Compensation HRM316
Experience
Early conceptions of compketencies focused on five areas. which of the following is not one of them
Cost Cutter
Emphasizing on productivity and operational excellence is part of which of the following strategies
Pay for time worked
Employee benefits are part of the totak compensation package,other than_____ provide to employees in whole or in part by employer payment
True
Employees in companies with open pay policises tend to express higher satisfactio with their pay and with the pay system
Order in determining the internal job structure
Internal work relationship,job analyssis,job descriptions,job evaluation,job structure
True
The cost effectiveness componenet of benefits arises because may groups-based benefits can be obtained at a lower rate than could be obtained by employyes acting on their own
Negotiation
The exchange value of a job is determine by
False
The final results of the analysiss job description job evaluation process is an internal pay structure
True
Skill-based plans established flat rates for each skill level regalrsless of perfomance or senority
True
Sorting effects is an indirect of pay on the composition of workforce
True
Sorting effectt is an indirect of pay on the composititon of workforce
False
Standrad benefits plans are bound to increase employeeawareness of the true costs of benefits and, therefore,increase employee recognition of benefits value,
False
Stockholders see pay as a measure of justice
Job Description can be defined as
Summary reports that identify,define and describe the job as it is actually perfomed
True
The CPI is of publuc interest because changes in it trigger chnages......pensions and food stamp
True
The american with disabilities Act (ADA) requires that the essential elements of a job be included in job descriptions
Top-down budgeting
The budgetary approach in which indivual employee pay for the plan year........
False
The final step in determineing externally competitive pay levels and strcutures is interpreting and applying the survey results
True
The higher pay level relatives to what competitors pay, the greater the relative costs to provide similar products or services
False
A typical board of directions comprises 3 outise the company and 10 inside directors each having a term avering three years
Job-based
A_____ approach controls costs by paing only as much as the work performed is worth,regarless of any great skills the employee may possess
False
Acceptance of job analysis is greates when job analysts conduct one-on-one interviews and observation
Differentiation
According to Michael Porters strategy work,firms that seek to provide a unique and/or innovative product or service at a premium price are said to follow a________ strategy
Defenders
According to miles and snow,firms that operate in stable markets and compete on cost are referred to as______
The fair labor standards Act
According to this act, the catergory of professionals includes any person who has received speficic training......20% time allocation for lower-level duties
False
Alignment is often used in marketing to clarify and communicate a products
True
All organizations that pay people have a compensation strategy
True
As the importance and complexity of job qualifications increase, the geographic limits also increase
False
Avoiding formal communiction is synonymous with avoiding communication
False
Belonging to a union in the public sector to raise males wages more that its raises female wages
Erisa
Beyond typical benefits,many excetives also receive additonal live insurance........ the maximum limits permissible under____ gudilines for qualified pension plans
True
Broad,generic job descriptions increase the flexibility of a job structure
True
By encouranging employess to take charge of their won development,kills based plans may give them more control over their work lives
True
CEO seeking high salaries are more likely to find them in organizations with hierarchical pay structure
Adminstrative
Comparison among individuals per personnel action.... in the text example, this crition which is sued to review appraisal formats referes to the ____ criterion
True
Compensable facors are scaled to reflect the degree to which they are present in each job and weigh to reflect the overall importance to the orgazation
True
Compensable factors and weight were derived using a sample of benchmark jobs
True
Compesation is the key to attracting,retaining,and motivatinf employees with the abilities necessary to execute the bussiness strategy and handle greater decision-making responsibilities
False
Competencies are derived from employees beliefd about the organization and its strategic intent
False
Courts do not favor appraisal systems that give specific written instructions on how to complete the appraisal
Access
Denial of jobs, promotions or tarining opportunities to qualified woman or minorities are examples of _____ discrimination
Affirmative Defense
Difference in pay between men and women doing equal work are legal if these differences are based on any one of four criteria, called_____
True
Differences in productivity are a good rationale for internal pay structures
Which of the following is not factor that affects decisions on pay level and mix
Federl and state laws governing pay rates
True
Focusing only on the incentive aspects of pay can miss the other major mechanism by which pay decisions influence employee behaviors
Egalitarian
Following structures do labor unions prefer
Technicians
For which of the follwoign employee groups is the relevant labir market most likely to be local in geographic scope
Internal alignment
Fostering team culture and emphasizing collaboration falls which of the following compensation
False
From an EEO standpoint,perfomace appraisal are not subject to the same scrunity as employement test
Business Unit
Gaining competitive advantage to the current bussiness is a strategic choice in which of the follwoing
False
Given the choice to match,lead or lag, the most common policy is to lead rates paid by competitos
True
If a lag pay-level policy is coupled with the pormise of higher future retunrs, the combination may increase employee commitment of foster teamwork
LIke Deficient
If the work of a secretaru is jedge by the number of words per minute errors per page, the measure is:
True
In a last few years companies increasingly have been pressured to expenses stock options in their annua reposrts stockholder the real cost of options
False
In a nonunion firm,compensation manager will not adjust rewards even when there is a hint of neraby union ativity
False
In a recession enviroment ,companeies need to react to the decreasing level of slaes by focusing more on the mid- and low level performance
Cost of living adjustments
In contract to merit pay, which of the follwoing gives the same increase to everyone,regarless of performance
True
In standard benefits package,any deviatations in needs simply go unsatisfied
False
In the parable of the vineyard owner, compensation was regarded as fair by the laborers because it was based upon hours each worked
Dollars
In the regression equation,y=a+bx,y refers to:
Paired- comparison
In_____ ranking,each individual is sompared separately, with all others in the work group
False
Increasing evidence supposrts the commonly held belief that the job evaluators gender affects the results
Equity
Internal structures are described in terms of all the following except
True
Leniency errors are the most difficult form of error to eliminate
True
Manageers whose employers use-job based foucs on placing the right people in the right job but a switch to skill/competency based plans reverse this procedure
Total Cash
May be overtstae the competitors pay
False
Minimum wage legislation is intended to provide an income floor for workers in society most productive jobs
True
Most employee benefits are not flexible
False
Most factor scales consist of six to twelve degree
Incentive effect
Motivation,together with employee ability and work/organizational design,determines employee behaviors such as performence.
Cultures and customs
Not an organizational factor
Policy capturing
Once criterion struture is agreed on, statiscal modeling techinques are used to determine the weigh.... This statistical approach is oftern label
The relationshi between worker wages and their managers
One dimension of the wag structure issue invloves
Cross-Functional
One of the schemes suggested in the test, for classying competencies includes all of the following groups excepts
True
One study found that enviroment perfomance deteminant of CEO pay in polluting industries
True
One way to make sure that raters are motivated to rate accurately is to ensure tha managers are rated on how they utilize and dvelop human resources
False
Organizations generally prefer to make benefits options noncontributory,reasoning, that a free good, is always valuable to an employee
False
Outsourcing is not a viable alternative when organizations struggle with activities that do not directly contribute to objectives.
False
People who work in hospiatsl,nursing homes,and child care centers feel that responsibility for people should be used less often as a compensable factor
Which if the follwoing is not a basic assumption of labor market theories
Poeple are heterogeneous and therefore not interchangeable
False
Rather than expand or contract the contingent workforce,most employes achive flexibility and control labor costs
False
Relational returns are an integral part of total compensation
The internal pay structure
Research suggest that focusing on all of the folwloing except_______ is likely to achieve employee and management commitment,trust and acceptance of results
False
Research suggest that rater store information in the form of specific behaviors
False
Scientist and engineers received encentives beyond base pay that tend to average more than 10% of pay
False
Shared choice begins by offering employes choices in the pay mix
False
Short-Term incentives are in the form of stock ownership or options to buy stock at the specified, advantageous prices
False
Single rate afreement diffrentiatevv wages on the basis of seniorty and merit
True
Skill-based plans assume that possessing revelant skills will make it easier too match workflow with staffing levels
False
The major determinant of pay of a senior engineer is most likely the rate other competitors are paying
True
The number of incumbents per job from which to collect data varies witht he stability of the job
True
The nursing relief for disadvantage areas act of 1999 allows qualified hospitals to employ temporary foreign workers as register.....
ADA
The overtime provisionof the ____ requires payment at one-and a half times the standard for working more than 40 hours per week
True
The pay relationship among different jobs within a single orgazation is called internal equity
Level of Work
The reporting relationships of an internal pay structure is part of which of the following
False
The statute of limitations for filing a clian of discrimination is within 150 days
True
The two consequences of external competitivenss are:it affects operating expense and employee attitudes and work behaviors
True
The value of offering employees choices in compensation mix may be offset by employees poor choices and communication costs
True
The vast majority of clauses specifying incentive pay occur in manufacturing( as opposed to nonmanufacturing) industries
Marginal product of labor
The____ is the additional output assoicted with the employment of one addtional prson,with the other production factors held constant.
Human capital
The_____ theory is based on the premise tht higher earning flow to those who improve theor potential productivity by investing in themselves
Compensating differentials
The______theory predicts that work with negative characteristics requires higher pay to attract workers
True
There are no firm rules on how many employers to include in a survey
The revenue reconciliation Act
This 1993 Act limited employer deductions for executives com...... contributions to and benefits from qulaified retirement plans
False
Though in different businesses, Medtronic, Merrill Lynch and Google have very similar pay strategies
Cost Centeres approach
To control spiraling benefits costs,administrators should adopt a_____ which would require policy decisions on the elvel of benefits expenditures acceptable both in the short and long runs
False
To minimize bias by the company performance measures more often tend to be subjective in unionized companies
Public Sector
Today collective barganing is a major force mainly in the
False
Total cash includes long-temr incentives
In todays organizatopns,with an eye toward increasing competitivess and succes______ work is separated from___ work
Transactional,tacit
TRUE
US emloyers are legally obligated to pay social security,unemployment compensation and workers compensation taxes on wages and salaries on behalf of their employees
Wisconsin Fair Employment Act
Under the ____ all meployess are covered and discriminated on the basis of some characteristics
True
Unionized employees have agreater percentage of their total wage bill allocated to employee benefits
Bands
Usually____ are established at the major "Breaks" or differences in work or skill/competency requirements
False
Validity refers to the practicality of the information collected
Clerical
Which if the follwoing occuoational groups are not likely to be categorize as exempt
Equity
Which is the issue that related to the dissacisfaction with government holidays that arises...
Stockholder want healthy return on ivestment
Which of the following is a type of conflict faced by top management
Discriminatory Coverage
Which of the following is not a popular practice to the cost containment
Employee benefits are mandated by legislation
Which of the following is not evidence offered to support the role of employee benefits in retention and motivation
Suppliers
Which of the following is not part of job content
Stockholders
Which of the follwoing individuals are particularly interested in executive pay
Reliability
Which of the follwoing is a measure of the consistency of reults
A deferread wage increase
Which of the follwoing is negotiated at the time of initial contract negotiations with the timing and amount specified in the contract
Within these contaurcts it is common to specify that disputed appraislas may be submitted to grieves
Which of the follwoing statements about automatic progression is false
Jobs are least susceptible to outourcing when
Work cannot be routinized
Supervisor ratings
____ten to be more reliable than those form other sources
which if the follwoing statement is true regarding pay grades
all of the jobs within a single grade have the same pay grade
The cost of living is measured
by examing the personla expenditures of each employer
Which if the following is not a requirement for compensation factors to be useful
complaint to NEMA guidelines
A compa-ratio less than 1 means that
employees in a range are paid below the midpoint
Follwoing fashions in programs/techniques is known as
herding
which of the follwoing is a major potential disadvantage of outsourcing
information leaks to rivals and competitors
A benchmark job has all the follwoing characteriscts except
it is ussually the entry-level job in the job hierrachy
Hay factors know-how is the measured on two dimensions______ and _________
scope,depth
Which of the follwoing was the strongest attach by edward Deming agaisnt the appraisal process
the work situation is the major determinant of performance
An organization might used a volume measuree such as number of units,orders,invoices or cash receives if the bussiness goal is
to increase sales growth
Which of the follwoing statements about gain sharing is true
until the plan is actually implemented it is unclear what the impact will be in any particualr firm
Teate
what are the allowances that are part of japanese compensation systems called
Resposibilitites to the organization goals
which of the following doe snot refer to content
Allowances
which of the follwoing is not part of cash compensation