Chapter 10-13 MGMT1017

MBO almost always refers to a comprehensive organization -wide goal-setting and appraisal 28) program that consists of the following steps EXCEPT: A) providing feedback to employees.B) setting long-term performance targets. C) setting the organizationʹs goals. D) setting the departmentʹs goals. E) discussing the departmentʹs goals.

.B) setting long-term performance targets.

An alternative method to a traditional job evaluation is pay: 54) A) for education. B) for responsibility.C) for skill/competency. D) for ability. E) based on seniority.

.C) for skill/competency.

A benefit that provides pay to an employee when he/she is out of work because of a non -work 13) related injury or illness is called: A) short-term disability/sick leave. B) workersʹ compensation. C) unemployment pay.D) hospitalization benefits. E) severance pay.

A

A government-sponsored program that provides weekly income benefits if a person is unable to 5) work through no fault of his/her own is usually called: A) employment insurance. B) strike pay. C) severance pay. D) sick pay. E) termination pay.

A

A pension provision whereby employees who change jobs can transfer the lump sum value of the 55) pension they have earned to a locked-in RRSP or their new employerʹs pension plan is: A) portability.B) a non-locked-in provision. C) flexible pensions. D) vesting. E) non-funding.

A

An employer tactic to minimize the problem of employeesʹ excessive use of sick days would 14) include the following EXCEPT: A) increasing the number of sick days for employees. B) aggressively investigating all absences. C) holding cash prize lotteries for employees with perfect attendance. D) buying back unused sick leave at the end of the year. E) calling the absent employees at their homes.

A

Common health-related insurance plans other than supplementary health care/medical insurance 26) include the following: A) vision care; hearing aids; dental care. B) vision care; physiotherapy. C) group legal insurance.D) vision care; psychological counseling; dental insurance. E) chronic illness benefits; vision care; dental care.

A

Employers provide supplementary health care/medical insurance to provide protection for 25) employees against the following costs EXCEPT: A) physicianʹs fees. B) medical supplies. C) private duty nursing. D) prescription drugs. E) physiotherapy.

A

In a contributory pension plan, contributions are made by: 51) A) both the employer and the employee. B) the employer only.C) the government and the employer. D) the government and the employee. E) the employee only.

A

In a profit-sharing plan, each participant gets a bonus based on the companyʹs results: 36) A) regardless of the participantʹs actual effort. B) adjusted for their departmentʹs results.C) factored together with the participantʹs actual effort. D) combined with no other hard-and-fast rules. E) combined with the individual effort and performance of each manager.

A

In a true individual incentive bonus plan each individual person gets a bonus based on: 37) A) individual effort and performance. B) no hard-and-fast rules.C) group effort and performance. D) department productivity. E) the same amount, from year to year.

A

Paying salespeople according to a plan that compensates them in direct proportion to their sales is 50) called a: A) commission plan.B) proportional compensation plan. C) direct compensation plan. D) combination plan. E) straight salary plan.

A

Research suggests that employee stock ownership plans encourage employees to develop: 65) A) a sense of ownership in and commitment to the firm. B) an interest in gainsharing. C) a lack of interest in their job. D) little interest in unions. E) concern about their retirement plan.

A

The amount of time off provided for bereavement leave varies by jurisdiction, and also depends 15) on: A) the closeness of the relationship between the employee and the deceased. B) the location of the funeral. C) the employeeʹs length of service. D) family circumstances. E) the reason for the death.

A

The following are reasons why merit pay plans can backfire EXCEPT: 54) A) only pay (or other rewards) tied directly to performance can motivate improved performance. B) supervisors often tend to minimize differences in employee performance when computing merit raises. C) almost every employee thinks that he or she is an above-average performer, thus being paid a below-average merit increase can be demoralizing. D) supervisors often tend to minimize differences in employee performance when computing merit raises, to ensure that everyone gets a raise of at least the cost of living. E) the usefulness of the merit pay plan depends on the validity of the performance appraisal system-if performance appraisals are viewed as unfair, so too will the merit pay that is based on them.

A

The simplest approach to reducing health benefit costs is to increase the amount of health care 33) costs paid by: A) employees. B) smokers. C) the federal government. D) provincial governments. E) workersʹ compensation plans.

A

There are several specific common-sense considerations in establishing any incentive plan. Of 71) primary importance is: A) line of sight. B) goal setting. C) superior business results.D) pay-for-performance plans. E) relationship building.

A

To date, the evidence regarding the actual effects of employer -sponsored child care on employee 68) absenteeism, turnover, productivity, recruitment, or job satisfaction is: A) positive, with respect to reducing obstacles in coming to work and improving workersʹ attitudes. B) negative, in respect to employeesʹ attitudes. C) neutral, with some positive and some negative effects. D) positive, with respect to increasing obstacles in coming to work. E) positive, without consideration of obstacles or attitudes toward work.

A

Traditional merit pay plans have the following characteristics: 56) A) a merit raise is usually based on individual performance, although the overall level of company profits may affect the total sum for merit raises. B) a merit raise is based on overall level of company profits. C) a merit raise is usually based on individual performance only. D) a merit raise is usually based exclusively on group performance. E) a merit raise is usually based on corporate performance.

A

Which of the following is NOT an advantage of the behaviourally anchored rating scale method? 33) A) It is relatively consistent and reliable. B) It is generally a more accurate measure of performance. C) It is the simplest form of performance appraisal so little supervisor time is involved in using this performance appraisal tool. D) The critical incidents allow for clearer standards. E) It provides specific behavioural examples for each trait.

A) It is relatively consistent and reliable.

The following are disadvantages of appraisal tools EXCEPT: 46) A) a graphic rating scale is simple to use. B) BARS is difficult to develop.C) the critical incident method is difficult to use to rate employees relative to one another. D) MBO is time-consuming. E) the alternation ranking method can cause disagreements among employees.

A) a graphic rating scale is simple to use.

Aziz is the human resources professional at a consulting engineering company. He has been asked 4) by the executive team to suggest incentives that would most likely motivate the senior engineers who have worked in their professional capacity for at least 20 years and are generally in their early50ʹs. Which of the following should Aziz suggest? A) a recognition program and adventure travel B) a luxury cruise C) on-site day careD) paid time off to volunteer for charitable organizations E) adventure travel

A) a recognition program and adventure travel

Total rewards refers to: 1) A) all forms of pay or other compensation provided to employees. B) payroll costs.C) contractual pay methods or fringe benefits to employees. D) certain forms of pay and rewards to employees. E) cash payments only.

A) all forms of pay or other compensation provided to employees.

An interview with an employee to make development plans, to maintain satisfactory performance 60) if promotion is not indicated, or to correct unsatisfactory performance, is called a(n): A) appraisal interview. B) exit interview. C) evaluation interview. D) job interview. E) development interview.

A) appraisal interview.

The total rewards approach has arisen from the: 2) A) changing business environment of the last several decades. B) organizationʹs business needs. C) executive boardroom.D) changing global economy. E) employeeʹs requirement for stability.

A) changing business environment of the last several decades.

When preparing for the appraisal interview, there are three things to do. First, assemble the data; 62) second, prepare the employee; and finally: A) choose the time and place.B) prepare the appraisal examination. C) lay out an action plan.D) do the performance appraisal. E) document all information to be discussed in the interview.

A) choose the time and place.

The following are reasons for the failure of a performance appraisal EXCEPT: A) clearly defining performance standards. B) arguing and poor communications which arise as problems during feedback sessions. C) not telling employees ahead of time exactly what is expected of them.D) a lenient supervisor. E) having poor measures of performance.

A) clearly defining performance standards.

The following are elements in a managerʹs compensation package EXCEPT: 62) A) commission. B) long-term incentives. C) short-term incentives. D) benefits. E) salary.

A) commission.

The point method of job evaluation identifies several compensable factors, each having several 32) degrees, in addition to: A) degrees to which each of these factors is present in the job. B) identifying behavioural anchors. C) establishing points in ranking jobs. D) ranking jobs. E) degrees within a present job.

A) degrees to which each of these factors is present in the job.

When an employeeʹs most recent performance can affect the evaluation of his/her overall 42) performance, the ________ error has occurred. A) recency B) halo C) similar-to-me D) central tendency E) appraisal bias

A) recency

When using MBO, in order to avoid having the process demotivate employees, objectives must be: 31) A) fair and attainable. B) difficult to attain.C) the same for all employees in the same job. D) easy to attain. E) based on the employeeʹs educational level.

A) fair and attainable.

Popularized by Frederick Taylor in the late 1800s, financial rewards paid to workers whose 1) production exceeds some predetermined standard came into use. These financial rewards are commonly referred to as: A) financial incentives. B) perquisites. C) group incentive plans. D) Taylor bonuses. E) piecework plans.

A) financial incentives.

Experience has shown that competency -based pay is more efficient in the ________ years of its 57) existence. A) first B) first 10 C) later D) first 5 E) last

A) first

Gary is the supervisor of Mindy. He is very impressed with Mindyʹs ability to work in a team so 38) has rated her as ʺoutstandingʺ for this trait. Although she has had more missed delivery deadlinesthan her peers over the past financial quarter Gary rated her as ʺabove averageʺ for the traitʺpersonal effectiveness.ʺ Garyʹs actions indicate the following performance appraisal problem: A) halo effect. B) trait effect. C) bias.D) trait bias. E) appraisal bias.

A) halo effect.

A type of incentive plan that gives income over and above base salary to individual employees 8) who meet a specific individual performance standard is a(n): A) individual incentive program. B) straight commission. C) spot bonuses.D) cash bonus system. E) profit-sharing plan.

A) individual incentive program.

A total rewards approach considers: 3) A) individual reward components as part of an integrated whole. B) cost constraints.C) compensation and benefits together. D) business strategy. E) employee value.

A) individual reward components as part of an integrated whole.

The type of job evaluation method where the groups are called classes if they contain similar jobs 28) is called the: A) job classification method. B) ranking method. C) factor comparison method. D) point method. E) Hay plan method.

A) job classification method.

Broadbanding facilitates less specialized, boundaryless: 51) A) jobs and organizations. B) division of work. C) leniency and error. D) job evaluation. E) geographic dispersion.

A) jobs and organizations.

The job description often is not sufficient to clarify what employees are to do. This lack of clarity is 5) because: A) managers may ask individual employees to take on additional tasks. B) it is written only for benchmark jobs. C) it is the same for groups of employees. D) it is written for specific departments. E) it is written for specific employees.

A) managers may ask individual employees to take on additional tasks.

The following are problems that are typically encountered when an organization uses the MBO 29) method of performance appraisal EXCEPT: A) measurable objectives. B) unmeasurable objectives. C) unclear objectives.D) tug of war concerning objectives between supervisor and employee. E) time-consuming procedures.

A) measurable objectives.

The great challenge of competency -based pay is:A) measurement of skills, abilities and competencies. B) determining base pay.C) competency definition.D) educational levels of employees. E) determining bonuses.

A) measurement of skills, abilities and competencies.

Aziz is the human resources professional at a consulting engineering company. He has been asked 3) by the executive team to suggest incentives that would most likely motivate the junior engineers who have recently graduated from university and are generally in their mid to late 20ʹs. Which of the following should Aziz suggest? A) paid time off to volunteer for charitable organizations B) a luxury cruise C) on-site elder careD) high-end fitness equipment E) on-site day care

A) paid time off to volunteer for charitable organizations

The method for appraising performance which ranks employees by making a chart of all possible 11) pairs of the employees for each trait and indicating which employee is the better of the pair isknown as the: A) paired comparison method. B) forced distribution method. C) graphic rating scale.D) alternation ranking method. E) critical incident method.

A) paired comparison method.

The job evaluation committee will want to group similar jobs (in terms of their ranking or number 34) of points, for instance) into grades for: A) pay purposes.B) assessment purposes. C) wage structure purposes. D) personal growth. E) non-economic reasons.

A) pay purposes.

You are advising the President of a newly formed company as to payroll obligations. This 9) company is provincially regulated and is located in British Columbia. She has asked you to adviseher as to legislative minimum standards regarding pay. You respond that the British Columbia Employment Standards Act sets minimum standards regarding pay for each of the following categories EXCEPT: A) pensions. B) paid statutory holidays. C) overtime pay.D) paid vacation. E) minimum wage.

A) pensions.

The ʺwage gapʺ between men and women is a result of systemic discrimination, as well as the 68) following EXCEPT: A) performance levels.B) differences in hours worked. C) education levels.D) level of unionization. E) experience levels.

A) performance levels.

In a behaviourally anchored rating scale there are critical incident anchors along the: 19) A) performance rating scale. B) graphic rating scale.C) forced distribution scale.D) alternation ranking method scale. E) paired comparison scale.

A) performance rating scale.

A summary performance appraisal discussion focuses on: 21) A) problem solving. B) controlling.C) planning.D) developing people. E) administering.

A) problem solving.

The job evaluation method that rates each job relative to all other jobs, usually based on some 26) overall factor like ʺjob difficulty,ʺ is the: A) ranking method.B) classification method. C) critical incidence method. D) point method plan. E) factor comparison method.

A) ranking method.

The easiest appraisal interview to conduct is ________ performance, ________ employee. 61) A) satisfactory, promotable. B) unsatisfactory, correctable. C) unsatisfactory, uncorrectable. D) satisfactory, unpromotable. E) unsatisfactory, unpromotable.

A) satisfactory, promotable.

When it comes to performance appraisals, most firms combine: 30) A) several appraisal techniques. B) computerized techniques and BARS.C) computerized and narrative techniques. D) manual and subjective techniques. E) manual techniques and MBO.

A) several appraisal techniques.

The individual ratings that are still the heart of most appraisal systems are the: 48) A) supervisorʹs ratings. B) self-paced ratings. C) customer ratings. D) individual ratings. E) peer ratings.

A) supervisorʹs ratings.

Susan, the HR Director, is developing performance management training sessions for junior 70) managers. She wants to be sure to emphasize the key success factor for effective performance appraisal that most often leads to optimum employee performance. The factor she emphasizes is: A) the quality of the performance appraisal dialogue between the manager and employee. B) linking pay with performance. C) legally compliant policies.D) effective career development discussions. E) none of the above.

A) the quality of the performance appraisal dialogue between the manager and employee.

Quantitative job evaluation systems, primarily the point plan, are widely used in Canada, partly 59) due to: A) the requirements of pay equity legislation.B) job descriptions that restrict employee behaviour. C) the influence of job specifications on employee behaviour.D) the need for hourly jobs to be compared to salaried positions. E) employee behaviour that is limited to what is on paper.

A) the requirements of pay equity legislation

When an appraisal scale is too open to interpretation, it is characterized as having: 36) A) unclear performance standards. B) translation openness.C) critical incidents.D) lack of appraisal specificity. E) non-quantitative standards.

A) unclear performance standards.

A term plan that refers to any plan that ties pay to productivity or to some other measure of the 5) firmʹs profitability is called: A) variable pay. B) a quality circle. C) a profit-sharing plan. D) a fringe benefit. E) a supplemental pay benefit.

A) variable pay

A type of pension plan that specifies what contribution the employer will make to a retirement or 47) savings fund set up for the employee is called a: A) retirement plan.B) defined contribution pension plan. C) government-sponsored plan. D) deferred profit-sharing plan. E) defined benefit pension plan.

B

A type of retirement plan that does not guarantee the eventual pension benefit an employee will 48) receive at retirement, but only what the employee and employer contributions to the plan will be,is called a: A) deferred profit-sharing plan.B) defined contribution pension plan. C) retirement plan.D) defined benefit pension plan. E) government-sponsored plan.

B

A ʺgolden parachuteʺ is an executive perk in the form of a salary guarantee in the following 31) circumstances: A) death of the executive in a work-related accident. B) targeting of the company for acquisition or merger. C) termination of employment. D) divorce from spouse. E) overseas transfer.

B

Approaches to health care benefit cost reduction include the following EXCEPT: 34) A) increase the amount of health care costs paid by employees. B) increasing government subsidies.C) publish a restricted list of drugs that will be paid for under the plan. D) risk-assessment programs. E) health promotion.

B

Aziz is the human resources professional at a consulting engineering company. He has been asked 26) by the executive team to implement a short term incentive plan for senior managers. The followingare basic issues he should consider, with the exception of: A) fund-size determination. B) salary grade. C) individual awards. D) eligibility. E) how much to pay out.

B

Based on survey data, the following are benefits to employers who institute subsidized day care 67) centres EXCEPT: A) lower turnover.B) lower performance appraisals. C) enhanced recruitment. D) increased productivity. E) lowered absenteeism.

B

Canadian employers pay about ________% of all health care expenses in Canada, most of which is 30) for prescription drugs. A) 50 B) 30 C) 36 D) 40 E) 25

B

Employees favour recognition from their ________ by a majority of two -to-one over recognition 74) from other sources. A) subordinatesB) supervisor/manager C) customers D) mentor E) peers

B

Employers must pay careful attention to their obligation to educate plan members about pension 59) investment. They must also: A) provide sessions. B) inform. C) provide quarterly bulletins. D) advise. E) cousel.

B

Employers who offer a defined contribution pension plan must pay careful attention to their 58) obligation to educate and inform plan members about: A) pension benefits formula. B) pension investments. C) pension portability. D) pension vesting. E) early retirement incentives.

B

Executive perquisites are usually provided to: 36) A) executives with base salaries of $100,000 or more. B) only a few top executives. C) head office executives.D) the CEO and the president. E) all executives.

B

Family-friendly benefits options include the following EXCEPT: 57) A) subsidies for paid parental leave. B) outsourcing benefits administration. C) a casual dress code.D) alternative transportation options. E) telecommuting.

B

Future Shop, an electronics retailer, is considering removing commission for its sales staff from 49) their compensation plan, and compensating them on a straight salary basis. The following is an advantage of this approach EXCEPT: A) a long-term perspective is encouraged.B) straight salaries make it difficult to switch territories or quotas or to reassign salespeople. C) the employer has fixed, predictable sales force expenses.D) straight salaries develop a high degree of loyalty among the sales staff. E) salespeople know in advance what their income will be.

B

Group life insurance is usually provided in the amount of: 21) A) $100,000. B) two yearsʹ salary. C) one yearʹs salary. D) $25,000. E) five yearsʹ salary.

B

Long-term incentive plans whose payment or value is contingent on financial performance 43) measured against objectives set at the start of a multi-year period are called: A) multi-year plans. B) performance plans. C) contingent plans. D) financial plans. E) book value plans.

B

Long-term incentives most often reserved for senior executives are called: 39) A) performance achievement plans. B) capital accumulation programs. C) stock option programs.D) book value plans. E) stock appreciation rights programs.

B

Many companies are trying to reduce the cost of psychiatric disabilities in the following ways 44) EXCEPT: A) peer support groups. B) employment testing. C) prevention programs. D) early intervention programs. E) psychiatric counseling.

B

Many employers have incentive plans in which virtually all employees can participate. They 61) include the following EXCEPT: A) Scanlon plans.B) salary and fringe benefit programs. C) profit-sharing plans.D) deferred profit sharing plans. E) employee stock ownership.

B

Recognition is important for ________, who are driven by internal motivation. 75) A) management B) high performers C) new employees D) low performers E) none of the above

B

Revlex Inc. has implemented a refinement of the salary cutoff approach to short -term incentive 30) eligibility, which assumes that all managers should be eligible for short-term incentives. This is known as: A) performance appraisals. B) salary grade. C) key position. D) gainsharing. E) profit-sharing plans.

B

The EI benefit is generally 55% of average earnings during the last 14 to 26 weeks of the: 6) A) benefit period. B) qualifying period.C) previous 52 weeks.D) previous calendar year. E) probationary period.

B

The following are counseling services employers are providing to their employees EXCEPT: 62) A) financial counseling. B) real-estate counseling. C) family counseling.D) career counseling. E) preretirement counseling.

B

The following factor(s) is/are expected to increase the cost of benefits: A) employee services. B) looming labour shortage. C) baby boomers.D) advances in dental care. E) pension plans.

B

The looming labour shortage when baby boomers start retiring is resulting in employers seeking to 60) retain older employees. Melʹs organization is experiencing this issue. One program to support this issue is: A) supplemental employee retirement plans. B) phased retirement. C) RRSPs.D) defined contribution pension plans. E) defined benefit pension plans.

B

The term ʺmerit payʺ can apply to incentive raises given to any employees, but is most often used 52) with respect to: A) blue-collar employees. B) white-collar employees. C) hourly workers. D) salespeople. E) executives.

B

The three types of benefits provided under the Canada/Quebec Pension Plan are: 8) A) disability, survivor, old age security. B) retirement, disability, survivor. C) retirement, survivor, health care. D) retirement, vacation, disability. E) retirement, survivor, old age security.

B

There has been a definite movement away from the extremes of straight commission or fixed 51) salary for salespeople to: A) pay-for-performance. B) combination plans. C) incentive plans. D) merit pay. E) variable pay.

B

To determine eligibility in a short-term incentive program, a job-by-job review is conducted to 28) identify the key jobs (typically only line jobs) that have measurable impact on profitability, whichis called the criterion of: A) salary grade. B) key position. C) industry requirements for piece rate production. D) salary level. E) position level.

B

Unlike government-provided retirement benefits, employer -sponsored pension plans are: 45) A) easily managed. B) pre-funded.C) invested in foreign securities.D) restricted to deferred profit sharing. E) formalized.

B

When a predetermined portion of profits is placed in each employeeʹs account under the 63) supervision of a trustee, this is called a(n): A) cash profit-sharing plan.B) deferred profit-sharing plan. C) employee trust fund plan. D) employee trust fund. E) predetermined account plan.

B

When a target bonus is set for each eligible position, and adjustments are then made for greater - or 33) less-than-targeted performance, this is called: A) retirement income. B) an individual award. C) an annual bonus. D) a lump-sum bonus. E) gainsharing.

B

The job classification method of job evaluation is a widely used method in which jobs are 27) categorized into: A) departments. B) groups. C) factors. D) clusters. E) functions.

B) groups.

Renu has been hired as the first human resources professional at a growing landscape architecture 14) firm, Terrastyle Inc. She is considering changing the current performance appraisal method, thegraphic rating scale, to the forced distribution method of performance appraisal. What criticism ofusing this method do you advise her about? A) It is similar to grading on a curve.B) A considerable proportion of the workforce is classified as less than average. C) Predetermined percentages of employees are placed in performance categories. D) Employees are rated on a comparison basis. E) Traits being appraised are decided by management.

B) A considerable proportion of the workforce is classified as less than average.

A type of incentive plan that is an organization-wide pay plan designed to reward employees for 12) improvements in organizational productivity is: A) a group incentive program. B) a gain-sharing program. C) a profit-sharing plan. D) variable pay. E) a spot bonus.

B) a gain-sharing program.

Rules for constructive criticism include the following EXCEPT: 66) A) criticize in private. B) a once-a-year ʺcritical broadsideʺ can be effective.C) provide suggestions about what could be done to change behaviour. D) ensure criticism is free of bias. E) let the employee maintain their sense of dignity and self-worth.

B) a once-a-year ʺcritical broadsideʺ can be effective.

Job evaluation involves comparing jobs to one another based on their content. Job content is 20) assessed using: A) behavioural anchors. B) compensable factors. C) job design.D) critical incidence. E) comparable worth.

B) compensable factors.

Guidelines for developing a legally defensible performance appraisal process include the following 47) EXCEPT: A) document evaluations.B) conduct job specialization for each employee. C) use clearly defined individual dimensions of job performance. D) incorporate job characteristics into a rating instrument. E) provide definitive performance standards to rater and ratees.

B) conduct job specialization for each employee.

The 360-degree appraisal approach fits closely with the goals of organizations committed to: 57) A) employment equity. B) continuous learning. C) pay equity.D) MBO. E) hierarchical chain of command.

B) continuous learning.

The performance appraisal method which involves keeping a record of uncommonly good or 15) undesirable examples of an employeeʹs work -related behaviour and reviewing it with theemployee at predetermined times is the: A) paired comparison method. B) critical incident method. C) alternation ranking method. D) forced distribution method. E) behaviourally anchored rating scales.

B) critical incident method.

The critical step in employeesʹ understanding of how their work makes a contribution is: A) the promotion decision. B) defining performance expectations. C) the career planning session.D) the pay decision. E) the appraisal session.

B) defining performance expectations.

When a person is accused of poor performance, research indicates that the first reaction that he/she 64) may have is often: A) anger. B) denial. C) changing the subject. D) ignoring the accusation. E) aggression.

B) denial.

There are several steps in pricing jobs with a wage curve. The first is: 44) A) determine the pay rate for a cluster of jobs. B) find the average pay for each pay grade. C) determine the pay grade.D) create a wage line. E) determine the rate range.

B) find the average pay for each pay grade.

The performance appraisal method which is similar to grading on a curve, and which places a 13) predetermined percentage of ratees in various performance categories, is the: A) graphic rating scale.B) forced distribution method. C) paired comparison method. D) alternation ranking method. E) critical incident method.

B) forced distribution method.

The following are advantages of various appraisal tools EXCEPT: 45) A) alternation ranking is simple to use. B) forced distribution results depend on the adequacy of the original choice of cutoff points. C) MBO is tied to jointly agreed goals.D) a graphic rating scale is simple to use. E) BARS is very accurate.

B) forced distribution results depend on the adequacy of the original choice of cutoff points.

Statistics Canada provides monthly data on earnings by: 40) A) industry and city. B) geographic area, industry, and occupation. C) geographic area and size of company.D) size of company. E) city and occupation.

B) geographic area, industry, and occupation.

Renu has been hired as the first human resources professional at a growing landscape architecture 8) firm, Terrastyle Inc. The firm is currently using a formal appraisal method which lists traits such as ʺteamworkʺ and performance values ranging from ʺneeds improvementʺ to ʺoutstanding.ʺTerrastyle is using the following appraisal method: A) paired comparison method. B) graphic rating scale. C) forced distribution method.D) behaviourally anchored rating scale. E) critical incident method.

B) graphic rating scale.

When compensating professional employees, the commonly used job evaluation method is: 67) A) factor comparison. B) job classification method. C) competency.D) point. E) ranking.

B) job classification method.

A method for appraising performance involving setting specific measurable goals with each 27) employee and then periodically reviewing the progress made is called: A) progress review method. B) management by objectives. C) critical goal method.D) behaviourally anchored rating scale method. E) periodic review method.

B) management by objectives.

The performance appraisal method that would use a ʺ+ʺ to denote ʺbetter thanʺ and a ʺ-ʺ to denote 12) ʺworse thanʺ when comparing employees in order to get the highest -ranked employee is the: A) alternation ranking method. B) paired comparison method. C) graphic rating scale method. D) critical incident method.E) forced distribution method.

B) paired comparison method.

360-degree feedback was originally used only for training and development purposes, but has 56) rapidly spread to being used in the management of: A) job evaluation.B) performance and pay. C) customer service. D) rating errors. E) employee orientation.

B) performance and pay.

Accurate ________ are a precondition for effective variable pay plans. 6) A) job evaluation B) performance appraisals C) salary curvesD) job specifications E) job descriptions

B) performance appraisals

The following are disadvantages of a piecework incentive plan EXCEPT: 17) A) new job evaluation produces a new wage rate; thus piece rates need to be revised. B) piece-rate plans appear equitable in principle. C) employers arbitrarily increase the standard because of workers earning ʺexcessiveʺ wages. D) in workersʹ minds production standards become tied inseparably to the amount of money earned. E) workers resist attempts to raise production standards.

B) piece-rate plans appear equitable in principle.

There are several steps in pricing jobs with a wage curve. The second is: 45) A) determine the rate range. B) plot the pay rates.C) find the average pay for each pay grade. D) create a wage line. E) price jobs.

B) plot the pay rates.

The following are problems for managers when using performance appraisal methods EXCEPT: 35) A) halo effect. B) quota appraisals. C) appraisal bias.D) unclear standards. E) central tendency.

B) quota appraisals.

Jeffrey is the newly hired HR professional who is responsible for evaluating compensation 21) practices at the company. To determine if there are issues with internal equity he has chosen to conduct a job evaluation according to the method popularized by the Hay consulting firm. Which of the following are the compensable factors he uses to evaluate jobs: A) skill, effort, problem solving, and working conditions. B) responsibility, skill, effort, and working conditions. C) know-how, problem solving, accountability, and working conditions. D) knowledge, problem solving, responsibility, and working conditions. E) effort, responsibility, authority, and working conditions.

B) responsibility, skill, effort, and working conditions.

The following are primary functions of the job evaluation committee EXCEPT: 24) A) evaluating the worth of each job. B) selecting behavioural anchors.C) selecting compensable factors.D) selecting a job evaluation method. E) identifying 10 or 15 key benchmark jobs.

B) selecting behavioural anchors.

Job evaluation is a technique used to determine: 18) A) performance appraisals of individuals to the group. B) the relative worth of each job.C) the relative value of an individualʹs career earnings to the groupʹs. D) merit reviews of individuals to the group. E) promotability.

B) the relative worth of each job.

The following steps are important to ensure that the appraisal interview leads to improved 67) performance EXCEPT: A) set improvement goals and a schedule for attaining them. B) the supervisor should be in firm control of the interview. C) ensure employees donʹt feel threatened during the interview.D) give employees the opportunity to present their ideas and feelings. E) the supervisor should be helpful and constructive.

B) the supervisor should be in firm control of the interview.

Today, any plan that ties pay to productivity or profitability is called: 2) A) competency-based pay. B) variable pay.C) pay-for-performance. D) profit-sharing. E) job-based pay.

B) variable pay.

Unions tend to believe that no one can judge the relative worth of jobs better than: A) job evaluation consultants. B) workers.C) union leaders. D) management. E) HR staff.

B) workers.

Rate ranges are a series of steps or levels of pay within a pay grade, usually based upon: 46) A) years of education. B) years of service.C) teamwork.D) amount of responsibility. E) peer appraisals.

B) years of service.

When supervisors who are engaged in a performance rating have a tendency to rate all employees 40) either high or low, this is a problem that is referred to as: A) halo effect.B) leniency/strictness. C) central tendency. D) appraisal bias. E) bias.

B)leniency/strictness.

A Harvard University study projects that, by 2020, ________ will become the biggest source of lost 43) workdays in developed countries. A) occupational illness B) work-related illness C) depressionD) anxiety attacks E) psychiatric illness

C

A formal employer program for providing employees with counseling and/or treatment programs 63) for problems such as mental health issues, marital/family problems, legal problems or stress is called a(n): A) rehabilitation program.B) employee services benefit. C) employee assistance program. D) legal aid benefits. E) AA and NA program.

C

A job-related services benefit that is designed to help employees who must help elderly parents or 64) relatives who are not fully able to care for themselves is known as: A) aging care.B) personal care. C) eldercare.D) on-site eldercare. E) family medical care.

C

A plan in which a production standard is set for a specific work group, and its members are paid 20) incentives if the group exceeds the production standard, is known as a(n): A) standard hour plan.B) excess production plan. C) team or group incentive plan. D) work group plan. E) gainsharing.

C

A type of organization-wide incentive plan that engages many or all employees in a common 69) effort to achieve a companyʹs productivity objectives by sharing the resulting cost savings among employees and the company is referred to as a: A) profit-sharing plan. B) productivity plan. C) gainsharing plan. D) cost savings plan. E) common incentive plan.

C

A type of pension plan that contains a formula for determining retirement benefits so that the 46) actual benefits to be received are defined ahead of time is called a: A) deferred profit-sharing plan. B) money purchase pension plan. C) defined benefit pension plan.D) defined contribution pension plan. E) retirement plan.

C

Abacus Trucking Ltd. has experienced a rise in workers compensation claims over the past year. 11) You are the Human Resources professional who has been asked what the company can do toreduce the number of claims. You respond that the following are steps the company should take EXCEPT: A) institute effective health and safety programs. B) comply with government safety standards. C) discipline workers who have more than one workersʹ compensation claim.D) provide career counseling to guide employees into less strenuous or stressful jobs. E) institute rehabilitation programs for injured or ill workers.

C

All parties agree that the best way to manage workersʹ compensation claims over the long term is: 10) A) reducing benefits. B) instituting employee premiums. C) accident prevention.D) better claims monitoring. E) privatization of workersʹ compensation.

C

An employer is required to provide advance notice to an employee whose employment is being 18) terminated, unless the employee is working on a short-term contract or: A) a mass layoff is occurring.B) the employee works outdoors. C) the employee is being fired for just cause. D) the company is shutting down. E) the employee is eligible for early retirement.

C

Any indirect financial payments given to employees are known as: 1) A) commissions. B) stock options.C) employee benefits. D) financial incentives. E) perquisites.

C

Because of the role managers play in determining divisional and corporate profitability, most 24) employers pay their managers and executives some type of: A) gainsharing. B) hourly wage. C) bonus or incentive. D) salary. E) commission.

C

Costs associated with mental health problems relate to: 40) A) younger workers. B) short-term disability and increased drug usage. C) short- and long-term disability.D) increased drug usage. E) long-term disability and increased drug usage.

C

Employees whose work involves the application of learned knowledge to the solution of the 57) employerʹs problems are referred to as: A) hourly employees.B) managerial employees. C) professional employees. D) executives. E) supervisory employees.

C

Executive compensation is more likely to be effective if it is appropriately linked to: 44) A) external issues. B) a cost-reduction strategy. C) corporate strategy.D) internal issues. E) job evaluation.

C

For short term incentives, the term ʺfund sizeʺ means: 31) A) the companyʹs net income. B) the amount each employee will receive.C) the total amount of bonus money that will be available to be paid out. D) average capital invested in the business. E) the incentive bonus formula.

C

Group RRSP/DPSP combinations are popular in Kerrieʹs company and commonly popular in 50) Canada. Kerrie found this out because: A) they increase severance payments.B) membership is automatic upon beginning employment. C) no tax is paid until money is received from the plans at the time of employeeʹs death. D) no tax is paid at all. E) employerʹs provide contribution to them.

C

In most provinces, employer pension plan contributions must be vested once the employee has 54) completed ________ years of service. A) 5 B) 4 C) 2 D) 3 E) 1

C

Individualized benefit plans allowed by some employers in order to accommodate employee 12) preferences for benefits are known as: A) family-friendly benefits. B) perquisite benefits plans. C) flexible benefits programs. D) constrained benefits plans. E) individualized benefits plans.

C

One of the most common approaches to returning a worker with a disability to work is: 39) A) providing additional compensation. B) providing termination pay. C) reduced work duties.D) prevention programs. E) early assessment and intervention.

C

One or more of parental, paternity, and adoption leaves are provided in each Canadian 16) jurisdiction. These leaves range from ________ weeks to ________ weeks. A) 2, 15 B) 12, 24 C) 8, 52 D) 9, 25 E) 6, 12

C

The Scanlon plan has been quite successful at reducing costs and fostering a sense of sharing and 68) cooperation among: A) employer associations. B) industrial associations. C) employees.D) global environment associations. E) stakeholders.

C

The benefit that provides a fixed lump-sum benefit in addition to life insurance benefits when 22) death is accidental is: A) major medical insurance. B) health insurance. C) accidental death and dismemberment insurance. D) survivorsʹ benefit. E) dental coverage.

C

The chief disadvantage of group plans is that: 23) A) each worker sees his/her effort leading to the desired reward. B) a group incentive plan may not prove as effective as an individual incentive plan in improving performance. C) each workerʹs rewards are no longer based just on his/her own efforts. D) a group incentive plan does not facilitate on-the-job training. E) a group incentive plan is problematic when conflict arises between group members.

C

The following are various social and recreational opportunities extended to the employees 66) EXCEPT: A) athletic events. B) craft activities. C) pre-retirement counseling. D) annual summer picnics. E) parties.

C

The following are ways that employers use team or group incentive plans EXCEPT: 21) A) setting a production standard based on the final output of the group as a whole. B) setting work standards for each member of the group and maintaining a count of the output of each member. C) setting a standard that all members receive payment equal to the 75th percentile of the group as a whole. D) broad criteria such as total labour-hours per final product. E) choosing a measurable definition of group performance or productivity that the group can control.

C

The main reasons for increasing health care benefit costs are: 29) A) psychiatric disabilities and AIDS. B) rising drug utilization and expensive new drugs. C) increasing use of expensive new drugs, rising drug utilization, and ʺcost cuttingʺ reductions in provincial health care plans. D) increasing workersʹ compensation claims for occupational illness, and expensive new drugs. E) ʺcost cuttingʺ in provincial health care plans, and the AIDS epidemic.

C

The most common psychiatric disability is: 42) A) schizophrenia. B) obsessive-compulsive disorder. C) depression.D) multiple personality disorder. E) anxiety attacks.

C

The most prevalent approach to compensating salespeople is to use a combination of: 48) A) commissions and profit sharing. B) salary, commission, stock options, and profit sharing. C) salary and commissions.D) salary and stock options. E) commission and stock options.

C

Untac Inc., a consulting engineering firm, has recently implemented a type of organization -wide 62) incentive plan whereby all full time employees share in the companyʹs profits. Untac Inc. has implemented a: A) salary and commission plan. B) gainsharing plan. C) profit-sharing plan.D) piece-rate incentive plan. E) profit-loss plan.

C

When all employees earning over a threshold amount are automatically eligible for consideration 29) for short-term incentives, this is called the criterion of: A) key position. B) job evaluation. C) salary-level cutoff point. D) job clusters. E) salary grade.

C

With a true individual incentive, it is the managerʹs individual effort and performance that are 35) rewarded with a(n): A) individual wage. B) salary. C) bonus.D) cost-of-living adjustment. E) perquisite.

C

An employeeʹs 360-degree appraisal usually involves the following appraisers EXCEPT: 58) A) peers. B) any employees reporting to the person being appraised. C) competitors.D) customers. E) supervisors.

C) competitors.

Which of the following is true about performance management? A) The process does not involve coaching. B) Research indicates that most companies manage performance well. C) Better performance management represents a largely untapped opportunity to improve company profitability. D) It is indirectly related to achieving strategic objectives. E) The process contains 3 steps.

C) Better performance management represents a largely untapped opportunity to improve company profitability.

You are the HR professional at a forestry company. You are responsible for implementing a pay 69) equity plan. Which of the following questions would not be beneficial for the purpose of avoiding pay equity problems? A) Are job duties and responsibilities clearly documented?B) Are pay equity laws being monitored and adhered to in each province? C) Have pay equity consultants been hired? D) When was the pay system last reviewed? E) Is the pay system clearly documented in a salary administration manual?

C) Have pay equity consultants been hired?

A common method for appraising performance which involves evaluating employees by ranking 9) them from best to worst on some trait is called the: A) paired comparison method. B) graphic rating scale. C) alternation ranking method.D) behaviourally anchored rating scale. E) forced distribution method.

C) alternation ranking method.

When supervisors allow individual differences such as age, race, and sex to affect the appraisal 41) ratings that employees receive, this problem is referred to as: A) strictness/leniency. B) halo effect. C) appraisal bias. D) central tendency. E) trait effect.

C) appraisal bias.

The following are advantages of using rating committees in the performance appraisal process 51) EXCEPT: A) the composite ratings tend to be more fair than those of individual raters. B) variations in ratersʹ ratings usually stem from the fact that raters often observe different facets of an employeeʹs performance. C) appraisal is generally more biased because of personality clashes. D) the composite ratings tend to be more reliable and valid than those of individual raters. E) several raters can help cancel out problems like bias and halo effect on the part of individual raters.

C) appraisal is generally more biased because of personality clashes.

The general trend in executive compensation today is to decrease the relative importance of 64) ________ and increase the relative importance of short - and long-term executive incentives. A) perquisitesB) employee benefits C) base salary D) pension plans E) commissions

C) base salary

Collapsing salary grades and ranges into just a few wide levels or ʺbandsʺ is called: 50) A) compensation banding. B) wide banding.C) broadbanding.D) red circle banding. E) job specialization.

C) broadbanding.

The following are steps in developing a behaviourally anchored rating scale EXCEPT: 23) A) scaling the incidents. B) developing performance dimensions. C) causing critical incidents to occur.D) generating critical incidents. E) developing the final instrument.

C) causing critical incidents to occur.

An example of the alternation ranking method would include the following steps EXCEPT: 10) A) listing the highest-ranking employee on the first line. B) putting the lowest-ranking employee on the last line. C) defining the compensable factors.D) cross off names not known well enough to rank. E) listing all the employees to be ranked.

C) defining the compensable factors.

The following are examples of critical incidents for an assistant plant manager EXCEPT: 17) A) preventing a machine breakdown by discovering a faulty part. B) instituting a new preventative maintenance system for the plant. C) developing a corporate strategy to implement company-wide. D) allowing inventory storage costs to rise 15% in the prior month. E) instituting a new production system which decreased late orders by 10%.

C) developing a corporate strategy to implement company-wide.

Another way to categorize jobs, other than using class descriptions, when undertaking the job 29) classification method is to: A) assign points to compensable factors. B) rank jobs by compensable factors.C) draw up a set of classifying rules. D) rank jobs against one another.E) rank jobs from lowest to highest.

C) draw up a set of classifying rules.

The Revlex Company did a salary survey, and the results showed that 10 of its key positions had 8) lower wages compared with similar positions at their key competitors. The problem the companyfaces is: A) broadbanding. B) pay equity. C) external inequity. D) internal inequity. E) comparable worth.

C) external inequity.

The step used in developing a behaviourally anchored rating scale where persons who know the 24) job being appraised are asked to describe specific illustrations of effective and ineffective performance is: A) scaling the incidents.B) developing the final instrument. C) generating critical incidents. D) reallocating incidents. E) developing performance dimensions.

C) generating critical incidents.

A scale that lists a number of traits and a range of performance for each is called a(n): 7) A) alternation ranking method. B) behaviourally anchored rating scale. C) graphic rating scale.D) paired comparison scale. E) forced distribution method.

C) graphic rating scale.

Amy is part of a team of 4 software developers. Upon completion of a major client project she and 10) each of her team members received a set amount in addition to their base salary. All received thesame additional amount. Amy received this payment as part of a: A) gain-sharing program.B) individual incentive plan. C) group incentive program. D) spot bonus plan.E) profit-sharing plan.

C) group incentive program.

Under this pay system, each worker receives the minimum hourly wage plus an incentive for each 15) piece produced above a set number of pieces per hour. It is known as a: A) gainsharing plan.B) minimum hourly wage plan. C) guaranteed piecework plan. D) piecework plan. E) straight piecework plan.

C) guaranteed piecework plan.

A potential problem with peer appraisal occurs when all the peers get together to rate each other 49) highly. This is called: A) preferential evaluation. B) appraisal bias. C) logrolling. D) halo error. E) leniency error.

C) logrolling.

An advantage of using rate ranges for each pay grade is that it allows for: 48) A) education differences. B) gender differences.C) performance differences. D) employer inflexibility. E) age differences.

C) performance differences.

Some employers evaluate the progress and development of their supervisory employees via the 20) use of a narrative form of appraisal. One example of the form that is used is called the: A) performance discussion plan. B) essay form. C) performance improvement plan. D) critical incident method. E) assessment method.

C) performance improvement plan.

The job evaluation method in which a number of compensable factors are identified, and then the 31) degree to which each of these factors is present on the job is determined, is the: A) factor comparison method. B) ranking method. C) point method.D) job classification method. E) Hay plan method.

C) point method.

Engagement is: 7) A) the belief that the organization cares about talent management. B) transactional rewards which are consistent across competing organizations. C) positive emotional connection to the employer and a clear understanding of the strategic significance of the job. D) providing competitive base pay. E) relational work experiences.

C) positive emotional connection to the employer and a clear understanding of the strategic significance of the job.

In establishing pay rates, an employer should conduct a salary survey for the purpose of: 35) A) fine tuning pay rates. B) slotting jobs into pay grades. C) pricing jobs.D) job evaluation. E) performance appraisals.

C) pricing jobs.

A type of incentive plan that generally is organization-wide and that provides employees with a 11) share of the organizationʹs profits in a specified period is a(n): A) gainsharing plan.B) individual incentive plan. C) profit-sharing plan.D) semi-variable incentive plan. E) group incentive plan.

C) profit-sharing plan.

One way to depict the pay rate ranges for each pay grade is with a wage structure graphically 47) depicting the: A) scatter-plot points within a pay grade. B) range of jobs. C) range of pay rates for each pay grade. D) range of pay grades for each pay rate. E) pay for each job.

C) range of pay rates for each pay grade.

Rates being paid to overpaid employees are often called: 53) A) black circle pay rates. B) excessive pay rates. C) red circle pay rates. D) silver circle pay rates. E) premium jobs pay rates.

C) red circle pay rates.

Ira, the manager of a woodworking business, is considering implementing a piecework incentive 16) plan for the word workers reporting to him. You are an HR consultant he has asked for advice asto the benefits of implementing such a plan. You advise him of all of the following EXCEPT: A) the incentive value of piece-rate plans can be powerful since rewards are directly tied to performance. B) piece-rate plans appear equitable in principle. C) since the piece rate is quoted on a per-piece basis, in workersʹ minds, production standards become tied inseparably to the amount of money earned. D) piecework plans are simple and easily understood. E) they are easily understood by employees.

C) since the piece rate is quoted on a per-piece basis, in workersʹ minds, production standards

Amy received $2000 from her employer last week in order to recognize the extra hours. beyond 9) normal work hours, that she had worked in the past month. Which of the following did Amy receive? A) retirement income plan B) profit-sharing plan C) spot bonusD) variable pay plan E) individual incentive program

C) spot bonus

Rating committees are usually composed of the employeeʹs immediate supervisor and: 52) A) that supervisorʹs boss. B) three or four peers.C) three or four other supervisors.D) that supervisorʹs boss and a customer. E) other supervisors and peers.

C) three or four other supervisors.

The problem resulting from using data in employee compensation surveys is known as: 38) A) employee discrimination. B) systemic undervaluing. C) upward bias.D) report bias. E) stereotyping of data.

C) upward bias.

Organizations that have implemented 360 -degree appraisal have the following advice for those 59) considering it EXCEPT: A) plan to evaluate the system for fine tuning.B) be clear about who will have access to reports. C) use standard questionnaires.D) assure all raters that their comments will be kept anonymous. E) provide training for supervisors, raters and ratees.

C) use standard questionnaires.

Appraisal systems must be based on performance criteria that are ________ for the position being 34) rated, and ________ in that their application must produce consistent ratings for the sameperformance. A) valid, measurable B) measurable, valid C) valid, reliable D) reliable, reliable E) reliable, valid

C) valid, reliable

When compensating professional employees, compensable factors tend to focus on the following 66) EXCEPT: A) creativity.B) problem solving. C) working conditions. D) technical expertise. E) technical knowledge.

C) working conditions.

A disadvantage of the job classification method of job evaluation is the difficulty in: 30) A) classifying jobs. B) writing job descriptions. C) writing grade descriptions. D) grouping jobs. E) developing job clusters.

C) writing grade descriptions.

A pension plan in which a certain amount of profit is credited to each employeeʹs account, payable 49) at retirement, termination, or death, is a: A) group pension plan. B) group RRSP. C) defined contribution plan. D) deferred profit-sharing plan. E) defined benefit pension plan.

D

A plan that offers each person a bonus based on the companyʹs results, regardless of the personʹs 34) actual effort, is called: A) gainsharing.B) a lump-sum bonus. C) financial incentives. D) profit sharing. E) piece-rate production.

D

A provision in pension plans referring to the money contributed by the employer that has been 53) placed in a pension fund and cannot be forfeited for any reason is: A) investing.B) stockholder equity. C) non-funding. D) vesting. E) bonding.

D

A short-term incentive plan that is designed to motivate the short-term performance of managers 25) and is tied to company profitability is called a(n): A) commission plan. B) eligibility plan. C) gainsharing. D) annual bonus. E) capital accumulation program.

D

A type of life insurance providing for lower rates than for individual insurance, and including all 20) employees, regardless of health or physical condition, is called: A) whole life insurance. B) term insurance. C) endowment insurance. D) group life insurance. E) universal life insurance.

D

Amish is the human resources professional at a software development company that has 73) experienced high employee turnover over the past year. The CEO has asked him to explain whatthe most likely primary cause of this is. Amish reports that recent research indicates that the number-one reason that employees leave an organization is: A) conflict with supervisor. B) poor leadership. C) low pay.D) lack of recognition and praise. E) unattractive benefits.

D

Amy received a salary increase based on her individual performance over the past year. Amy 53) received the following type of compensation: A) individual increases. B) individual incentives. C) individual bonuses. D) merit pay. E) special awards.

D

Defined benefit plans are expected to remain in large organizations with a norm of: 52) A) layoffs. B) high turnover. C) unionization. D) long tenure. E) early retirement incentives.

D

Employees in Ontario and the federal jurisdiction may be eligible for ________ in certain 17) termination situations, in addition to pay in lieu of notice. A) unemployment pay B) severance pay C) notice pay D) terminal pay E) exit pay

D

Employers can reduce the cost of retiree benefits in the following ways EXCEPT: 35) A) tightening eligibility requirements. B) increasing deductibles.C) increasing retiree contributions.D) increasing costs paid by workersʹ compensation. E) reducing maximum payouts.

D

In these long-term incentive plans, shares are usually awarded without cost to the executive, but 42) with certain restrictions that are imposed by the employer. These plans are called: A) book value plans.B) stock appreciation rights. C) stock options.D) restricted stock plans. E) phantom stock plans.

D

One adaptation of merit pay plans is merit raises that are: 55) A) linked to group performance. B) paid in quarterly installments.C) linked to profit sharing.D) paid in one lump sum once a year. E) linked to annual performance appraisals.

D

One drawback to the split-award approach is that it pays too much to the marginal performer, 38) who, even if his or her own performance is mediocre, at least gets the second, company -based bonus. One way to get around this would be to use the: A) lump-sum bonus method. B) group incentive plan. C) individual award system. D) multiplier method. E) individual bonus method.

D

Professional employees almost always reach their positions through prolonged periods of: 58) A) reference groups. B) political influence. C) work experience. D) formal study. E) informal networking.

D

Sales compensation plans have typically relied heavily on incentives (sales commissions), although 46) this varies by: A) geographic location. B) domestic policy. C) human resource plan. D) industry. E) labour contract.

D

Sue, the Compensation Analyst, found recent research that indicates that there are seven principles 72) that support effective implementation of incentive plans. They include: A) group incentives must be complex. B) firms get what they pay for. C) rewards may undermine responsiveness. D) link incentives to measurable competencies. E) none of the above

D

The biggest issue facing benefits managers in Canada today is: 28) A) workersʹ compensation costs. B) AIDS coverage.C) pension funding.D) increasing health care benefit costs. E) retiree benefits.

D

The fastest growing occupational disabilities are: 41) A) chronic fatigue. B) back problems.C) repetitive strain injuries. D) psychiatric. E) HIV/AIDS-related.

D

The following are basic features of the Scanlon plan EXCEPT: 66) A) a formula for sharing of benefits. B) a philosophy of cooperation.C) competence required from all employees. D) guaranteed minimum payouts. E) an identity around which to focus employee involvement.

D

The following are long-term incentive plans extended to employees EXCEPT: 40) A) stock options. B) phantom stock plans. C) restricted stock plans. D) retained earnings plans. E) stock appreciation rights.

D

The percentage of expenses (in excess of the deductible) that are paid for by the insurance plan is 32) called the: A) insured amount. B) assessment. C) uninsured amount. D) coinsurance level. E) premium.

D

The purpose of an SUB plan is: 7) A) to supplement maternity leave. B) to facilitate an agreement between an employer and the employees. C) the result of collective bargaining. D) to supplement EI benefits by receiving a combined benefit closer to the actual working wage. E) to provide benefits separate from EI so that employees can better maintain their standard of living during periods of unemployment.

D

When a worker is rewarded by a percent premium that equals the percent by which his/her 18) performance is above standard, this is known as: A) gainsharing.B) the percent incentive plan. C) the bonus hour plan. D) the standard hour plan. E) the premium plan.

D

Workersʹ compensation is in effect a ________ insurance plan to help employees with 9) work-related injuries or illnesses get well and return to work. A) pensionB) bureaucratic C) guaranteed D) ʺno faultʺ E) ʺno costʺ

D

Typically a critical incident is retained if some percentage (usually ________% to ________%) of the 25) second group assigns it to the same cluster. A) 50; 50 B) 40; 90 C) 40; 80 D) 50; 80 E) 0; 100

D) 50; 80

Job evaluation methods include the following EXCEPT the: 25) A) job classification method. B) ranking method. C) point method.D) Hay plan method. E) factor comparison method.

D) Hay plan method.

The type of wage survey that pertains to members of associations includes: 41) A) geographic surveys. B) benefits surveys.C) local surveys.D) Professional Engineers Ontario. E) area surveys.

D) Professional Engineers Ontario.

A performance appraisal system that does not force managers to give false or misleading 69) measurements and instead facilitates open, job-related discussions between the supervisor and the employee is: A) behaviourally anchored rating scales. B) total quality control. C) management by objectives.D) a performance management system. E) self-managed teams.

D) a performance management system.

Originally, total rewards were conceptualized as having three broad categories: They are: 4) A) performance and recognition, benefits, work experience. B) compensation, flexible benefits, work experience. C) bonus, benefits, work experience.D) compensation, benefits, work experience. E) development/career opportunities, benefits, work experience.

D) compensation, benefits, work experience.

The simplest and most popular technique for appraising employees is the: 6) A) alternation ranking method. B) forced distribution method. C) critical incident method.D) graphic rating scale. E) paired comparison method.

D) graphic rating scale.

Pay rates must be equitable for each employee relative to other pay rates inside the organization. 17) This is known as: A) need for equity.B) compensation plan. C) external equity. D) internal equity. E) wage compensation.

D) internal equity.

The process whereby several people meet together who are familiar with the jobs in question, and 23) who may have different perspectives regarding the nature of the jobs, is called a(n): A) union negotiating team.B) management negotiating team. C) position review committee. D) job evaluation committee. E) performance appraisal.

D) job evaluation committee.

The 360-degree appraisal approach supports the following activities EXCEPT: 55) A) leadership development. B) recognition.C) succession planning. D) job evaluation. E) coaching.

D) job evaluation.

When compensating professional employees, most employers use a: 65) A) skill-based pay approach. B) pay equity approach.C) job-based pay approach. D) market-pricing approach. E) job evaluation approach.

D) market-pricing approach.

To clarify performance expectations, ________ should be developed. A) an HR strategy B) a business plan C) strategic objectives D) measurable standards E) a list of traits

D) measurable standards

In a study involving more than 200 industrial managers, the type of performance rating that 50) predicted who would be promoted was the: A) committee appraisal. B) self-appraisal. C) supervisor appraisal. D) peer appraisal. E) customer appraisal.

D) peer appraisal.

Executive compensation tends to emphasize ________ more than for other employeesʹ pay plans. 61) A) commissions B) salaryC) benefitsD) performance incentives E) base pay

D) performance incentives

The basic procedure of job evaluation is to compare the content of jobs in relation to one another in 19) terms of the following EXCEPT: A) skill. B) effort. C) responsibility.D) personality traits. E) working conditions.

D) personality traits.

ʺBest practicesʺ when dealing with defensive employees include: 65) A) never back down. B) using intimidation to convince.C) solve all problems quickly.D) recognize that defensive behaviour is normal. E) explain the personʹs behaviour to them.

D) recognize that defensive behaviour is normal.

The following are ways to minimize the impact of appraisal problems such as bias and central 43) tendency EXCEPT: A) be sure to understand the problem in order to prevent it. B) be familiar with the typical rating errors that can undermine rating scale appraisals. C) train supervisors to eliminate rating errors. D) refrain from confusing the employee by including him/her in the rating and evaluation process. E) choose the right appraisal tool.

D) refrain from confusing the employee by including him/her in the rating and evaluation process.

The following are advantages of the behaviourally anchored rating scale appraisal method 26) EXCEPT: A) clearer standards.B) specific feedback for supervisors to give employees. C) a more accurate measure.D) specific forced behavioural dimensions. E) consistency.

D) specific forced behavioural dimensions.

Under this pay system, each worker receives a set payment for each piece produced or processed 14) in a factory or shop. It is known as a: A) process plan.B) piecework plan. C) gainsharing plan.D) straight piecework plan. E) guaranteed piecework plan.

D) straight piecework plan.

When conducting the appraisal interview the following should be kept in mind EXCEPT: 63) A) encourage the person to talk. B) develop an action plan. C) be direct and specific. D) talk in generalities. E) donʹt get personal.

D) talk in generalities.

There are often more opportunities for advancement with skill-based pay plans than with 56) job-based pay plans because of: A) higher base pay.B) the emphasis on years of experience. C) the lack of job evaluation.D) the company-wide focus on skill building. E) less bureaucracy.

D) the company-wide focus on skill building.

The problem with having a wage structure with underpaid employees can be solved through 52) raising their wages to: A) another pay grade.B) the midrange of an employeeʹs pay grade. C) the maximum of the rate range for their pay grade. D) the minimum of the rate range for their pay grade. E) be competitive with other jobs in the firm.

D) the minimum of the rate range for their pay grade.

With skill/competency-based pay, employees are not paid for the job they currently hold, but 55) instead for the following EXCEPT: A) types of skills. B) depth of skills. C) knowledge.D) years of experience. E) range of skills.

D) years of experience.

The following are personal services that most employees need at one time or another EXCEPT: 61) A) employee assistance plans. B) credit unions.C) social/recreational opportunities. D) counseling. E) clerical services.

E

A non-deductible formula is: 32) A) when all employees are earning over the threshold amount. B) a straight percentage used to create a short-term incentive fund. C) job-by-job review to identify the key formula. D) a short-term incentive fund that begins to accumulate only after the firm has met a specified level of earnings. E) none of the above

E

A type of organization-wide incentive plan which usually involves having a corporation 64) contribute shares of its own stock to a trust, and distributes the stock to employees on retirement or separation from service, is referred to as a(n): A) employee trusteeship plan. B) individual retirement plan. C) gainsharing plan. D) profit-sharing plan. E) employee stock ownership plan.

E

Compensation experts suggest defining the strategic context for the executive compensation plan 45) before creating the package itself by: A) checking for compliance with all legal requirements. B) checking for tax effectiveness. C) installing a process for review and evaluation whenever a major business change occurs. D) defining external issues that face the company and its business objectives. E) all of the above

E

Compensation plans for salespeople have typically relied heavily on incentives in the form of: 47) A) stock appreciation rights. B) stock options. C) gainsharing. D) profit sharing. E) sales commissions.

E

Critical illness insurance provides: 23) A) a deductible expense per year that gives money for expensive new drugs. B) coverage for prescription drugs. C) coverage providing a fixed lump-sum benefit in addition to life insurance benefits when death is accidental. D) money to an employee paid in incrementals for critical illness. E) coverage providing a lump-sum benefit to an employee who is diagnosed with a life-threatening illness.

E

Disability management is a: 37) A) reactive, employer-centred process. B) proactive, employee-centred process. C) proactive, employer-centred process. D) process that coordinates the activities of employer and employee. E) proactive, employer-centred process that coordinates activities of the employer, the insurance company, and health care providers.

E

Effective disability management programs include: 38) A) remedial programs. B) a required company medical.C) monitoring sick leave plans.D) monitoring workerʹs compensation. E) early and safe return-to-work policies.

E

Non-salary items that professional employees need in order to do their best work include the 60) following EXCEPT: A) support for professional journal publications. B) supportive management. C) modern equipment. D) up-to-date facilities. E) bonuses.

E

Once an employee is vested, he or she will not receive any benefit from the pension plan until: 56) A) 30 years of service. B) termination. C) changing jobs. D) disability. E) retirement.

E

One feature of the Scanlon plan is a focus on employee involvement, which means the companyʹs 67) mission or purpose must be clearly articulated and employees must fundamentally understand how the business operates in terms of customers, prices, and costs. This is referred to as: A) involvement system.B) evaluation of the system. C) entitlement. D) competence. E) identity.

E

Outsourcing benefits administration to a third-party expert has the following advantage(s): 2) A) reduced cost and enhanced service. B) increased employee understanding of benefits. C) reduced cost.D) fewer benefit claims. E) greater efficiency and consistency, and enhanced service.

E

Reasons why incentive plans do not work include the following EXCEPT: 70) A) performance pay cannot replace good management. B) rewards may undermine responsiveness. C) rewards rupture relationships.D) pay is not a motivator. E) firms do not get what they pay for.

E

Some provinces require additional termination pay when mass layoffs occur. The amount of 19) additional pay depends on: A) the employeeʹs length of service.B) the level of unemployment in the region. C) the reasons for the layoff. D) the time of year. E) the number of employees being laid off.

E

Studies in industries like pharmaceuticals and aerospace consistently show that firms with the 59) most productive research and development groups have incentive pay plans for their professionals, usually in the form of: A) merit pay.B) hourly wages. C) retirement income. D) piece-rate incentives. E) bonuses.

E

The amount of health/dental expenses an employee must pay before insurance benefits will be 27) paid is called: A) workersʹ compensation. B) dental coverage. C) coinsurance. D) life insurance. E) the deductible.

E

The average cost of benefits, as a percentage of payroll, is approximately: A) 50%. B) 25%. C) 10%. D) 30%. 3) 4) E) 37%

E

The benefits that form the cornerstone of almost all benefits programs are: 24) A) life insurance and long-term disability. B) life insurance and supplementary health care/medical insurance. C) long-term disability and pension plan.D) life insurance and pension plan. E) life insurance, long-term disability, and supplementary health care/medical insurance.

E

The following are criteria to become eligible for a short-term incentive program: 27) A) key position; salary grade only. B) industry requirements for piece rate production. C) length of service.D) position level. E) key position; salary level; salary grade.

E

The following are reasons to use team incentive plans EXCEPT: 22) A) helping ensure collaboration. B) facilitating on-the-job training. C) reinforcing problem solving. D) reinforcing group planning. E) reinforcing individual incentives.

E

The number of EAPs in Canada is growing because they are a proactive way for organizations to 65) reduce: A) disciplinary costs. B) counseling costs. C) supervisory training costs. D) employee services costs. E) disability costs.

E

The piecework plan is expressed in monetary terms whereas the standard hour plan is expressed 19) in: A) dollars per standard. B) cents per hour. C) profits.D) cents per unit of output. E) a premium that equals the percent by which his or her performance exceeds standard.

E

The right to purchase a specific number of shares of company stock at a specific price during a 41) specified period of time is called a: A) stock appreciation right. B) restricted stock plan.C) phantom stock plan. D) book value plan. E) stock option.

E

The Employment Insurance Act provides unemployment benefits varying by region and other 13) factors for up to ________ weeks. A) 18 B) 26 C) 30 D) 52 E) 45

E) 45

Important considerations for paying employees include the following EXCEPT: 12) A) equity considerations. B) policy considerations. C) legal considerations. D) union considerations. E) average age considerations.

E) average age considerations.

When developing compensation plans for managers and professionals, job evaluation is central to: 60) A) non-salary issues. B) bonuses. C) incentives. D) benefits. E) base salary.

E) base salary.

An appraisal method that aims at combining the benefits of narrative, critical incidents and 22) quantified ratings by anchoring a quantified scale with specific narrative examples of good or poor performance is called the: A) graphic rating scale method.B) paired narrative-quantitative method. C) critical incident method.D) anchored narrative-quantitative method. E) behaviourally anchored rating scale method.

E) behaviourally anchored rating scale method.

Kai has a tendency to rate all of his direct reports as average. Kaiʹs actions indicate the following 39) performance appraisal problem: A) equal rating tendency. B) halo effect. C) bias.D) appraisal bias. E) central tendency.

E) central tendency.

Because of good results, more employers are turning to a new approach to appraisal, namely a(n): 32) A) critical incidents narrative. B) point method plan.C) forced distribution system. D) bell-shaped curve. E) computerized performance appraisal system.

E) computerized performance appraisal system.

Job evaluation is mostly a judgmental process which requires close cooperation and input from the 22) following EXCEPT: A) supervisors. B) employees. C) compensation specialists. D) union representatives. E) customer responses.

E) customer responses.

The basic problem with employee self-ratings is: 53) A) employee reluctance to self-rate. B) peers rate themselves lower than they are rated by supervisors or peers. C) lack of anonymity.D) supervisor distrust of employee self-ratings. E) employees rate themselves higher than they are rated by supervisors or peers.

E) employees rate themselves higher than they are rated by supervisors or peers.

The rate range is usually built around the: 49) A) Hay system. B) performance appraisal. C) job evaluation.D) job specialization. E) wage line or curve.

E) wage line or curve.

The following are advantages of the critical incident method EXCEPT: 16) A) ensures that the evaluator thinks about the employeeʹs appraisal all during the year. B) can be used to supplement another appraisal technique. C) provides the evaluator with some specific hard facts for explaining the appraisal. D) provides concrete examples of what an employee can do to eliminate any performance deficiencies. E) ensures that the evaluator will only consider the employeeʹs most recent job performance.

E) ensures that the evaluator will only consider the employeeʹs most recent job performance.

Wages must compare favourably with rates in other organizations or an employer will find it hard 16) to attract and retain qualified employees. This is known as: A) wage compensation. B) need for equity. C) compensation policy. D) internal equity. E) external equity.

E) external equity.

Work/life programs help employees do their jobs effectively using: 6) A) recognition programs. B) advancement opportunities. C) vacation and holidays.D) employer-paid insurance. E) flexible scheduling and childcare.

E) flexible scheduling and childcare.

Most Canadian human rights acts prohibit discrimination in pay based on the following grounds 11) EXCEPT: A) sex. B) age. C) physical disability. D) colour. E) height.

E) height.

Wage surveys undertaken by the human resources department may collect other data which 37) would include the following EXCEPT: A) sick leave benefits. B) vacation time. C) employee benefits. D) insurance benefits. E) industry demand.

E) industry demand.

Establishing pay rates involves three stages, which are: 36) A) collecting data used to price every job in the organization, working with a compensation consultant, and working with a benefits specialist. B) consulting with industry, determining salaries for executive positions, and deciding on a benefits plan. C) pricing of benchmark jobs, collecting data on insurance benefits, evaluating benefits packages. D) collecting data on insurance benefits, creating a salary survey, and hiring external consultants. E) job evaluation, conducting salary surveys and combining job evaluation and salary survey results.

E) job evaluation, conducting salary surveys and combining job evaluation and salary survey results.

A graphic rating scale used with unclear standards may appear to be objective; however, it will 37) probably result in unfair appraisals because the traits and degrees of merit are: A) well defined.B) too strict/lenient. C) specific in nature. D) tightly structured. E) open to interpretation.

E) open to interpretation.

Executive compensation tends to emphasize performance incentives more than do: 63) A) pay plans for boards of trustees. B) pay plans for boards of directors. C) pay plans for boards of governors. D) stockholdersʹ pay plans. E) other employeesʹ pay plans.

E) other employeesʹ pay plans.

Once a job evaluation method has been used to determine the relative worth of each job, the 33) committee can turn to the task of assigning pay rates to each job, but it will usually want to firstgroup jobs into: A) range rates.B) department classes. C) personal contracts. D) labour contracts. E) pay grades.

E) pay grades.

The most commonly used and oldest type of incentive plan is this system of pay based on the 13) number of items processed by each individual worker in a unit of time. It is known as a(n): A) process plan.B) gainsharing plan. C) item plan.D) standard hour plan. E) piecework plan.

E) piecework plan.

The critical incident method of performance appraisal is often used to supplement a: 18) A) narrative form. B) management-by-objectives method. C) forced distribution method.D) paired comparison method. E) ranking method.

E) ranking method.

Improving appraisal accuracy calls not just for training of supervisors, but also for: 44) A) a quantitative job evaluation system. B) MBO.C) an effective employee orientation program. D) performance bonuses. E) reducing outside factors such as union pressure and time constraints.

E) reducing outside factors such as union pressure and time constraints.

Compensation policies are usually written by the HR or compensation manager together with: 15) A) compensation consultants. B) stockholders. C) supervisors. D) employees. E) senior management.

E) senior management.

A written warning to an employee with poor performance should include the following EXCEPT: 68) A) indicate that the employee had an opportunity to correct their behaviour. B) identify standards under which the employee is judged. C) specify any violation of the standards.D) make it clear the employee was aware of the standards. E) specify that 360-degree appraisal will be used in future.

E) specify that 360-degree appraisal will be used in future.

The following are types of incentive plans EXCEPT: 7) A) individual incentive programs. B) group incentive programs. C) spot bonuses.D) profit-sharing plans. E) straight salary and commission.

E) straight salary and commission.

An example of an informal survey conducted by an employer would be a(n): 39) A) professional organization survey. B) governmental agency survey. C) commercial survey.D) industry-wide survey. E) telephone survey.

E) telephone survey.

Pay equity laws were enacted in response to: 10) A) pay discrimination against senior citizens B) gender-neutral job evaluation systems.C) the variety of job evaluation systems being used to evaluate jobs. D) the variety of compensable factors being used to evaluate jobs. E) the historical undervaluing of ʺwomenʹs work.ʺ

E) the historical undervaluing of ʺwomenʹs work.ʺ

More firms today let employees anonymously evaluate their supervisorsʹ performance. This 54) process is known as: A) team appraisal.B) anonymous evaluation. C) supervisor appraisal. D) 360-degree appraisal. E) upward feedback.

E) upward feedback.

Assigning pay rates to each pay grade (or to each job) is usually accomplished with a: 43) A) rate range. B) job evaluation.C) wage grade.D) performance appraisal. E) wage curve.

E) wage curve.

The graphic description of the relationship between the value of the job and the average wage paid 42) for this job is called a: A) wage structure. B) rate range. C) wage grade. D) pay grade. E) wage curve.

E) wage curve.

Research conducted by WorldatWork has clarified the ʺwork experienceʺ category of total rewards 5) by splitting it into three parts. They are: A) work/life programs, business strategy and development/career opportunities. B) work/life programs, succession programs, and salary grade. C) work/life programs, organizational culture and development/career opportunities. D) work/life programs, HR strategy, and development/career opportunities. E) work/life programs, performance and recognition, and development and career opportunities.

E) work/life programs, performance and recognition, and development and career opportunities.