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Employee Retirement Income Security Act (ERISA)

Federal law that increased the responsibility of pension plan trustees to protect retirees, established certain rights related to vesting and portability, and created the Pension Benefit Guarantee Corporation

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months following qualifying event, such as layoff, reduction in hours, or the employees death.

Identify the statement that characterizes an industrial union.

Members are linked by their work in a particular industry.

Federal and state taxes paid by employers fund most of unemployment insurance.

Rita, who recently moved to a new city, evaluates several insurance options from her new employer. Owing to her recent medical issues, she wants to choose her health care providers, even if seeing them costs more than seeing the providers in a specific insurance network. Which of the following health care plans is Rita most likely to find suitable for her needs?

a preferred provider organization

Summary Plan Description (SPD)

a report that describes a pension plan's funding, eligibility requirements, risks, and other details; Must be given to employees within 90 days after employees enter the plan

Employee Wellness Program (EWP)

a set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks

What is true of a cash balance plan?

The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills.

Contributory and Noncontributory plans

*Contributory- funded by contributions from the employer and employee. *Noncontributory- all contributions come from employer

Which of the following statements is true of effective performance management?

E- It can tell top performers they are valued.

Social Security benefits may be reduced if a worker is earning wages above a max. dollar figure known as the

Exempt amount

The funding for unemployment insurance comes from federal and state taxes on employees.

False

______ is A group in center program that measures improvement in productivity and effectiveness and distribute a portion of each gain to employee

Gainsharing

What is the most flexible approach to paid time off?

Give employees a bank of paid time off

What are vesting rights?

Guarantee that employees in a pension plan will receive a pension at retirement age, regardless of whether they stay with the employer.

Four conditions required to receive benefits

1. They meet requirements demonstrating they had been employed (often 52 weeks or four quarters of work at a minimum level of pay). 2. They are available for work. 3. They are actively seeking work. This requirement includes registering at the local unemployment office. 4. They were not discharged for cause (such as willful misconduct), did not quit voluntarily, and are not out of work because of a labor dispute (such as a union member on strike).

Linda, who is pregnant, works for an organization with more than 100 employees. She lives 20 miles away from work. By federal law, she is entitled to _____ of unpaid leave after her child is born.

On average, out of every dollar spent by a company on employee compensation, more than _____ cents goes to employee benefits.

Which of the following is an advantage of a qualified plan in retirement benefits?

Immediate tax deductions for the funds employees contribute to the plan

Most pain related communications come through

Individual decisions between employees and their supervisors

Research on the effects of two-tier wage plans found that

Lower paid employees were more satisfied on average then higher paid employees because they made comparisons with lower paying alternatives for them selves

Rose, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Gary, suggest that rose would save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which statement weakens Gary's argument

Rates for group insurance are typically lower than those of individual policies

Which statement is true of using stock options as incentive pay

Stock options are rewarding for employees who exercise their option when the company's stock value has risen

Conducting personal business online during work hours is called:

A- CyberSlacking

The National Labor Relations Act is also known as the _____.

A- Wagner act

Organizations that want employees to focus on efficiency and on group incentives are most likely to implement a _____ program.

C) Gainsharing

Because benefits packages are more complex than pay structures, they are harder for employees to understand and appreciate.

True

Cafeteria-style plans increase benefits costs for employers.

True

The addition of creative benefits packages for employees provides employers a competitive edge in acquiring and retaining talented employees in their organization.

True

The use of wellness programs and consumer-directed health plans in an organization reflect its objective of controlling the cost of healthcare benefits.

True

Which federal law, passed in 1935, supports collective bargaining and sets out the rights of employees to form unions?

Wagner Act

What is characteristic of benefits required by the Social Security Act?

Workers are compensated according to their past earnings and retirement age.

Selena, a supervisor at Truck-All Transport, asks Curtis, the human resource manager, for advice on delivering performance feedback. Selena finds that the meetings tend to be confrontational and don't lead to performance improvement. She tells Curtis how she carefully fills out the appraisal form ahead of time and then invites the employee into the conference room to discuss her feedback immediately, before the employee has time to think up excuses for poor performance. What advice should Curtis give Selena for delivering performance feedback?

C- Selena should give employees a chance to complete a self-assessment ahead of time.

Identify a true statement about decisions related to the global compensation strategy.

C- They affect a company's costs and abilities to compete.

Which of the following is a way in which organizations can promote job satisfaction?

C- They can make jobs more interesting.

Identify the statement that accurately characterizes behavioral approaches to performance measurement.

C- They link the company's goals to the specific behavior required to achieve those goals.

Connor, an HR manager, heard from other managers that there was talk of a union organizing effort at his company. Connor saw no signs of a union at work, so he downplayed the rumors. Therefore, he was caught by surprise when the union presented authorization cards and a request for a representation election. Which statement best explains the flaw in Connor's reasoning about the organizing effort?

C- Unions usually launch an organizing campaign by discussing issues with employees at home.

Zohrina is a top manager at her current company. However, she is leaving the company for a better job at a competing firm. Which of the following forms of turnover is illustrated in this scenario?

C- Voluntary turnover

Bilge Makers Unlimited has a goal to lower the cost of employee benefits. Its human resource department compares the costs of its benefits with averages published by the Bureau of Labor Statistics, the U.S. Chamber of Commerce, and other sources. The investigation shows that its cost for workers' compensation insurance is high relative to other companies. Which of the following actions could best help Bilge Makers accomplish its goal?

C- improve safety to lower the company's experience rating

Which of the following sentences best describes a situation that comparable-worth policies were designed to address?

C- in a city government, positions mostly held by women pay less than positions mostly held by men.

In the context of the activities that an organization uses to help expatriates return home, which of the following activities involves giving the expatriate recognition for the overseas service when the person returns home?

C-Validation

Which of the following is true of child care?

Companies that provide child care facilities face liability concerns.

What is true of child care benefits

Companies that provide childcare facilities face liability concerns

Benjamin is an employee at Apex Inc. who has joined a new team. Sam, his supervisor on this new team, describes the set of behaviors that people will expect of Benjamin. He, however, feels that the demands of his new role are contradictory. Which of the following situations is most likely to be the primary source of Benjamin's dissatisfaction about his role?

D- Apex Inc. has brought together employees like Benjamin from different functions to work on a team to develop a new project.

PrettiGud Furniture has seen sales decline in a highly competitive environment. To be able to offer a lower-cost product, management decides to close its factory in Alabama, laying off 85 workers from the company's 465-person workforce. Under the Workers' Adjustment Retraining and Notification Act, what must PrettiGud Furniture do?

D- It must give the employees 60 days' notice before it can begin the layoffs.

In a company's merit pay program, individuals' compa-ratio represents their:

D- Pay relative to average pay

An organization's choices about ....... Are limited by its response to the economic forces of product markets and labor markets

D- Pay structure

In the context of an organization's human resource division, which of the following statements is true of customers?

D- They refer to the organization as a whole and its other divisions.

In a high performance work system, organizational structure promotes cooperation, learning , and:

D- continuous improvement

Which of the following terms refers to a referral service that employees can make use of to pursue professional treatment for emotional problems or substance abuse?

D- employee assistance program

Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?

D- employee stock ownership plan

Which of the following is a typical factor used to determine retirement benefit levels under a defined benefit retirement plan?

D- employees year of service, age

According to your text, people will be satisfied with their jobs as long as they perceive that

D- their jobs meet their important values.

The employees of Fanzi Textiles Inc. are concerned about company management overlooking their interests. They decide to form a union to voice their concerns and speak up for their rights. They elect Ronny to represent them during negotiations. Ronny's new role requires him to ensure that the terms of the labor contract are enforced and that the interests of the union are met. In this context, Ronny most likely holds the position of _____.

D- union steward

Marshall finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. In this case, which of the following is true? A. He will receive full retirement benefits. B. He will receive retirement benefits only according to his earnings history. C. He will not be eligible for worker's compensation. D. He will receive benefits at a permanently reduced level. E. His exempt amount limits will be lifted.

D. He will receive benefits at a permanently reduced level.

Tucked ink. Is an envelope manufacturer based in Fort Worth. The employees of the organization receive pay based on the amount of work produced. If the output of an employee is more than the average production volume , Then the organization pays more for the work performed. In this case which incentive is offered by Tucked Inc

Differential piecework rate

Which of the following is true of child care?

E) Companies that provide child care facilities face liability concerns.

Which of the following statements is true about a piecework rate plan?

E) It has a direct link between the work done by the employee and the amount earned

consumer-driven health plans (CDHP)

health care plans that provide incentives for employees to make decisions that help lower health care costs

Under the Older Workers Benefit Protection Act of 1990, which guideline must employers follow when asking employees to sign early-retirement waivers?

inform employees that they may consult with a lawyer before signing

Lyla, a neutral third party, tries to resolve a conflict initiated by a manager and union representative at Houghlin Inc. She does so by listening to what both parties have to say about the issue and facilitating the negotiations. In this scenario, Lyla is exercising which type of alternative to work stoppages?

mediation

Elder Care Benefits

most employers offer employees information and referrals for care facilities.

tuition reimbursement programs

most organizations offer ______ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills

Sick leave programs

pay employees for days not worked due to illness.

Workers' Compensation Insurance employer requirement

provide coverage according to state requirements.

Appropriate behavior in Ghana includes

repaying obligations

Meaning or work sharing

short-time compensation in which companies reduce wages and hours, and employees receive partial unemployment benefits, rather than laying off workers.

pay employees for days no worked due to illness

sick leave programs

What is the main objective of a company using the balance sheet approach to determine compensation for expatriate managers?

to give the manager the same standard of living plus extra for the inconvenience of moving

A ________ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits.

top heavy

Most organizations offer ________ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills.

tuition reimbursement programs

employee

under the 401(k) plan, the ____ is responsible for choosing specific investments

guarantee that employees in a pension plan will receive pension at retirement regardless of whether

what are vesting rights

Brandon, an American, works for a company that manufactures electronics. His managers select him for an assignment to lead the launch of a new product line in Germany. Which topic will be the most important during training to prepare him for the assignment?

what to expect from German culture

TRUE

because benefit packages are more complex than pay structures, they are harder for employees to understand and appreciate

74. Which of the following is a function of elder care benefits offered by organizations? A. direct financial assistance B. tax exemptions on medical bills of the dependent elders C. setting up elderly care facilities close to the workplace D. information, referrals, and support E. providing vouchers and discounts to help employees access the existing elderly care facilities

Employee Benefits

compensation in forms other than cash

Pension Benefit guarantee corporation (PBGC)

created by ERISA. a federal agency that insures retirement benefits and guarantees retirees a basic benefit if the employer experiences financial difficulties.

Straight commission plans are plans which:

B) Are common among insurance and real estate agents.

What is an advantage of a qualified plan in retirement benefits

immediate tax deductions for the fans employees contribute to the plan

Kolese Inc., a manufacturing company, includes stock options and stock purchase plans. Executives at the company will want to do what is best for Kolese because that will cause the value of the stock to grow. Which of the following is being exemplified in this scenario?

A- Long term incentive

Vincent has just been discharged from his job after the company he was working for started downsizing. Confused about his state of joblessness, Vincent threatens to sue the company for reparations. Which of the following programs can help the company avoid such situations from exiting employees.

A- Outplacement counseling

Which of the following is an advantage of a qualified plan in retirement benefits? A. Immediate tax deductions for the funds employees contribute to the plan B. Taxable earnings on the money in the retirement fund C. Tax-free withdrawals for highly compensated employees D. Exemption of contribution from employees E. A retirement plan that provides benefits exclusively to its owners and top managers

A. Immediate tax deductions for the funds employees contribute to the plan

Steve, the vice president of Ocher Inc., plans to introduce a retirement plan for all employees. George, the operations director, disagrees because the proposed plan would increase the company's costs. Which of the following, if true, strengthens Steve's argument? A. Some benefits have become so common that today's employees expect them. B. Benefit packages are more complex than pay structures. C. The employees at Ocher are young adults who prefer cash compensation to benefits. D. Benefit packages do not affect the competitive nature of the labor market. E. The federal government does not have mandatory requirements for specific retirement plans.

A. Some benefits have become so common that today's employees expect them.

he United Association of Plumbers and Pipefitters is a labor union that seeks to unite plumbers and pipefitters from around the country. The members of this union exhibit the same set of skills and are proficient in relatively similar tasks. Such an association is most likely an example of a(n) _____.

B- Craft Union

On average, out of every dollar spent by a company on employee compensation, more than _____ cents goes to employee benefits. A. 75 B. 30 C. 50 D. 15 E. 20

B. 30

Which of the following is true of employee benefits? A. Employees have a thorough understanding of what benefits they have and what the market value of these benefits is. B. Employees significantly underestimate the cost and value of their benefits. C. Employers do an effective job of communicating the cost and value of benefits to their employees. D. Employees, for the most part, are just not interested in their benefits. E. Employers have very limited options for communicating information about benefits.

B. Employees significantly underestimate the cost and value of their benefits.

Kelly is a new employee of a company, and her company provides a group insurance plan that she can enroll in. Her friend, Michael, suggests that Kelly would be able to save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which of the following weakens Michael's argument? A. Individual plans are typically offered only to senior executives. B. Rates for group insurance are typically lower than that of individual policies. C. Kelly will not be eligible for other benefits if she does not enroll in a group insurance plan. D. Employees get more for their money when they receive insurance as a group benefit. E. Kelly will get more take-home pay if she opts for a group insurance plan.

B. Rates for group insurance are typically lower than that of individual policies.

Chandler is the owner of a restaurant called KC Kitchen. He decides to increase employee motivation by introducing benefit packages. However, Alivia, the manager, suggests that employees will be more motivated if Chandler increases their actual wages. Which statement, if true, strengthens Alivia's argument?

Benefit packages are more difficult to understand by employees than pay structures.

What is the difference between bonuses and team awards

Bonuses reward attainment of a specific goal, where is team awards reward performance measured more broadly

Which of the following is true about continuous learning?

C- Employees should continuously learn about their work systems to improve performance.

Which of the following practices is most likely to enhance occupational intimacy?

C- Establishing policies that show concern for employees' needs.

Scorla Automobiles is a manufacturing company based in Nevada. The employees of Scorla are paid the lowest amount under federal or state law, which is stated as an amount of pay per hour. Which law is the organization abiding by?

C- Fair Labor Standards Act (FLSA) of minimum wage

Which of the following factors is considered while calculating the retirement benefit levels under a defined benefit retirement plan? A. The state where the person was employed during the retirement year B. Number of dependents C. Employees' years of service, age, and earnings level D. Average earning during the last 20 years of employment E. Number of unused leaves at the end of the retirement year

C. Employees' years of service, age, and earnings level

What is the compensation referred to when employees receive pay that is not cash

Employee benefits

How do cafeteria-style plans increase costs for employers? A. Employers pay much higher premiums for an HMO than a preferred health care plan. B. Employers are required to pay higher insurance premiums for laid-off workers. C. Contributions to PGBC to fund the retirement plan increases under this plan. D. Employees select the kind of benefits they expect to need the most. E. Employers bear the cost of providing employees with benefits they do not value.

D. Employees select the kind of benefits they expect to need the most.

Which of the following is a function of elder care benefits offered by organizations? A. They provide direct financial assistance. B. They provide tax exemptions on medical bills of the dependent elders. C. They set up elderly care facilities close to the workplace. D. They provide information, referrals, and support. E. They provide vouchers and discounts to help employees access the existing elderly care facilities.

D. They provide information, referrals, and support.

In which of the following situations will workers become eligible for unemployment benefits? A. When they have worked only for a few days B. When they are out of work because they are sick C. When they are discharged because of willful misconduct D. When they are actively seeking work E. When they are out of work because of a labor dispute

D. When they are actively seeking work

Money Purchase Plan

Defined contribution plan that specifies a level of annual contributions to be invested.

What is legally required by an organization while offering early retirement incentive

Ensuring there is no coercion used to force employees to retire

David, The HR Vice President at Redding Co, evaluates responses from an employee survey at the companies annual benefits presentation. He concludes that many employees are confused about their options for health insurance and they are often unhappy with the policy they choose. What should David do about the situation

Introduce software that will guide employees to the insurance option for their needs

he will receive benefits at a permanently reduced level

Marshall

Identify the right statement regarding the effects of unions on company performance.

On average, union members receive higher wages and more generous benefits than nonunion workers.

Kelly, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Michael, suggests that Kelly would be able to save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which of the following weakens Michael's argument?

Rates for group insurance are typically lower than those of individual policies.

Roger is the head of the insurance claims department. Roger works for longer hours than his subordinates, however, he is not paid overtime for working more than 40 hours per week. Under the FLSA, which statement justifies the organizations decision not to give Rogers overtime pay

Roger is considered as an exempt employee

Ron and Yin Our welders working for two different divisions of the same company. Both on the same level of experience. However, Ron earns more than 10. Under the fair labor standards act, which statement as far as organization decision to pay Ron more than you'lour welder is working for two different divisions of the same company. Both have the same level of experience. However, Ron earns more than yen. Under the fair labor standards act, which statement as far as organization decision to pay Ron more than Yin

Ron lives in a location where living expenses are higher

Park Production offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of their age, earnings, and years of service. But the company didn't keep up with technology, and its earnings fell. When the stock market dipped, the company could no longer afford to keep paying for its retirement benefits. What protection will the retirees have in this situation?

The Pension Benefit Guarantee Corporation will provide them with a basic benefit.

29. On average, out of every dollar spent by a company on employee compensation, more than _____ cents goes to employee benefits. A. 75 B. 30 C. 50 D. 15 E. 20

33. Which of the following is characteristic of benefits required by the Social Security Act? A. Workers receive no benefits until they reach the full retirement age. B. Workers are compensated according to their past earnings and retirement age. C. Workers receive increased benefits when they earn more than the exempt amount. D. The cost of the program is borne entirely by the employers, who pay a payroll tax. E. The program benefits persons who are financially dependent on current workers.

82. Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called A. preferred provider plans. B. cafeteria-style plans. C. defined-benefit plans. D. flexible spending accounts. E. cash balance plans.

57. During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, Harold, suggests getting long-term disability insurance for all employees. Alexis, HR manager, disagrees with him stating that short-term disability coverage is more advantageous for the company. Which of the following supports Alexis' statement? A. Short-term disability coverage is offered by few employers, which leads to a competitive advantage. B. Long-term disability coverage does not have any limits on the amount to be paid each month to employees. C. Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company. D. The nature of work is such that the level of risk involved is high and injuries could be permanent. E. The majority of the workforce is middle-aged and prefers long-term coverage.

37. In which of the following situations will workers become eligible for unemployment benefits? A. when they have worked only for a few days B. when they are out of work because they are sick C. when they are discharged because of willful misconduct D. when they are actively seeking work E. when they are out of work because of a labor dispute

cafeteria-style plan disadvantage

they have a higher administrative cost

meaning of experience rating

# of employees the company laid off in the past and the cost of providing them w/unemployment benefits.

Different Defined-Contribution plans

*Money purchase plan *Profit-sharing and employee stock ownership plans *Section 401(k) plans

conditions employees must meet to be paid unemployment benefits

1) meet requirements demonstrating they had been employed 2) Available for work 3) Actively seeking work. registering at local unemployment office. 4) They were not discharged for cause. did not quit voluntarily and are not out of work because of labor dispute.

Eleanor, who is pregnant, works for an organization with more than 100 employees. She lives 20 miles away from work. By federal law, she is entitled to ________ of unpaid leave after her child is born.

12 weeks

Linda, who is pregnant, works for an organization with more than 100 employees. She lives 20 miles away from work. By federal law, she is entitled to _____ of unpaid leave after her child is born.

12 weeks

Linda, who is pregnant, works for an organization with more than 100 employees. She lives 20 miles away from work. By federal law, she is entitled to ________ of unpaid leave after her child is born.

12 weeks

Employee retirement income security act (ERISA)

1974. increased responsibility of pension plan trustees to protect retirees, est. certain rights related to vesting and portability (being able to move retirement savings when changing employers)

Consolidated Omnibus Budget Reconciliation Act (COBRA)

1985. the federal law requires employers to permit employees to extend their health insurance coverage at group rates for up to 36 months following a "qualifying event."

On average, out of every dollar spent by a company on employee compensation, more than ________ cents goes to employee benefits.

Of every dollar spent on employee compesation, about how much pays for benefits?

30 cents

Helen is a marketing manager at a local equipment manufacturer. She and her husband know that saving for college for their 4-year-old twin boys is a challenge. Her employer recently implemented a college tuition plan that lets parents and other family members defer taxes on their contributions to the plan. What is the type of plan recently implemented?

529 Savings Plan

Erica is a marketing manager at a local equipment manufacturer. She knows that saving for college for her five-year-old twin boys as a challenge. Her player recently implemented a college tuition plan that lets parents and other family members defer taxes on their contributions to the plan. What is the type of plan being implemented

529 savings plan

Infotech Inc.. A sales and marketing company, wants to combine that advantages of different incentive pay plans and help employees understand the organizations goals which plan will help the company accomplish this goal

A balanced scorecard

Jerome is the CEO of a magazine publishing company. He wants to provide benefits for his employees but would still like to control his company's costs. Ashley, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Jerome doing so?

He will avoid the cost of providing employees with benefits they don't value.

Ravi is the CEO of a magazine publishing company. He wants to provide benefits for his employees, but would still like to control his company's costs. Jess, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Ravi doing so?

He will avoid the cost of providing employees with benefits they don't value.

Chad finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. Which statement is true?

He will receive benefits at a permanently reduced level.

Marshall finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. In this case, which of the following is true

He will receive benefits at a permanently reduced level.

The employee benefits at Arvin shine, a high tech firm, includes a basketball team, a gym, and on-site massage therapist. In which way are these benefits most likely to support the company's business goals

By helping employees cope with demanding high stress jobs

Marshall finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. In this case, which of the following is true?

He will receive benefits at a permanently reduced level.

What is true of child care benefits?

Companies that provide child care facilities face liability concerns.

Home Decor Factory and a union conducting an organizing campaign agree on the time and place of an election and a way to determine who can vote. Which type of election does this scenario best describe?

Consent election

Which benefits are provided to almost 90% of full-time employees?

Health care Insurance

Which of the following is an advantage of a qualified plan in retirement benefits?

Immediate tax deductions for the funds employees contribute to the plan.

Under the Older Workers Benefit Protection Act of 1990, which of the following guidelines must employers follow when asking employees to sign early-retirement waivers?

Inform employees that they may consult with a lawyer before signing.

Under the Older Workers Benefit Protection Act of 1990, which of the following guidelines must employers follow when asking employees to sign early-retirement waivers?

Inform employees that they may consult with a lawyer before signing.

Which description best to find an organization's job structure

It consist of a relative pay for different jobs with in the organization

What is the advantage to a two-tier wage system

It helps reduce labor costs without cutting employees existing salaries

Jerry loses his job during a layoff at his company. He's worried about not having access to his health insurance benefits anymore. However, his company is required to offer him the same health insurance coverage for up to 36 months following the layoff. Which federal law applies in this scenario?

Consolidated Omnibus Budget Reconciliation Act

Government raises S.S payments each year to adjust for inflation in the....

Consumer price index

Consumer-driven health plan

Evan is the human resource manager apple one-year-old technology company. The founder want him to set up a retirement plan. Evan thinks the best approach during the companies early years would be defined contribution plan funded with profit sharing dollars. Which statement best supports Evans idea

Contributing a share of profits gives the company more flexibility as it establishes itself

Evan is the human resource manager of a one-year-old technology company. The founder wants him to set up a retirement plan. Evan thinks the best approach during the company's early years would be a defined-contribution plan funded with profit-sharing dollars. Which statement best supports Evan's idea?

Contributing a share of profits gives the company more flexibility as it establishes itself.

Ian is the human resource manager of a one-year-old technology company. The founder wants him to set up a retirement plan. Ian thinks the best approach during the company's early years would be a defined-contribution plan funded with profit-sharing dollars. Which statement best supports Ian's idea?

Contributing a share of profits gives the company more flexibility as it establishes itself.

What is a typical objective most companies use when selecting employee benefits?

Controlling health care costs

The Walsh Healey public contracts out at 1936

Covers all government contractors receiving $10,000 or more in federal funds

The Rudd-Mitchell organization uses the Scanlon plan to provide incentives to its employees. The workers produce electrical components worth $5 million. The target ratio set by the organization is 30%. The employees will be given a bonus if the actual labor costs are less than:

D) $1.5 million

Which of the following is covered by the National Labor Relations Act (NLRA)?

E- A worker going out on strike to secure better working conditions.

paige was recently dismissed from her job in a hardware store...

E- By setting up a performance management system that documents employee performance problems

Tina, and HR manager, and her staff to the long hours to planning and running a "benefits fair", where employees can be displays and ask questions about the various parts of the company's benefits package. The following week, the marketing manager ask if the effort was worthwhile. Tina says it was. What is the most likely reason for Tina's opinion

It increased employees commitment and satisfaction so they contribute more to the company

Employee wellness program

Which of the following factors is considered while calculating the retirement benefit levels under a defined benefit retirement plan

Employee's years of service, age and earnings level.

What is it advantage of cafeteria style plans

Employees can get a better understanding of the value of benefits provided

Which of the following is an advantage of cafeteria-style plans?

Employees can get a better understanding of the value of benefits provided.

As Monty Corp., a shoe manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Juliet, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which statement best supports Juliet's argument?

Employees do not pay income taxes on most benefits they receive.

As Ray Inc., a shoe manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Tanya, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which of the following statements best supports Tanya's argument?

Employees do not pay income taxes on most benefits they receive.

What is true of employee benefits

Employees have a hard time understanding the cost and value after benefits

What is true of employee benefits?

Employees have a hard time understanding the cost and value of their benefits.

Isaiah, an HR manager, conducted a survey to learn which benefits employees value the most. He discovers that the survey results will be difficult to apply. What is the most likely reason?

Employees have very different opinions about what they value.

Vince, an HR manager, conducts a survey to learn which benefits employees value the most. However, he finds that the survey results are difficult to apply. What is the most likely reason?

Employees have very different opinions about what they value.

How do cafeteria-style plans increase costs for employers?

Employees select the kind of benefits they expect to need the most.

Which of the following is true of employee benefits?

Employees significantly underestimate the cost and value of their benefits.

Allen, the CEO of a company, considers dropping medical insurance from the list of benefits provided to its employees. Monique, the operations director, disagrees with Allen by stating that medical insurance is a high-value benefit. Which of the following supports Monique's statement?

Employees usually realize that surgery or a major illness can be financially devastating.

What common condition is necessary for gainsharing to be successful in an organization

Employees who value working in groups

Joe a supervisor believes that the employee should participate in PA related decisions he says that it will most likely help in the success of incentive plans and plans are more likely to influence employee behavior ass desired. Which statement weakens his argument

Employees will make decisions that are in their best interest at the expense of the organizations interest

Which of the following is an advantage of providing benefits instead of cash compensation?

Employers can assemble creative benefits packages that give them a competitive advantage.

What are 2 of the reasons organizations now pay a growing share of compensation in the form of benefits?

Employers can often get a better deal on programs than the individual employee, and Employers are required by law to pay certain benefits.

In the United States, what is the legal requirement for giving employees paid vacation?

Employers decide on paid time off; there is no minimum.

What is a requirement set for employers under the Financial Accounting Standards Board standards?

Employers must set aside the funds they expect to need for benefits to be paid after retirement.

Which of the following is a requirement set for employers under the Financial Accounting Standards Board (FASB) standards?

Employers must set aside the funds they expect to need for benefits to be paid after retirement.

Which of the following is a requirement set for employers under the Financial Accounting Standards Board (FASB) standards?

Employers must set aside the funds they expect to need for benefits to be paid after retirement.

Which of the following is legally required by an organization while offering early retirement incentives?

Ensuring there is no coercion used to force employees to retire.

Edgar, a production worker, complains to a human resource professional at his company that when he asked his supervisor for a week off to care for his son after surgery, the supervisor replied, "Can't your wife do that instead?" Which statement best summarizes what the HR professional should explain to the supervisor?

Equal employment opportunity requires that access to benefits not be limited by sex.

Mario, a production worker, complains to a human resource professional at his company that when he asked his supervisor for a week off to care for his son after surgery, the supervisor replied, "Can't your wife do that instead?" Which of the following statements best summarizes what the HR professional should explain to the supervisor?

Equal employment opportunity requires that access to benefits not be limited by sex.

Karen and Ethan execute the same roles and responsibilities at their organization. However, Ethan earns more than caring. Under the laws covering equal employment opportunity which statement will justify the organizations decision to pay even more than Karen

Ethan has more experience than Karen

Willow producers as a manufacturing company based in Iowa. The employees of Willow products are paid the lowest amount under federal or state law which is stated as an amount of paper hour. Which law is organization abiding by in this scenario

Fair labor standards act of minimum wage

Mercia A healthcare company provides a lower training rate to add employees belonging to the age group of 18 to 19 years old. The rate is applicable for a period of 90 days. In this case, which law justifies organizations decision to pay the lower pay

Fair labor standards act provisions for a minimum wage

According to the Americans with Disabilities Act (ADA), employers are required to take care not to discriminate against workers over age 40 in providing pay or benefits.

False

According to the Financial Accounting Standards Board (FASB), employers fund retirement benefits on a pay-as-you-go basis.

False

Benefits provided to domestic partners of employees have the same tax advantages as benefits provided to their spouses.

False

Employers in the United States are legally required to provide 30 days of paid vacation to both new and existing employees every year.

False

Floating holidays are standardized on an annual basis in the United States.

False

For an average employee, the most common type of insurance offered as benefits is the pension program.

False

Health maintenance organizations charge patients half the fee for each visit and service.

False

To increase the likelihood of employees understanding messages about benefits, employers must limit communications.

False

Under the workers' compensation laws, employees are eligible to receive their regular paycheck in the event of a disability.

False

The _____ usually provides the neutral third party who is used for the common alternatives to strikes.

Federal Mediation Conciliation Service

Two management students, Gunther and Jake, discuss the pros and cons of employee benefits. Gunther states that unemployment insurance is more advantageous to employees than it is to employers, while Jake argues that employers receive more rewards from it. Which statement weakens Jake's argument?

Federal and state taxes paid by employers fund most of unemployment insurance.

Family and Medical Leave Act

Federal law requiring organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption; to care for a seriously ill family member or for an employee's own serious illness; or to take care of urgent needs that arise when a spouse, child, or parent in the National Guard or Reserve is called to active duty

What are vesting rights?

Guarantee that employees in a pension plan will receive a pension at retirement age, regardless whether they stay with the employer.

A feature of an effective incentive pay plan is that it should

Have performance measures linked to the organizations goals

Bailey, an HR manager, is coaching a supervisor who needs to develop her leadership skills. Bailey suggests that the supervisor use performance feedback as a tool for the development of her employees. Which of the following actions would be an example of this purpose of performance feedback?

A- The supervisor uses performance measures to identify assignments that will help employees build on their strengths.

The way in which organizations use the system to provide day-to-day decision about salary, benefits, and recognition programs falls under the

A- administrative

What is a similarity between unemployment insurance benefits and workers' compensation benefits?

Both of the programs' costs depend on the organization's experience ratings.

Which of the following is a similarity between unemployment insurance benefits and workers' compensation benefits?

Both programs' cost depend on the organization's experience ratings.

Which of the following is a similarity between unemployment insurance benefits and workers' compensation benefits?

Both the programs' costs depend on the organization's experience ratings.

Gabriela, an HR manager, and her staff devote long hours to planning and running a "benefits fair," where employees can view displays and ask questions about the various parts of the company's benefits package. The following week, the marketing manager asks if the effort was worthwhile. Gabriela says it was. What is the most likely reason for Gabriela's opinion?

It increased employees' commitment and satisfaction, so they contribute more to the company.

Tina, an HR manager, and her staff devote long hours to planning and running a "benefits fair," where employees can view displays and ask questions about the various parts of the company's benefits package. The following week, the marketing manager asks if the effort was worthwhile. Tina says it was. What is the most likely reason for Tina's opinion?

It increased employees' commitment and satisfaction, so they contribute more to the company.

What is true of a craft union?

It is often responsible for training members through apprenticeships.

FastForward Technology depends heavily on a workforce of software engineers, systems analysts, and coders. Which statement best explains why FastForward would offer its employees paid maternity and paternity leave?

It makes the company more attractive to workers who are in high demand.

Weg Tech depends heavily on its workforce of software engineers, systems analysts, and coders. Which statement best explains why Weg Tech would offer its employees paid maternity and paternity leave?

It makes the company more attractive to workers who are in high demand.

What is the disadvantage of skill-based pay systems

It may result and paying employees for skills they don't use

An electric utility operates in a state with right-to-work laws. About three-quarters of its line workers have elected to join the union that represents them. Keith, one of the line workers, believes that his supervisor is unfairly passing him over when selecting employees to earn extra pay by working overtime. Keith wants to file a grievance according to the process in the labor agreement, but he is not a member of the union. What must the union do in this situation?

It must give Keith representation equal to what a union member would receive.

What must be true for a pension plan to be deemed a qualified plan?

It must not discriminate in favor of an organization's highly compensated employees.

Which of the following must be true for a pension plan to be deemed as a qualified plan?

It must not discriminate in favor of an organization's highly compensated employees.

What is true of short-term disability insurance?

It pays a portion of a disabled employee's salary as benefits for up to six months.

Which of the following is true of short-term disability insurance?

It pays a portion of a disabled employee's salary as benefits for up to six months.

Which of the following is true of short-term disability insurance?

It pays a portion of sidled employee's salary as benefits for up to six months.

What is true about disability insurance?

It pays about 50 to 70 percent of the employee's salary in case of disability.

What is true about disability insurance?

It pays about 50% to 70% of the employee's salary in case of disability.

Which of the following is true about disability insurance?

It pays about 50% to 70% percentage of the employee's salary in case of disability.

Which of the following is true about disability insurance?

It pays about 50% to 70% percentage of the employees' salary in case of disability.

What is a drawback of minimum wage in terms of social policy

It tends to be a little lower than the earnings required for a full-time worker to rise above the poverty level

the child care provided by the company is at the lowest level of involvement

Jacob is a new father

benefit packages are more difficult to understand by

John is the new owner of The Round

In the U.S., the amount of sick leave given to employees is often based on _____.

Length of service

Lillian and Thomas are employees of a software development firm in San Francisco. Thomas believes that Lillian exhibits behaviors that resemble those of individuals from masculine cultures. Which statement, if true, supports Thomas's beliefs?

Lillian places more emphasis on creating an atmosphere of competition among her team members.

Managed Care

Managed care

Compa-Ratio

Measures the degree to which new skills learned are consistent with the increases in pay

______ Provide a method for awarding performance at all the dimensions measured in the organization's performance management system

Merit pay

Frankie is deciding between two jobs that provide equal pay. He compares the health care benefits provided by both jobs to help him make a decision. One job offers a flexible spending account, while the other job offers him managed care. Which statement will help Frankie make a decision?

Money in flexible spending accounts is not taxed, so employees get more take-home pay.

Which of the following is an example of a defined-contribution pension plan?

Money purchase plan

Which agreement was adopted by Canada, Mexico, and the United States to encourage trade between the three countries?

NAFTA

Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees.

Rates for group insurance are typically lower than that of individual polices.

Rates for group insurance are typically lower than that of individual policies.

Set up Q & A sessions with each department to discuss the changes.

Set up Q&A sessions with each department to discuss the changes.

Shannon, a Canadian citizen, has been working in the United States for two years. Shannon's manager, Eric, believes she possesses the skills required for adaptation and is ideal for an overseas managerial assignment in India. Which statement, if true, strengthens Eric's belief?

Shannon has the ability to foster relationships with people in a host country.

Which of the following actions help organizations reduce the cost of health care benefits offered to employees?

Shifting from traditional insurance plans to PPO's and CDHPs

During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, EN, suggest getting long-term disability insurance for all employees. Patty, the HR manager, disagrees with him stating that short term disability coverage is more advantageous for the company. Which of the following supports Patty's statement

Short term disability plans limit maximum coverage in a month, which makes them more affordable for the company

Short-term disability pals limit maximum coverage in a month, which makes them more affordable for the company.

36. Which of the following is a true of unemployment insurance? A. It provides payments to offset lost income during voluntary unemployment. B. Most funding for unemployment insurance is provided by employees. C. Unfavorable experience ratings of employers lead to higher premiums. D. Costs for unemployment insurance are standard across the country. E. It is a voluntary program based on number of employers in a specific state.

39. Linda, who is pregnant, works for an organization with more than 100 employees. She lives 20 miles away from work. By federal law, she is entitled to _____ of unpaid leave after her child is born. A. 12 days B. 56 days C. 12 weeks D. 30 weeks E. 11 months

44. Sick leave programs A. must be provided by all employers according to the law. B. are based solely on the age of employees. C. pay employees for days not worked due to illness. D. are mandatory forms of unpaid leave. E. are forms of floating holidays.

Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called

cafeteria-style plans.

Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called:

cafeteria-style plans.

What is a cash balance

combines advantages of defined benefit plans and defined contribution plans. consists of individual accounts, as in a 401(k) plan, but all contributions come from employer. *The money in this plan earns interest according to a predetermined rate.

_____ refers to training employees on overseas work assignments to work through national and cultural boundaries.

cross-cultural preparation

When an expatriate is sent on a foreign assignment and begins experiencing feelings of isolation, criticism, stereotyping, and even hostility, this person is said to be experiencing

culture shock

26. Which of the following benefits provided by employer is required by law in the United States? A. paid vacation B. personal leave C. flextime D. Social Security contributions E. retirement savings plan

34. Marshall finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. In this case, which of the following is true? A. he will receive full retirement benefits B. he will receive retirement benefits only according to his earnings history C. he will not be eligible for worker's compensation D. he will receive benefits at a permanently reduced level E. his exempt amount limits will be lifted

100. Organizations must communicate benefits information to employees so that they will A. be motivated to work harder. B. choose the least-expensive benefits package. C. be legally liable in an employee lawsuit. D. be informed of future career opportunities within the organization. E. appreciate the value of their benefits.

Under a 401(k) plan, the ________ is responsible for choosing specific investments.

employee

Connor, the manager of a shipping company, introduces a set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks and subsequent medical costs. The program aims at specific health risks, such as high blood pressure, high cholesterol levels, smoking, and obesity. Based on these offerings, Connor has introduced a(n)

employee wellness program

employee wellness program.

Flexible Spending Account

employee-controlled pretax earnings set aside to pay for certain eligible expenses, such as health care expenses, during the same year

Section 401(k) plan

employees contribute a percentage of their earnings, and employers may match contributions.

Beckwith Corporation has a benefits package that includes paid vacations and sick leave. The human resource manager proposes shifting this time into a bank of paid time off. What would be an advantage of this change?

employees have more flexibility and privacy for their personal matters

Meaning of Flexible spending account

employees set aside a portion of pretax earnings to pay for eligible expenses.

Identify the category of employees excluded by the National Labor Relations Board (NLRB) from participating in organizing activities.

employees with managerial duties

false

employers in the U.S are legally required to provide 30 days of paid vacation to both new and existing employees every year

What is legally required by an organization while offering early-retirement incentives?

ensuring there is no coercion used to force employees to retire

Pablo, an American who works for a U.S.-based company, has been sent to England for a work assignment. Pablo would be known as a(n)

expatriate

Workers' Compensation Insurance premiums depend on what?

experience rating

Family leave benefits

family or parental leave grants employees time off to care for children and other dependents

Pension Benefit Guaranty Corporation (PBGC)

federal agency that insures retirement benefits and guarantees retirees a basic benefit if the employer experiences financial difficulties

Social Security employer requirement

flat payroll tax on employees and employers

Noah, a human resource manager, learns from employee surveys and conversations that many employees are struggling with the needs of aging parents. He decides to investigate offering elder care benefits. What could these benefits include?

flexible hours and decision support from experts in geriatric care

Health care

for employers with at least 50 employees, payment of a fee to the federal government if the employer does not meet conditions for providing health insurance benefits

Which incentive plans Are specifically designed to promote group performance

gainsharing

about family leave

grants employees time off to care for children and other dependents. Federal law requires 12 weeks of unpaid leave. required by FAmily and Medical Leave Act (FMLA)

Vesting Rights

guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer

meaning of Defined-benefit plan (pension plan)

guarantees a specified level of retirement income. usually calculated depending on years of service, age, and earnings level.

meaning of vesting rights

guarantees employees that when they become participants in a pension plan and work a specified number of years, they earn a right to a pension upon retirement.

Active EWP programs

have counselors who tailor programs to individual employees needs,

Marshall finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. In this case, which of the following is true?

he will receive benefits at a permanently reduced level

meaning of Preferred provider organization (PPO)

health care plan that contracts with health care professionals to provide services at reduced fee. Most widely used health plan among U.S employers. 57% of workers were enrolled in this.

Health Maintenance organization (HMO)

health care plan that requires patients to receive their medical care from the HMO's health care professionals, who are often paid a flat salary, and provides all services on a prepaid basis. downside is employees sometimes complain cost-control incentives work so well that they are denied access to services they actually need.

Patient Protection and Affordable Care Act

health care reform law passed in 2010 that includes incentives and penalties for employers providing health insurance as a benefit

What is Workers' Compensation laws?

helps workers w/the expenses resulting from job-related accidents and illnesses. operate under "no-fault liability" principle.

What is the best way for an internationally expanding organization to gain expertise in a host country's legal requirements?

hire one or more host country nationals

Jose, a Spanish national, is an employee at a U.S. company. He works at the company's branch in Spain. This would imply that Jose is a

host-country national

Justin is a human resource manager at an advertising firm. Justin proposes that the company adopt defined-benefit plans to attract and retain employees. In which situation will this benefit be most valuable to the firm's employees?

if the firm employs experienced, older people

improve safety to lower the company's experience rating

Courtney's employer provides her with an insurance plan that requires her to obtain approval before being admitted to the hospital for surgical procedures. Which variation of health coverage does this illustrate?

managed care

What is a 529 savings plan for?

named after section of the Internal Revenue Code that regulates them, let parents and other family members defer taxes on the earnings of their deposits into the 529 account.

A logical place to begin selecting employee benefits is to establish _____ for the benefits package.

objectives

A logical place to begin selecting employee benefits is to establish ________ for the benefits package.

objectives

Meaning of Cafeteria-style plans

offer employees a set of alternatives from which they can choose the types and amounts of benefits they want. Plans vary

older people

What is true of child care benefits?

ompanies that provide child care facilities face liability concerns.

lowest level child care benefits

organization supplies and helps employees collect information about the cost and quality of available child care.

middle level child care benefits

organizations provide vouchers or discounts for employees to use at existing child care facilities.

Which organizations benefit when switching from a defined-benefit plan to cash balance plans?

organizations with many experienced employees

examples of employee benefits

paid sick leave, employer-paid health insurance, retirement savings plans, paid vacations, Holidays, etc.

Contrary to Western European countries, the United States has no legal requirements regarding employee ________.

paid vacation time

A company, which has its headquarters in Japan, has branches in the United States. A Pakistani manager works in a facility in the United States. In this scenario, Japan is the _____ country, and Pakistan is the _____ country.

parent; third

Sick leave programs:

pay employees for days not worked due to illness.

unemployment insurance employer requirement

payroll tax on employees that depends on state requirements and experience rating

defined benefit plan

pension plan that guarantees a specified level of retirement income

Meaning of Floating holiday

personal days in addition to sick leave. paid holidays that vary from year to year. extending a Tuesday or Thursday holiday into a long weekend.

Riley works at Kupton Co., which provides her with a health care plan that contracts with health care professionals to provide services at a reduced fee. Which type of health care plan is Kupton Co. providing to its employees?

preferred provider organization

Passive EWP programs

provide info and services, but no formal support or motivation to use the program. Ex: health education and fitness facilities.

Disability Insurance

provides protection against loss of income *short term provides benefits for six months or less. *long term provides benefits after that initial period, potential for rest of life.

During which phase does an employee returning from a foreign assignment experience culture shock in reverse?

repatriation

Meaning of summary plan description (SPD)

report that describes the plan's funding, eligibility requirements, risks, and other details. when requested, an individual benefit statement is also provided. *This time of communication helps employees understand and value their retirement benefits.

Contributory Plan

retirement plan funded by contributions from the employer and employee

noncontributory plan

retirement plan funded entirely by contributions from the employer

Cash Balance Plan

retirement plan in which the employer sets up an individual account for each employee and contributes a percentage of the employee's salary; the account earns interest at a predefined rate

defined contribution plan

retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account

Workers Compensation

state programs that provide benefits to workers who suffer work-related injuries or illnesses, or to their survivors

FALSE

tax laws generally make benefits unfavorable to employees

Which action related to benefits can best give employers an advantage in the labor market?

teaching employees about the value of their benefits

Which of the following actions related to benefits can best give employers an advantage in the labor market?

teaching employees about the value of their benefits

Which federal law increased the responsibility of pension plan trustees to protect retirees?

the Employee Retirement Income Security Act (ERISA)

Highest level child care benefits

the employer provides child care at or near the work site.

Steve is a human resource manager at an advertising firm. Steve proposes that the company adopt defined-benefit plans to attract and retain its employees. In which situation will this benefit be most valuable to the firm's employees?

the firm employs experienced, older people

Antonio is sent on a foreign assignment to London. On his return, he is rewarded with a flattering story about his experiences in the company newsletter and a meeting with executives to discuss opportunities for using what he learned in key assignments. The firm's recognition of Antonio's service can be best described as a form of

validation

In which situation do workers become eligible for unemployment benefits?

when they are actively seeking work

What is the highest level of child care benefits from an employer?

when they provide on-site child care

workers are compensated according to their past earnings and retirement age

which of the following is a characteristic of benefits required by the social security act

ensuring there is no coercion used to force employees to retire

which of the following is legally required by an organization while offering early retirement incentives

the money earns interest at a predetermined rate, such as the

which of the following is true of a cash balance plan

employees significantly underestimate the cost and value of their benefits

which of the following is true of employee benefits

unfavorable experience ratings of employers lead to higher premiums

which of the following is true of unemployment insurance

non discrimination rules provide tax benefits to plans that do not

which of the following strengthens steven's beliefs

Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.

During a meeting to discuss ways to cut costs on benefits packages, the vice president of the company, Ian, suggests getting long-term disability insurance for all employees. Patty, the HR manager, disagrees with him, stating that short-term disability coverage is more advantageous for the company. Which of the following supports Patty's statement?

Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.

Research asking employees about their benefits has shown that employees:

Significantly underestimate the cost and value of their beliefs.

Which statement is true about skill based pay

Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork for traditional pay structures

Heightened homes is a real estate firm based in Texas. The company ensures that employees pay is dependent on what they are capable of doing (...) based on his information identify the pay structure being utilized by heightened homes

Skill-based pay systems

Social Security

Toby is an engineer at a paint manufacturing company. However, a chemical spill at the factory caused an accident that left him permanently disabled. Which program is specifically designed to help employees like Toby?

Social Security

Which of the following benefits provided by employer is required by law in the United States?

Social Security

Which benefits provided by the employer is required by law in the United States

Social Security contributions

Fred, the vice president of Gallway Co., plans to introduce a retirement plan for all employees. Ron, the operations director, disagrees because the proposed plan would increase the company's costs. Which statement, if true, strengthens Fred's argument?

Some benefits have become so common that today's employees expect them.

Trent owns and manages a small electronics repair store he determines the time required by his employees to complete each task assigned by him. When employees complete the repairs in last time, they receive an amount of pay equal to that time determined by him. In the scenario Trent is using a

Standard hour plan

Which action related to benefits can basket employers an advantage in the labor market

Teaching employees about the value of their benefits

Under the FLSA, which statement is true of child labor

The FLSA restrictions of the use of child labor applied to children younger than 18

_______ strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee.

The Internal Revenue Service

________ strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee.

The Internal Revenue Service

_____ strictly limits the definition of "independent contractors," so that employers cannot avoid legal bligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee.

The Internal Revenue Service.

During an organizing campaign, what occurs when union representatives make contact with employees, present their message about the union, and invite them to sign an authorization card?

The National Labor Relations Board (NLRB) conducts a secret-ballot election if only 30 to 50 percent of employees signed cards.

Under a money purchase plan what is the employee entitled to receive when he/she retires?

The amount of contributions plus the investment earnings

DJ is a new father. His company helps DJ by collecting information about the cost and quality of available child care. What is true of the child care benefits provided by DJ's company?

The child care benefits provided by the company is at the lowest level of involvement.

Jacob is a new father. His company helps Jacob by collecting information about the cost and quality of available child care. Which of the following is true of the child care provided by Jacob's company?

The child care provided by the company is at the lowest level of involvement.

The child care provided by the company is the lowest level of involvement.

Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees?

The employee Retirement Income Security Act (ERISA)

Some employees at Opal Coin, A clothing manufacturer, investigate pay rate on salary.com and learn that auto coin has been paying them significantly more than the national average for their jobs. In this case what is the most likely reaction to employees at Opal Coin

The employees will conclude that there must be a regional differences in pay

Several years ago, America Money Bank set up a large customer service facility in India and hired English-speaking operators to handle questions from customers. Now, although the bank forecasts continued growth, the human resource department is planning for fewer workers in India. What changes in its customer service facility is America Money Bank most likely implementing in this situation?

The facility is automating the process of answering routine questions.

Social security

The federal Old Age, Survivors, Disability, and Health Insurance (OASDHI) program, which combines old age (retirement) insurance, survivor's insurance, disability insurance, hospital insurance (Medicare Part A), and supplementary medical insurance (Medicare Part B) for the elderly.

The firm employs experienced, older people.

The income tax rate is higher in Texas than it is in Virginia.

Which of the following is true of a cash balance plan?

The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills.

An organization employs Rick, a bilateral amputee, to work as a research analyst. When Sarah, the organization's chief advisor, becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with Disabilities Act, which of the following will strengthen Sarah's argument?

The organization switched to a risk-based policy after hiring Rick.

An organization employs Roger, a bilateral amputee, to work as a research analyst. When Lauren, the organization's chief advisor, becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with Disabilities Act, which statement will strengthen Lauren's argument?

The organization switched to a risk-based policy after hiring Roger

And organization employees Roger a literal amputee to work as a research analyst. When Lauren, the organizations chief advisor , becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with disability act, which statement will strengthen Lawrence argument?

The organization switched to a risk-based policy after hiring Roger

The organization switches to a risk-based policy after hiring Rick.

Profit-sharing and employee stock ownership plans

These payments may be set up so that the money goes into retirement plans. The organization has more flexibility to contribute less dollar value in lean years and more in good years.

What is the most likely reason for hiring host-country nationals to fill most of a company's foreign positions?

They can easily understand the values of the local workforce.

Major problem with ESOP is that

They carry a significant risk for employees

Which of the following is a function of elder care benefits offered by organizations?

They provide information, referrals, and support.

Under the Family and Medical Leave Act, which criteria makes employees eligible to take unpaid family leave?

They should be working for an organization with 50 or more employees within a 75-mile radius.

Under the Family and Medical Leave Act, which of the following criteria makes employees eligible to take unpaid family leave?

They should be working for an organization with 50 or more employees within a 75-mile radius.

What should employees typically do to earn bonuses under the Scanlon plan

They should keep labor cost to a minimum and produce as much as possible with the amount of labor

Sebastian has been selected to work at his firm's manufacturing plant in India. The training department divides the cross-cultural preparation into three phases. What is the training team likely to do during the departure phase of cross-cultural preparation?

They will conduct training sessions that include language instructions.

Did manufacturers, a heavy machinery company, as an employee belonging to the age group of 17 to 30. Todd a 17-year-old is prohibited from working with heavy machinery tools.

Todd cannot be employed and hazardous occupations because he is 17 years old

A _____ pension plan allows pension benefits for key employees, such as highly paid managers, exceed a government specified share of total pension benefits

Top-heavy

A _____ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits.

Top-heavy

According to Employee Retirement Income Security Act (ERISA), employees whose contributions are vested meet the requirements to receive a pension at retirement age.

True

Employees and job applicants often have a poor idea of what benefits they have and what the market value of their benefits is.

True

Employees and job applicants often have a poor idea of what benefits they have and what the market value of their benefits is.

True

Employees are most likely to benefit from a flexible spending account if they have predictable health care expenses, such as insurance premiums.

True

The Family and Medical Leave Act of 1993 requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave to qualifying employees.

True

The Family and Medical Leave Act of 1993 requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave to qualifying employees.

True

The addition of creative benefits packages for employees provides employers a competitive edge in acquiring and retaining talented employees in their organization.

True

The use of wellness programs and consumer-directed health plans in an organization reflect its objective of controlling the cost of healthcare benefits.

True

True or False: The U.S has no legal requirements for companies to give employees paid vacation leave

True

Tuition reimbursement program

Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills.

Tuition reimbursement programs

Which of the following is a true of unemployment insurance?

Unfavorable experience ratings of employers lead to higher premiums.

Kristy, a production manager at Smart Designs, believes that the formation of labor unions may have a negative impact on the performance of a company's stock. Which statement is likely to strengthen Kristy's belief?

Unionized organizations are often required to pay their workers higher wages and offer them more generous benefits.

49. Sarah's employer provides her with an insurance plan that requires her to obtain approval before being admitted to the hospital for surgical procedures. Which variation of health coverage does this illustrate? A. managed care B. health maintenance organization C. employee wellness D. flexible spending account E. consumer-driven health plan

54. Ron, the manager of a shipping company, introduces a set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks and subsequent medical costs. The program aims at specific health risks, such as high blood pressure, high cholesterol levels, smoking, and obesity. Based on these offerings, Ron has introduced a(n) _____. A. employee wellness program B. health maintenance organization plan C. preferred provider program D. managed care program E. consumer-driven health program

63. Under a 401(k) plan, the _____ is responsible for choosing specific investments. A. employee B. PGBC C. ERISA fiduciary advisor D. financial institution handling the account E. employer

65. Which of the following organizations benefits when switching from a defined-benefit plan to cash balance plans? A. organizations with many experienced employees B. organizations with a few skilled employees C. organizations with many young employees D. organizations with many retired employees E. organizations with highly skilled, young employees

68. A _____ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits. A. top-heavy B. multiemployer C. special draw rights D. deferred E. defined-contribution

70. Jacob is a new father. His company helps Jacob by collecting information about the cost and quality of available child care. Which of the following is true of the child care provided by Jacob's company? A. The child care provided by the company is at the lowest level of involvement. B. The child care provided by the company is at the highest level of involvement. C. According to the Family and Medical Leave Act, the company has not provided Jacob with adequate child care. D. According to the Patient Protection and Affordable Care Act, the company has exceeded the level of involvement that is permissible. E. The child care provided by the company is a form of a dependent care assistance plan.

72. Helen is a marketing manager at a local equipment manufacturer. She and her husband know that saving for college for their 4-year-old twin boys is a challenge. Her employer recently implemented a college tuition plan that lets parents and other family members defer taxes on their contributions to the plan. What is the type of plan recently implemented? A. 529 savings plan B. 401k savings plan C. 207 college tuition plan D. U.S. saving bonds plan E. TD Ameritrade college tuition plan

75. Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills. A. tuition reimbursement programs B. paid vacations C. pension plans D. quarterly promotions E. medical insurance plans

Meghan, who recently moved to a new city, evaluates several insurance options from her new employer. Owing to her recent medical issues, she wants to choose her health care providers, even if seeing them costs more than seeing the providers in a specific insurance network. Which health care plan is Meghan most likely to find suitable for her needs?

a preferred provider organization

Employees at Harper Industries have formed a union and are negotiating a union security arrangement. Which option would be most favorable to the union and also be legal?

a union shop, because it requires all employees to join the union within 30 days of their start date with the company

Meaning of domestic partner

an adult non-relative who lives w/the employee in a relationship defined as permanent and financially interdependent.

Dan is a non-union employee at Lexia Inc. Although he does not intend to join the union at the company, he is still required to pay union dues as part of a union contract with the company. What does this scenario best exemplify?

an agency shop agreement

Under the Americans with Disabilities Act, which employer is most likely to face legal challenges?

an employer who switches to a risk-based policy after hiring a disabled employee

Organizations must communicate benefits information to employees so that they will

appreciate the value of their benefits.

What does a summary plan description describe?

a pension plan's funding, eligibility requirements, and risks

Health Maintenance Organization (HMO)

A health care plan that requires patients to receive their medical care from the HMO's health care professionals, who are often paid a flat salary, and provides all services on a prepaid basis

As an intensive to work efficiently some organizations pay production workers _____ , A wage based on the amount they produce

A piecework rate

A preferred provider organization

Went airborne aircraft acquired bell airplanes, the executives of the two companies identify key employees they needed for the combined company success. One of them was Patrick, the vice president of engineering. The executor has offered Patrick a one time bonus of $25,000 if he stayed with the company for 12 months following the accusation. In this scenario Patrick $25,000 represents

A retention bonus

Which of the following refers to a display of a series of HR measures, showing human resource goals and objectives and the progress toward meeting them?

A- An HR dashboard

By combining more assignments into a single layer, organizations give managers more flexibility in making assignments and awarding pay increases. These broader groupings often are called broad bands.

A- Board bands

Brendan, the HR manager at Baretta & Co., is trying to implement an effective group incentive plan which measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees. In this case, Brendan should apply the incentive scheme of _____.

A- Gainsharing

Marshall finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. In this case, which of the following is true

A- He will receive benefits at a permanently reduced level.

At Wakame Beauty Solutions, Sheila created an award-winning line of lip balm, lip gloss, and lipstick after many hours of research and discussions with experts. Now, with her manager's encouragement, she frequently conducts workshops for other employees about lip color and other beauty products. In this scenario, which of the following features of Wakame Beauty Solutions is exemplified

A- Learning culture

Akira is very dissatisfied with her job situation, but she does not perceive any other employment opportunities, so she stays and spends most of the workday dreaming about nonwork matters. Which of the following is being experiencing by Akira?

A- Psychological job withdrawal

Nigel is a trainee at ZenNext Corp., who is known among colleagues for his arrogance, rude behavior, and short-tempered nature. His supervisor, Ravi, wants to fire him. However, Rhonda, the manager of the HR department, advises Ravi to rethink his decision in order to avoid the possibilities of Nigel reacting violently or filing a lawsuit when he receives the news. In this scenario, which of the following situations is most likely to result in an amicable discharge of Nigel from ZenNext Corp.?

A- Ravi encourages nigal to think about whether he is a good fit for the job....

Donna, a supervisor at Cenate Inc., wants to compare her subordinate John's performance with other employees to assess their effectiveness. Which of the following methods for measuring performance is best suited for this task?

A- Simple ranking

How can an organization protect itself against discrimination and unjust dismissal lawsuits?

A- The Requirements for job success should be clearly communicated to employees

The receptionist at Madcap Advertising is punctual, polite, and always cheerful. The firm's employees and customers all love her. However, she has difficulty with the clerical tasks that the firm's prior receptionists handled. The receptionist's supervisor recommends redesigning the receptionist's job. That recommendation would be most appropriate in which of the following situations?

A- The employee is highly motivated, but lacks ability unless she gets training.

A manufacturing firm aims to become a high-performance work system. To do this, a survey team asks employees for comments and suggestions on how they can improve the firm. Some of the newest hires say they feel left out of decision-making processes, while some of the experienced employees say their objections towards the firm switching to cheaper manufacturing equipment went unheard. Which of the following conditions would help the firm strengthen the formation of its high-performance work system?

A- The management should allow experienced employees to participate in planning changes in equipment, layout, and work methods.

Which of the following is true of pay ranges?

A- The market rate or the pay policy line generally serves as the midpoint of a range for the job

Victor, a human resource professional, is preparing for Jeanne, a U.S. production manager, to take an assignment at a new facility in Vietnam. Victor wants to measure Jeanne's success in establishing high productivity, so he uses the excellent productivity numbers Jeanne achieved in her current assignment as a basis for setting performance goals for the Vietnamese position. How could this method of measuring performance be improved?

A- by adjusting the measure for local factors that could affect productivity

The management of Rest Assured Insurance wants to begin electronically monitoring the computer work of the employees who process claims filed by customers. Savannah, the company's human resource executive, expects that employees will resist the monitoring, because they will feel robbed of their human dignity. How could the human resource department best address this concern?

A- by applying the data to employee development programs that can help employees advance in their careers

Martin, the HR vice president at Ace Trucking, evaluates responses from an employee survey and questions at the company's annual benefits presentation. He concludes that many employees are confused about their options for health insurance and often unhappy with the policy they choose. What should Martin do about this situation?

A- introduce software that will guide employees to the insurance option for their needs

Perlis Inc. is a whole-foods distributor. Its human resource department gathers the following data for computing compa-ratios of some positions. Based on the data, for which position is Perlis most likely underpaying for human resources?

A- inventory clerks: average salary of $20,000, range midpoint of $30,000

Enrollment in employee benefits such as health insurance and retirement plans require private info about employees......

A- placing the info about these benefits on a secure intranet with links to resources

What are the most important topics to include in a performance feedback meeting?

A- strategic planning and a link to personal goals

Charles, the HR manager at Telcare Inc., establishes a performance management system for his company. He wants to check the consistency of results over time. In the context of criteria for determining the effectiveness of performance measures, Charles is trying to check the _____ of the performance management system.

A- test-retest reliability

Which of the following must be true for a pension plan to be deemed as a qualified plan? A. It must not discriminate in favor of an organization's highly compensated employees. B. It must not be a cafeteria-style plan. C. It should include elder care and child care. D. It has to be a defined-contribution plan. E. It has to be a defined-benefit plan that requires most of the funding to come from the employer.

A. It must not discriminate in favor of an organization's highly compensated employees.

Sarah's employer provides her with an insurance plan that requires her to obtain approval before being admitted to the hospital for surgical procedures. Which type of health care plan is her company using? A. Managed care B. Health maintenance organization C. Preferred provider organization D. Flexible spending account E. Consumer-driven health plan

A. Managed care

In a meeting to discuss pension plans, management decides to offer retirement plans exclusively to the organization's owners and top managers. Steven, one of the top managers, disagrees with this decision because he believes the company can benefit more by providing pensions to a broad range of employees. Which of the following strengthens Steven's belief? A. Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees. B. The Internal Revenue Service provides more favorable tax treatment of benefits when they are offered to a broad range of employees. C. A top-heavy plan requires faster vesting for non-key employees. D. Extending pension plans to employees at all levels will increase triple the costs. E. Pension plans are determined exclusively by state and federal laws.

A. Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees.

Which of the following organizations benefits when switching from a defined-benefit plan to cash balance plans? A. Organizations with many experienced employees B. Organizations with a few skilled employees C. Organizations with many young employees D. Organizations with many retired employees E. Organizations with highly skilled, young employees

A. Organizations with many experienced employees

Jacob is a new father. His company helps Jacob by collecting information about the cost and quality of available child care. The company also provides Jacob with 12 weeks of unpaid leave. Which of the following is true of the child care provided by Jacob's company? A. The child care provided by the company is at the lowest level of involvement. B. The child care provided by the company is at the highest level of involvement. C. According to the Family and Medical Leave Act, the company has not provided Jacob with adequate child care. D. According to the Patient Protection and Affordable Care Act, the company has exceeded the level of involvement that is permissible. E. The child care provided by the company is a form of a dependent care assistance plan.

A. The child care provided by the company is at the lowest level of involvement.

Ray Inc., a shoe manufacturer in Virginia, opens a new facility in Texas. Shelly, the operations manager, prefers to give the new employees better wages than benefit packages. Tanya, the HR manager, disagrees with her. Which of the following, if true, will strengthen Tanya's argument? A. The income tax rate is higher in Texas than it is in Virginia. B. Benefits are more complex to understand by employees than pay structures. C. Benefits give lesser control over the advantages they receive from them than wages. D. Higher cash compensation gives employees more purchasing power in Texas. E. Different employees look for different types of benefits, which makes HR's tasks complicated.

A. The income tax rate is higher in Texas than it is in Virginia.

James is the founder of a new start-up company. He hires mostly young employees who are fresh out of college. He finds that most of his employees are willing to develop their knowledge and skills and would like to take up courses to improve themselves. Which of the following programs is James most likely to use in order to encourage this behavior? A. Tuition reimbursement program B. Employee wellness program C. Worker's compensation program D. Short-term vesting program E. Mature education program

A. Tuition reimbursement program

Which of the following strategies can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits? A. Using more independent contractors rather than hiring additional employees B. Limiting the coverage on life insurance based upon an employee's age C. Using more full-time rather than part-time employees D. Recruiting new employees instead of demanding overtime from existing employees E. Substituting HMO and PPO plans with traditional health insurance plans

A. Using more independent contractors rather than hiring additional employees

Ron, the manager of a shipping company, introduces a set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks and subsequent medical costs. The program aims at specific health risks, such as high blood pressure, high cholesterol levels, smoking, and obesity, He has introduced a(n) _____. A. employee wellness program B. health maintenance organization plan C. preferred provider program D. managed care program E. consumer-driven health program

A. employee wellness program

A _____ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits. A. top-heavy B. multiemployer C. special draw rights D. deferred E. defined-contribution

A. top-heavy

Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills. A. tuition reimbursement programs B. paid vacations C. pension plans D. quarterly promotions E. medical insurance plans

A. tuition reimbursement programs

Under the Americans with Disabilities Act, which of the following employers is most likely to face legal challenges?

An employer who switches to a risk-based policy after hiring a disabled employee

Under the Americans with Disabilities Act, which of the following employers is most likely to face legal challenges?

An employer who switches to risk-based policy after hiring a disabled employee

The differential piece rate system refers to

And incentive pay in which the piece rate is higher with a greater amount is produced

Organizations must communicate benefits information to employees so that they will

Appreciate the value of their benefits

Economic theory holds that the most profitable pay level, all things being equal, would be what?

B- At the market rate

Daniel, an American, is selected by his firm to undertake a temporary assignment in Russia. Daniel's compensation is determined and adjusted in accordance with the standard of living in Russia. He is also paid relocation expenses to ensure he is not inconvenienced by the transfer. Which of the following approaches have been used to determine Daniel's compensation?

B- Balance sheet approach

Keytechi and Sons, a marketing company, has implemented a few incentive plans to motivate its employees. The organization encourages employees to learn new skills and cooperate with others. Which of the following will contribute to employees' feeling that the organization's incentive pay plans are fair?

B- Employees must able to understand the requirements of the incentive pay plan.

Alamos Inc. has extensively made use of the technology called cloud computing for several functions of its HR department. This technology has helped manage department functions, store necessary data, and also has given employees access to the required databases to resolve customer queries and complaints. Which of the following, if true, would disrupt the services provided by this arrangement?

B- Internet access in the facility is intermittent for three hours every day.

Overlapping _____ give the organization more flexibility in transferring employees among jobs, because transfers need not always involve a change in pay.

B- Pay ranges

In the context of an HRM audit, ratio of acceptance to offers made primarily serves as a business indicator for _____ activities.

B- Staffing

Cliff Stiff Inc., a cement company, receives more than $2,000 in federal money. The company hires employees belonging to the age group of 25 to 40. The company is charged for violation of law under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936. Which of the following best explains the reason for the company being sued?

B- The employees of the company are not being paid at rates at least equal to the prevailing wages in the area.

In the performance appraisal ......... refers to whether an appraisal measures all the relevant aspects of performance and omits relevant aspects of performance.

B- contamination

Under a 401(k) plan, the _____ is responsible for choosing specific investments.

B- employee

What is the advantage of two-tier wage systems?

B- helps reduce labor cost w/o cutting employees existing salaries

James, the production manager of Zenfax Inc., thinks performance appraisal information from peers is a less reliable source than other sources of information. However, Ron, a sales manager in the company, thinks peers give valuable information for appraisal. Whose argument is most likely to be correct and why?

B- peers have expert knowledge of job requirements.

Executive pay at Ashance Inc., a manufacturing company, includes bonuses based on the year's profits or other measures related to the organization's goals. Sometimes, to gain tax advantages, the bonus is made part of executives' retirement plans. Which of the following is being exemplified in this scenario?

B- short-term incentives

The HR department of a firm identifies the per capita requirement costs in its annual audit. It also calculates the average number of days taken to fill open positions at the firm. The data gathered were used as business indicators in the audit. The business indicators are most likely to measure the performance of the _____ activity of the firm

B- staffing

Benefit packages are ore difficult to understand by employees than pay structures.

Which of the following is a similarity between unemployment insurance benefits and workers' compensation benefits? A. Both the programs are funded by the federal taxes on employees. B. Both the programs' costs depend on the organization's experience ratings. C. Both the programs have the same funding costs across the states. D. Both the programs replace the same percentage of an individual's previous earnings. E. Both the programs provide the same amount of compensation to the employees.

B. Both the programs' costs depend on the organization's experience ratings.

Ravi is the CEO of a magazine publishing company. He wants to diversify his workforce and bring in more ethnically diverse employees into his company as he believes that exposure to people from different cultures is likely to increase the creativity of his workforce. Which of the following types of plans should Ravi adopt to allow flexibility? A. Defined-benefit plan B. Cafeteria-style plan C. Vested-benefit plan D. Worker's compensation plan E. Cash compensation plan

B. Cafeteria-style plan

Which of the following is true of child care? A. At the highest level of involvement, organizations provide vouchers or discounts for employees to use at existing child care facilities. B. Companies that provide child care facilities face liability concerns. C. Provision of child care is mandatory under the Family and Medical Leave Act. D. Child care should be limited to provision of leaves to employees. E. Child care must include death benefits for it to be considered as a qualified plan.

B. Companies that provide child care facilities face liability concerns.

Which of the following is an advantage of cafeteria-style plans? A. Employees do not have to select their individual plans. B. Employees can get a better understanding of the value of benefits provided. C. They have lower administrative costs. D. Since employees will select the benefits that they need the most, it reduces the overall costs. E. When companies provide cafeteria-style plans, they do not have to pay unemployment insurance tax.

B. Employees can get a better understanding of the value of benefits provided.

Jack has to decide between two jobs that provide equal pay. He decides to compare the healthcare benefits provided by both jobs to arrive at a decision. He wants to choose the job that offers him a flexible spending account over the job that offers him managed care. Which of the following, if true, strengthens his decision? A. With managed care, the insurer makes decisions about health care, which helps avoid unnecessary procedures. B. Money in flexible spending accounts is not taxed, so employees get more take-home pay. C. In flexible spending accounts, employees will get back the money they do not spend. D. Flexible spending account is not helpful if employees have unpredictable health care expenses. E. To avoid taxation of the money in a flexible spending account, the money must meet IRS requirements.

B. Money in flexible spending accounts is not taxed, so employees get more take-home pay.

Which of the following is an example of a defined-contribution pension plan? A. Consumer-driven pension plan B. Money purchase plan C. Cost-sharing plan D. Flexible spending account plan E. Unfunded PBGC plan

B. Money purchase plan

Nina works at Gia Inc., which provides her with a health care plan that contracts with health care professionals to provide services at a reduced fee. Which type of health care plan is Gia providing to its employees? A. Flexible spending account B. Preferred provider organization C. Health maintenance organization D. Consumer-driven health plan E. Managed care plan

B. Preferred provider organization

Which of the following is true of a cash balance plan? A. All contributions to the plan come from the employee. B. The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills. C. Older employees with many years of service benefit to a greater degree than do younger workers just starting their careers. D. It penalizes employees for changing jobs. E. Employees cannot predict retirement benefits under cash balance plans.

B. The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills.

Which of the following is characteristic of benefits required by the Social Security Act? A. Workers receive no benefits until they reach the full retirement age. B. Workers are compensated according to their past earnings and retirement age. C. Workers receive increased benefits when they earn more than the exempt amount. D. The cost of the program is borne entirely by the employers, who pay a payroll tax. E. The program benefits persons who are financially dependent on current workers.

B. Workers are compensated according to their past earnings and retirement age.

Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called: A. preferred provider plans. B. cafeteria-style plans. C. defined-benefit plans. D. flexible spending accounts. E. cash balance plans.

B. cafeteria-style plans.

What is the method where a combination of performance measures directed toward the companies long and short term goals are used as the basis for awarding incentive pay

Balanced scorecard

John is the owner of the restaurant, The Round. He decides to increase employee motivation by introducing benefit packages. However, Nina, the manager, suggests that employees will be more motivated if John increases their actual wages. Which of the following statements, if true, strengthens Nina's argument?

Benefit packages are more difficult to understand by employees than pay structures.

Cindy and Alex execute the same roles and responsibilities at their organization. However, Alex earns more than Cindy. Under the laws governing equal employment opportunity, which of the following will justify the organization's decision to pay Alex more than Cindy?

C- Alex has more experience compared to Cindy

Which of the following statements best describes a difference of giving performance feedback outside the United States?

C- Employees in other countries are less likely to be comfortable with direct statements about their performance.

Hal, a manager at a leading IT firm, is reviewing trends in his department. He notices the programming team has significantly increased the amount of work they have completed, but the testing team continues to stay at the same productivity level. What human resource information system tool would allow Hal to view such data?

C- HR dashboard

Which of the following is a factor that has been associated with the decline in union membership?

C- High regulation in such areas as workplace safety and equal employment opportunity.

which of the following is the best way for an internationally- expanding organization to gain expertise in a host country's legal requirements

C- Interview host country nationals to learn how they would like facilities in their country.

Organizations that are formed in order to represent their members' interests while dealing with employers are known as:

C- Labor unions

Lydia, a supervisor at Sansen Inc., needs to appraise the performance of her subordinate, Charlie. In the context of performance information, which of the following is the least biased source of information for appraisal and why?

C- Managers are the least biased source of information for appraisal because their success depends on the employee's productivity.

Which of the following agreements have been adopted by Canada, Mexico, and the United States to encourage trade between the three countries?

C- NAFTA

Open-door policy, peer review, and mediation are generally steps within

C- The alternative dispute resolution system.

kazuri inc a manufacturing company bases employees pay entirely on market forces. Which of the following is a practical drawback faced by the company?

C- employees might conclude that the pay rate is unfair

James an american who works for a us based company has been sent to england for a work assignment. james would be known as

C- expatriate

Sean is employed as a supervisor at MaxCharge Industries. He gets fired from his job because he refused to break local laws and discharge harmful chemicals from MaxCharge into a nearby river. Which of the following is the exception to the employment-at-will doctrine that Sean is likely to choose when he files a wrongful discharge suit?

C- public policy

Rita, who recently moved to a new city, evaluates several job offers. Owing to her recent medical issues, she wants to choose a health care provider and not rely on the providers in a specific insurance network. Which of the following health care plans is Rita most likely to find suitable for her needs? A. A managed care plan B. A health maintenance organization C. A preferred provider organization D. An employee wellness program E. A flexible spending account

C. A preferred provider organization

John is the owner of The Round, a restaurant. He decides to increase employee motivation by introducing benefit packages. However, Nina, the manager, suggests that employees will be more motivated if John increases their actual wages. Which of the following statements, if true, strengthens Nina's argument? A. John's competitor, Mark, gives many benefits to his employees. B. The state has introduced mandatory requirements for employee benefits. C. Benefit packages are more difficult to understand by employees than pay structures. D. Most of the employees at The Round belong to the age group that looks forward to pensions. E. Employees do not prefer cash compensation due to higher tax rates in the state.

C. Benefit packages are more difficult to understand by employees than pay structures.

Which of the following is legally required by an organization while offering early retirement incentives? A. Setting an age at which retirement benefits stop growing B. Asking female employees to pay more to defined-benefit plans C. Ensuring there is no coercion used to force employees to retire D. Asking employees to sign compulsory waiver under ERISA E. Providing employees no more than 48 hours to make an early retirement decision

C. Ensuring there is no coercion used to force employees to retire

Two management students, Frank and Neil, discuss the pros and cons of employee benefits. Frank states that unemployment insurance is more advantageous to employees than it is to employers, while Neil argues that employers receive more rewards from it. Which of the following weakens Neil's argument? A. Unemployment insurance provides employers a competitive advantage in the talent market. B. The amount of an employer's unemployment insurance tax depends on the number of employees. C. Federal and state taxes paid by employers fund most of unemployment insurance. D. Unemployment insurance does not provide assistance to unemployed workers looking for new jobs. E. Unemployment insurance does not include payment to offset lost income during voluntary unemployment.

C. Federal and state taxes paid by employers fund most of unemployment insurance.

Which of the following is true about disability insurance? A. It benefits the disabled employee only for the first year of disability. B. Payments under short-term plans are lesser than that of long-term plans. C. It pays about 50% to 70% percentage of the employee's salary in case of disability. D. Most employers offer long-term disability plans. E. It offers coverage when the employee's dependent is disabled.

C. It pays about 50% to 70% percentage of the employee's salary in case of disability.

Grey Inc. is a start-up located in Orlando. It offers highly beneficial pension plans to its employees. Which of the following categories of employees is the company most likely to attract through its pension benefits? A. Women of childbearing age B. Disabled workers C. Older people D. Young people E. Unmarried people

C. Older people

During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, Harold, suggests getting long-term disability insurance for all employees. Alexis, HR manager, disagrees with him stating that short-term disability coverage is more advantageous. Which of the following supports Alexis' statement? A. Short-term disability coverage is offered by few employers, which leads to a competitive advantage. B. Long-term disability coverage does not have any limits on the amount to be paid each month to employees. C. Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company. D. The nature of work is such that the level of risk involved is high and injuries could be permanent. E. The majority of the workforce is middle-aged and prefers long-term coverage.

C. Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.

Ryan was working as an engineer at a paint manufacturing company. A chemical spill at the factory caused an accident that left him permanently disabled. Which of the following programs is specifically designed to help employees like Ryan? A. Unqualified retirement plan B. Vested-benefit plan C. Social Security D. Defined-benefit plan E. Work-sharing plan

C. Social Security

Steve and Cathy are managers at an advertising firm. Steve proposes that the company adopt defined-benefit plans to attract and retain its employees, and Cathy opposes his view. Which of the following statements will strengthen Steve's argument? A. All the employees are under the age of 30. B. The nature of work demands college graduates. C. The firm employs experienced, older people. D. The firm employs young and creative minds. E. The firm mainly employs freelancers.

C. The firm employs experienced, older people.

Which of the following is a true of unemployment insurance? A. It provides payments to offset lost income during voluntary unemployment. B. Most funding for unemployment insurance is provided by employees. C. Unfavorable experience ratings of employers lead to higher premiums. D. Costs for unemployment insurance is standard across the country. E. It is a voluntary program based on number of employers in a specific state.

C. Unfavorable experience ratings of employers lead to higher premiums.

Jim is the CEO of a company that is expanding overseas. He considers introducing a cafeteria-style benefits plan to cater to the company's diverse workforce. However, the HR team brings up the concern of higher expenses involved in this type of benefits. Which of the following is Jim likely to do to lower costs at the initial stage? A. Opt for communication methods that do not stress the value of each benefit B. Avoid standardized plans available for employers opting for cafeteria-style benefits C. Use software packages to design the plan D. Discourage employees from choosing lower-cost options E. Encourage employees to choose benefits they need the most

C. Use software packages to design the plan

Sick leave programs: A. must be provided by all employers according to the law. B. are based solely on the age of employees. C. pay employees for days not worked due to illness. D. are mandatory forms of unpaid leave. E. are forms of floating holidays.

C. pay employees for days not worked due to illness.

Cafeteria-style plan

Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called:

Cafeteria-style plans

Which of the following is a union security arrangement that requires a person to pay his or her union dues but is not required to pay for union membership?

D- Agency shop

Which of the following is an hrm function in the hrm audit?

D- Appraisal

Foreign assignments can be highly disruptive to family members, and the resulting role _____ is the top reason that people quit overseas assignments

D- Conflict

D- Equal employment opportunity requires that access to benefits not be limited by sex.

A human resource manager is developing a plan for ensuring the company has enough engineers. She has already gathered forecasts for the number of mechanical engineering graduates from nearby colleges. Now, she wants to test various salaries and determine the corresponding percentages of graduates that will accept a job offer with her company. This will allow the HR manager to advise the best salary range to offer, given the supply of labor. Which of the following information systems is intended for this kind of analysis?

D- a decision support system

After an organization downsizes, it may expect so much of the remaining employees. This high expectation and demand results in a state of _____ for the employees

D- role overload

In the context of methods for measuring performance, alternation ranking is a variation of ____ ranking.

D- simple

Which of the following is true of short-term disability insurance? A. It pays the full amount of a disabled employee's salary for a minimum period of one year. B. It pays the double the full salary of a disabled employee for a period of two months. C. Only employees who have been with an organization for less than two years are eligible for short-term disability insurance. D. It pays a portion of a disabled employee's salary as benefits for up to six months. E. It is only provided to those individuals who work part time.

D. It pays a portion of a disabled employee's salary as benefits for up to six months.

E) It increased employees' commitment and satisfaction, so they contribute more to the company.

Which of the following is an example of a defined-contribution pension plan?

E) Money purchase plan

As part of his company's initiative to create a high-performance work system, Brady, an HR manager, has been reorganizing work so that teams of employees will concentrate on coordinating their efforts to make sure customers are satisfied. The vice president of human resources has asked Brady to explain to a team of executives how this project will help the company's financial performance. What would be the most effective explanation for Brady to use?

E- Improving customer satisfaction should increase demand, leading to greater sales and profits.

According to the provisions outlined in the contract between Kranfer Inc. and its labor union, Kranfer must pay its employees double for working overtime. However, due to financial constraints, the company is unable to meet these demands. The company and the union decide to negotiate the terms of the contract in a relatively informal manner. A non-authoritative third-party is invited to listen to the views of both sides and to help resolve the conflict. In the context of the alternatives to work stoppages, the third-party in this scenario is an example of a(n) _____.

E- Mediator

A work team can be empowered by

E- authorizing the team to make decisions traditionally made by managers.

Global Solutions Corp. pays its executives short-term incentives for meeting financial targets. Which of the following could be included in this incentive pay?

E- bonus for meeting a target for greater customer satisfaction

The aspects of a task—namely the complexity of the task, the degree of physical strain and exertion required, and the value an employee places on the task—have particular significance when they are viewed as linked to _____.

E- job dissatisfaction

_____ is the way the organization groups its people into useful divisions, departments, and reporting relationships.

E- organizational structure

______ Means that an employee is paid a given amount regardless of the number of hours worked or quality or quality of the work

E- salary basis

In the context of performance management, which of the following terms refers to a measure that obtains consistency of results over time?

E- test retest reliability

E- the firm employs experienced, older people

Matt has a health care plan that provides him coverage in such a way that allows him to be involved in making decisions to help lower costs. This plan typically includes insurance with a high deductible, a medical savings account, and ongoing health education. Which type of health care plan is Matt using? A. Managed care B. Health maintenance organization C. Preferred provider organization D. Flexible health plan E. Consumer-driven health plan

E. Consumer-driven health plan

Stan, the CEO of a company, considers dropping medical insurance from the list of benefits provided to employees. Alisha, the operations director, disagrees with Stan by stating that medical insurance is a high-value benefit. Which of the following supports Alisha's statement? A. Companies that do not provide medical insurance cannot have their retirement plans considered as qualified plans. B. Most employees do not appreciate what health insurance costs the employer. C. Medical insurance plans do not cover mental illness. D. Health insurance rate is higher than general insurance rate. E. Employees usually realize that surgery or a major illness can be financially devastating.

E. Employees usually realize that surgery or a major illness can be financially devastating.

Which of the following is an advantage of providing benefits instead of cash compensation? A. It is simpler to pay compensation in benefits than in cash. B. Benefits give greater control to employees over cash compensation. C. All companies that provide benefits become eligible for tax breaks by state and federal agencies. D. Younger employees place more importance on benefits than cash compensation. E. Employers can assemble creative benefits packages that give them a competitive advantage.

E. Employers can assemble creative benefits packages that give them a competitive advantage.

Laura, HR manager at a tech company, is responsible for administering the company benefits program. The employee benefits package will undergo several significant changes at the start of the new year. Which of the following would be an effective strategy to share the changes with employees? A. Issue a revised employee handbook. B. Mention the changes to a few employees and hope they spread the word. C. Say little about the changes. D. Ask the CEO to say a few words about the changes at the company holiday party. E. Set up Q&A sessions with each department to discuss the changes.

E. Set up Q&A sessions with each department to discuss the changes.

Under a 401(k) plan, the _____ is responsible for choosing specific investments.

Employee

Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees.

Any meeting to discuss pension plans, management decides to offer retirement plans exclusively to the organizations owners and its top managers (...) which statement strengthens Jeremy's belief

Nondiscrimination rules provide tax benefits to plans that do not favorite organizations highly compensated employees

Older People

Older people

Although labor and product markets limit organizations choices about pay levels there is a range within which organizations can make decisions. The size of this range depends on the

Organizations competitive environment

Which statement is true about job based pay structures

Organizations may avoid change because it requires repeating the time-consuming process of creating job descriptions and related paperwork

Which of the following organizations benefits when switching from a defined-benefit plan to cash balance plans?

Organizations with many experienced employees

Which organizations benefit when switching from a defined benefit plan to cash balance plans

Organizations with many experienced employees

Which of the following organizations benefits when switching from a defined-benefit plan to cash balance plans?

Organizations with many experienced employees.

Identify a true statement about employee benefits.

Paid vacation tends to be more generous in Western Europe than in the United States.

Contrary to Western European countries, the United States has no legal requirements regarding employee _______.

Paid vacation time

Which act requires companies with more 50 full-time employees to provide health insurance or face a penalty?

Patient Protection and Affordable Care Act.

Sick leave programs:

Pay employees for days not worked due to illness.

Jules and Coco. I watch manufacturing company provides wages to eight employees based on the number of watches the workers assemble. The more the employees assemble, the more they earn. This type of plan is called a

Piecework rate plan

Organizations under pressure to cut labor cost may respond by

Postponing hiring decisions

Preferred provider organization

Landon, an HR manager, heard from other managers that there was talk of a union organizing effort at his company. Landon saw no signs of a union at work, so he downplayed the rumors. Therefore, he was caught by surprise when the union presented authorization cards and a request for a representation election. Which statement best explains the flaw in Landon's reasoning about the organizing effort?

Unions usually launch an organizing campaign by discussing issues with employees at home.

Use software packages to design the plan

Use software packages to design the plan.

Which of the following strategies can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits?

Using more independent contractors rather than hiring additional employees

Which of the following strategies can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits?

Using more independent contractors rather than hiring additional employees.

In which of the following situations will workers become eligible for unemployment benefits?

When they are actively seeking work

West end hospital was concerned about rising cost for patients who have surgery for joint replacement. (...) which statement about gainsharing best supports this recommendation

With gain sharing, employees are freed to collaborate on how to improve performance

What is characteristic of benefits required by the Social Security act

Workers are compensated according to their past earnings and retirement age

Which of the following is characteristic of benefits required by the Social Security Act?

Workers are compensated according to their past earnings and retirement age.

102. Which of the following actions related to benefits can best give employers an advantage in the labor market? A. teaching employees about the value of their benefits B. limiting benefits to a few simple options C. explaining complex benefits with sophisticated language D. keeping messages about benefits basic and uncreative E. simplifying messages about benefits by delivering them through one medium

28. Steve, the vice president of Ocher Inc., plans to introduce a retirement plan for all employees. George, the operations director, disagrees because the proposed plan would increase the company's costs. Which of the following, if true, strengthens Steve's argument? A. Some benefits have become so common that today's employees expect them. B. Benefit packages are more complex than pay structures. C. The employees at Ocher are young adults who prefer cash compensation to benefits. D. Benefit packages do not affect the competitive nature of the labor market. E. The federal government does not have mandatory requirements for specific retirement plans.

30. As Ray Inc., a shoe manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Tanya, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which of the following statements best supports Tanya's argument? A. Employees do not pay income taxes on most benefits they receive. B. Benefits are harder for employees to understand than pay structures. C. Employees could get a better deal if they bought their own insurance policies. D. Higher cash compensation gives employees more purchasing power. E. Different employees look for different types of benefits.

40. Under the Family and Medical Leave Act, which of the following criteria makes employees eligible to take unpaid family leave? A. They should be working for an organization with 50 or more employees within a 75-mile radius. B. They should have worked at least 15 hours per week. C. They should have worked for the employer for more than 5 years. D. They should belong to the top 10 percent of highest paid executives. E. They should be working for an organization with at least 100 employees.

43. Contrary to Western European countries, the United States has no legal requirements regarding employee _______. A. paid vacation time B. Social Security benefits C. unemployment insurance D. pension plans E. 401k contributions

45. In the U.S., the amount of sick leave given to employees is often based on _____. A. length of service B. position within the company C. age D. educational background E. prior job experience

76. James is the founder of a new start-up company. He hires mostly young employees who are fresh out of college. He finds that most of his employees are willing to develop their knowledge and skills and would like to take courses to improve themselves. This additional knowledge would benefit James' company, so he decides to encourage this behavior. Which of the following programs is James most likely to use in order to do so? A. tuition reimbursement program B. employee wellness program C. worker's compensation program D. short-term vesting program E. mature education program

89. Which of the following strategies can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits? A. using more independent contractors rather than hiring additional employees B. limiting the coverage on life insurance based upon an employee's age C. using more full-time rather than part-time employees D. recruiting new employees instead of demanding overtime from existing employees E. substituting HMO and PPO plans with traditional health insurance plans

90. _____ strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee. A. The Internal Revenue Service B. The Consolidated Omnibus Budget Reconciliation Act (COBRA) C. The Employee Retirement Income Security Act (ERISA) D. Employee Benefit Research Institute E. The Bureau of Labor Statistics

91. Which of the following is an advantage of a qualified plan in retirement benefits? A. immediate tax deductions for the funds employees contribute to the plan B. taxable earnings on the money in the retirement fund C. tax-free withdrawals for highly compensated employees D. exemption of contribution from employees E. a retirement plan that provides benefits exclusively to its owners and top managers

92. Which of the following must be true for a pension plan to be deemed as a qualified plan? A. It must not discriminate in favor of an organization's highly compensated employees. B. It must not be a cafeteria-style plan. C. It should include elder care and child care. D. It has to be a defined-contribution plan. E. It has to be a defined-benefit plan that requires most of the funding to come from the employer.

93. In a meeting to discuss pension plans, management decides to offer retirement plans exclusively to the organization's owners and top managers. Steven, one of the top managers, disagrees with this decision because he believes the company can benefit more by providing pensions to a broad range of employees. Which of the following strengthens Steven's belief? A. Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees. B. The ADEA provides more favorable tax treatment of benefits when they are offered to a broad range of employees. C. A top-heavy plan requires faster vesting for non-key employees. D. Extending pension plans to employees at all levels will triple the costs. E. Pension plans are determined exclusively by state and federal laws.

96. Under the Older Workers Benefit Protection Act of 1990, which of the following guidelines must employers follow when asking employees to sign early-retirement waivers? A. Inform employees that they may consult with a lawyer before signing. B. Allow employees no more than 48 hours before signing the retirement agreement. C. Make Age Discrimination in Employment Act (ADEA) waivers compulsory. D. Provide lesser benefits than would otherwise be available upon retirement. E. Provide employees with an annual bonus and health insurance after the retirement.

97. Under the Americans with Disabilities Act, which of the following employers is most likely to face legal challenges? A. an employer who switches to a risk-based policy after hiring a disabled employee B. an employer who sets guidelines for using waivers C. an employer who discriminates against workers over age 40 in providing pay or benefits D. an employer who has risk-based insurance and then hires an employee with a disability E. an employer who does not have risk-based insurance

top heavy

a _____ pension plan allows pension benefits for key employees such as highly paid managers, to exceed a government specified share of total pension benefits

cafeteria-style plan

a benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want

Quin believes that the key to effective management is to involve his team members in the firm's decision-making processes. He surmises that this will allow him and his team to work as one unit, making choices that will benefit them all in addition to the firm. In this case, Quin's thoughts reflect that of a person with

a collectivist nature

unemployment insurance

a federally mandated program to minimize the hardships of unemployment through payments to unemployed workers, help in finding new jobs, and incentives to stabilize employment

Preferred Provider Organization (PPO)

a health care plan that contracts with health care professionals to provide services at a reduced fee and gives patients financial incentives to use network providers

Which of the following is a union security arrangement that requires a person to pay union dues, but is not required to join the union?

agency shop

Meaning of employee wellness program (EWP)

aims at specific health risks such as high blood pressure, high cholesterol levels, smoking and obesity.

101. Which of the following is true of employee benefits? A. Employees have a thorough understanding of what benefits they have and what the market value of these benefits is. B. Employees have a hard time understanding the cost and value of their benefits. C. It is up to employees to determine the cost and value of their benefits. D. Employees, for the most part, are just not interested in their benefits. E. Employers have very limited options for communicating information about benefits.

38. Which of the following is a similarity between unemployment insurance benefits and workers' compensation benefits? A. Both of the programs are funded by the federal taxes on employees. B. Both of the programs' costs depend on the organization's experience ratings. C. Both of the programs have the same funding costs across the states. D. Both of the programs replace the same percentage of an individual's previous earnings. E. Both of the programs provide the same amount of compensation to the employees.

48. Kelly, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Michael, suggests that Kelly would be able to save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which of the following weakens Michael's argument? A. Individual plans are typically offered only to senior executives. B. Rates for group insurance are typically lower than those of individual policies. C. Kelly will not be eligible for other benefits if she does not enroll in a group insurance plan. D. Employees get more for their money when they receive insurance as a group benefit. E. Kelly will get more take-home pay if she opts for a group insurance plan.

51. Nina works at Gia Inc., which provides her with a health care plan that contracts with health care professionals to provide services at a reduced fee. Which type of health care plan is Gia providing to its employees? A. flexible spending account B. preferred provider organization C. health maintenance organization D. consumer-driven health plan E. managed care plan

52. Jack has to decide between two jobs that provide equal pay. He decides to compare the health care benefits provided by both jobs to arrive at a decision. He wants to choose the job that offers him a flexible spending account over the job that offers him managed care. Which of the following statements best supports Jack's preference? A. With managed care, the insurer makes decisions about health care, which helps avoid unnecessary procedures. B. Money in flexible spending accounts is not taxed, so employees get more take-home pay. C. The money in the flexible spending accounts must meet IRS requirements. D. At the end of each year, money remaining in a flexible spending account reverts to the employer. E. Contributions to a flexible spending account may not exceed $5,000 per year.

61. Which of the following is an example of a defined-contribution pension plan? A. consumer-driven pension plan B. money purchase plan C. cost-sharing plan D. flexible spending account plan E. unfunded PBGC plan

64. Which of the following is true of a cash balance plan? A. All contributions to the plan come from the employee. B. The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills. C. Older employees with many years of service benefit to a greater degree than do younger workers just starting their careers. D. It penalizes employees for changing jobs. E. Employees cannot predict retirement benefits under cash balance plans.

71. Which of the following is true of child care? A. At the highest level of involvement, organizations provide vouchers or discounts for employees to use at existing child care facilities. B. Companies that provide child care facilities face liability concerns. C. Provision of child care is mandatory under the Family and Medical Leave Act. D. Child care should be limited to provision of leaves to employees. E. Child care must include death benefits for it to be considered as a qualified plan.

83. Which of the following is an advantage of cafeteria-style plans? A. Employees do not have to select their individual plans. B. Employees can get a better understanding of the value of benefits provided. C. These types of plans have lower administrative costs. D. Since employees will select the benefits that they need the most, it reduces the overall costs. E. When companies provide cafeteria-style plans, they do not have to pay unemployment insurance tax.

84. Ravi is the CEO of a magazine publishing company. He wants to provide benefits for his employees, but would still like to control his company's costs. Jess, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Ravi doing so? A. He will save time by using software packages to offer benefits packages. B. He will avoid the cost of providing employees with benefits they don't value. C. Having a non-standardized plan will make Ravi's company seem cutting-edge. D. Employees of the company, including Ravi, will be given more vacation days. E. Costs will be easy to estimate since all benefits options will be taken into consideration.

cafeteria style plans

benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called

Qualified plans

benefits that are classified as this offer various tax advantages

Employee benefits at Great Nile, an online retailer, include a basketball team, a gym, and an on-site massage therapist. In what way are these benefits most likely to support the company's business goals?

by helping employees cope with demanding, high-stress jobs

The employee benefits at Arvin Shine, a high tech firm, includes a basketball team, a gym, and an on-site massage therapist. In what way are these benefits most likely to support the company's business goals?

by helping employees cope with demanding, high-stress jobs

27. John is the owner of the restaurant, The Round. He decides to increase employee motivation by introducing benefit packages. However, Nina, the manager, suggests that employees will be more motivated if John increases their actual wages. Which of the following statements, if true, strengthens Nina's argument? A. John's competitor, Mark, gives many benefits to his employees. B. The state has introduced mandatory requirements for employee benefits. C. Benefit packages are more difficult to understand by employees than pay structures. D. Most of the employees at The Round belong to the age group that looks forward to pensions. E. Employees do not prefer cash compensation due to higher tax rates in the state.

32. Ryan was working as an engineer at a paint manufacturing company. A chemical spill at the factory caused an accident that left him permanently disabled. Which of the following programs is specifically designed to help employees like Ryan? A. unqualified retirement plan B. vested-benefit plan C. Social Security D. defined-benefit plan E. work-sharing plan

35. Two management students, Frank and Neil, discuss the pros and cons of employee benefits. Frank states that unemployment insurance is more advantageous to employees than it is to employers, while Neil argues that employers receive more rewards from it. Which of the following weakens Neil's argument? A. Unemployment insurance provides employers a competitive advantage in the talent market. B. The amount of an employer's unemployment insurance tax depends on the number of employees. C. Federal and state taxes paid by employers fund most of unemployment insurance. D. Unemployment insurance does not provide assistance to unemployed workers looking for new jobs. E. Unemployment insurance does not include payment to offset lost income during voluntary unemployment.

50. Rita, who recently moved to a new city, evaluates several insurance options from her new employer. Owing to her recent medical issues, she wants to choose her health care providers, even if seeing them costs more than seeing the providers in a specific insurance network. Which of the following health care plans is Rita most likely to find suitable for her needs? A. a managed care plan B. a health maintenance organization C. a preferred provider organization D. an employee wellness program E. a flexible spending account

56. Which of the following is true about disability insurance? A. It benefits the disabled employee only for the first year of disability. B. Payments under short-term plans are less than that of long-term plans. C. It pays about 50% to 70% of the employee's salary in case of disability. D. Most employers offer long-term disability plans. E. It offers coverage when the employee's dependent is disabled.

58. Which of the following factors is considered while calculating the retirement benefit levels under a defined benefit retirement plan? A. the state where the person was employed during the retirement year B. number of dependents C. employees' years of service, age, and earnings level D. average earning during the last 20 years of employment E. number of unused leaves at the end of the retirement year

66. Steve is a human resource manager at an advertising firm. Steve proposes that the company adopt defined-benefit plans to attract and retain its employees. In which situation will this benefit be most valuable to the firm's employees? A. all the employees are under the age of 30 B. the nature of work demands college graduates C. the firm employs experienced, older people D. the firm employs young and creative minds E. the firm mainly employs freelancers

81. Grey Inc. is a start-up located in Orlando. It offers highly beneficial pension plans to its employees. Which of the following categories of employees is the company most likely to attract through its pension benefits? A. women of childbearing age B. disabled workers C. older people D. young people E. unmarried people

85. Jim is the CEO of a company that is expanding overseas. He considers introducing a cafeteria-style benefits plan to cater to the company's diverse workforce. However, the HR team brings up the concern of higher expenses involved in this type of benefits. Which of the following is Jim likely to do to lower costs at the initial stage? A. opt for communication methods that do not stress the value of each benefit B. avoid standardized plans available for employers opting for cafeteria-style benefits C. use software packages to design the plan D. discourage employees from choosing lower-cost options E. encourage employees to choose benefits they need the most

95. Which of the following is legally required by an organization while offering early-retirement incentives? A. setting an age at which retirement benefits stop growing B. asking female employees to pay more to defined-benefit plans C. ensuring there is no coercion used to force employees to retire D. asking employees to sign compulsory waiver under ERISA E. providing employees no more than 48 hours to make an early retirement decision

98. An organization employs Rick, a bilateral amputee, to work as a research analyst. When Sarah, the organization's chief advisor, becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with Disabilities Act, which of the following will strengthen Sarah's argument? A. The organization has a risk-based insurance in place before recruiting Rick. B. The organization plans to stop Rick's benefits when he reaches the age of 50. C. The organization switched to a risk-based policy after hiring Rick. D. The organization gave Rick access to the same health insurance that is provided to the other employees. E. The organization does not have a risk-based insurance.

Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called

cafeteria-style plans

55. Which of the following is true of short-term disability insurance? A. It pays the full amount of a disabled employee's salary for a minimum period of one year. B. It pays the double the full salary of a disabled employee for a period of two months. C. Only employees who have been with an organization for less than two years are eligible for short-term disability insurance. D. It pays a portion of a disabled employee's salary as benefits for up to six months. E. It is only provided to those individuals who work part time.

67. What are vesting rights? A. the ability of retired employees to retain their seniority if they return to work at their former employer B. government commitment to provide retirement benefits to all U.S. workers C. the designation that retired workers will receive cost-of-living increases as part of their monthly pension checks D. the guarantee that employees in a pension plan will receive a pension at retirement age, regardless of whether they stay with the employer E. the ability of younger workers to move their retirement savings to another account after leaving a specific employer

86. How do cafeteria-style plans increase costs for employers? A. Employers pay much higher premiums for an HMO than a preferred health care plan. B. Employers are required to pay higher insurance premiums for laid-off workers. C. Contributions to PGBC to fund the retirement plan increases under this plan. D. Employees select the kind of benefits they expect to need the most. E. Employers bear the cost of providing employees with benefits they do not value.

103. Martin, the HR vice president at Ace Trucking, evaluates responses from an employee survey and questions at the company's annual benefits presentation. He concludes that many employees are confused about their options for health insurance and often unhappy with the policy they choose. What should Martin do about this situation? A. accept that it is difficult for employees to understand the value of insurance B. save money by reducing printed messages about health insurance C. downplay the role of health insurance in the benefits package, relative to other benefits D. discontinue health insurance, since it is a source of dissatisfaction E. introduce software that will guide employees to the insurance option for their needs

104. Laura, HR manager at a tech company, is responsible for administering the company benefits program. The employee benefits package will undergo several significant changes at the start of the new year. Which of the following would be an effective strategy to share the changes with employees? A. issue a revised employee handbook to new employees B. mention the changes to a few employees and hope they spread the word C. say little about the changes D. ask the CEO to say a few words about the changes at the company holiday party E. set up Q&A sessions with each department to discuss the changes

105. Gabriela, an HR manager, and her staff devote long hours to planning and running a "benefits fair," where employees can view displays and ask questions about the various parts of the company's benefits package. The following week, the marketing manager asks if the effort was worthwhile. Gabriela says it was. What is the most likely reason for Gabriela's opinion? A. It lowered the cost of communicating with employees, because now the company doesn't need to use printed media. B. It lowered the cost of providing benefits, because employees know what to sign up for. C. It increased employees' commitment to saving for retirement, so they won't need Social Security. D. It increased employees' happiness and job commitment, so they are more fun to be around. E. It increased employees' commitment and satisfaction, so they contribute more to the company.

31. Which of the following is an advantage of providing benefits instead of cash compensation? A. It is simpler to pay compensation in benefits than in cash. B. Benefits give greater control to employees over cash compensation. C. All companies that provide benefits become eligible for tax breaks by state and federal agencies. D. Younger employees place more importance on benefits than cash compensation. E. Employers can assemble creative benefits packages that give them a competitive advantage.

41. Nick, the HR manager at a start-up company, helped the founder plan a benefits package that includes paid vacations, holidays, and sick leave. Now an employee approaches Nick to say she has been called up for jury duty and needs to be away next week. What should Nick do? A. He should direct the employee to use the Family and Medical Leave Act. B. He should forbid the employee from taking time off for jury duty. C. He should ask the employee to use her sick leave for jury duty. D. He should ask the employee to use her vacation time for jury duty. E. He should establish, and then apply, policies for other situations requiring time off.

42. In the United States, what is the legal requirement for giving employees paid vacation? A. Paid vacation in the United States must take place on specified days in addition to holidays. B. In the United States, employers must give the amount of paid vacation that makes economic sense. C. In the United States, employers must give employees 10 paid vacation days each year. D. U.S. law requires that new employees receive 25 or 30 days off. E. U.S. law lets employers decide on paid time off; there is no minimum.

46. Beckwith Corporation has a benefits package that includes paid vacations and sick leave. The human resource manager proposes shifting this time into a bank of paid time off. What would be an advantage of this change? A. vacation and sick leave do not make economic sense B. most companies offer this arrangement C. the company won't have to set a schedule for holidays D. the company won't have to pay for the time the employees take off E. employees have more flexibility and privacy for their personal matters

47. Kelsey, the engineering manager at Tek Solutions, takes an eight-week unpaid leave to go on a tour to promote a book she wrote. She does so in accordance with Tek Solutions' policy for leaves without pay. In what sense could this unpaid leave be an employee benefit for Kelsey? A. her leave is based on length of service, so it accumulates over time B. her time off is an example of personal days C. the Family and Medical Leave Act requires the employer to grant unpaid time off D. she uses her paid time off for the leave E. she retains her seniority and benefits during the leave

53. Matt has a health care plan that provides him coverage in such a way that allows him to be involved in making decisions to help lower costs. This plan typically includes insurance with a high deductible, a medical savings account, and ongoing health education. Which type of health care plan is Matt using? A. managed care B. health maintenance organization C. preferred provider organization D. flexible health plan E. consumer-driven health plan

59. Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees? A. the Consolidated Omnibus Budget Reconciliation Act (COBRA) B. the Age Discrimination in Employment Act (ADEA) C. the American Disabilities Act (ADA) D. the Fair Labor Standards Act (FLSA) E. the Employee Retirement Income Security Act (ERISA)

60. Old Thyme Manufacturing offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of their age, earnings, and years of service. But the company didn't keep up with technology, and its earnings fell. When the stock market dipped, the company found that it couldn't afford to keep up with paying for its retirement benefits. What protection will the retirees have in this situation? A. Old Thyme must give the employees the option to sell their stock in the company. B. The employees will receive payouts from their 401(k) plans. C. The employees will receive a share of profits as part of the company's ESOP. D. Because the plan was underfunded, the retirees will no longer receive benefits. E. The Pension Benefit Guarantee Corporation will provide them with a basic benefit.

In a defined-contribution plan, the investment risk is placed in the hands of the

employee

62. Ian is the human resource manager of a one-year-old technology company. The founder wants him to set up a retirement plan. Ian thinks the best approach during the company's early years would be a defined-contribution plan funded with profit-sharing dollars. Which statement best supports Ian's idea? A. The plan makes employees part-owners of the company. B. The Pension Benefit Guarantee Corporation will guarantee a basic benefit. C. Employees can buy an annuity with the contributions when they retire. D. The amount employees contribute is not taxed when they contribute it. E. Contributing a share of profits gives the company more flexibility as it establishes itself.

69. FastForward Technology depends heavily on a workforce of software engineers, systems analysts, and coders. Which statement best explains why FastForward would offer its employees paid maternity and paternity leave? A. Only 13% of workers currently have paid family leave. B. Most industrialized nations provide this type of employee benefit. C. Management doesn't want exhausted workers in the office. D. These benefits are required by the Family and Medical Leave Act. E. It makes the company more attractive to workers who are in high demand.

73. Noah, a human resource manager, learns from employee surveys and conversations that many employees are struggling with the needs of aging parents. He decides to investigate offering elder care benefits. What could these benefits include? A. a 529 savings plan to save money for long-term care facilities B. providing professional caregivers and nursing care C. vacation days and sick leave D. paid time off and part-time jobs for the parents E. flexible hours and decision support from experts in geriatric care

77. Employee benefits at Great Nile, an online retailer, include a basketball team, a gym, and an on-site massage therapist. In what way are these benefits most likely to support the company's business goals? A. by meeting the standards of most U.S. businesses B. by making the workplace more family-friendly C. by protecting the company against charges of employment discrimination D. by complying with legal requirements for benefits E. by helping employees cope with demanding, high-stress jobs

78. According to your text, a logical place to begin selecting employee benefits is to establish _____ for the benefits package. A. a basic hierarchy B. limits C. costs D. goals E. objectives

79. Stan, the CEO of a company, considers dropping medical insurance from the list of benefits provided to employees. Alisha, the operations director, disagrees with Stan by stating that medical insurance is a high-value benefit. Which of the following supports Alisha's statement? A. Companies that do not provide medical insurance cannot have their retirement plans considered as qualified plans. B. Most employees do not appreciate what health insurance costs the employer. C. Medical insurance plans do not cover mental illness. D. A health insurance rate is higher than a general insurance rate. E. Employees usually realize that surgery or a major illness can be financially devastating.

80. Isaiah, an HR manager, conducted a survey to learn which benefits employees value the most. He discovers that the survey results will be difficult to apply. What is the most likely reason? A. Employees expect to receive benefits that are legally required and widely available. B. Software is the only method employees will accept to help them choose their benefits. C. The costs of turnover at Isaiah's company are high. D. The employees only value medical insurance. E. Employees have very different opinions about what they value.

87. Bilge Makers Unlimited has a goal to lower the cost of employee benefits. Its human resource department compares the costs of its benefits with averages published by the Bureau of Labor Statistics, the U.S. Chamber of Commerce, and other sources. The investigation shows that its cost for workers' compensation insurance is high relative to other companies. Which of the following actions could best help Bilge Makers accomplish its goal? A. accept the high cost and look for other areas in which to reduce spending B. replace the workers' compensation insurance with disability insurance C. shop for a better deal on workers' compensation insurance D. cancel the workers' compensation insurance E. improve safety to lower the company's experience rating

88. Which of the following actions help organizations reduce the cost of health care benefits offered to employees? A. increasing the amount employers pay for deductibles and coinsurance B. selecting traditional health insurance over HMOs and PPOs as a preferred option C. expanding the coverage for different types of claims D. paying some or all of the difference in cost between an HMO or PPO plan E. shifting from traditional health insurance plans to PPOs and CDHPs

94. Mario, a production worker, complains to a human resource professional at his company that when he asked his supervisor for a week off to care for his son after surgery, the supervisor replied, "Can't your wife do that instead?" Which of the following statements best summarizes what the HR professional should explain to the supervisor? A. Benefits apply whether a spouse is of the same or the opposite sex. B. Females may not be required to contribute more than men to defined-benefit plans. C. Fatherhood is a protected category in the antidiscrimination laws. D. Mario has not yet used all of his sick leave. E. Equal employment opportunity requires that access to benefits not be limited by sex.

99. Which of the following is a requirement set for employers under the Financial Accounting Standards Board standards? A. Employers must fund benefits on a pay-as-you-go basis. B. Benefits must not appear as future cost obligations. C. Employers should encourage employees to participate in management functions. D. Financial statements should be made in such a way that outsiders cannot understand them. E. Employers must set aside the funds they expect to need for benefits to be paid after retirement.

QFV International has a goal to lower the cost of employee benefits. Its human resource department compares the costs of its benefits with averages published by the Bureau of Labor Statistics, the U.S. Chamber of Commerce, and other sources. The investigation shows that its cost for workers' compensation insurance is high relative to other companies. Which action could best help QFV International accomplish its goal?

improve safety to lower the company's experience rating

when they are actively seeking work

in which of the following situations will workers become eligible for unemployment benefits

What is an unfair labor practice by unions under the Taft-Hartley Act?

insisting on provisions that the employer may hire only workers who are union members

Long-Term Disability Insurance

insurance that pays a percentage of a disabled employee's salary after an initial period and potentially for the rest of the employee's life

Short-Term Disability Insurance

insurance that pays a percentage of a disabled employee's salary as benefits to the employee for six months or less

About Consumer-driven health plan (CDHP)

intended to provide health coverage in a way that gets employees involved as consumers making decisions to lower costs. 3 elements: insurance w/a high deductible, medical savings account managed by employee in which employer contributes for paying expenses below the deductible, and health education.

David, the HR vice president at Redding Co., evaluates responses from an employee survey at the company's annual benefits presentation. He concludes that many employees are confused about their options for health insurance, and they are often unhappy with the policy they choose. What should David do about this situation?

introduce software that will guide employees to the insurance option for their needs

Ronda, a sales executive, believes that her hard work and persistence will reap rewards in the future. She is not very assertive, prefers to be instructed, and awaits her team's approval before taking decisions. Ronda's attitudes and behavior are consistent with a culture that

is long-term oriented

Organizations that are formed in order to represent their members' interests while dealing with employers are known as

labor unions

In the U.S., the amount of sick leave given to employees is often based on

length of service.

College Savings Plan

lets parents and other family members defer taxes on the earnings of their deposits into the 529 account

The employees' union and the management at Rex Inc. enter into a contract, which requires Rex to improve its facilities and ensure the safety of its employees. However, a few months later, the employees observe that the conditions have remained the same and that management has not taken any steps to revamp its systems. As a result, the union files a case against Rex for violating the terms of their contract. In order to resolve this issue, the union and Rex will both have to participate in a process for resolving conflicts, known as

the grievance procedure

managed care

the insurer plays a role in decisions about health care, aimed at avoiding unnecessary procedures

Meaning of Managed Care

the insurer plays a role in decisions about health care, aimed at avoiding unnecessary procedures.

Experience Rating

the number of employees a company has laid off in the past and the cost of providing them with unemployment benefits

A ________ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits.

top-heavy

Representatives of management at Steel of Strength and of the union representing its workers are preparing to negotiate contract provisions related to job security. Which topics are most likely to be included in this round of contract negotiations?

training programs, transfer arrangements, and relocation allowances

James is the founder of a new start-up company. He hires mostly young employees who are fresh out of college. He finds that most of his employees are willing to develop their knowledge and skills and would like to take courses to improve themselves. This additional knowledge would benefit James' company, so he decides to encourage this behavior. Which of the following programs is James most likely to use in order to do so?

tuition reimbursement program

FALSE

under the workers compensation laws, employees are eligible to receive their regular paycheck in the event of a disability

Family and Medical Leave employer requirement

up to 12 weeks of unpaid leave for childbirth, adoption, or serious illness

use software packages to design the plan

Michael is the CEO of a company that is expanding overseas. He considers introducing a cafeteria-style benefits plan to cater to the company's diverse workforce. However, the HR team brings up the concern of higher expenses involved in this type of benefits. What is Michael likely to do to lower costs at the initial stage?

use software packages to design the plan

A chain of fried-fish restaurants hires part-time workers and pays minimum wage. Turnover is very high. Given that most employees do not stay at a restaurant long or work there full time, organizing campaigns are very difficult. With these facts in mind, Kathy, the chain's vice president of human resources, believes unions will not have an impact on the company. What possible force in labor markets is Kathy overlooking?

worker centers, which could influence attitudes through publicity and community support

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