HRM 6632 Final
Thelma is on the Medicare Prescription Drug Program and has just spent over $5,100 out-of-pocket on medications. How much of the prescription costs will Medicare now cover for her?
95%
Pay grade overlap
Means that Jobs share some commonality
______ bonuses are awarded to executives by the board of directors on an elective basis.
discretionary
Long-term incentives (LTIs)
A type of performance pay in which the incentives are tied to an organization performance horizon that ranges beyond one year, often three to five years and are EQUITY-BASED
Under what conditions are forced-distribution systems of performance appraisal likely to work most effectively? a. MBO systems are in place b. employee performance is not observed on a regular basis (e.g. work at home or at another location) c. forced distribution appraisal systems work well in almost all situations d. large groups of employees are involved who perform similar jobs
D.
Construction contractors, working on government contracts valued at more than $2,000, must pay their laborers and mechanics what type of local area-based wage to be in compliance with the Davis-Bacon Act of 1931?
Prevailing wage
Julio wants to apply for unemployment benefits, how much will he have to have earned, in the last four quarters to qualify?
$1,000 total
An employee has a regular hourly rate equal to $12. According to FLSA, how much should his/her employer pay this employee for each additional hour worked beyond the regular 40 hours within a period of 7 consecutive days?
$18
As of September 2010, U.S. companies spent approximately how much per employee for discretionary benefits?
$19,000
The average monthly health insurance premium cost companies how much as of September 2010?
$435.20 per employee
Pay grade overlap formula
(M1 - m2) / (M1 - m1)
What is the advantage of compensation deferment for a CEO?
After retirement, the company's stock value will probably be higher
In regression, what does it mean when the R2 = 1?
All of the variation in market pay can be explained by the company's job structure.
Which job evaluation method entails ordering jobs on the basis of extremes?
Alternation ranking
When companies' merit increases don't clearly reflect differences in actual job performance, they need to provide which of the following?
Alternative rewards such as a vacation
Compra-ratio
Average of the salaries in a pay range divided by the midpoint of the range
What is the most commonly used job evaluation technique in business by large organizations? a. Each of the above are used with equal frequency b. Point Factor Method c. Job Ranking d. Classification Plans
B.
An international assignment is considered long-term when it lasts at least how long?
1 year
A law firm its attorneys to increase their billable hours by 15% for the coming year. Which of the following approaches to performance appraisal is most suitable for this situation? a. the trait approach b. Behavioral Observation Scale (BOS) c. Management by Objectives d. Behaviorally Anchored Rating Scale (BARS)
C.
In determining whether a position is exempt or nonexempt under the FLSA, the primary consideration is... a. the employee's job description b. the employee's job title c. the duties the employee actually performs d. the employee's level of education
C.
This performance appraisal system is based on employees and supervisors identifying on-the-job behaviors and behavioral outcomes that distinguish successful from unsuccessful performances
Critical incident technique (CIT)
In the job analysis process in business organizations, a "position" consists of...?
A collection of tasks performed by a single worker
Present Value Method
A comparison technique that compares the present values of the cash flows for any two real estate alternatives. The best user alternative is based on the lower present value amount. It is not the same as net present value.
Medicaid
A federal and state assistance program that pays for health care services for people who cannot afford them.
Pension Protection Act
A federal law passed in 2006 intended to shore up the financial integrity of private traditional (defined benefit) plans and, at the same time, to encourage employees to make greater use of salary reduction (defined contribution) plans.
In contrast to a job-based pay program, a person-based pay program _________. a. provides base pay increases based on knowledge or skills acquired b. provides for easier pay system administration c. provides base pay increases based on the level of one's performance d. provides base pay increases based on the value of compensable factors
A.
Which of the following is NOT one of the four universally accepted compensable factors? a. seniority b. skill c. working conditions d. effort
A.
Which type of test is used to determine if an independent contractor is financially dependent?
Economic Realities Test
This type of appraisal error takes place when managers rate employee's performance more highly than they should compared with objective criteria.
Errors of leniency
Which performance appraisal error refers to the tendency to rate every employee at the low end of the rating scale, regardless of actual performance?
Errors of strictness
Nominal compen
Face value of a dollar
The _______________ of 1993 sought to provide employees with job protection in case of a medical emergency.
Family and Medical Leave Act (FMLA)
Employee Retirement Income Security Act (ERISA)
Federal law that increased the responsibility of pension plan trustees to protect retirees, established certain rights related to vesting and portability, and created the Pension Benefit Guarantee Corporation
Medicare Part A is based on what type of healthcare option?
Fee-for-service
Which amendment to the U.S. Constitution made it illegal to restrict the freedom of religion, speech, and press, as well as protect the right of people to peacefully assemble?
First Amendment
A manager expects high levels of performance from a newly hired employee. Ashley, as she graduated from a prestigious ivy league school. A year later, the manager rates Ashley's job performance higher than her actual due to his initial belief. What kind of rater error was made by the manager?
First-impression-effect
Which of the following is covered by Medicare Part A?
Inpatient hospital care
The ________ is the U.S. tax code
Internal Revenue Code
_____________ clearly define the relative value of each job among all jobs within a company, this ordered set of jobs represent the job structure or hierarchy
Internally consistent compensation systems
Developing internally consistent job structures affects the competitive strategy of a company. Which of the following is a potential constraint on competitive strategy?
Internally consistent job structure potentially create far more bureaucratization within an organization
__________ compensation refers to the mental state of employees as a result of their performance on the job.
Intrinsic
Which of the following would be considered a hardship location?
Iraq, India
Fair Market Options
Issued grant price equal to fair market value of stock
Section 162(m) of the Internal Revenue Code
Limits deduction of executive compensation for tax purposes to $1 million for CEO and the four highest-paid executives
This group is directly involved in producing goods and delivering services for a company
Line employees
This term is defined as added pay for employees who have reached the maximum of a pay grade and who are unlikely to move into higher grades
Longevity pay
A company adopting a commissions-oriented sales compensation plan would most likely be pursing which type of competitive strategy?
Lowest-cost
Ryanair uses one type of aircraft in its fleet and requires their passengers to carry their luggage in the plane. Which competitive strategy is this?
Lowest-cost strategy
Which performance appraisal method is most often used with managers and professional employees?
MBO
XYZ Company is a world leader in medical device manufacturing. Aiming to continue its market position in this industry, XYZ Company pursues differentiation strategy. As a result, in order to attract and retain best employees, this company compensates its employees higher than almost all competitors. What kind of pay level policy does XYZ Company follow?
Market Lead
these compensation systems go a long way in attracting and retaining the most qualified employees and are based upon market and compensation surveys
Market competitive pay systems
Companies pursuing a differentiation strategy are most likely to use which pay level policy?
Market lead
What represents the relationship between a company's valuation of jobs based on job evaluation and the valuation of jobs within the external market, as assessed by compensation surveys?
Market pay line
Salary Range formula (range spread)
Maximum of the pay range minus Minimum of range divided by the Minimum, also referred to as the "spread"
Which Medicare plan offers enrollees lower premiums in exchange for limiting their choice of healthcare providers?
Medicare Select
_____ are career and personal programs designed to job-hunting skills and strategies of employees being laid off or terminated
Outplacement services
Which term is used to describe the situation where the pay spread between newly hired employees and more qualified incumbents is small?
Pay compression
_________ represents the vertical dimension of pay structures.
Pay ranges
__________ assign different pay rates for jobs of unequal worth and provide the basic framework for recognizing differences in individual contributions
Pay structures
This type of executive bonus plan is similar to the appraisal system used to determine merit increases for non-executive employees.
Performance-based
This type of executive bonus plan is similar to the appraisal system used to determine merit increases for non-executive employees.
Performance-contingent
In additional to the guaranteed hourly pay rate, John receives incentives for every item produced over the designated production standard. Which kind of incentive plan is used in this situation?
Piecework plan
Which law defines hours worked?
Portal-to-Portal Act
Which person-focused model links pay levels to increased knowledge and skills within the same general job category?
Skill blocks model
__________ Refers to the design and implementation of compensation systems to reinforce the objectives of both HR strategies and competitive business strategies.
Strategic compensation
Which of the following are the two main reasons given for adapting pay-for-knowledge programs?
Technological innovations and increase global competition
What is the only state where employers are not required to fund workers' compensation programs?
Texas
This act strengthened the Equal Pay Act of 1963 by requiring employers to show that pay disparities are job related rather than sex-based. This act also prohibits employers from retaliating against employees who share their salary information.
The Paycheck Fairness Act
A 10% merit increase budget tells us which of the following?
The average pay increase amounts to 10%.
Which approach to expat pay provides expats the standard of living that they normally employ in the United States?
The balance sheet approach
In which situation is a commission-only plan best suited?
The company is following a lowest-cost strategy
Common review dates provide which of the following advantages?
The company minimizes the administrative burden of the plan
If the local index in Manila, Philippines is 91, what does that mean?
The cost of living in Manila is 9% lower than Washington, D.C.
If the local index in Tegucigalpa, Honduras is 99, what does that mean?
The cost of living in Tegucigalpa is 1% lower than in Washington, D.C.
If the local index in Manila, Philippines is 91, what does that mean?
The cost of living is 9% lower than Washington, D.C.
What happens under tax equalization?
The employer takes the responsibility for paying the income tax on behalf of the expatriates.
what happens under tax equalization?
The employer takes the responsibility for paying the income tax on behalf of the expatriates.
Employee time spent attending a training program is not compensable as time worked if ____________.
The training is voluntary, the training is not job-related, the training occurs outside of normal work hours
Which is an advantage of seniority pay systems?
They reward employees on an OBJECTIVE basis
This term suggests that a loss is likely for the firm, and that the individual will be left with little control
Threat
what is NOT one of the four universally acceptable compensable factors?
Time in position
For which reason does the IRS use the term "key employees"?
Top-heavy provisions in employer-sponsored qualified retirement plans
Which group most strongly opposes the use of contingent workers?
Trade unions
In __________ pay plans, employees receive compensation based on a fixed hourly pay rate or annual salary. Annual salaries are linked to such factors as seniority and past performance.
Traditional pay plansPiece
Contingent workers typically find employment in which industry?
Transportation
How many days must insider report trade on SEC Form 4 according to the Sarbanes-Oxley Act of 2002?
Two business days
Using a sample of market pay rates for benchmark jobs, companies conduct a regression analysis to determine....
a market pay line
PPACA distinguishes between health plans that existed prior to the March 23, 2010,enactment date and those that come into existence afterward. Individual and group health plans already in existence prior to enactment are referred to as ________ plans.
grandfathered
Executives receive ________ as the difference between the stock price at the time of purchase and the lower stock price at the time an executive receives the stock option.
capital gains
______________ systems evaluate a given employee's performance against the performance of other employees.
comparison systems
Compensation professionals refer to skill, effort, responsibility, and working conditions as...... _________.
compensable factors
Headquarters-based method
compensates all employees according to the pay scales used at the headquarters
Which compensation approach refers to three types of person-focused pay programs?
competency-based
_________ play a significant role in attracting and retaining the most qualified employees. Compensation professionals build competitive compensation systems based on the results of market surveys and compensation surveys.
competitive pay systems
Core _________ are often derived from the overall strategic statements of companies, and are very general knowledge skills.
core competencies
Companies in such ___________ industries as retail sales could benefit by including an incentive component in the core compensation program they offer.
cyclical
Retirement programs, or ________, provide income to employees and their beneficiaries during some or all of their retirement.
defined benefits
401k and 403b plans are examples of
defined contribution plans
_________- of skills is the level of expertise or specialization an employee brings to a job.
depth of skills
_______ skills refer to similar skills or knowledge
horizontal
What is the main objective of Scanlon plans?
increase employee involvement
The Bureau of Labor Statistics does not monitor pay levels for which type of temporary workers?
independent contractors
________ describes preference for work environments and outcomes.
interests
This is the systematic process for recognizing differences in the relative worth among a set of jobs and for establishing pay differentials accordingly.
job evaluation
A ___________ encourages employees to develop skills and learn to perform jobs from different job families.
job point accrual
In an auto manufacturing company, installing a windshield on the assembly line represents a _______.
job task
________ pay increases refer to the minimum pay increase that employees will see as making a worthwhile change in compensation.
just-meaningful
The improshare bonus is based on a _________ ratio formula.
labor hour
Typically a within-grade step pay increase granted under the Federal government's General Schedule (GS) is an example of what type of pay?
longevity pay
Outplacement assistance programs are best suited for which condition?
mergers and acquisitions
______ refers to a group of two or more jobs that are based on similar work characteristics, duties, and responsibilities.
occupational classification
What are "key" employees?
officer earning over $185k, 5$ owner of business, employee owning more than 1% and makes more than $150k
In statistical analyses, this term is used to signify the possible extreme observation.
outliers
With the ________ comparative appraisal technique, supervisors compare each employee to every other employee, selecting the best performer in each dyadic instance.
paired comparison
The type of pay program which rewards employees for successfully learning specific curricula.
pay-for-knowledge
This type of pay program rewards employees for successfully learning specific criteria.
pay-for-knowledge
Red circle rates
payment rates above the maximum of the pay range, due to employee being demoted into a lower salary grade
Defined benefit plan
pension plan that guarantees a specified level of retirement income
Jasmine Black believes that the company should share part of the risk for her sales positions. Which sales compensation plan should she pursue?
salary-plus-commisison
Due to the recent economic downturn, XYZ Co. decided to shut down one of its appliance manufacturing plants in the United states, and therefore around 300 workers were laid off. XYZ Co. has chosen to award laid-off workers 6 months of ___________ pay
severance pay
George owns a small manufacturing plant that produces customized printed circuit boards. There are about 15 jobs to rate. What type of job-content evaluation approach do you suggest to George?
simple ranking plan
The concept that a hard working employee is likely to stay at an incentive pay position is better known as __________.
sorting effect
This term refers to the distance of each salary figure from the mean.
standard deviation
Which of the following teams consist of a group of people who are assembled to complete a one-time assignment?
project teams
Which legally required document reveals information about the compensation of the CEO and named executive officers (NEOs)?
proxy statement Definitve proxy statement (DEF14(A))
What types of organizations use classification plans most prevalently?
public sector organizations
This term refers to a difference between the output of a human judgement process and that of an objective, accurate, assessment. This difference could be due to bias, prejudice, or other subjective, extraneous influences.
rating error
_______ rates pay wages higher than the maximum listed in order to help retain valued employees fielding big job offers elsewhere
red circle
This type of individual incentive pay rewards employees who recruit new customers or new employees.
referral
_______ analyses enable compensation professionals to establish pay rates for a set of jobs that are consistent with typical pay rates for jobs in the external market.
regression analyses
A __________ job analysis yields consistent results under similar conditions, when multiple analysts reach the same conclusion about the major duties that comprise a position.
reliable
Stock grant
stock given to employee as compensation/part of compensation
Which of the following is the term used when a company offers stock to its employees?
stock grant
These rights provide employees with an opportunity to purchase stock shares at a designated price or whenever the stock price increases, usually within a specified period of time.
stock option
Stock ________ describe an employee's right to purchase company stock.
stock options
What does Quartile 3 represent?
the number of figures that fall below 75%
If an employee is rated as outstanding on her leadership ability, she was probably rated using which appraisal system?
trait system
What type of companies are most likely to use two-tier wage systems?
unionized firms
A job analysis method is _______ if it accurately assesses each job's duties.
valid
Another name for incentive pay is _________pay.
variable pay
______ represents the amount of spread or dispersion in a set of data.
variation
_________ skills are those skills typically considered supervisory.
vertical
________ rights refer to nonforfeitable rights to retirement benefits
vesting rights
How often will Jill receive an unemployment check?
weekly
________ are the social context or physical environment where work will be performed.
working conditions
Market match policy
Most closely follows the typical market pay rates because companies pay according to the market pay line. Thus, pay rates fall along the market pay line.
what model would be correct recording person-fofcused pay programs?
The stair-step model addresses depth while the skills model emphasizes both horizontal and vertical skills
This is a loan from the company to the employee that is carried forward indefinitely until the employee sells enough to repay it.
A recoverable draw
_________ is the degree to which an employee receives clear and direct information about job performance from the employer
feedback
__________ pay compensated employees for jobs they CURRENTLY perform
job-based
Awards are granted as ________-time payouts.
one-time payouts
If Fred signs up for Medicare Part B, what percent of his medical services and supplies will be covered after he has paid his annual deductible?
80%
Compensation professionals in XYZ Company use regression analysis to determine the pay rates of its marketing professionals. There are four different marketing job titles. Compensation professionals use job evaluation points assigned to each job title and salary survey data. In other words, they regress job evaluation points on the salary data. What does it mean when the R2 value turns out to be 0.85?
A large amount of the variation in market pay can be explained by the company's job structure.
what does it mean when the distribution of data is skewed to the right?
A lower frequency of larger values and the mean is greater than the median
Stephan is going to be getting a mobility premium for going to Saudi Arabia. How are you going to give it to him?
A lump-sum payment
Deferred Compensation Plan
A nonqualified retirement plan whereby the employee defers receiving current compensation in favor of a larger payout at retirement (or in the case of disability or death).
Which does the term repatriation refer to?
An expatriate returning home to work after completing an overseas assignment.
A ___________ is a group of jobs, found at more than one company, in which a common set of tasks is performed or related in terms of similar objectives, methodologies, materials, products, worker actions, or worker characteristics.
An occupation
According to the job characteristics theory, this core characteristic refers to the amount of freedom, independence, and discretion the employee enjoys in determining how to do the job.
Autonomy
A disadvantage of the merit pay grid approach to annual pay increases is __________. a. For a given level of performance, employees lower in the pay grade receive a greater % of increase than employees higher in the pay grade. b. High-performing employees near the top of their pay grade perceive that they are not appropriately rewarded due to receiving a smaller % of increase. c. Low-performing employees always receive a higher % of increase than high-performing employees.
B
Performance appraisal systems are more likely to be accepted as non-discriminatory by the courts when...a a. they are based on job analysis to determine the KSAOs necessary for successful performance b. All of the above c. supervisors are trained in the proper use of the rating instrument d. There are appeal mechanisms built into the appraisal system
B.
The performance appraisal approach shown below is likely to result in what type of appraisal error? Dependability Low (1) (2) (3) (4) (5) High Note: Ratings 1 or 5 require written justification a. strictness b. central tendency c. halo effect d. leniency
B.
Under current law, which of the following jobs is most likely to meet the criteria for exemption from FLSA overtime provisions? a. A tractor sales rep working "in-office" telephone sales b. A computer programmer earning more than $27.63 per hour c. A retail store manager earning less than $684 week d. A secretary is a university department
B.
What employee behavior is most likely to be "purchased" by equity-based pay (e.g. stock grants)? a. organizational membership b. steady performance on the job c. attendance d. engagement
B.
Which of the following incentives can best be used to reward an employee for exhibiting a desired work behavior that the company wishes to reinforce? a. piecework plan b. spot bonus c. behavioral encouragement plan d. group incentive
B.
Which of the following rewards is most likely to "purchase" or "produce" the highest level of employee involvement/engagement? a. high base salary b. challenging/interesting work c. merit incresae d. annual bonus
B.
Shareholders' interests are represented by a _______, who weigh the pros and cons of top executives' decisions.
Board of Directors
Which of the following is a reason why many European and Japanese employees are better skilled and able to work more productively than American workers?
Both European and Japanese economies provide a higher quality of academic preparation and workplace learning for the non-college portions of their work forces
Which two factors should compensation professionals consider before endorsing the use of merit pay systems?
Commitment from top management Job Design
This concept describes a company's success when the company acquires or develops capabilities that facilitate outperforming the competition.
Competitive advantage
Compensation surveys are typically focused on which two factors?
Competitors' wages and salary prices
Carlos works at XYZ Innovations Inc. as a computer scientist. ________ schedules enable Carlos to work four 10-hour days.
Compressed workweek
Chrysler, GM, and Ford have departed from which of the following bargaining patterns as they seek to secure higher hourly pay rates for automobile workers?
Concessionary
Benefits communication plan
Creates awareness of way current benefits improve financial security and physical and mental well being. Provides high level of understanding about available benefits. Encourage wise use of benefits.
The process used to determine the relative economic worth of a set of jobs is __________. a. critical incident methodology b. performance evaluation c. job analysis d. job evaluation
D.
Which of the following is a disadvantage of profit-sharing plans? a. Profit sharing enables employees to share in the company's fortunes. b. Companies may not have sufficient funds to meet other business needs. c. Employees become dependent on the company for their well-being. d. Employees may not see the link between the efforts and corporate profits.
D.
Retirement Plans: 401(k)
Defined contribUtion plan enables employees and employers to defer part of employee compensation to employee's account.
Which of the following is a commonly used employer-sponsored retirement plan design?
Defined contribution
A company using their competitive strategy seeks to offer a product or service that is completely unique from other competitors in the market segment
Differentiation
Which of the following competitive strategies does Apple use>
Differentiation
XYZ Company provides a program for its employees who need help dealing with the effects of domestic violence. XYZ Company can offer this kind of service through which of the following programs?
EAP (Employee assistance program)
_________ refers to a general slowdown in economic activity
Economic recession
Cafeteria plan (flexible benefits plan)
Employees choose from among a set of benefits as opposed to all employees receiving the same set of benefits.
Retirement Plans: Section 403(b) applies to what employees?
Employees of government and tax-exempt groups, such as schools, hospitals, and churches.
What is typically associated with Roth 401(k) plans?
Employees pay taxes on their contributions
What is an insider?
Employees, contractors, and business partners who possess material information about company not available to general public
This BLS survey provides the quarterly measure of changes in labor and compensation costs, and is used as the principle economic indicator for the Federal Reserve.
Employment Cost Index
Purpose of Compensation Surveys
Enable compensation professionals to make sound judgments about how much to pay employees
How often is the CPI calculated for the U.S.?
Every month (monthly)
Home country-based method?
Expats paid same amount of money as performing job in U.S. - good for short-duration
The decline in union influence can be explained by which of the following reasons?
Foreign automobile manufacturers producing higher quality vehicles
Gunther Rohn was rewarded for making a suggestion that saved Ewe and Eye Electronics thousands of dollars. Which type of incentive compensation approach might have worked best?
Gain-sharing plan
The Scanlon Plan is a (an)
Gainsharing plan that emphasizes employee involvement
When a company emphasizes globalization, product services, and six sigma quality improvements for corporate growth? This company also offers a renowned two-year global program for high potential HR professionals that includes the opportunity for cross-functional experience.
General Electric
Premium Options
Issued grant price higher than current fair market value of stock
Discounted options
Issues at a grant price below current fair market value
Which of the following is a characteristic of job-based pay?
It compensates employees for the jobs they are currently performing
Richard's job has a compra-ratio of 0.85, what does this tell us about his pay rate?
It is NOT COMPETITIVE within the market
Richard's job has a compa-ratio of 0.85. What does this ratio tell about Richard's pay rate?
It is not competitive in the market.
Which of the following statements is true about a person-focused pay system?
It provides companies with greater flexibility for the future
This term reflects an approach to job design that results in the development of more intrinsically motivating and interesting work.
Job enrichment
___________ refers to a job design approach that creates more intrinsically motivating and interesting work environments.
Job enrichment
The process used to determine the relative economic worth of a set of jobs is...
Job evaluation
What do compensation managers use to recognize differences in the relative worth of jobs and to establish pay differentials based upon management priorities?
Job evaluation
In the regression analysis formula, what does the X represent?
Job evaluation points
in the regression analysis formula, what does the X represent?
Job evaluation points
Which process can companies use to make corrections for differences between their jobs and external benchmark jobs?
Job leveling
This overview concisely summarizes the job with two to four descriptive statements.
Job summary
Which pay model promotes learning and skills development for a wide variety of jobs from different job families?
Job-point accrual
Samuel's full retirement age is 65 years old; and his monthly benefit at that age is $1,000. According to the Social Security Administration retirement program, what will Samuel's monthly benefit be if he decides to take retirement as early as age 63?
Less than $1,000 but greater than $0
Which stakeholder group turns to compensation professionals for advice about appropriate pay rates for jobs?
Line managers
Which of the following are used by the State Department to determine the per diem schedules?
Location / family size
Donut hole
Medicare part D coverage gap
Tax-based Classification - Qualified
Meets IRS specifications and employee costs and can be treated as expense for tax-related purposes
What is dilution?
Occurs when a company issues additional shares of stocks and reduces value of existing shares and proportional ownership of company
Which evaluation systems require that supervisors compare each employee to every other employee, identifying the better performer in each pair?
Paired comparison
Which type of contingent employee is most likely to be involved in a job-sharing arrangement?
Part-time employees
Which term is used to describe the situation where the pay spread between newly hired employees and more qualified job incumbents is small?
Pay compression
This term refers to the groupings of jobs based on compensable factors, for the purpose of applying pay policies
Pay grades
Midpoint, minimum, and maximum are values used to define which of the following?
Pay ranges
Defined benefit plans are commonly referred to as...
Pension Plan
Which of the following laws permit employers to automatically enroll employees in a defined contribution plan?
Pension Protection Act
Tax-based Classification of Non-Qualified
Plan doesn't meet IRS specifications and employees costs cannot be treated as expenses
What is the most commonly used job evaluation technique in business for large organizations?
Point Factor Method
This occurs when a rater generalized good performance behavior in one aspect of the job to all aspects of the job
Positive halo effect
Supplemental Executive Retirement Plan (SERP)
Qualified defined benefit plan with compensation cap established under IRS tax code. Cap for 2020 is $230,000
Capital/Wealth Accumulation plans: Employee Stock Purchase Plan
Qualified plan that allows employee to purchase company stock at a discount
Which of the following performance measures corresponds to individual, group, and company-wide incentive plans, respectively?
Quality of work output Customer satisfaction Revenue
_______ allow compensation professionals to describe the distribution of data based on four groupings
Quartiles
A __________ is the difference between the minimum and maximum pay rates given a pay grade
Range spread
As a Vice President, Sheila will receive short-term incentive compensation awards based on which two conditions?
Rank Compensation level
________ is the purchasing power of a dollar
Real hourly compensation
Which of the following costs is NOT ASSOCIATED WITH THE USE OF PERSON-FOCUSED PAY PROGRAMS?
Recruitment
Which type of plan appeared as one of the first discretionary benefits practices?
Retirement plans
The sales values of production (SVOP) is the sum of sales ____________ plus the value of goods in inventory.
Revenue
Stock Options
Right to buy a certain number of shares of stock at a specific price for a given period of time
_______________ laws prohibit management and unions from entering into agreements requiring union membership as a condition of employment.
Right to work
Compared to the duration of most training in capital intensive industries, service industry training tends to be what....?
Shorter
A manager in a company gives higher performance ratings to employees whose children attend the same school as his than employees without any children. What kind of rater error is this?
Similar-to-me effect
What was the estimated number of underemployed workers in the United States during October - November 2007?
Slightly more than 4.2 million
Which of the following is the fundamental purpose of legally required benefits?
Social insurance
Which of the following effects describes the concept that a hard-working employee is likely to stay at an incentive pay position?
Sorting effect
Which of the following are the three measures of dispersion?
Standard Deviation Quartile Percentile
Retirement Plans: Section 457 plans apply to what employees?
State government employees
What is a compra-ratio used for?
Statistic used to determine how much an employee's salary is above or below the salary grade midpoint
Which executive bonus plan varies with the extent to which a pre-established minimum performance level is met?
Target plan
In a TV set manufacturing facility of XYZ, Inc., although there are different assembly lines in which workers focus on certain aspects of production, senior line workers are capable of producing the TV sets from start to finish. Senior workers' capability of doing the entire operation from start to finish is an example of which of the following terms?
Task identity
As a result of this law, employers must now show that employment practices that create disparate impact are a business necessity. This law also made it legal for U.S. citizens working abroad of U.S. companies to file suit.
The Civil Rights Act of 1991
Relying on demographic characteristics as the basis for awarding pay increases tells us what?
The supervisor is relying on other factors than merit
what does it mean when the distribution of data is skewed to the right?
There is a lower frequency of larger values and the mean is greater than the median
If your company hired a Canadian manager to work in your plant in Taiwan, she would be considered which type of international employee?
Third-country national
Nowadays, most companies use a mix of which types of pay plans?
Tradition pay plans and incentive pay plans
What is "at the heart" of person-focused pay programs?
Training
When employees take advantage of ______ benefits, they are more likely to contribute to the strategic imperatives of product or service differentiation or cost reduction
Tuition reimbursement
Alejandro Martinez is responsible for setting up the pay structure for his company. He believes that newly hired employees should not be paid as much as established employees. Accordingly, what type of pay structure should Mr. Martinez use?
Two-tiered
How often will Jill receive an unemployment check?
Weekly
Dodd-Frank Act
a law enacted in the aftermath of the financial crisis of 2008-2009 that strengthened government oversight of financial markets and placed limitations on risky financial strategies such as heavy reliance on leverage
Job-Point Accrual Model
a type of pay for knowledge program, provides employees opportunities to develop skills and learn to perform jobs from different job families.
What type of jobs provide reference points to judge against other jobs within a company?
benchmark jobs
Short-term incentives
bonuses based on the year's profits, return on investment, or other measures related to the organization's goals - annual cash awards for achieving organizational objectives
Since the costs of benefits has risen so dramatically in recent years, the majority of the companies decided to finance discretionary benefits using which method?
contributory financing
Customer satisfaction, labor cost savings, material cost savings, and reduction in accidents were listed as typical performance measures of what type of incentive plan?
group incentive plans
Since he has started at American Eyeful Pictures, David has worked in Japan, China, and Thailand. The company has probably set his base pay use which method?
headquarters-based pay
__________ benefits allow for expatriates to take paid time off back in the United States
home leave
The concept that employee's knowledge and skills can be used to generate superior productivity is known as __________ theory.
human capital theory
XYZ Inc. pursues a low-cost strategy in its industry and generally needs lower skilled employees. As a result, their management team decided to establish a compensation policy that pays less than the marketplace. In recent years the company became susceptible to labor shortages and high turnover. What kind of pay level policy does XYZ Inc. follow?
market lag
individual incentive plans help promote the relationship between pay and _________.
performance
This type of pay system is used by unions and contractors to reward their carpenters for increasing their carpentry abilities.
skill-based
In the end, Yolanda beat Tristen and Michel in a series of competitions among top-level managers to become CEO of National LemGlass. Which compensation theory did the company probably use?
tournament
The main disadvantage of group incentive compensation is employee _____________.
turnover
A job analysis method is this if it yields the kind of information that it was designed to provide and accurately assesses each job's duties.
valid
__________ is the increase in price for consumer goods and services
Inflation
The ____________ of 1963 makes it illegal to pay one sex more than the other for equal work performed.
Equal Pay Act
This law made it illegal to pay women less for performing equal work as men
Equal Pay Act (1963)
In 2011, employees were expected to earn average merit increases of what percent? A) 1.3% B) 2.9% C) 5.2% D) 8.3%
2.9%
PPACA has mandated that the "donut hole" which is the gap in Medicare Part D Prescription drug coverage, must decrease each year until it reaches no more than which of the following?
25% of the prescription drug medication cost
Jose Escobar conducts a survey of salaries at UB2 Enterprises and finds that 50% of the workers fall below the market pay average of $32,000. In which quartile do the workers at ERL Enterprises fall?
2nd
Market match policies are generally set to which quartile in the salary survey?
2nd
The SEC's Summary Compensation Table contains data covering how many years?
3
What type of pay system rewards employees for partially or completely attaining a predetermined work objective?
Incentive pay
Companies can control costs by replacing annual merit or seniority increases or fixed salaries with what type of plans?
Incentive plans
Evidence suggests that person-focused pay programs lead to which of the following?
Increased employee commitment
The demand for HR professionals is....
Increasing
Both employers and employees finance Medicare Part A benefits through payroll taxes of ________ percent on all earnings.
1.45%
Andre is going to be stationed overseas for about 18 months, so his foreign service premium will increase his base pay by about how much?
10-30%
What is the maximum amount that companies are permitted to charge COBRA beneficiaries?
102% of the cost of the health insurance to the beneficiary under the employer's plan
Juanita was told that on her first overseas assignment she would be getting a foreign service premium. That probably means she will be there at least how long?
12 months
How many days to work a complete "year of service"?
125t
Based upon the FLSA child labor provisions, what is the minimum age that a child must be in order to be legally employed?
14
The GS is divided into how many classifications?
15
The General Schedule (GS) classifies federal employees jobs into __________ classifications based on factors such as skill, education, and experience levels.
15
Many of the companies known to be using person-focused pay systems generally employ no fewer than _______ employees.
150
Market lag policies are generally set to which quartile in the salary survey?
1st
Since the economic recession (2007-2009) ended, fewer companies have offered pay increases, and, those that do, are offering lower amounts. Approximately how much have pay increases been?
2%
A worker considered part-time is working less than how many hours in a week?
35
XYZ Movers, a professional relocation company, has 3-person teams for their moving services. The company asks customers to complete a satisfaction survey regarding their recent move. For an employee's performance appraisal, customer satisfaction surveys are also considered in addition to his/her supervisor and team member ratings. Which of the following best describes this situation?
360-degree performance appraisals
The SEC requires compensation information about the CEO and how many of the highest paid executives?
4
Benjamin is going on his first expatriate assignment to a country considered a hardship location. About how much will you have to increase his base pay?
5-35%
Typical range spread
50%
Chuck broke his leg at work and was told he needed to get physical rehabilitation. How long, after the incident, does he have to file a claim?
6-25 months
Pay grades typically overlap....
60-70%
In 2022, how old will Cary have to be to receive full Social Security Benefits?
67
In 2022, how old will Cary have to be to receive full Social Security benefits?
67
In Germany, after a woman gives birth, she isn't allowed to return to work for how many weeks?
8
When determining Ms. Jenkins' relocation assistance amount, what will you need to consider? a. Distance B. Length of assignment C. Rank in the company D. All of the above
ALL
According to the EEOC, ________ refers to a present competence to perform an observable behavior.
Ability
When ________ spreads are used to develop pay grade widths, the grades are based on a set number of job evaluation points for each grade that increases as an employee moves up the pay structure.
Absolute job evaluation points
Portal-toPortal Act
Act that defines what is included as hours worked and is therefore compensable and a factor in calculating overtime.
Depending upon the amount of discretion in the job duties, an executive secretary might be considered "exempt" under which of the following FLSA exemptions? a. professional b. administrative c. technical d. executive
B.
In the job analysis process in business organizations, a "position" consists of ___________. a. a group of jobs b. a collection of tasks performed by a single worker c. one or more elements of work d. two or more jobs with similar job requirements
B.
The most objective approach to employee performance appraisal is.... a. trait approach b. goal-oriented approach c. comparison approach d. behavioral systems approach
B.
Among the various performance appraisal techniques, ________ is the only one based on actual observable job behaviors.
BARS (Behaviorally-Anchored Rating Scales)
The ___________ generation was born between roughly 1946 and 1964, and represents a big swell in the American population as the workforce gets progressively older.
Baby boom
What are the two main components of core compensation?
Base pay Bonuses
__________ skills information describes developed capacities that facilitate learning or the more rapid acquisition of knowledge.
Basic
Which performance appraisal system displays illustrations only of positive behaviors shown by an employee in various job dimensions?
Behavioral Observation Scales (BOS)
To have better safety records, XYZ Company gives monetary incentive awards to its workers for lower accident rates due to improper use of heavy equipment. Which of the following incentive plans describes this example?
Behavioral encouragement
These are reference points against which jobs within the company are judged
Benchmark jobs
The _____________ Amendment allows female employees to charge employers with Title VII violations regarding pay only when the employer has violated the EPA of 1963.
Bennett
The HR manager of a company thinks that they have too many narrow pay grades within the organization. By getting the support from upper management, they decided to consolidate existing pay grades and ranges into fewer pay grades and broader pay ranges in order to create a flatter organization in terms of compensation. This is an example of which pay structure variation?
Broadbanding
Narrowly defined jobs can create what type of problem?
Bureaucracy
Which of the following is a fundamental principle of compensation systems that exhibit internal equity? a. Pay rates should mirror the pay rate levels of an organization's competitors in the labor market. b. Job value should be based on the job's perceived contribution to society c. Jobs that require higher qualifications and have greater responsibility should be paid more than jobs that require lower qualifications and have lesser responsibility. d. pay systems should be implemented that reward all employees equally who perform the same job
C.
Which of the following statements is true concerning a person-focused pay system? a. The monetary value of skill knowledge sets is easy to determine b. It meshes well with other existing incentive pay systems c. It provides companies with greater flexibility for the future. d. It reduces hourly labor costs, training costs, and overhead costs
C.
With these errors, supervisors tend to rate employees' performances lower than they would be if compared against objective criteria. A) critical errors B) leniency errors C) strictness errors D) contrast errors
C. strictness errors
As a strategic business partner, HR and compensation professionals today need to think most like whom?
CEO
Which of the following enables companies to generate income, higher company and stock prices, economic value, strong positive brand identity, and reputation?
Capital
Difference between stock price at the time of purchase and the lower stock price at the time an executive receives the stock option
Capital gains
Difference between the stock price at the time of purchase and the lower stock price at the time an executive receives the stock option
Capital gains
Manufacturing is considered to be a ______________ intensive industry.
Capital intensive
IRS guidelines define __________ plans as "defined benefit plans that define benefits for each employee for reference to the amount of the employee's hypothetical account balance"
Cash balance
Which country does not have a national minimum wage rate?
China
Consumer Price Index (CPI)
Commonly used method to track cost changes/inflation throughout the U.S.
Profit-sharing plans and employee stock option plans are incentives on what level?
Company-wide
These are the salient job characteristics that are the general basis for job evaluations and are used to establish relative pay rates.
Compensable factors
Host Country-Based Method
Compensate expats baed on the host country pay scales
___________ describe the allocation of monetary resources to fund pay struc tures
Compensation budgets
What type of professionals is involved in the compensation functions such as building job structures, market competitive pay systems, and merit pay structurs?
Compensation generalists
These are tools used by employers to determine the pay levels needed to recruit highly qualified employees.
Compensation surveys
A performance target plan is considered to be what type of incentive plan? a. a profit-sharing plan b. a gain-sharing plan c. a discretionary bonus plan d. an annual incentive plan
D.
By using the market pay rates of a sample of benchmark jobs, companies can conduct a regression analysis to determine _____________. a. wage grades b. job evaluation points c. individual pay rates d. a market pay line
D.
After the recent merger of ABC and XYZ Airlines, the former CFO of XYZ Airlines, John, lost his employment in the newly merged airline. Which compensation agreement extends pay and benefits for John? A) discount stock option plans B) incentive stock options C) phantom stock D) golden parachutes
D. golden parachutes
Valid and reliable job evaluations result from which two conditions?
Data from multiple sources and using multiple collection methods
Lag Salary Structure Strategy
Data is aged to BEGINNING of compensation year
Lead-lag Salary Structure Strategy
Data is aged to MIDDLE of coming compensation year
This federal act requires contractors with federal contracts worth over $2,000 to pay wages at least equal to those prevailing in the area where the work is being done.
Davis-Bacon Act
Company stock shares are the main form of executives' _________ compensation.
Deferred
________ profit-sharing plans place cash awards in trust accounts for employees and are set aside on employees' behalf as a source of retirement income.
Deferred
XYZ Company pays a portion of company profits to its employees. The management offers this incentive plan as one kind of retirement program. What kind of companywide incentive plan does XYZ Co. offer?
Deferred profit-sharing
Deferred Compensation Plans
Defers a portion of current income until a specific date in the future
With ________ arrangements, temporary employees generally do not work for more than one year, and the hiring companies are the temporary workers' legal employers.
Direct hire
In which important way are relative pay and pay rate differentials consistent?
Direction
Intentionally treating women less favorably than men based upon their gender would be what form of discrimination?
Disparate treatment
which of the following refers to the sale of stock by the stockholder?
Disposition
Market lag policy
Distinguishes companies from the competition by compensating employees less than most competitors. Lagging the market indicates that pay levels fall below the market pay line.
Retirement: Profit Sharing Plans
Distribute money to employees
A provision of the ________ established the say-on-pay practice.
Dodd-Frank Act
Which unit in the job analysis process is the smallest?
Element
Advantages of Defined Contribution Plan
Employee can transfer balance of account from employer to employer. Companies can match contributions made by employee. Participants bear risk and rewards of investment gains or losses.
Capital/Wealth Accumulation plans 401k Palns
Employee contribution plan matched by some % by the employer
What is a highly compensated employee?
Employee owns more than 5% and salary is more than 125k
Which of the following is a disadvantage of profit-sharing plans?
Employees may not see the link between their efforts and corporate profits
In ______, companies can't force you to work on holidays.
Germany
Management by objectives is part of which type of performance appraisal systems?
Goal-oriented systems
Which of the following contributed to the use of flexible benefits plans?
Greater workforce diversity
John is just hired by a software company as a programmer. He is also a part-time student at the local college and needs just a few credits to graduate from this college. A college degree is required in order to work as a programmer in this software company. Therefore, John receives below-minimum pay rate until he graduates from college. What type of pay rate does John receive?
Green circle
______ protects the transfer, disclosure, and use of healthcare information
HIPAA Health Insurance Portability and Accountability Act
the ___________ allowance compensates expatriates for their sacrifices while on assignment
Hardship
Which of the following benefits was previously offered on a discretionary basis, but now is mandatory?
Health insurance
The NCS provided incidence and extensive data on which two types of compensation benefits?
Health insurance retirement
Employees who take advantage of person-focused pay program opportunities may experience which of the following?
Higher likelihood of remaining employed during periods of business slowdown
Which of the following is typically the case for companies that operate in product markets where there is relatively little competition from other companies?
Higher wages and higher profits
Your company is sending Sheila on a six-month assignment to Sweden, so you should probably use which method to determine her base pay?
Home-country based pay
When a filing clerk is trained to maintain employee attendance records, it is an example of acquiring which type of skills?
Horizontal skills
What is covered by Medicare Part A?
Hospital Insurance (skilled services, critical access, medically necessary home health care, hospice) and home healthcare
International employees are categorized into one of three titles.
Host-country national Third-country national Expatriate
Quarters allowance is the U.S. Department of State's nomenclature for which expatriate cost provision?
Housing and utilities allowance
skill variety, task identity, task significance, autonomy, feedback are elements that make up this theory.
Job characteristics
Which of the following represent formal criteria for defining executive status?
Key employees Highly compensated employees
This causes compensation survey data to become obsolete fairly quickly.
LAG TIME between when the data was collected and used
Under what conditions are forced ranking systems of performance appraisal where x% of employees must be ranked in each of several performance categories used most effectively?
Large groups of employees who perform similar jobs
Which pay system is most commonly used in America today?
Merit pay
In establishing pay grades, which pay rate is established FIRST?
Midpoint
When examining competitors' compensation offerings, this term is used to describe the percentage of employer compensation costs that are applied to compensation and benefits.
Mix
_____________ premiums reward employees for moving from one assignment to another
Mobility
Which type of sales commissions plan does an employee earn a higher rate for sales made in a given period if the sales level exceeds a predetermined level?
Multiple tiered
With which type of sales commission plan does an employee earn a higher rate of commission for all sales made in a given period if the sales level exceed a predetermined level?
Multiple-tiered commission
Which law mandates that management bargain in good faith with labor unions over terms of employment such as wages?
National Labor Relations Act of 1935
This type of performance rater's error occurs when the rater generalized bad behavior on one aspect of the employee's job performance to the employee's over-all performance
Negative halo effect
PPACA (Patient Protection and Affordable Care Act)
Nicknamed "ObamaCare". In March 2010, the US passed the largest reforms of its health care system since the enactment of the Medicare program in 1965. The combination of two official acts, the Patient Protection and Affordable Care Act of 2010 and the Heath Care and Education Affordability Reconciliation Act of 2010 are considered the PPACA.
_______ is the face value of a dollar
Nominal hourly compensation
Protection programs are what type of compensation benefits?
Non-monetary
What type of employees does FLSA apply to?
Nonexempt orders assigned to flexible work schedules
________, or lump sum bonuses, lend themselves well to cost containment since these bonuses are not permanent percentage incerases.
Nonrecurring merit increases
Generalized work activities, organizational context, and work context are requirements under which O*NET category?
Occupation
This unit of analysis is a group of jobs, found at more than one business, in which a common set of tasks are performed.
Occupation
What are the three categories of discretionary benefits?
Protection programs; paid time off; and services
In contrast to a job-based pay program, a person-based pay program....
Provides base pay increases based on KNOWLEDGE OR SKILLS ACQUIRED
Medicare Part A (aka Hospital Insurance or HI)
Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.
With which sales compensation plan does the level of pay not vary when sales volume does?
Salary-only (base pay) plan
This type of sales incentive compensation plan offers the sales person a salary and further compensation if they meet a specific, exceptional sales goal.
Salary-plus-bonus
The __________ Act of 2002 brought a number of reforms to enhance corporate responsibility, enhance financial disclosure, and combat accounting fraud due to dishonesty in companies such as Enron and Tyco
Sarbanes-Oxley Act
Consumer Driven Health Plans
Savings accounts such as health savings accounts and health reimbursement accounts. They put more control and responsibility in the hands of consumers.
Which gain sharing plan bases incentives on the ratio between labor costs and sales values of production (SVOP)?
Scanlon Plan
Teams that have members learn scheduling, coordinating, training, and leading others are emphasized in what type of work team?
Self-regulating work groups
Tuition reimbursement and daycare assistance fall under which category?
Service practices
Retirement: Deferred profit sharing plan
Set aside money in employee accounts for use in retirement
Compared to the FICA rate, the SECA tax rate is which of the following amounts?
TWICE as much
which of the following do qualified plans provide?
Substantial tax breaks to employers and employees
Lead Salary Structure Strategy
Survey data is aged to END of coming compensation year
What is coinsurance?
The insured pays a percentage of covered expenses.
In general, which of the following is an incentive plan design consideration?
The level of risk employees will accept in their overall compensation package.
If the company adopts a market lead policy, how will that company's pay range midpoint compare to the market average?
The midpoint will be higher than the market average.
If the company adopts a market lag policy, how will that company's pay range midpoint compare to the market average?
The midpoint will be lower than the market average.
Base period
The minimum period of time an individual must be employed before becoming eligible to receive unemployment insurance under the Social Security Act of 1935
Medicare Part B
The part of the Medicare program that pays for physician services, outpatient hospital services, durable medical equipment, and other services and supplies.
How are compra-ratio calculated?
The pay rate / Pay range midpoint
_________ is a situation in which a worker is forced to work part-time due to economic situations although he/she is willing to work full-time.
Underemployment
A manager in a company gives 5% merit pay increases each year to employees who perform well. Some of those employees started with substantially lower base pay raises. Over time, which of the following could be a result?
Undesirable social structures
The first 4 quarters of the last 5 completed calendar quarters in the previous year is the base period for which benefit?
Unemployment insurance
Employees would need to learn these types of skills in order to develop self-managed work teams
Vertical skills
Which decisions did Wal-Mart make due to the difficult of hiring well-qualified workers, since the unemployment rate has declined?
Walmart has substantially increased its starting pay rate
Abilities, interests and work styles are elements for which O*NET category?
Worker characteristics
Temporary employment agencies are responsible for complying with all federal employment legislation except for...?
Workers' compensation
How are hardship allowances usually paid to expats?
added to the monthly salary amount
Balance Sheet approach
adjusts manager's compensation so that it gives the manager same standard of living as in the home country plus extra pay for inconvenience of locating overseas
The action of executives on behalf on their own self-interest are known as the ____________ problem.
agency
Market lead policy
distinguishes a company from the competition by compensating employees more highly than most competitors
Effective performance appraisals are based on....?
effective communication
An ____________ refers to the minimum amount of time that an employee must wait after becoming disabled before disability insurance payments begin
elimination period
_______ accounts allow employees to pay for specified healthcare costs not covered by an employer's insurance plans.
flexible spending
An appraisal system that requires all employees be placed in groups that span the spectrum from well above average to well below average performance is called a ________ performance appraisal.
forced distribution
Expatriates receive ___________ allowances when the cost of living is higher in the country that they work in than the U.S.
goods and sevices
When using compensation survey data, statistical analyses are used to integrate THIS with the external market, in order to determine pay rates.
internal job structures
Job analysis is vital to companies that wish to establish _________ comparison systems.
internally consistent
In the job analysis process, this term represents a group of positions that are identical with respect to their major tasks.
job
This is a systematic process for gathering, documenting, and analyzing information in order to describe jobs.
job analysis
Which pay plan generally rewards employees for acquiring job-related competencies, knowledge, or skills rather than for demonstrating successful job performance?
person-focused
___________ pay programs have been used most widely in service and manufacturing industries.
person-focused
A ________ stock plan is an arrangement whereby executives receive a bonus that is equivalent to either the value of company shares or the increase in that value over time.
phantom stock
In which plan do employees possess the option to receive care from health care providers outside the designated network of physicians, paying more for the choice?
point-of-service plans
A _______ is a collection of tasks constituting the total work assignment of a single worker.
position
Cash Balance Plan
retirement plan in which the employer sets up an individual account for each employee and contributes a percentage of the employee's salary; the account earns interest at a predefined rate (Hybrid plan)
Defined contribution plan
retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account - employer defines set amount
Person-focused pay programs
reward employees for acquisition of job-related knowledge or skills
In determining whether a position is exempt or nonexempt under the FLSA, the primary consideration is...
the duties the employee actually performs
The _________ effect refers to a worker's willingness to work diligently to produce more quality output rather than simply attending work without putting in the effort.
the incentive effect
What is central tendency?
A set of data clusters or centers around a central point
Pay-for-knowledge and skill-based pay are two types of person-focused pay programs that fall under this pay category
Competency-based
The _______ is the most commonly used method for tracking cost changes throughout the United States
Consumer Price Index (CPI)
Jing is considering whether to take a job placement in LA or Mobile, Alabama. Before deciding, she is interested in understanding the cost-of-living differences between both places. Jing will consult a __________ comparison calculator to inform her decision.
Cost-of-living
Poorly designed performance evaluation processes do little to achieve what?
Create the perception among employees that pay reflects performance
Employee time spent attending a training program is not compensable as time worked if ____________. a. the training is not job-related b. the training occurs outside of normal work hours c. the training is voluntary d. All 3 conditions here are required for the training time to be non-compensable
D.
Which arrangement represents a long-term company-wide incentive plan that provides employees with the option to purchase ownership in the company?
Employee stock option plans
The general rule of thumb is that short-term company goals last less than how long?
Five years
This type of account does not permit employees to carry over any remaining balances from year to year
Flexible spending account
Which is NOT a typical benefit preferred by older workers?
Flexible work schedules
Which is a fundamental principle of compensation systems that are internally consistent?
Jobs that require higher qualifications should be paid more than jobs that require lower qualifications.
This term refers to the minimum pay increase that employees view as a significant change in their compensaton amount
Just-meaningful pay incease
Mia has Parkinson's disease, but is on an insurance plan that enables her to have the drugs shipped to her house. She is probably on which type of prescription drug plan?
Mail order
Jane holds a bachelor's degree in sociology. She works as a part-time taxi driver. This situation is an example of which of the following?
Malemployment
Real compensation
Measure the purchasing power of a dollar
Starting January 1, 2004, eligible individuals are allowed to establish HSAs under which law?
Medicare Prescription Drug, Improvement and modernization Act
When designed properly, discretionary benefits provide...
Practices that help promote behaviors through promoting wellness, financial security, and work-life balance
This type of executive bonus is based on a bonus pool that is determined by a fixed-formula that is not determined by the executive's performance.
Predetermined allocation
Medicare Part D
Prescription drug coverage
Green-circle rates
Situations in which an employee's pay is below the minimum of the range.
What are the four universal compensable factors?
Skill effort responsibility working conditions
This term describes a set of skills necessary to perform a specific job or a group of similar jobs
Skill block
In this person-focused pay model, employees are rewarded for increasing their skills within a single job family, even if the skills do NOT build on each other
Skill blocks model
A CEO, Duane, was granted stock options that do not require him to exercise them to receive income. Which of the following plans is it>
Stock appreciation rights
If the local index for Tel Aviv, Israel, is 146, what does that mean?
The cost of living is 146% higher than Washington, D.C.
If the local index for Tel Aviv, Israel is 146, what does that mean?
The cost of living is 46% higher in Tel Aviv than Washington, D.C.
What is true of incentive pay?
The criteria for judging an award tends to be objective, such as quantity produced
A company that designs, manufactures, and sells only Halloween costumes would probably benefit most from what type of pay program?
The cross-departmental model (training employees in one department with some of the critical skills needed to perform effectively in another department)
Performance appraisal systems are more likely to be accepted as non-discriminatory by the courts when...
There are appeal mechanisms built into the system Supervisors are trained in the proper use of the rating system They are based on job analysis to determine the KSAOs necessary for successful performance
When supervisors rate all employees close to average, they commit errors of ____________.
central tendency
Strategic management includes distinguishing between _________ and _________ in attempting to achieve company goals, thus making strategic management an imprecise process.
threats; opportunities
Person-focused pay programs depend in large part on well-designed _________ programs.
training
A within-grade step pay increase granted under the Federal government's General Schedule (GS) is most likely an example of what type of pay? a. longevity-based pay b. performance-based pay c. person-based pay d. skill-based
A.
Compensation professionals refer to skill, effort, responsibility, and working conditions as _________. a. compensable factors b. job requirements c. KSAOs d. job description
A.
___________ refers to the extent to which companies' operations are based on the use of large-scale equipment, and also explains pay differentials between industries.
Capital intensity. The amount of pay varies with the degree of capital intensity.