Comp and Benefits

A firm is trying to determine what wage it needs to offer in order to attract qualified applicants when hiring several new employees. The firm has collected the following data on the supply of labor and estimates the number of applications it would receive as well as the number of employees it would like to hire at each wage Wage #of qual applicants #of hire 20,000 10 10 25,000 12 9 30,000 18 8 35,000 21 7 40,000 27 6 The firm wants to pay as little as possible and still get a minimum of two applicants for each person it actually hires. Which wage should the firm offer based on this data? - 20,000 - 25,000 - 30,000 - 35,000

30,000

Workers in a small manufacturing company are currently paid whatever the CEO feels is appropriate. The company's new compensation specialist intends to determine the relative worth or value of each job in the company as part of setting a new salary scale. Which human resource activity will this compensation specialist be conducting? - A pay survey - A job structure - A job evaluation - A performance appraisal

A job evaluation

What is merit pay? - Pay received as a one-time increase - Bonuses given to everyone in a company - Compensation based on team performance - annual increase based on past performance

Annual increase based on past performance

A company that produces poker chips intends to benchmark its rewards system. Which method should be used to select the benchmark in this scenario? - Benchmark metrics - Benchmark analysis - Benchmark competitors - Benchmark custom data

Benchmark competitors

A firm publishes a monthly newsletter highlighting top employees and their contribution to the community and firm. Which benefit would the firm derive from this decision? - Aligned employee salary expenses - Increased diversity in employee teams - Improved managerial influence over employees - Better alignment with the employee purpose principle - Lower employee turnover due to improved corporate governance

Better alignment with the employee purpose principle

A manager is confronted by an employee who says she is thinking about a job offer from another company. Subsequently, the manager wants to collect verifiable data on what competing organizations are paying so the organization can match up with the market. From where can the manager collect this data? - Public media - Internal Revenue Service - Bureau of Labor Statistics - Self-reports on the internet

Bureau of Labor Statistics

How can central tendency in compensation be used to improve a market analysis? - By justifying the discrepancies between pay levels - By determining the pay range for a specific job position - By aligning the single number that represents a current pay trend - By finding the single number that represents how many people are paid

By finding the single number that represents how many people are paid

Which pay system is often used in sales jobs to motivate employees to increase both the number and size of sales that are made? - Merit pay - Base salary - Commission - Piece rate pay

Commission

An employee has worked for the same company in two locations over the course of 20 years in Europe and North America. The employee has been trained as an international trade specialist and has been promoted to manger of international operations. Which pay basis should be used to compensate this employees - Merit-based pay - Seniority-based pay - Experience-based pay - Competency-based pay

Competency-based pay

An employee is assigned the task of designing the job-value structure at his company. The employee has....... - Recruiting employees - Writing job descriptions - Performing a job analysis - Determining job importance

Determining job importance

Which provision applies if a job is covered by the Fair Labor Standards Act? - Employees' pay rates may be based on an employee's personal characteristics such as gender or age - Employers are exempt from paying the standard minimum wage and may set the wage they are willing to pay - Employees and independent contractors must be paid the same if they are performing the same or similar tasks - Employees who work more than 40 hours in a week must be paid time and a half for each hour they work over the 40 hours

Employees who work more than 40 hours in a week must be paid time and a half for each hour they work over the 40 hours

Which benefit program is federally mandated and allows employees time off for the birth of a child? - Paid time off - Social Security - Workers' compensation - Family and Medical Leave

Family and Medical Leave

An applicant for a job has a preexisting medical condition that requires special drug treatments. The application for the job is declined after the company contacts the applicant's former employer and learns about the preexisting medical condition. Which legislation has the applicant's former employer violated. - Family and Medical Leave Act - Patient Protection and Affordable Care Act - Consolidated Omnibus Budget Reconciliation Act - Health Insurance Portability And Accountability Act

Health Insurance Portability And Accountability Act

Which challenge to market analysis is present if a company expands into an international market that has marginally trained workers? - Inaccurate data - Lack of technology - Cultural norms for compensations - Failure to define relative labor market

Inaccurate data

A firm has strong alignment between their core principles and the principles of the employees. As part of their communication system, the firm decides to put out a monthly newsletter highlighting top employees and the good that their work is doing in the community and at the firm. Which benefit would the employee derive from this decision? - Tangible validation of their efforts under task variety theory - Intangible validation of their efforts under task variety theory - Tangible validation of their efforts under the purpose principle - Intangible validation of their efforts under the purpose principle

Intangible validation of their efforts under the purpose principle

At which step in job analysis do employers determine the tasks, duties, and responsibilities of a job? - Identify job - Obtain feedback - Observe leadership - Interview incumbents

Interview incumbents

What is the next step in the job analysis after identifying the job and observing the workplace? - Obtain feedback - Interview incumbents - Revise job description - Conduct performance review

Interview incumbents

To what does internal reward alignment refer? - It refers to a compensation analysis to gauge the organization's competitiveness - It refers to the efficacy of the organization's retention program relative to the industry - It refers to how an employee's rewards compare to rewards received by others in the organization - It refers to the situation that exists when an organization's rewards are at least equal to market rates

It refers to how an employee's rewards compare to rewards received by others in the organization

Several jobs have been grouped into job families based on their functions of the organization. Compensation levels must now be determined to establish internal award alignment. Which part of the job structure describes this human resources activity? - Job analysis - Job evaluation - Job description - Job benchmarking

Job evaluation

Which two approaches apply to internal reward alignment. Choose two answers - Job-based approach - Group-based approach - Moral-based approach - individual-based approach

Job-based approach Individual-based approach

Which type of market gives job seekers more negotiation power than employers? - Labor-driven - Product-driven - Employer-driven - Geographically-driven

Labor-driven

Which type of market gives job seekers more power in negotiating terms of employment? - labor-driven - Product-driven - Employer-driven - Geographically-driven

Labor-driven

Which compensation method is an annual pay increase based on past performance that is added to an employee's base compensation? - Merit pay - Differential rate - Individual bonus - Sales commission

Merit pay

Which method for addressing a wage and salary compression does an employer use to pay for future performance based on past performance? - Merit pay - Pay inversion - Individual bonus - Cost of living adjustment

Merit pay

An employee fell off a ladder while working and broke a bone. Why did this person receive workers' compensation coverage? - No-fault principle - National Labor Relations Act - Disparate impact rule - Bona fide qualification

No-fault principle

Which job analysis technique is used to collect information by monitoring the work of employees - Interviewing - Mentoring - Observation - Questionnaire

Observation

Which employee benefit is a company not legally required to provide? - Paid leave - Workers' compensation - Family and medical leave - Unemployment insurance

Paid leave

An employer has several job incumbents come together to analyze a job. Which job analysis method is used in this scenario? - Panel interview - Traditional interview - Occupational interview - Observational interview

Panel interview

A professor who has been at a public university for eight years became aware of a website that lists the salaries of all public sect or employees in the professor's state. On the website, the starting salaries of two new professors hired in the department were listed as higher than the veteran professor's current salary. What is the major issue being described in this scenario? - Pay inflation - Pay inversion - Pay expansion - Pay compression

Pay inversion

An employee is getting bored with her job because she has mastered her basic work activities. What is a good way to keep this employee motivated? - Increase the workload - Assign a nonstandard work schedule - Increase the level of managerial supervision - Provide a wider variety of tasks to accomplish

Provide a wider variety of tasks to accomplish

A firm is looking for ways to reward its employees and motivate them to work harder. The firm decides to allow top-performing employees to spend a certain portion of their day working on independent projects that they feel can benefit the firm in the future. Which type of reward is the firm offering? - Spot reward - Social reward - Tangible reward - Psychological reward

Psychological reward

A company implemented actions to improve its return on investment on human capital. The company wants to be the premier employer in the state. The first step was giving more rewards for jobs compared to its competitors. - Relative - Absolute - Centralized - Decentralized

Relative

What is the foundation of external reward positioning in an organization's overall compensation program? - Reward surveys - Financial statements - Employee expectations - Employee appraisal rewards

Reward surveys

What is a key concern when designing a variable pay system? - The organization is responsible for the risk when there is a downturn in the business cycle - The behaviors that are rewarded need to match the behaviors that are most valued to the organization - The pay given to employees remains the same when individual or organizational performance declines - Individuals are less motivated by variable pay systems because pay is based on factors other than performance

The behaviors that are rewarded need to match the behaviors that are most valued to the organization

What is the relationship among laws regarding pay? - Federal law overrides state law - State law overrides common law - The benefit to employees dictates which law is followed - The benefit to the employer dictates which law is followed - The benefit to the employer dictates which law is followed

The benefit to employees dictates which law is followed

An employee is immediately terminated after being caught embezzling from a firm. The employee has received good but not outstanding performance reviews and is in good health. The employee is a parent of two young children and is not currently enrolled in school when terminated. The employee begins seeking gainful employment immediately after being terminated. How will this situation affect the employee's eligibility to qualify for unemployment compensation? - The employee will be able to qualify because the employee is supporting two young children - The employee will be unable to qualify because the employee was in good health at the time of the termination - The employee will be unable to qualify because the employee was terminated rather than involuntarily - The employee will be able to qualify because the employee was terminated and is seeking gainful employment

The employee will be unable to qualify because the employee was terminated for cause rather than involuntarily

A human resources professional at a large firm needs to fill an accountant position. The job description provides information about the compensation range, firm location, number of employees in the company, minimal qualifications, and company values. Which part of the job description did the human resources professional fail to included? - The job design - The job content - The job evaluation standards - The job performance standards

The job content

Which element of a job description includes the knowledge, skills, and abilities that an employee needs to perform the job at a satisfactory level? - The job objectives - The job specification - The job responsibilities - The job reference identification

The job specification

What is the definition of a leading market rate strategy? - The organization provides more of a reward than its competitors - The organization provides a lesser amount of reward than its competitors - the organization provides a reward equal to the market average - the organization provides more of some rewards and less of others than the market average

The organization provides more of a reward than its competitors

A company uses a series of pay grades to set salaries which characterize the firm's pay grade system. The chart shows that the company sets its salary bands so a highly skilled employee in a lower pay grade may earn more than a less skilled employee in a higher pay grade. Which principle of setting competitive pay policies is the company following? - The principle of parity - The principle of control - The principle of overlap - The principle of inclusiveness

The principle of overlap

A medical supply company recently announced it is offering a week-long, all-expenses-paid vacation to Hawaii for the salesperson who sells the highest number of a new model of hospital beds in the upcoming quarter. Why might a salesperson be unmotivated in this situation based on the instrumentality perception of expectancy theory? - The salesperson is sure he can perform at a level that merits the prize - The salesperson has never been a top salesperson and believes that the goal is unobtainable - The salesperson dislikes competing with coworkers and is unmotivated to be the top salesperson - The salesperson has won similar competitions in the past, but his company retracted the rewards that were offered

The salesperson has won similar competitions in the past, but his company retracted the rewards that were offered

Why is it important to evaluate pay systems and keep them current? - To attract top employees - To enhance pay inversion - To increase pay compression - To provide compensation perks

To attract top employees

A firm bases its pay systems on rewarding the best employees with a large bonus, while giving only standard pay to all the other employees. Additionally, the employee's picture is posted on the wall with a notice about the accomplishment. Which employee motivational theory is this organization practicing? - Justice theory - Tournament theory - Reinforcement theory - Intrinsic motivation theory

Tournament theory

The CEO of a web development company gives employees a lot of freedom to develop new applications, pay employees by the hour, and allows employees to work as needed to develop applications. Because of this approach, the payroll costs vary quite a bit. The CEO would like to get costs under control and make payroll costs more stable. Which approach can be used to bring payroll costs under control and make them more stable in this situation? - Provide a work at home or telecommuting option for employees - Transition employees from an hourly pay model to a salaried pay model - Offer employees stock options as part of their compensation packages - Group employees in teams and pay them based on the team's productivity

Transition employees from an hourly pay model to a salaried pay model

Which benefit is a statutory benefit that is administered by both the state and federal governments and allows employees to receive compensation for job-related injury or illness? - Social Security - Disability coverage - Workers' compensation - Unemployment compensation

Workers' compensation