Wage and salary warm up and quizzes

When an employee receives a minimum pay increase that is perceived as a significant​ change, it is known as​ ________. A. ​just-meaningful B. ​least-acceptable C. regressive D. ​most-available E. progressive

A. ​just-meaningful

In a​ ________, employees earn a higher rate of commission for all sales made in a given period if the sales level exceeds a predetermined level. A. ​multiple-tiered commission plan B. ​salary-only plan C. ​draw-only plan D. graduated commission plan E. ​commission-only plan

A. ​multiple-tiered commission plan

All of the following activities are part of designing a​ market-competitive pay system EXCEPT​ ________. A. determining compensation policies B. matching job descriptions to pay levels C. assessing​ competitors' pay practices with surveys D. integrating internal job structures with external market pay rates E. conducting strategic analyses

B. matching job descriptions to pay levels

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

Which statement about benchmark jobs is​ TRUE? A. Benchmark jobs are common across many different employers. B. Benchmark jobs increase the time required to determine pay levels. C. Benchmark jobs represent a limited number of jobs within a company. D. Benchmark jobs are used for determining appropriate employee benefits. E. Benchmark jobs are typically unstable over time in most industries.

A. Benchmark jobs are common across many different employers.

________ are blueprints that describe the allocation of monetary resources. A. Compensation budgets B. Merit payments C. Bonuses D. Hiring budgets E. Incentive payments

A. Compensation budgets

Compensation professionals must be aware of certain characteristics of compensation surveys. Which statement about compensation surveys is​ FALSE? A. Compensation surveys represent​ real-time data. B. Compensation surveys become outdated quickly. C. Compensation survey data requires statistical analysis. D. Compensation surveys contain a wide range of pay rates across companies. E. Compensation surveys are loaded with information.

A. Compensation surveys represent​ real-time data.

With the group incentive​ plan, different payments are made to group members based on their contribution to the​ team's performance. What are these payments​ called? A. Differential incentive payments B. Contribution incentives payments C. Ratio incentives payments D. Unequal incentive payments E. Effort incentive payments

A. Differential incentive payments

________ refers to the job duties and tasks as well as such pertinent factors as the skill and effort needed to perform a job adequately. A. Job content B. A job specification C. Job analysis D. Job motivation E. A job requirement

A. Job content

What term refers to a job design approach that creates a more intrinsically motivating and interesting work​ environment? A. Job enrichment B. Job security C. Skill variety D. Empowerment E. Job analysis

A. Job enrichment

Which of the following is a TRUE statement regarding merit​ pay? A. Merit pay is given on both subjective and objective​ measures, but most​ supervisors, as a​ rule, rely on subjective measures. B. If employers do not have​ funds, they can still implement merit pay programs. C. Merit pay can be given to employees without any pay increase for inflation. D. Employees do not necessarily need to know in advance that their efforts will lead to merit pay. E. Merit pay is not commonly used in the United States.

A. Merit pay is given on both subjective and objective​ measures, but most​ supervisors, as a​ rule, rely on subjective measures.

What is the sixth and final step in the job evaluation​ process? A. Setting up the appeals process B. Training employees to conduct job evaluations C. Choosing the job evaluation committee D. Documenting the job evaluation plan E. Communicating with employees

A. Setting up the appeals process

Ryan has been employed for 15 years with a textile company that produces​ men's shirts. Ryan has received incentive pay for most of the 15 years of his employment. What is the term an economist would use to classify this longevity of​ employment? A. Sorting effect B. Incentive effect C. Seniority effect D. Base pay effect E. Longevity effect

A. Sorting effect

What is the biggest drawback for a company that follows a tightly defined job description based on an internally consistent pay​ system? A. The company ends up being less flexible in responding to its​ competitor's pay practices. B. The company ends up giving employees greater bargaining power in an internally consistent pay system. C. The company usually ends up paying more to its employees than its competitors do. D. It becomes difficult for supervisors to assess employees on narrowly defined job descriptions. E. The company ends up with fewer jobs than it normally would.

A. The company ends up being less flexible in responding to its​ competitor's pay practices.

Which would be an example of an employee receiving merit pay in an appropriate and typical​ manner? A. The employer adjusts the​ worker's base pay to account for inflation and then awards the worker an additional​ 2.5% increase based on a positive objective evaluation. B. The employer adjusts the​ worker's base pay to account for inflation and then reviews the​ worker's number of years of service to determine the​ worker's appropriate pay. C. The employer reduces the​ worker's base pay by​ 5% and then conducts an extensive subjective review of the​ worker's performance before deciding on an appropriate pay raise. D. The employer reviews the number of units of production for all employees and bases pay ranges on each​ worker's production rate. E. The employer adjusts the​ worker's base pay to account for inflation and then awards the worker an additional​ 2.5% increase based on a positive subjective evaluation.

A. The employer adjusts the​ worker's base pay to account for inflation and then awards the worker an additional​ 2.5% increase based on a positive objective evaluation.

Which statement about commissions is​ TRUE? A. The intrinsic motivation of some sales professionals is undermined by​ commission-only plans. B. Younger sales professionals typically prefer​ commission-only plans much more than older sales professionals. C. Commission plans generate cohesiveness among most sales professionals. D. Commissions interfere with the​ cost-cutting measures of most organizations. E. As​ incentives, commissions are considered the best tactic for compensating sales professionals.

A. The intrinsic motivation of some sales professionals is undermined by​ commission-only plans.

What is the best approach to producing valid job​ descriptions? A. The results obtained from multiple data sources and multiple methods should converge. B. Data from government websites and employee questionnaires should be gathered by job analysts. C. Employees should provide detailed​ information, as well as document their daily tasks and activities for one year. D. Supervisors should study jobs for a minimum of six​ months, and conduct extensive job interviews with employees. E. External HR consulting companies should communicate with supervisors and employees for one month.

A. The results obtained from multiple data sources and multiple methods should converge.

Skills assessment is a consideration when going from​ job-based pay to​ person-focused pay. Which of the following questions is NOT relevant to skills​ assessment? A. What input should customers provide in the skills assessment​ process? B. What input should employees provide in the skills assessment​ process? C. How often should a skills assessment be​ conducted? D. Who should conduct the skills​ assessment? E. What data should serve as the basis for the skills​ assessment?

A. What input should customers provide in the skills assessment​ process?

When an HR specialist continues to take courses and acquire additional experience in the benefits​ area, that specialist is​ ________. A. acquiring depth of skills B. acquiring fewer competencies in the HR area C. acquiring horizontal skills D. acquiring vertical skills E. restricting the​ specialist's career progression

A. acquiring depth of skills

One of the advantages of introducing incentive pay instead of merit pay for cyclical industries such as retail sales is that​ ________. A. compensation expenses can be minimized with incentive pay B. incentive pay is perceived as more valuable by employees than merit pay C. incentive pay is always less than merit pay D. incentive pay is much easier to achieve for all types of performers E. supervisors can choose not to award incentive pay

A. compensation expenses can be minimized with incentive pay

Pay rates that fall along the market pay line represent​ ________. A. competitive pay rates based on relevant labor market B. incentive pay historically paid by the company C. bonus pay awarded to workers on a random basis D. minimum wage rates as determined by the government E. labor uniondash-determined pay rates negotiated and agreed upon by the company

A. competitive pay rates based on relevant labor market

When a company thoroughly examines its external market context and its internal​ factors, it​ is, in​ essence, ________. A. conducting a strategic analysis B. determining compensation policies C. conducting a management analysis D. conducting a compensation survey E. assessing​ competitors' pay practices

A. conducting a strategic analysis

Dysfunctional turnover is best defined as the departure of​ ________. A. ​high-quality employees B. poor performing employees C. ​part-time employees D. senior level managers E. supervisors

A. ​high-quality employees

It would be easiest for an employer to award individual incentive pay to​ a(n) ________. A. employee who works on the assembly line in a shoe factory B. customer service representative who handles defective product returns C. executive who works at an advertising firm D. employee who relies on three other departments to process paperwork correctly E. group of six employees who assess the safety measures for a utility company

A. employee who works on the assembly line in a shoe factory

Human capital theory is based on the assumption that​ ________. A. employees become more valuable by acquiring new knowledge and skills B. employees become less valuable over time C. employees are motivated strictly by money D. ​on-the-job training for employees is not​ important, but formal education is E. employees generally stay in one​ place, regardless of pay levels

A. employees become more valuable by acquiring new knowledge and skills

The first step in conducting a pointmethod valuation is to select benchmark jobs. A benchmark job can be defined as a job​ ________. A. found outside the company that is used as a reference point to judge jobs within the company B. found inside the company that is used to determine the pay levels for​ entry-level employees C. used to determine benchmark pay levels within the company to help supervisors and union leaders negotiate starting salaries D. performed by a new hire within the company who has been with the company six months or less E. used as a reference to write job descriptions and conduct job analysis so that any​ job's relative worth can be determined internally

A. found outside the company that is used as a reference point to judge jobs within the company

Personal effectiveness and academic and workplace competencies can be grouped as​ ________. A. foundational competencies B. ​industry-wide technical competencies C. ​industry-sector technical competencies D. ​occupation-specific competencies E. management competencies

A. foundational competencies

Custom compensation surveys designed by consulting firms for clients may be superior to existing surveys because they​ ________. A. include questions specifically designed to meet client​ needs, unlike existing surveys B. use multiple sources to collect​ data, unlike existing​ surveys, which use one source C. are not as out of date as existing surveys D. consider the total compensation package of the​ client, unlike existing surveys E. cost much less than existing surveys

A. include questions specifically designed to meet client​ needs, unlike existing surveys

Each of the following is TRUE of a​ company-wide incentive plan EXCEPT​ ________. A. individual performance is measured in support of company goals B. employees are rewarded based on stock values for publicly traded companies C. employees are rewarded based on company profits D. ​company-wide incentive plans make​ employees' goals more compatible with corporate goals E. ​company-wide incentive plans are used to motivate employees to work toward increased profits

A. individual performance is measured in support of company goals

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. A. interpersonal skills B. creative skills C. financial skills D. language skills E. mathematical skills

A. interpersonal skills

The index component of National Compensation​ Data, the Employer Cost Index​ (ECI), measures changes in​ ________. A. labor costs B. pay relative to inflation C. hourly versus salaried wages D. pay raises E. benefits

A. labor costs

Zac was disappointed when he saw a negligible increase in his paycheck after he was awarded merit pay.​ Zac's disappointment can be attributed to​ _____. A. little motivational value of merit pay B. mounting costs associated with merit pay C. undesirable competition among workers D. his​ supervisor's biased ratings of​ employee's job performance E. lack of open communication between management and employees

A. little motivational value of merit pay

The data collected on compensation by professional and industry association members tends to be accurate because​ ________. A. members themselves stand to benefit from the data B. it is valuable​ information, and therefore goes through several cycles of accuracy checks C. members are proficient in statistical techniques D. it takes a very long time to compile the data E. it is extremely expensive to purchase the data

A. members themselves stand to benefit from the data

When the pay spread between newly hired or less qualified employees and more qualified job incumbents is​ small, it is known as​ ________. A. pay compression B. a pay grade C. a green circle rate D. a red circle rate E. broadbanding

A. pay compression

Merit pay systems use​ ________ to determine​ employees' performance. A. performance appraisals B. seniority C. the labor​ union's input D. the​ employee's job title E. customer feedback

A. performance appraisals

There is a basic principle that companies rely on for building an internally consistent compensation system. This principle states that​ ________. A. the greater the responsibilities and complexities of a job the greater the pay B. there is very little difference in job characteristics between jobs that fall within a job family C. jobs should be ranked on the basis of seniority D. all employees should be paid equally E. the relative value of each job should be based on the academic qualifications required to perform the job

A. the greater the responsibilities and complexities of a job the greater the pay

What is the reason many companies use a​ market-based evaluation plan when conducting job​ evaluation? A. ​Market-based evaluation plans determine appropriate pay rates relative to the market. B. ​Market-based evaluations plans are more accurate than​ job-content evaluations. C. ​Market-based evaluation plans do not rely on any questionnaires or surveys and therefore are easier to conduct. D. ​Market-based evaluation plans use​ companies' internal value system in establishing job worth. E. ​Market-based evaluation plans are preferred by compensation specialists.

A. ​Market-based evaluation plans determine appropriate pay rates relative to the market.

Compensation specialists hope to gain information regarding​ ________ from compensation surveys. A. ​competitors' base pay and mix of total monetary compensation B. ​competitors' benefits packages C. labor​ unions' preferences regarding pay D. employee preferences regarding pay E. ​competitors' hiring practices

A. ​competitors' base pay and mix of total monetary compensation

If employees do not trust the merit pay​ system, they will most likely​ ________. A. talk to customers about their lack of trust in the company B. lose motivation to work hard C. support a union movement to demand merit pay D. work harder in the hope of receiving a merit pay increase E. try to get close to supervisors who give merit pay increases

B. lose motivation to work hard

In which type of selling situation will salary represent a significant pay​ component? A. Furniture store B. Home electronics sales C. Cosmetic sales D. Pharmaceutical sales E. Auto sales

D. Pharmaceutical sales

Which of the following is the correct equation that models the prediction of the market pay​ line? A. Predicted salary equals the X intercept plus the job evaluation points. B. Predicted salary equals the Y intercept plus the slope multiplied by job evaluation points. C. Job evaluation points equal the Y intercept plus the slope multiplied by the predicted salary. D. Predicted salary equals the total budget divided by the total number of employees. E. Predicted salary equals the Y intercept plus the slope multiplied by job evaluation points divided by the number of predicted employees.

B. Predicted salary equals the Y intercept plus the slope multiplied by job evaluation points.

Which of the following measures the purchasing power of a​ dollar? A. Market pay line B. Real compensation C. Central tendency D. Nominal compensation E. Standard deviation

B. Real compensation

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. 150 and​ 2,000 people and have been around for 10 years Your answer is correct. C. ​3,000 and​ 6,000 people and have been around for 50 years or more D. ​5,000 and​ 6,000 people and have been around for 5 years E. 100 and 200 people and have been around for 3 years

B. 150 and​ 2,000 people and have been around for 10 years

Which of the following is NOT one of the nine most common problems associated with merit pay​ programs? A. A​ supervisor's improper choice of performance standards. B. A​ supervisor's unwillingness to participate in a merit pay program. C. The failure of a supervisor to properly differentiate performers. D. An employee not feeling that the merit pay is significant enough. E. A poor personal relationship between a supervisor and an employee.

B. A​ supervisor's unwillingness to participate in a merit pay program.

Which of the following ensures that employees possess at least a minimally acceptable level of skill proficiency upon completion of a training​ unit? A. Pay ranges B. Certification C. Skill blocks D. Promotion E. Pay structure

B. Certification

Which of the following is NOT a reason why seniority pay is expected to disappear in the​ future? A. Rapid technological advancements B. Employee belief that workers become more valuable over time C. Skill deficits of new employees D. Skill deficits of current workers E. Increased global competition

B. Employee belief that workers become more valuable over time

What two forms of core compensation are the most common types of pay used in a traditional pay​ system? A. Bonus and hourly wage B. Hourly wage and annual salary C. Annual salary and commission D. Hourly wage and commission E. Commission and bonus

B. Hourly wage and annual salary

Which statement about incentive pay is​ correct? A. Incentive pay replaces an​ employee's traditional pay at most firms. B. Incentive pay is a​ one-time payment that augments an​ employee's base pay. C. Incentive pay is more costly for firms than seniority and merit pay. D. Incentive pay is used to reward individual employees but not groups. E. Incentive pay is limited to production and nonsupervisory employees.

B. Incentive pay is a​ one-time payment that augments an​ employee's base pay.

How does a company decide between using group or​ individual-based incentives? A. It depends on the cost of instituting the group or​ individual-based incentives B. It depends on whether the type of work and the specific objectives require independent performance or interdependent performance C. It depends on what type of a​ profit-sharing plan the company wants to institute​ (group vs.​ individual). D. It depends on whether workers want to work individually or in group settings. E. It depends on whether management is trying to promote individual incentives or group incentives.

B. It depends on whether the type of work and the specific objectives require independent performance or interdependent performance

Empowering employees to conduct​ self-appraisals is a strategy to strengthen the​ pay-for-performance link. What is the key advantage of this​ strategy? A. It reduces cost. B. It leads to​ self-corrective responses to supervisory feedback. C. It partially relieves the supervisor of the appraisal task. D. It increases morale among the sales force. E. It reduces​ job-related stress for many employees.

B. It leads to​ self-corrective responses to supervisory feedback.

What is the primary limitation of a​ two-tier pay​ structure? A. It limits a​ company's ability to retain​ senior, experienced workers. B. It limits the​ company's ability to recruit and retain qualified workers. C. It increases the total compensation costs for the company. D. It restricts the​ company's ability to award merit pay. E. It leads to discord between workers inside and outside the company.

B. It limits the​ company's ability to recruit and retain qualified workers.

Which two processes are used by compensation specialists to create internally consistent job​ structures? A. Job analysis followed by job training B. Job analysis followed by job evaluation C. Job design followed by job evaluation D. Job description followed by job analysis E. Job duties followed job orientation

B. Job analysis followed by job evaluation

What do compensation professionals use to establish pay differentials among employees within a​ company? A. Academic background B. Job evaluation C. Skills and qualifications D. Seniority in the company E. Job descriptions

B. Job evaluation

What is the benefit of including an incentive component in the core compensation program offered to employees in an industry that experiences cyclical​ demand, such as retail​ sales? A. Reducing turnover B. Lowering payroll costs during lean periods C. Reducing absenteeism D. Attracting better educated applicants E. Having tax advantages associated with the strategy

B. Lowering payroll costs during lean periods

Which of the following evaluation methods is most popular because it gives compensation professionals better control over balancing internal and market​ considerations.? A. Balanced evaluation B. ​Job-content evaluation C. Compensation evaluation method D. Point method E. ​Market-based evaluation

D. Point method

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 keep her job because of her flexibility. C. Sheila should expect to receive a pay raise because of her seniority. D. Sheila should expect to be laid off due to the declining valuation of her job E. Sheila should expect a permanent pay cut.

B. Sheila should expect to keep her job because of her flexibility.

The Rucker plan and the Scanlon plan are similar​ gain-sharing plans. What is the key difference between the two​ plans? A. The Scanlon plan does not recommend employee​ involvement, but the Rucker plan does. B. The Rucker plan uses the​ value-added formula, and the Scanlon plan uses the sales value of production formula. C. The Rucker plan emphasizes the suggestion system within the​ company, but the Scanlon plan does not. D. The Scanlon plan provides no input from​ management, but the Rucker plan does. E. The Scanlon plan does not emphasize monetary rewards as much as the Rucker plan does.

B. The Rucker plan uses the​ value-added formula, and the Scanlon plan uses the sales value of production formula.

In traditional pay​ plans, employees are paid​ ________. A. for length of service to the company B. a fixed hourly rate or annual salary C. in advance of work performed D. based on performance E. every two weeks

B. a fixed hourly rate or annual salary

When setting up an appeals process for employees to challenge the job evaluation​ process, it is best to have​ ________ be present. A. members of the union B. a group of compensation​ professionals, supervisors, and employees C. an external labor consultant D. as many employees as possible E. no more than one or two key individuals from HR

B. a group of compensation​ professionals, supervisors, and employees

Generally, Western European cultures are considered much better than the American culture in providing the workforce with​ ________. A. ​college-level education B. applied vocational education C. interpersonal skills instruction D. language skills training E. financial skills training

B. applied vocational education

In order for​ team-based incentives to work​ appropriately, work teams must be effective. Work teams are most effective when team members​ ________. A. are equally close to their supervisor B. are​ cross-trained to perform each​ other's work C. care for each other D. have similar education and experience levels E. receive the same pay

B. are​ cross-trained to perform each​ other's work

Questionnaires, interviews,​ observations, and participation are methods for​ ________. A. training job analysts B. collecting information for job analysis C. conducting job evaluation D. determining pay raises E. conducting job orientation

B. collecting information for job analysis

A key difference between merit pay and incentive pay is that supervisors generally​ ________. A. offer greater incentive pay than merit pay B. communicate in advance about the incentive pay​ amounts, but do not communicate in advance about the merit awards C. communicate in advance about merit​ pay, but do not communicate in advance about incentive pay D. offer greater merit pay than incentive pay E. base incentive pay on subjective assessment and merit pay on objective assessment of the employees

B. communicate in advance about the incentive pay​ amounts, but do not communicate in advance about the merit awards

A greater number of employees are becoming eligible for incentive pay. The key reason behind this phenomenon is that​ ________. A. incentive pay is replacing merit pay B. companies want to control costs and motivate employees C. more workers demand incentive pay D. companies award incentive pay instead of​ cost-of-living adjustments E. more companies want to share their profits with employees

B. companies want to control costs and motivate employees

One of the limitations of an internally consistent compensation system is that it​ ________. A. creates additional work for supervisors B. creates a bureaucratic job structure C. leads to​ less-structured job descriptions D. leads to lower employee benefits over time E. creates strife among employees

B. creates a bureaucratic job structure

A relevant labor market can be defined on the basis of all of the following EXCEPT​ ________. A. product market competitors B. customer type C. occupational classification D. service market competitors E. geography

B. customer type

In recent​ years, ________ have become part of compensation surveys because they are key elements of​ market-competitive pay systems. A. pension plans B. employee benefits C. wage rates D. bonuses E. merit increases

B. employee benefits

The disadvantage of​ profit-sharing plans for employees is that​ ________. A. employees do not see a significant increase in base pay B. employees find it difficult to predict their earnings from year to year C. ​profit-sharing plans create unnecessary competition among workers D. ​profit-sharing plans generally replace​ cost-of-living increases E. management makes it harder to achieve the performance standards

B. employees find it difficult to predict their earnings from year to year

The Standard Occupational Classification System​, trade​ associations, professional​ societies, and trade unions are​ ________. A. external sources that HR professionals can use to develop performance appraisals B. external sources that job analysts can use to find pertinent job information to conduct job analysis C. internal sources from which pertinent information on labor laws can be determined D. external sources from which pertinent information on pay raises can be determined E. excellent sources that companies can use when developing training programs for employees

B. external sources that job analysts can use to find pertinent job information to conduct job analysis

All of the following are effective goals and objectives for sales professionals EXCEPT​ ________. A. expanding overall sales B. keeping current distribution channels C. acquiring new direct customers D. improving sales productivity E. achieving customer objectives

B. keeping current distribution channels

There are 15 classifications in the General Schedule for government employees. These classifications are based on​ ________. A. knowledge and expertise B. education and technical skills C. supervisory experience and length of service D. ​age, seniority, and merit E. ​skill, education, and experience levels

E. ​skill, education, and experience levels

A key difference between​ knowledge-based pay and merit pay is that​ ________. A. merit pay is for the commitment to potential job​ performance, but​ knowledge-based pay is not B. merit pay is for job​ performance, and​ knowledge-based pay is for potential performance C. ​knowledge-based pay is smaller than merit pay D. merit pay takes into account the number of years of​ service, but​ knowledge-based pay does not E. ​knowledge-based pay is awarded to employees who achieve high scores on​ training, but merit pay is not

B. merit pay is for job​ performance, and​ knowledge-based pay is for potential performance

One of the key advantages of​ person-focused pay for employees is that it​ ________. A. helps them to strengthen relationships with supervisors B. provides job enrichment C. makes promotions easier to attain D. helps them earn bonuses E. provides greater pay raises than any other system

B. provides job enrichment

One of the disadvantages of​ person-focused pay programs is that it is hard to assign a monetary value to skill and knowledge sets. This is because compensation surveys​ ________. A. compensation surveys become outdated very quickly B. report the value of entire jobs rather than of individual skill sets C. are biased in reporting the monetary value of skill and knowledge sets D. are not always accurate when reporting the monetary value of skill and knowledge sets E. usually are taken from a small number of companies and are therefore limited in nature

B. report the value of entire jobs rather than of individual skill sets

What is the key advantage associated with nonrecurring merit pay​ increases? A. ​Non-recurring merit pay increases are costly for the company but save money in both the short and long term. B. ​Non-recurring merit pay increases strengthen the​ pay-for-performance link and contain costs for the company. C. ​Non-recurring merit pay increases give much smaller amounts in raises than do permanent merit increases. D. Employees prefer​ non-recurring merit pay increases to permanent merit increases. E. In recent​ years, non-recurring merit pay increases have been gaining favor with supervisors.

B. ​Non-recurring merit pay increases strengthen the​ pay-for-performance link and contain costs for the company.

Which statement about​ person-focused pay systems is​ FALSE? A. ​Person-focused systems often lead to enhanced job motivation. B. ​Person-focused pay systems create the need for more workers. C. ​Person-focused systems create staffing flexibility. D. ​Person-focused systems lead to higher job commitment from employees. E. ​Person-focused pay systems offer job enrichment.

B. ​Person-focused pay systems create the need for more workers.

Which type of plan spreads the risk of selling between the company and its sales​ professionals? A. ​Salary-plus-bonus B. ​Salary-plus-commission C. Commission only D. Salary only E. ​Multi-tiered commission

B. ​Salary-plus-commission

The focus of the​ ________ model is to promote staffing flexibility by training employees in one department with critical skills they would need to perform effectively in other departments. A. ​stair-step B. ​cross-departmental C. team skills D. skill blocks E. ​job-point accrual

B. ​cross-departmental

Pay-for-knowledge, skill-based​ pay, and​ competency-based pay are forms of​ ________. A. incentive pay B. ​person-focused pay plans C. ​cost-of-living adjustments D. merit pay E. ​job-based pay

B. ​person-focused pay plans

A hospital that has been looking to fill the position for a neurosurgeon​ (a highly skilled and specialized job where demand is high and supply is​ low). Which of the following would the relevant labor market be based​ on? A. Occupational classification B. Product market competitors C. Service market competitors D. The local area where the hospital is located E. Geography

E. Geography

Which of the following is NOT a step that compensation professionals use to begin plans for setting the merit pay​ grid? A. Determine if the projected merit increase totals are within the budgeted amount B. Ask managers for the performance distribution of their employees C. Ask managers for the names of employees receiving merit pay increases D. Calculate the expected number of employees who will fall into each cell E. Gather data on employee positions in the pay range

C. Ask managers for the names of employees receiving merit pay increases

Which of the following jobs would most likely use incentive pay as the base compensation​ plan? A. Managers B. Teachers C. Automobile salespersons D. Factory workers E. Customer service representatives

C. Automobile salespersons

Which term refers to the set of data that clusters around a typical numerical​ value? A. Quartile B. Variation C. Central tendency D. Standard deviation E. Regression analysis

C. Central tendency

In order to establish an internally consistent compensation​ system, which of the following is absolutely​ necessary? A. Establishing an appraisal system B. Establishing subjective performance measures C. Conducting job analyses D. Linking performance appraisals to business goals E. Communicating about merit pay

C. Conducting job analyses

What is the end result of a reliable job analysis​ method? A. Precise job descriptions B. An equitable pay system C. Consistent results under similar conditions D. Less work for supervisors E. An internally inconsistent compensation system

C. Consistent results under similar conditions

The​ ________ survey is a monthly survey of the payroll records of businesses establishments that provides national estimates of average weekly hours and average hourly earnings for the private sector for all employees and for production and nonsupervisory employees. A. Consumer Price Index B. National Estimates C. Current Employment Statistics D. National Compensation E. Bureau of Labor Statistics

C. Current Employment Statistics

Maria and Sonya have been employed for three years at an accounting firm. In the last​ quarter, both received the same merit​ raise, although Maria has been a star performer and has not missed any​ deadlines, while Sonya has missed deadlines on multiple occasions. On which aspect of the​ pay-for-performance link should the supervisor focus in this scenario so that this situation does not occur in the​ future? A. Establish performance targets. B. Conduct a job analysis. C. Differentiate among performers. D. Communicate the way the merit pay was determined. E. Empower both Maria and Sonya.

C. Differentiate among performers.

What are the components of a pay​ mix? A. Core compensation cost compared to incentive pay B. Percentage of total pay and merit pay C. Employer compensation costs compared to core compensation and benefits D. Total cost of benefits and incentives E. Total cost of all bonuses

C. Employer compensation costs compared to core compensation and benefits

​________ is one of the key features of​ person-focused pay that makes it costly for employers. A. Larger pay raises B. Generous allowances for time off C. Higher training costs D. Greater need for staffing E. Reduced work hours

C. Higher training costs

Which statement about​ job-based pay and​ person-focused pay is​ TRUE? A. ​Job-based pay considers key​ skills, but​ person-focused pay considers the market value of the job itself. B. ​Job-based pay promotes workers based on their past​ proficiency, but​ person-focused pay promotes based on seniority. C. In a​ person-focused pay​ system, employees tend to have more job variety and job enrichment than in a​ job-based system. D. In a​ job-based pay​ system, an​ employee's pay is determined by the market value of their skills. E. A​ person-focused pay system is easier to administer than a​ job-based pay system.

C. In a​ person-focused pay​ system, employees tend to have more job variety and job enrichment than in a​ job-based system.

​Mary's employer rewards employees with periodic additions to base pay according to​ employees' length of service in performing their jobs. What type of pay system is the organization​ utilizing? A. Merit pay B. ​Just-meaningful pay C. Longevity pay D. Comparison pay E. ​Pay-for-performance

C. Longevity pay

What major trend are companies following by using the broadbanding concept to consolidate existing pay grades and ranges into fewer pay grades and wider​ ranges? A. Keeping profit margins as drivers of all business operations B. Keeping the​ least-cost strategy central to all business operations C. Making the organizations flatter D. Thinking of employees as key assets of a business E. Making labor unions major partners of an organization

C. Making the organizations flatter

​Historically, what led to management instituting​ company-wide incentive​ plans? A. Management felt workers would work harder if given incentives. B. Management wanted workers to avoid being unionized. C. Management felt workers would be less likely to challenge management practices if profits were shared. D. Management wanted workers to be financially well off. E. Management wanted workers to be loyal to the company.

C. Management felt workers would be less likely to challenge management practices if profits were shared.

____________ policies refer to the combination of core compensation and employee benefits components that make up an​ employee's total compensation package. A. Market match B. Central pay C. Pay mix D. Market lead E. Pay match

C. Pay mix

Many companies use market match or market lead policies for which types of​ employees? A. Administrative employees B. Unskilled employees C. Professional and managerial employees D. New employees E. ​Part-time employees

C. Professional and managerial employees

Which statement about compensation surveys is​ FALSE? A. Most companies lack qualified personnel who can design accurate surveys. B. Developing a customized survey requires specialized knowledge. C. Published compensation surveys are mostly inaccurate. D. Developing​ in-house surveys is expensive. E. The custom development of surveys involves potential risks for employers.

C. Published compensation surveys are mostly inaccurate.

Which is true of merit pay​ increases? A. Merit pay is not viewed by employees as having any relationship to​ cost-of-living adjustments. B. Merit pay can be administered regardless of the level of funding for merit pay. C. Research shows that boosting merit pay will not necessarily increase productivity. D. Merit pay should be substantive in the absolute​ sense, not a relative​ sense, for the employee. E. Merit pay should be awarded equally across the board for it to be meaningful.

C. Research shows that boosting merit pay will not necessarily increase productivity.

Of the​ following, which one will benefit the most from the​ cross-departmental model of​ person-focused pay? A. Dentist office B. Graphic artist C. Shipping department D. Airline pilot E. Pharmacy

C. Shipping department

Which type of courses would a company offer​ in-house as opposed to asking employees to take at an educational​ institution? A. Language courses B. Mathematical courses C. Specialized courses D. Financial courses E. Management courses

C. Specialized courses

Which of the following best explains the concept of an internally consistent compensation​ system? A. The compensation system for internal​ full-time employees remains consistent over​ time, whereas the compensation paid to contractors and outside agents is subject to change depending on market fluctuations. B. Compensation systems do not change over time. When an employee is hired by an​ organization, the employee is guaranteed that the compensation system in place upon hiring will remain in place until separation. C. The relative value and corresponding compensation associated with each job is compared to all jobs within a company. D. The value of each job is determined by a​ cross-functional team, which then assigns compensation based on a formula incorporating both longevity and employee skill sets necessary to complete tasks. E. Every employee within an organization should be paid​ equally, regardless of duties and responsibilities.

C. The relative value and corresponding compensation associated with each job is compared to all jobs within a company.

What is the chief limitation of the trait systems of​ appraisal? A. Trait systems are difficult to use. B. Trait systems can be applied to a limited number of jobs. C. Trait systems are subjective. D. Trait systems are highly objective. E. Traits systems are difficult to quantify for merit pay purposes.

C. Trait systems are subjective.

When awarding​ person-focused pay to autonomous work​ teams, which types of skills are emphasized for team​ members? A. Numerical skills B. Interpersonal skills C. Vertical skills D. Horizontal skills E. Leadership skills

C. Vertical skills

Before investing time and money into compensation​ surveys, which question is most important for compensation professionals to​ consider? A. How long will the survey be​ valid? B. Should company employees be involved in constructing the​ survey? C. What does the company want to gain from the​ survey? D. Should the survey focus on benefits or​ compensation? E. How long will it take to conduct the​ survey?

C. What does the company want to gain from the​ survey?

Which of the following is NOT a key factor to consider when designing an incentive pay​ system? A. Whether company goals should be​ long-term or​ short-term B. The criteria by which either group or individual performance should be judged C. Who should be responsible for distributing incentive funds D. Whether the incentive plan should be based on individual or group performance E. The amount of risk employees will accept in their overall compensation plan

C. Who should be responsible for distributing incentive funds

Which of the following is a list of educational​ qualifications, KSAs, and other qualifications an individual must possess to perform a job​ adequately? A. Job duties B. Job content C. Worker specifications D. Job analysis E. Job summary

C. Worker specifications

Pay mix policy may be expressed in​ ________. A. total savings in compensation B. dollars expressing total payroll taxes paid in a given year C. a percentage of total dollars allocated for compensation D. hours spent on the job E. wages and benefits

C. a percentage of total dollars allocated for compensation

The best way supervisors can avoid arbitrary decisions regarding merit pay is to​ ________. A. take the​ employee's input into consideration B. practice open communication C. compare employee performance against the job criteria based on job descriptions D. differentiate among performers and​ non-performers E. rely on their personal judgement regarding merit pay

C. compare employee performance against the job criteria based on job descriptions

From the perspective of most​ employees, merit pay programs are appropriate when​ ________. A. employees are awarded merit pay instead of​ cost-of-living pay adjustments B. employees believe that their supervisors determine their merit pay C. employees feel in control of their performances and outside conditions have little impact D. all employees are awarded an equal amount of merit pay E. performance standards are implicit rather than explicit

C. employees feel in control of their performances and outside conditions have little impact

A problem associated with​ ________ is that they often lead to bureaucracy that can lead to higher fixed costs and a less competitive position. A. ​hourly-wage-based pay systems B. flexible pay systems C. internally consistent compensation systems D. ​salary-based pay systems E. internally inconsistent compensation systems

C. internally consistent compensation systems

Incentive pay helps cut payroll costs for companies. This is because incentive pay​ ________. A. is much smaller than annual seniority increases B. is reserved for a select few in top management and not for the majority of employees C. is given instead of annual increases and only when the company enjoys some measure of success D. remains constant and is always a small portion of base pay E. is given only on rare occasions

C. is given instead of annual increases and only when the company enjoys some measure of success

The level of risk increases for employees as incentive pay becomes a greater proportion of total compensation.​ Generally, this perceived level of risk​ ________. A. is subjective for most employees B. is lower for​ higher-rank employees C. is higher for​ higher-level employees D. can be controlled by supervisors E. decreases for all employees regardless of their rank

C. is higher for​ higher-level employees

The difference between job analysis and job evaluation is that​ ________. A. job analysis is more specific than job evaluation B. job analysis is conducted to determine pay​ levels, whereas job evaluation is conducted to determine a ranking for different jobs C. job analysis is​ descriptive, whereas job evaluation reflects​ management's priorities for different positions D. job analysis requires committee​ approval, whereas job evaluation requires approval from the​ manager, the​ employee, and the union E. job evaluation is conducted by HR​ professionals, whereas job analysis is conducted by supervisors

C. job analysis is​ descriptive, whereas job evaluation reflects​ management's priorities for different positions

Noor, an HR​ specialist, has expertise in labor laws due to his​ master's degree in HR and years of experience in the field. According to the​ EEOC, Noor's HR expertise is considered​ ________. A. a skill B. a qualification C. knowledge D. an ability E. a benefit

C. knowledge

Before merit pay can be​ awarded, it is important that companies first​ ________. A. consider the amount of time spent on the job by an employee B. make the employee realize that any pay increase is temporary C. make permanent adjustments to base pay for inflation D. consider whether the person was employed in a​ for-profit or​ not-for-profit company in the past E. ignore the amount of available funds for merit pay

C. make permanent adjustments to base pay for inflation

In a merit pay​ program, there must be explicit​ ________ that specify the procedures or outcome against which​ employees' job performance can be clearly evaluated. A. job descriptions B. outcome assessments C. performance standards D. job qualifications E. specifications

C. performance standards

When compensation analysts use regression​ analysis, they are trying to​ ________. A. establish the highest and lowest salary levels on the survey B. come up with an average of the salaries on a survey C. predict the values of one variable from another D. predict salary increases in the future E. study the amount of deviation in salaries

C. predict the values of one variable from another

Martina is a sales manager in a major department store. Two independent job analysts have listed​ Martina's duties, which match the sales manager job description. This approach is known as the​ ________. A. valid job analysis method B. interview method C. reliable job analysis method D. observation method E. data collection method

C. reliable job analysis method

By empowering​ employees, supervisors can strengthen the​ pay-for-performance link. In order for supervisors to empower​ employees, they need to​ ________. A. make sure employees work with few resources B. delay addressing​ work-related problems as long as possible C. take on a​ coach's role D. conduct formal performance appraisals only once a year E. reprimand poor performers immediately

C. take on a​ coach's role

A major limitation of the​ two-tiered pay system is that​ ________. A. lower pay levels of senior employees cause them to be resentful of new hires who get higher wages B. ​lower-level employees who are brought in at a lower pay level may be rewarded extra for doing extra duties C. the company has difficulty recruiting and retaining new hires who are brought in at a lower pay scale D. new hires get better bonuses than senior employees E. ​senior-level employees are not happy when they see new hires receiving lower pay than themselves

C. the company has difficulty recruiting and retaining new hires who are brought in at a lower pay scale

The social context within which waiters in a restaurant interact with​ guests, or tax accountants in a tax preparation office interact with​ clients, is known as the​ ________. A. KSAs B. job content C. working conditions D. job description E. worker requirements

C. working conditions

Which type of performance appraisal method relies on many sources for information​ (employees, supervisors,​ coworkers, etc.)? A. Trait B. Forced distribution C. ​360-degree D. BARS E. Comparison

C. ​360-degree

Which is a TRUE statement regarding​ person-focused pay​ programs? A. ​Person-focused pay programs do not encourage acquisition of new skills. B. ​Person-focused pay programs are applied​ organization-wide. C. ​Person-focused pay programs apply in a more limited context than do​ job-focused pay programs. D. ​Person-focused pay programs generally work like seniority pay programs. E. ​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.

Which term refers to a salesperson receiving a set salary plus a single payment for the achievement of​ specific, exceptional​ goals? A. ​Commission-only plan B. ​Salary-plus-commission C. ​Salary-plus-bonus plan D. ​Salary-plus-draw plan E. ​Salary-only-plan

C. ​Salary-plus-bonus plan

Dee Ann and her supervisor Andy both attend the same church and share similar points of view on many issues. It is possible for Andy to commit which type of error when judging Dee​ Ann's performance? A. Error of central tendency B. Positive or negative halo effect bias error C. ​Similar-to-me bias error D. ​First-impression effect bias error E. Contrast error

C. ​Similar-to-me bias error

When determining pay structure based on geographical​ consideration, many employers consider the​ ________. A. sales taxes in a given area B. payroll taxes in a given area C. ​cost-of-living adjustment for a certain area D. insurance costs in a given area E. minimum wage in a given area

C. ​cost-of-living adjustment for a certain area

Seniority​ pay, merit​ pay, and incentive pay are forms of​ ________. A. ​skill-based pay B. ​person-focused pay C. ​job-based pay D. training costs E. ​pay-for-knowledge

C. ​job-based pay

What type of a compensation plan is best suited for a salesperson who dislikes having to attain a specific volume of sales and who prefers concentrating on presale and​ post-sale activities? A. ​Salary-plus-bonus plan B. ​Commission-only plan C. ​Commission-plus-draw plan D. ​Salary-plus-commission plan E. ​Salary-based sales plan

E. ​Salary-based sales plan

Carissa and her colleagues have received an annual merit pay increase on June 15 for the last two years. What is the term used to define the date when Carissa and her colleagues receive the annual merit​ increase? A. Merit pay raise date B. Common review date C. Employee anniversary date D. Compensation budget date E. Performance review date

Common review date

The​ ________ model is a​ person-focused pay plan that encourages employees to develop skills and learn to perform jobs from different job families. A. competency B. ​incentive-pay C. skill blocks D. ​stair-step E. ​job-point accrual

E. ​job-point accrual

The motivational benefit of merit pay can be perceived differently by employees and employers. Of the following factors of merit​ pay, which one is perceived differently by employers and​ employees? A. Value of competition B. Need for merit pay C. Job description D. Amount of merit pay increase E. Value of other employees

D. Amount of merit pay increase

A manager uses the following form in evaluating her​ employees: ​#3 The employee is expected to complete the task in a timely fashion. 1 2 3 4 5 Never Almost Never Sometimes Fairly Often Very Often What type of performance appraisal method is the manager​ using? A. BOS B. MBO C. Trait system D. BARS E. Paired comparisons

D. BARS

Which term refers to an incentive compensation based on the percentage of the selling price of a product or​ service? A. Draw B. Recoverable draw C. Nonrecoverable draw D. Commission E. Salary

D. Commission

Why are​ commission-only sales plans best suited for companies that are pursuing​ lowest-cost strategies? A. Companies using​ commission-only plans can avoid paying commission to salespeople if they do not meet their required quota of sales. B. Companies using​ commission-only plans are not required to give pay raises to employees on a regular basis. C. Companies using​ commission-only plans can pay smaller and smaller commissions on incremental sales. D. Companies using​ commission-only plans have compensation expenditures that vary with sales revenue. E. ​Generally, in​ commission-only plans, companies pay draws to salespeople but do not provide any incentive pay.

D. Companies using​ commission-only plans have compensation expenditures that vary with sales revenue.

Which is the first step in constructing a pay​ structure? A. Evaluating the results B. Calculating pay ranges for each pay grade C. Determining a market pay line D. Deciding on the number of pay structures E. Defining pay grades

D. Deciding on the number of pay structures

What is the first step in the job evaluation​ process? A. Training employees to conduct job evaluations B. Choosing the job evaluation committee C. Documenting the job evaluation plan D. Determining single versus multiple job evaluation techniques E. Setting up the appeals process

D. Determining single versus multiple job evaluation techniques

There is evidence that​ well-designed person-focused programs lead to greater employee​ commitment, motivation, and satisfaction. What is the main reason why employees feel the way they do in​ person-focused pay​ programs? A. Employees feel supervisors communicate better in this system. B. Employees feel less threatened in this system. C. Employees feel less pressure to develop themselves in this system. D. Employees can attain more skills and autonomy in this system. E. Employees can take more personal time off in this system.

D. Employees can attain more skills and autonomy in this system.

Although popular with many prestigious​ firms, which appraisal system seems to be unpopular with many​ managers? A. BARS B. Trait systems C. Behavioral systems D. Forced distribution E. Critical incident technique

D. Forced distribution

Which of the following refers to the actual activities that an employee must perform on the​ job? A. Job evaluation B. Internally consistent job structure C. Job description D. Job content E. Job analysis

D. Job content

​________ is when companies make corrections for differences between their jobs and external benchmark jobs. A. Subjective correction B. Point factor leveling C. Objective correction D. Job leveling E. Occupational classification

D. Job leveling

The​ stair-step model is a type of​ person-focused pay. What do the steps represent in the​ stair-step model? A. Supervisory levels B. Merit pay levels C. Educational levels D. Job levels E. Pay grades

D. Job levels

Which type of jobs would be best suited for​ person-focused pay​ programs? A. Jobs in the retail industry B. Jobs in the fast food industry C. Jobs in the finance industry D. Jobs in manufacturing E. Jobs in telemarketing

D. Jobs in manufacturing

Current​ profit-sharing plans pay cash awards to employees.​ Typically, how often are these​ awarded? A. On a monthly basis B. Every other year C. Every two or three years D. On a quarterly or annual basis E. On a​ semi-annual basis

D. On a quarterly or annual basis

Which is TRUE of using ranking as an alternative​ job-content evaluation​ approach? A. Ranking plans use objective data. B. Qualitative methods used to study job content assign numerical values to rank jobs. C. Simple ranking plans use different criteria to rank jobs. D. Ranking plans use neither job analyses nor job​ descriptions, which makes them harder to defend legally. E. ​Private-sector organizations use classification plans extensively.

D. Ranking plans use neither job analyses nor job​ descriptions, which makes them harder to defend legally.

Java Jazz is a company known for superior pay and good benefits. Java Jazz is having a hard time finding qualified​ employees, and it is experiencing high growth. Which type of incentive should Java Jazz offer to attract potential​ employees? A. Spot bonuses B. Group incentive plan C. Individual incentive plans D. Referral plan E. Management incentive plan

D. Referral plan

The point method is a​ job-content valuation technique. What is the first step when using this​ technique? A. Defining factor degrees B. Choosing compensable factors based on a benchmark C. Determining point values for each factor D. Selecting benchmark jobs E. Determining the weight of each factor

D. Selecting benchmark jobs

Which of the following best describes what a​ well-designed pay structure​ promotes? A. A reduction in payroll costs B. Identification of which pay system is the best to use C. A​ company-wide balanced budget D. The retention of valued employees E. Limiting the number of excess employees

D. The retention of valued employees

What does the term market pay line imply when conducting a regression​ analysis? A. The lowest wages paid in the market B. The highest wages paid in the market C. The deviation in pay rates D. The typical market pay rates expressed as a mean or median E. Insignificant pay rate increases in the market

D. The typical market pay rates expressed as a mean or median

Who is ultimately responsible for making compensation policy​ decisions? A. Employees B. HR specialists C. Supervisors D. Top management E. Labor unions

D. Top management

A committee created to​ design, oversee, and evaluate jobs would include representatives from all of the following groups EXCEPT​ ________. A. supervisors B. ​rank-and-file employees C. managers D. customers E. labor unions

D. customers

Incentive plans that promote collaborative behavior are called​ ________. A. behavioral rewards B. ​team-building incentives C. gainsharing plans D. group incentive plans E. cooperation incentives

D. group incentive plans

Renata works for a private employer that does not follow the seniority pay​ system, but​ Koren, her​ friend, works for the federal​ government, which awards seniority pay. Koren has an advantage over Renata because​ ________. A. he knows that he will get seniority pay as well as a​ cost-of-living adjustment B. the federal government is known for taking care of its employees C. he can expect much larger pay raises D. he knows that he will be treated fairly because seniority pay is an objective standard E. he is male and will always receive better raises than Renata

D. he knows that he will be treated fairly because seniority pay is an objective standard

Nikki works at a factory where she is responsible for producing collector dolls. Nikki is compensated based on the number of dolls she produces each day. This employer uses​ ________. A. group incentive plans B. bonus plans C. ​company-wide incentive plans D. individual incentive plans E. merit plans

D. individual incentive plans

A software company is launching its new product line. The performance standards of the salespeople responsible for promoting the software should be judged based on​ ________. A. how they​ self-appraise themselves B. their job descriptions C. making sure that effective appraisals are in place D. linking their performance to the​ company's business strategy or goals E. communicating clearly to them about merit increases

D. linking their performance to the​ company's business strategy or goals

Companies emphasize some elements relative to others such as merit pay and​ short-term incentives focused on individual performance in formulating​ ____________. A. core benefits B. pay match C. stock options D. pay mix E. ​long-term compensation awards

D. pay mix

One of the key advantages of​ person-focused pay for employers is that employers can​ ________. A. reduce the workforce during slow cycles B. almost guarantee the work performance of employees C. be assured of little to no absenteeism D. rely on leaner staffing E. reduce employee training costs

D. rely on leaner staffing

Generally, supervisors give merit raises based on a subjective assessment of the​ employee's performance. It is therefore essential that​ ________. A. supervisors become friendly with their employees B. supervisors do not give a high level of merit pay C. employees not put much effort into obtaining merit pay D. supervisors conduct accurate performance appraisals for merit pay to be effective E. employees get a commitment from the supervisor before extending any effort for merit pay

D. supervisors conduct accurate performance appraisals for merit pay to be effective

A key piece of information that compensation specialists hope to gain from compensation surveys is about​ ________. A. the​ cost-of-living adjustments being given at other companies B. the types of benefits their competitors are offering C. the role supervisors play at other companies regarding pay D. the pay practices of their competitors and employee preferences for different forms of compensation E. the type of​ on-site facilities employees want

D. the pay practices of their competitors and employee preferences for different forms of compensation

Person-focused pay programs are innovative because they​ ________. A. reward employees for taking high levels of risk on the job B. reward employees very well for lack of absenteeism C. reward employees on the basis of loyalty D. treat compensation as a reward rather than an entitlement E. make supervisors more accountable on the job

D. treat compensation as a reward rather than an entitlement

Rita has applied for an​ entry-level position in a marketing firm. She believes she meets the minimum qualifications for the job and that she has the​ knowledge, skills, and abilities to perform the job well. In other​ words, Rita believes she has the necessary​ ________. A. job content B. worker certification C. work ethic D. worker requirements E. background check

D. worker requirements

Marketing-for-All relies on its employees developing certain skills that address the key concerns of the​ company, like customer relations skills. The company rewards its employees by assigning points to skills such as customer​ relations, communication​ skills, and creativity. Which type of​ person-focused pay program is​ Marketing-for-All more than likely​ following? A. Horizontal skill model B. ​Stair-step model C. ​Skill-block model D. ​Job-point accrual model E. ​Cross-departmental model

D. ​Job-point accrual model

What is the difference between​ person-focused pay and incentive​ pay? A. ​Person-focused pay is agreed upon in​ advance, but incentive pay is not. B. ​Person-focused pay is a much larger amount than incentive pay. C. ​Person-focused pay is paid one​ time, but incentive pay is ongoing. D. ​Person-focused pay is for skill​ development, but incentive pay is​ one-time pay for the attainment of goals communicated in advance. E. ​Person-focused pay focuses on past​ performance, whereas incentive pay focuses on future performance.

D. ​Person-focused pay is for skill​ development, but incentive pay is​ one-time pay for the attainment of goals communicated in advance.

Companies generally institute incentive pay programs to control payroll costs and motivate employee productivity. Of the​ following, which would be an example of an incentive pay program element that could help an organization meet those​ objectives? A. Seniority pay raise B. Overtime pay program C. Increasing sales commissions from​ 20% to​ 25% of sales D. ​Profit-sharing program E. ​10% base pay increase for all employees

D. ​Profit-sharing program

Juan works as a salesperson for a major farming equipment manufacturer.​ Usually, there is considerable lead time between when he approaches a prospective client and when the sale is finalized. Juan typically generates demand for the product and another member of the sales team closes the sale. What type of commission would be most appropriate for​ Juan? A. ​Commission-plus-draw plan B. ​Salary-plus-commission plan C. ​Commission-only plan D. ​Salary-only plan E. ​Salary-plus-bonus plan

D. ​Salary-only plan

Which of the following rewards newly hired employees less than established or tenured​ employees? A. Pay compression B. Broadbanding C. ​Salary-only plans D. ​Two-tier pay structures E. ​Commission-only plans

D. ​Two-tier pay structures

A job evaluation committee frequently uses the point method as a job valuation technique. When using the point​ method, an evaluation committee examines the importance of a factor to the overall value of the​ job, which means the committee is​ ________. A. defining factor degrees B. verifying factor degrees and point values C. selecting benchmark jobs D. determining the weight of each factor E. determining the point value of each compensable factor

D. determining the weight of each factor

Which of the following would be considered an example of incentive​ pay? A. A toy store manager decides to give her employees a holiday bonus on the first of the year because of the scheduling flexibility they showed during the busy holiday season. B. After a particularly sluggish​ year, a restaurant owner decides to provide her customers an incentive to visit more often. She slashes prices on the menu by an average of​ 15% and offers a loyalty card that entitles card bearers a free meal after purchasing 10 meals. C. At the annual sales convention held by a large marketing​ organization, the president of the organization announces that there will be a new policy. Each​ year, the five​ top-selling sales representatives will each win a​ week-long vacation for two in the Bahamas. In​ addition, each will be given​ $2,500 in spending money for the trip. D. A pizza shop owner raises his​ employees' hourly wage by 50 cents in an effort to encourage them to increase their speed of service. E. A lawn care service owner pays his two salespeople a salary of​ $25,000 per year. On February​ 1, he informs them that for every 15 new clients one of them​ signs, that salesperson will earn a​ $200 bonus.​ Also, if the​ company's profits for the year increase by​ 15%, they each will be given​ $1,000 of the profit increase.

E. A lawn care service owner pays his two salespeople a salary of​ $25,000 per year. On February​ 1, he informs them that for every 15 new clients one of them​ signs, that salesperson will earn a​ $200 bonus.​ Also, if the​ company's profits for the year increase by​ 15%, they each will be given​ $1,000 of the profit increase.

Which of the following best defines group​ incentives? A. Incentive pay based on individual group​ members' contribution B. A program that rewards groups on​ company-wide objectives C. Incentives paid to group members based on individual performance D. An incentive fund that can be distributed to individual team members based on supervisor appraisals E. A program that rewards employees for their collective performance

E. A program that rewards employees for their collective performance

Which statement is​ correct? A. Supervisors are generally very objective when awarding merit pay. B. Administration of merit pay programs depends solely on the skills of the​ supervisor, not necessarily on the design and implementation of merit pay programs. C. The frequency with which employees are provided feedback on their performance is not very critical. D. When employees get continual and ongoing​ feedback, they learn to dread performance appraisals. E. Accurate and effective performance appraisals are key for effective merit pay programs.

E. Accurate and effective performance appraisals are key for effective merit pay programs.

What is the balance that companies must strike when it comes to designing a differentiation pay​ strategy? A. Providing employees generous benefits while keeping compensation costs to a minimum B. Paying employees lower pay than competitors and keeping employees from joining unions C. Trying to match their overhead costs to their competitors while keeping up with productivity levels D. Paying employees competitively while pursuing a​ lowest-cost strategy E. Attracting and retaining qualified candidates with sufficient pay and giving them adequate resources with which to work

E. Attracting and retaining qualified candidates with sufficient pay and giving them adequate resources with which to work

Which type of incentive would be most applicable for a company that values employees with exemplary attendance​ records? A. Referral plan B. Spot bonuses C. Piecework plan D. Management incentive plan E. Behavioral encouragement plan

E. Behavioral encouragement plan

Which of the following is TRUE in regard to​ benefits? A. Benefits costs have been falling for most companies. B. Benefits are becoming a smaller component of total compensation packages. C. Benefits are currently far less important to employees than base pay. D. Compensation surveys do not take into account​ benefits; they concentrate on base pay. E. Benefits costs have​ increased, giving rise to greater variability in benefits among companies.

E. Benefits costs have​ increased, giving rise to greater variability in benefits among companies.

An appropriate pay mix should consider the relative worth of jobs within a structure. Keeping this in​ mind, most of the bonus compensation in a technology company like Intel would likely be given to which of the following​ groups? A. Custodial staff B. Sales and marketing staff C. Blue collar workers D. Administrative staff E. Engineers

E. Engineers

Matt, Juan,​ Linda, and Ming are working on a new product for their company that will be launched in the near future. Management wants to reinforce cohesiveness among the team. Which type of group incentive plan would be best suited for attaining the management​ objective? A. ​Gain-sharing plans B. Differential incentive payments C. Differential payments based on ratio of base pay D. Referral plans E. Equal incentive payments approach

E. Equal incentive payments approach

Anna is a new graduate with a B.S. degree in Business Management and is entering the workforce. Which type of competencies will a future employer expect Anna to​ demonstrate? A. ​Industry-sector technical competencies B. Workplace competencies C. ​Industry-related competencies D. ​Occupation-related competencies E. Foundational competencies

E. Foundational competencies

What is one of the most difficult tasks managers face when they guide employees towards​ person-focused pay? A. Making employees understand the incentive pay structure B. Making employees understand the base pay structure C. Trying to help employees understand the connection between seniority and​ person-focused pay systems D. Aligning employee pay with the knowledge structure E. Helping employees understand how training relates to the performance appraisal system

E. Helping employees understand how training relates to the performance appraisal system

Companies often award incentive pay based on the volume of production. What is a common issue associated with incentive pay based on this type of​ measure? A. It makes it harder for operations managers to count the volume produced. B. It makes it more difficult for businesses to determine production needs. C. It requires making cCostly changes in the production process become necessary. D. It makes incentive pay more time consuming to calculate and distribute. E. It leads to workers who meet production quotas being intimidated by workers who do not.

E. It leads to workers who meet production quotas being intimidated by workers who do not.

Who should be involved in job leveling in a​ company? A. Employees and HR professionals B. Employees and union leaders C. Compensation professionals D. Compensation professionals and HR specialists E. Job incumbents and supervisors

E. Job incumbents and supervisors

Following which type of pay level policy would enable a company to follow a​ lowest-cost strategy? A. Market match B. Market lead C. Pay mix D. Base wage E. Market lag

E. Market lag

What is a​ draw? A. A bonus payment B. An increase in base pay C. A type of merit pay D. An employee incentive E. Money to cover basic living expenses

E. Money to cover basic living expenses

________ group jobs based on similar compensable factors for the purpose of pay policy application. A. Pay compressions B. Red circle rates C. Green circle rates D. ​Compa-ratios E. Pay grades

E. Pay grades

Performance targets establish effective​ appraisals, which strengthen the​ pay-for-performance link. What is the best way to establish performance​ targets? A. The supervisor should set the standard as the supervisor sees fit. B. Find out how other companies set performance targets. C. Set performance targets based on prior performance appraisal. D. Ask the employees to set targets for themselves. E. Refer to the performance standards listed within job descriptions.

E. Refer to the performance standards listed within job descriptions.

What statistical method makes it possible for compensation specialists to set pay rates for a set of jobs that are consistent with the pay rates in the​ market? A. Hypothesis testing B. Average deviation C. Normal distribution D. Standard deviation E. Regression analysis

E. Regression analysis

Which of the following would be the best source for providing information on the interrelationship among jobs when conducting a job​ analysis? A. New hires B. Compensation specialists C. Job incumbents D. ​Ex-employees E. Supervisors

E. Supervisors

Which statement about the skills and education of global workers is​ FALSE? A. Learning is emphasized by many employers in both the European Common Market and some Pacific Rim economies. B. Some private sector firms in Ireland offer employees training in​ technology, science, and marketing. C. Western European economies provide vocational instruction for the​ non-college-bound members of their workforces. D. In the​ EU, academic institutions and employers often collaborate to educate workers. E. The U.S. provides highly successful apprenticeship programs to both high school students and continuing education employees.

E. The U.S. provides highly successful apprenticeship programs to both high school students and continuing education employees.

What is the key advantage to an employee who works for an employer that awards​ job-based pay as opposed to an employer that awards​ person-focused pay? A. The employee acquires new knowledge and skills. B. The employee is rewarded on the proficiency of past work. C. The employee can look forward to automatic pay raises. D. The employee is rewarded for taking additional classes. E. The employee is rewarded for job performance.

E. The employee is rewarded for job performance.

Which of the following describes midpoint pay​ value? A. The vertical dimension of pay grades B. High pay rates for certain employees in order to retain valued individuals C. An index of the relative competitiveness of internal pay rates D. The difference between the maximum and minimum pay rates E. The halfway mark on the pay range of minimum and maximum rates

E. The halfway mark on the pay range of minimum and maximum rates

Management most often and typically relies on what measurement to determine incentive​ pay? A. The educational level of an employee B. An​ employee's length of employment C. ​Management's subjective assessment of an employee D. An​ employee's level of technical skills E. The​ company's achievement of business objectives

E. The​ company's achievement of business objectives

Cesar has worked as a junior clerk for XYZ Company for three​ months, starting at​ $10 per hour. In the next five to seven​ years, if Cesar continues to perform well and acquires new​ skills, he can more than likely expect​ ________. A. an increase in longevity pay but not seniority pay B. an increase in seniority pay but not longevity pay C. an increase in longevity and seniority pay​ simultaneously, but not a promotion D. a​ cost-of-living increase with no increase in seniority pay E. an increase in seniority pay and a promotion

E. an increase in seniority pay and a promotion

Companies traditionally competed for qualified candidates on the basis of​ ________. A. ​sign-up bonuses B. generous relocation allowances C. quality pension plans D. benefits E. base pay

E. base pay

Incentive or variable pay is defined as compensation other than​ ________ that​ fluctuate(s) according to​ employees' attainment of some​ standard, such as a​ pre-established formula, individual or group​ goals, or company earnings. A. ​performance-based pay B. bonus pay C. merit pay D. ​group-based pay E. base wages or salaries

E. base wages or salaries

Skill blocks are sets of skills​ (knowledge) necessary to perform a job. Before grouping skills into​ blocks, a company needs to​ ________ and​ ________. A. develop job​ descriptions; conduct skills development training B. conduct job​ analyses; determine pay raise structures C. conduct job​ analyses; meet with supervisors to determine job skills D. conduct performance​ appraisals; determine merit and incentive pay levels E. develop job​ descriptions; organize jobs into job families

E. develop job​ descriptions; organize jobs into job families

When sales professionals are required to perform a significant amount of nonsales​ duties, they should be compensated primarily with​ ________. A. incentive pay B. bonus pay C. draws D. frequent promotions E. fixed pay

E. fixed pay

The error that occurs when a rater generalizes an​ employee's good or bad behavior on one aspect of the job to all aspects of the job is known as​ ________. A. contrast error B. first impression effect C. ​similar-to-me effect D. error of central tendency E. halo effect

E. halo effect

Equity assessments become more difficult when​ ________. A. competitors change their pricing practices B. the company uses an externally consistent compensation program C. costs and benefits are fixed D. the number of employees increases E. job definitions become more fluid

E. job definitions become more fluid

Internally consistent compensation systems facilitate the use of lowest cost strategy for companies when​ ________. A. job descriptions are broadly defined and focus on quality B. jobs are placed on a​ hierarchy, with most jobs placed on the​ lower-paid levels C. jobs are valued​ numerically, with most jobs being assigned lower points D. merit pay is not part of the compensation E. job duties and responsibilities are clearly defined with a focus on efficiency

E. job duties and responsibilities are clearly defined with a focus on efficiency

Generally, the greater the influence of the salesperson on the buying​ decision, the​ ________. A. less likely that the salesperson will serve as a consultant to the buyer B. less emphasis on incentive pay in the compensation mix C. greater the likelihood of receiving a straight​ salary-only plan D. less effort will be exerted by the salesperson E. more emphasis on incentive pay in the compensation mix

E. more emphasis on incentive pay in the compensation mix

The​ job-content evaluation technique that rates all jobs from the lowest to the highest on a single criterion is known as​ a(n) ________. A. alternation ranking B. ​job-content plan C. classification plan D. paired comparison E. simple ranking plan

E. simple ranking plan

Marco likes to note several positive and negative behaviors and their outcomes when it comes to documenting performance appraisals of his employees. Marco is more than likely using​ ________. A. BARS B. a forced distribution appraisal C. a comparison system D. a trait system E. the critical incident technique

E. the critical incident technique

In the​ future, white-collar​ public-sector employees in the future can likely expect​ ________. A. to see seniority pay awarded regardless of how employees perform B. the government to eliminate seniority and longevity pay entirely C. seniority pay increases for​ white-collar workers only D. the government to strengthen the seniority and longevity pay schedule E. the government to consider whether its seniority pay system is effective

E. the government to consider whether its seniority pay system is effective

The key difference between the​ stair-step model and the skill blocks model is that​ ________. A. the skill blocks model addresses skill​ depth, but the stairstep model does not B. in the​ stair-step model, skills do not build on each​ other, but in the skill blocks​ model, they do C. the​ stair-step model depends on defined​ curricula, but the skill blocks model does not D. the​ stair-step model deals with general​ skills, and the skill blocks model deals with specialized skills E. the skill blocks model addresses both horizontal and vertical​ skills, but the​ stair-step model addresses skill depth

E. the skill blocks model addresses both horizontal and vertical​ skills, but the​ stair-step model addresses skill depth

Ash has worked hard and is expecting a merit pay increase at the end of the year.​ However, his supervisor Kaylie has never​ "clicked" with​ him, and Ash may not receive the merit pay he expects. In this​ scenario, the problem can be attributed to​ ________. A. a lack of funds available for merit pay B. undesirable competition due to merit pay C. poor performance on the​ employee's part D. a lack of communication between employee and supervisor E. the​ supervisor's biased rating of employee performance

E. the​ supervisor's biased rating of employee performance

Employees are rewarded in a​ company-wide incentive plan​ ________. A. when an individual worker exceeds the performance standard B. regardless of the prevailing profit levels and stock price of the company C. to promote healthy individual competition among workers D. when the company perceives loyalty on the part of the employees E. when the company exceeds the minimum acceptable performance standard

E. when the company exceeds the minimum acceptable performance standard

Under which pay system do employers feel that hourly​ costs, training​ costs, and overhead costs can be​ high? A. ​Job-based pay B. Seniority pay C. Incentive pay D. Merit pay E. ​Person-focused pay

E. ​Person-focused pay

Which of the following statements is​ TRUE? A. Merit pay and​ person-focused pay mesh together very well. B. Incentive pay and merit pay combine together well. C. ​Job-based pay and​ person-focused pay combine well together. D. Incentive pay and​ person-focused pay combine together very well. E. ​Person-focused pay and incentive pay do not mesh well together.

E. ​Person-focused pay and incentive pay do not mesh well together.

Which is TRUE of​ profit-sharing plans? A. There is only type of​ profit-sharing plan in use todaylong dash—the deferred​ profit-sharing plan. B. ​Profit-sharing plans include merit pay. C. ​Profit-sharing plans do not pay cash awards. D. ​Profit-sharing plans are​ long-term in nature. E. ​Profit-sharing plans pay a part of the​ company's profit to the employees

E. ​Profit-sharing plans pay a part of the​ company's profit to the employees

Of the following​ organizations, which one would be most likely to utilize a​ person-focused pay​ program?

TV manufacturer

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

Which of the following statements is​ TRUE? A. Merit and seniority pay are compatible with​ team-based work. B. Traditional pay programs are beneficial for work teams. C. ​Team-based pay plans should compensate employees for achieving group objectives as well as assuming their respective roles in a team. D. Companies that rely on groups should offer more individualistic incentives. E. Individualistic compensation practices encourage group behavior.

​Team-based pay plans should compensate employees for achieving group objectives as well as assuming their respective roles in a team.

When designing incentive​ plans, it is important to keep time horizons in mind. Most HR professionals follow the general guideline that​ ________. A. ​short-term and​ long-term goals can be divided arbitrarily by a supervisor B. long term goals can be achieved in less than 3 years C. ​short-term goals take less than a year and​ long-term goals take longer than a year to be achieved D. ​short-term goals can be achieved in 8 years or less and​ long-term goals take longer than 8 years E. ​short-term goals can be achieved in 5 years or less and​ long-term goals take longer than 5 years

​short-term goals can be achieved in 5 years or less and​ long-term goals take longer than 5 years