacy
Which of the following is NOT an stakeholder of the compensation system? A. Line managers B. Collective bargaining unit C. Employees D. U.S. government E. Executives
D. U.S. government
Chipotle has been doing much better in the fast food industry than McDonald's in recent years. In terms of environmental scanning activities, what McDonald's is currently facing would best be termed as ________. A. an opportunity for McDonald's B. a temporary decline in sales for McDonald's C. a lack of innovation D. a threat to McDonald's E. a preference for Hispanic food
D. a threat to McDonald's
Competitive business strategy choices mainly focus on ________. A. providing the best service possible B. building efficient-scale facilities C. achieving brand recognition D. achieving lowest cost or product differentiation E. competition within different divisions of the company
D. achieving lowest cost or product differentiation
The two categories of core compensation are ________. A. base pay and incentive pay B. base pay and salary C. hourly pay and base pay D. base pay and base pay adjustments over time E. hourly wage and salary
D. base pay and base pay adjustments over time
As long as employees continue to remain employed, the only type of compensation that can be guaranteed is ________. A. tuition reimbursement B. a set base pay amount regardless of effort and responsibility C. incentive pay D. base pay in the form of wages and salaries E. generous allowances for vacation days
D. base pay in the form of wages and salaries
Juan has just been employed by XYZ Company because of his expertise in international trade. An economist would describe Juan's expertise partially as ________. A. capital B. a strategic trade skill set C. technical skills D. human capital E. financial capital
D. human capital
Organizational development professionals promote intrinsic compensation by ________. A. offering both monetary and non monetary rewards B. making employees realize that their work matters to them only C. providing employee benefits D. incorporating effective job design E. offering higher pay
D. incorporating effective job design
Compensation professionals establish monetary compensation programs to ________. A. establish effective job design B. reward job performance levels and striving for monetary rewards C. offer increasing pay rates D. reward job performance levels and job-related knowledge and skills E. offer non monetary rewards
D. reward job performance levels and job-related knowledge and skills
Human resource professionals are considered ________. A. line employees B. contract employees C. service employees D. staff employees E. the same as production employees
D. staff employees
Which of the following are the main stakeholder groups of a compensation system? A. Employees line managers, other competitors, and foreign governments B. Owners, shareholders, labor union representatives, suppliers, and local government officials C. Part-time employees, line employees, staff supervisors, staff employees, and administrative managers D. Employees, line managers, executives, unions, and the federal government E. Corporate executives
D. Employees, line managers, executives, unions, and the federal government
There are seven skills that are important to develop and practice that will be important to career development in compensation or other careers Of the following, which is NOT one of those skills? A. Collaboration B. Information technology and computing skills C. Business ethics and social responsibility D. Critical thinking E. Financial analysis
E. Financial analysis
Which of the following best describe corporate sustainability? A. The ability to hire and promote a qualified workforce. B. The ability to learn a concept and apply that knowledge in another setting. C. The assessment and manipulation of information to avoid ethical dilemmas. D. The process of constructing meaning and knowledge as a group through dialogue and negotiation. E. The focus of the corporation on possible future impacts on society, the economy, and the environment.
E. The focus of the corporation on possible future impacts on society, the economy, and the environment.
In leveraging specific facets of HR, companies try to get the most qualified candidates interested in working for them by ________. A. recruiting aggressively B. emphasizing the size of the company C. communicating the firm's superior benefits D. discussing what the firm produces E. communicating the positive features of the core compensation and benefits programs
E. communicating the positive features of the core compensation and benefits programs
The planned use of company resources to maintain an edge in the market is called ________. A. compensation strategy B. strategic decisions C. competitive advantage D. human resources strategy E. competitive business strategy
E. competitive business strategy
All of the following are examples of non-monetary compensation EXCEPT ________. A. employer-provided day care centers B. vacation days C. on-site gyms D. medical insurance E. incentive pay
E. incentive pay
Compensation professionals use merit pay programs to ________. A. build group and team morale B. keep up with inflation C. treat everyone the same regardless of performance D. promote worker safety E. reward performance results
E. reward performance results
Signing bonuses are useful to companies when ________. A. companies are trying to downsize B. the supply for qualified candidates exceeds the demand C. the demand and supply for qualified candidates are equal D. there are plenty of qualified candidates E. the demand for qualified candidates exceeds supply
E. the demand for qualified candidates exceeds supply
The Equal Pay Act of 1963 stipulates that ________. A. pay should be equal to the quality of work produced by 1963 standards B. CEOs decide how pay should be divided equally C. everyone should be compensated at the exact same rate D. pay should be divided in equal ratios across all employee ranks E. there should be no sex discrimination in pay for employees performing equal work
E. there should be no sex discrimination in pay for employees performing equal work