MGMT 483 Final
Which of the following is true of incentive pay? (4) a. The criteria for judging an award tends to be objective, such as quantity produced. b. The amount of the award paid for attainment of goals is not communicated in advance. c. Incentive pay is considered part of an employee's fringe compensation. d. Award levels are subjective.
a. The criteria for judging an award tends to be objective, such as quantity produced.
The federal GS classification system is divided into how many classifications? (6) a. 21 b. 15 c. 10 d. 6
b. 15
Which of the following is true about the level of risk involved with incentive pay? (4) a. The level of risk depends on the extent to which employees control the attainment of a desired goal. b. The level of risk is lower for higher-level employees than those who are lower in the job structure. c. The level of risk decreases as incentive pay represents a greater proportion of total core compensation. d. The level of risk is dependent on subjective performance appraisals.
a. The level of risk depends on the extent to which employees control the attainment of a desired goal.
Common HMO copayment amounts for each doctor's visit vary between (10) a. $15-$50. b. $0-$3. c. $50-$75. d. $100-$150.
a. $15-$50.
Compensation professionals in XYZ Company use regression analysis to determine the pay rates of its marketing professionals. There are 4 different marketing job titles in XYZ Company. Compensation professionals use job evaluation points assigned to each marketing job title and a salary survey data. In other words, they regress job evaluation points on the salary data. What does it mean when the R2 value of this regression turns out to be 0.85? (7) a. A large amount of the variation in market pay can be explained by company's job structure. b. All of the variation in market pay can be explained by the company's job structure. c. A small amount of the variation in market pay can be explained by company's job structure. d. None of the variation in market pay can be explained by the company's job structure.
a. A large amount of the variation in market pay can be explained by company's job structure.
Which of the following is a characteristic of job-based pay? (5) a. It compensates employees for the jobs they are currently performing. b. A reward is based on the successful acquisition of work-related skills or knowledge. c. It rewards employees on their promise to make positive contributions to the work place. d. It compensates employees for the number of jobs in which they possess the skills to perform.
a. It compensates employees for the jobs they are currently performing.
What percentage of Americans experience some form of mental illness at least once during their lifetime? (10) a. 45% b. 20% c. 10% d. 50%
b. 20%
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? (4) a. behavioral encouragement plans b. referral plans c. management incentive plans d. piecework plans
a. behavioral encouragement plans
Which of the following types of insurance plans are set up to cover things like dental care, vision care, and prescription drugs? (10) a. carve-out plans b. health services accounts c. flexible savings plans d. flexible services accounts
a. carve-out plans
These profit sharing plans award cash to employees on a quarterly or annual basis as part of their regular compensation. (4) a. current profit sharing plans b. deferred profit sharing plans c. anticipated profit sharing plans d. recent profit sharing plans
a. current profit sharing plans
Which of the following is an example of a welfare practice? (9) a. employee recreational areas b. regular wages c. overtime pay d. workers' compensation laws
a. employee recreational areas
Which performance appraisal error reflects the tendency to rate every employee at the low end of the rating scale, regardless of actual performance? (3) a. errors of strictness b. contrast errors c. error of central tendency d. negative halo error
a. errors of strictness
A manager expects high levels of performance from a newly hired employee, Ashley, as she graduated from a prestigious Ivy League university. A year later, the manager rates Ashley's job performance higher than her actual performance due to his initial belief. What kind of rater error was made by the manager? (3) a. first-impression-effect b. contrast errors c. negative halo effect d. positive halo effect
a. first-impression-effect
Jose invested $6,000 in pre-tax income into this healthcare plan but lost the $780 left in it at the end of the year because he didn't use it. What type of plan was it? (10) a. flexible spending account b. health savings account c. fee-for service plan d. health reimbursement arrangement
a. flexible spending account
What are the two types of fee-for-service plans? (10) a. indemnity plans, self-funded plans b. health savings accounts, indemnity plans c. health reimbursement plans, indemnity plans d. health savings accounts, health reimbursement plans
a. indemnity plans, self-funded plans
In the job analysis process, this term represents a group of positions that are identical with respect to their major tasks. (6) a. job b. element c. job family d. occupation
a. job
This group is directly involved in producing goods and delivering services for a company. (1) a. line employees b. managers c. executives d. staff employees
a. line employees
This type of pay is defined as added pay for employees that have reached the maximum of a pay grade and are unlikely to move into higher grades. (3) a. longevity pay b. seniority-based pay c. incentive pay d. merit pay
a. longevity pay
Ryanair uses one type of aircraft in its fleet and requires their passengers to carry their luggage to the plane. Ryanair's decisions exemplify which of the following competitive strategies? (1) a. lowest-cost strategy b. differentiation strategy c. high quality strategy d. brand notoriety
a. lowest-cost strategy
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? (7) a. market lead b. market lag c. market match d. market pay line
a. market lead
Which of the following would be considered an act as part of a company's wellness program? (9) a. offering anti-smoking courses b. putting a soda machine in the break room c. giving out cigars to expecting fathers d. giving employees free pizza at lunch
a. offering anti-smoking courses
Jason works at a call center for an insurance company, and he has been answering calls regarding auto insurance. Recently, he started to attend a training program about home insurance. Upon successful completion of this training program, Jason will be able to handle home insurance questions and queries as well. If this insurance company has a compensation policy that rewards Jason's completion of this training, then what type of pay system does it employ? (1) a. pay-for-knowledge b. merit pay c. incentive pay d. seniority pay
a. pay-for-knowledge
This type of pay system rewards employees for successfully acquiring new job-related knowledge. (5) a. person-focused pay b. merit pay c. competency-based pay d. incentive pay
a. person-focused pay
Which of the following is NOT a condition manifesting short-term disability? (9) a. recovery from illness b. recovery from major injuries c. recovery from surgery d. pregnancy
a. recovery from illness
Discretionary benefits are generally divided into which three categories? (9) a. services, paid time-off, protection programs b. health benefits, intellectual enhancements, paid time-off c. pension benefits, protection programs, health benefits d. intellectual enhancements, health benefits, services
a. services, paid time-off, protection programs
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? (6) a. simple ranking plans b. classification plans c. paired comparison d. alternation ranking
a. simple ranking plans
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. (5) a. skill blocks b. stair-step c. cross-departmental d. job-point accrual
a. skill blocks
Jamie earned a raise in pay when he finished the training for the Technician 2 position. He will receive another raise when he finishes the training for the Technician 3 position. The company is probably using which type of pay program? (5) a. the stair-step model b. the skill blocks model c. the cross-departmental model d. the job-point accrual model
a. the stair-step model
What strategy describes the use of benefit and compensation packages in order to support both HR and competitive strategies? (1) a. total compensation strategies b. workers welfare strategies c. total quality management strategies d. worker satisfaction strategies
a. total compensation strategies
On which team is membership relatively permanent and members work full-time? (4) a. work (process) b. project c. parallel d. innovative
a. work (process)
One of the essential skills that software development engineers must have is the proficiency in at least one of the modern computer programming languages, such as Java or C++. This must be indicated in which part of the job analysis description? (6) a. worker requirement b. job evaluation c. working conditions d. job content
a. worker requirement
This program grants income to workers who are unable to work due to injuries sustained while on the job. (2) a. workers' compensation b. workforce restitution c. FMLA d. sick leave
a. workers' compensation
Jennifer works as a clerk in a company. The essential function of her job is producing memoranda using word processing software. If she develops crippling arthritis, which act requires her employer to make reasonable accommodations, such as providing a voice-recognition input device? (2) a. Family and Medical Leave Act of 1993 b. Americans with Disability Act of 1990 c. Occupational Safety and Health Act of 1970 d. Davis-Bacon Act of 1931
b. Americans with Disability Act of 1990
What are the revised guidelines introduced in 2004 for determining whether jobs are exempt from FLSA overtime pay provisions called? (2) a. Glass Ceiling Act b. Fair Pay Rules c. Bennett Amendment d. Overtime Nonexempt Rules
b. Fair Pay Rules
Richard's job has a compa-ratio of 0.85. What does this ratio tell about Richard's pay rate? (8) a. Richard's pay is highly competitive with the market. b. Richard's pay is not competitive with the market. c. There is no way to judge the competitiveness of Richard's pay. d. You need more information to be able to judge Richard's pay.
b. Richard's pay is not competitive with the market.
This provision mandates that federal government agencies take affirmative action in providing jobs for individuals with disabilities. (2) a. ADA b. The Rehabilitation Act c. Executive Order 11478 d. The Government Employee Rights Act of 1991
b. The Rehabilitation Act
Which of the following are reference points against which jobs within the company are judged? (7) a. internal labor markets b. benchmark jobs c. relevant labor markets d. human resource capabilities
b. benchmark jobs
Valid and reliable job evaluations result from which two conditions? (6) a. The results are consistent; using multiple collection methods. b. data from multiple sources; using multiple collection methods. c. The results are consistent; data was taken under similar conditions. d. data from multiple sources; data was taken under similar conditions.
b. data from multiple sources; using multiple collection methods.
What type of retirement plan is a 401(k)? (10) a. nonqualified benefit b. defined contribution c. qualified benefit d. defined benefit
b. defined contribution
This term refers to the level of specialization or expertise an employee possesses in a particular job. (5) a. vertical skills b. depth of skills c. breadth of skills d. horizontal skills
b. depth of skills
Which of the following is NOT addressed by the Fair Labor Standards Act of 1938? (2) a. overtime pay b. executive compensation c. minimum wage d. child labor provisions
b. executive compensation
Jack works at an auto dealer as a sales professional. At the beginning of every year, he and his supervisor determine objectives for Jack together, which are tied to corporate objectives. One of the objectives is related to the customer satisfaction. Jack always remains in contact with customers to whom he sold cars even after six months following the sale. His performance appraisal partially depends on the customer satisfaction survey results. What kind of performance appraisal method does this auto dealer use for Jack? (3) a. comparison systems b. goal-oriented systems c. behavioral systems d. trait systems
b. goal-oriented systems
Customer satisfaction, labor cost savings, materials cost savings, and reduction in accidents were listed as typical performance measures for which type of incentive plan? (4) a. individual b. group c. executive d. company-wide
b. group
The NCS provided incidence and extensive data on which two types of compensation benefits? (7) a. pay and stock options b. health insurance and retirement c. health insurance and pay d. retirement and stock options
b. health insurance and retirement
This term refers to the minimum pay increase that employees view as a significant change in their compensation amount. (3) a. halo effect increase b. just-meaningful pay increase c. satisfactory compensation payment d. minimal pay incident
b. just-meaningful pay increase
Companies pursuing a differentiation strategy are most likely to use which pay level policy? (7) a. market match b. market lead c. market average d. market lag
b. 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? (8) a. pay range b. market pay line c. market-competitive pay structure d. pay grade
b. market pay line
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 exceeds a predetermined level? (8) a. straight commission b. multiple-tiered commission c. graduated commission d. commission-plus-draw plan
b. multiple-tiered commission
Protection programs are what type of compensation benefits? (1) a. internal b. non-monetary c. external d. monetary
b. non-monetary
This type of commission draw acts as a salary because employees are not obligated to repay the loans if they do not sell enough to cover the amount. (8) a. nonrecurring draw b. nonrecoverable draw c. safe draw d. graduated draw
b. nonrecoverable draw
If the means salary for B42DA, Inc., is $30,000 and the median salary is $32,000, what would Yolanda's salary of $165,000 be considered? (7) a. outsider b. outlier c. over layer d. overlie
b. outlier
Which of the following represents the horizontal dimension of pay structures? (8) a. pay spreads b. pay grades c. pay ranges d. job evaluation points
b. pay grades
Which pay plan generally rewards employees for acquiring job-related competencies, knowledge, or skills rather than for demonstrating successful job performance? (5) a. knowledge-based b. person-focused c. merit d. incentive
b. person-focused
Which of the following conditions is a mental or physical disability for which medical advice, diagnosis, care, or treatment was received during a designated period preceding the beginning of disability insurance coverage? (9) a. exclusive condition b. preexisting condition c. eliminating condition d. preeligibility condition
b. preexisting condition
This model is geared to promoting staffing flexibility in a company by training employees in one department with some of the critical skills that are needed to perform effectively in another department. (5) a. the skill blocks b. the cross-departmental c. the job-point accrual d. the stair-step
b. the cross-departmental
A company that designs, manufactures, and sells only Halloween costumes would probably benefit most from this type of pay program. (5) a. the job-point accrual model b. the cross-departmental model c. the stair-step model d. the skill blocks model
b. the cross-departmental model
XYZ Company tries to influence employee food choices by stocking vending machines with nutritional food. They also offer programs to teach stress reduction techniques. What kind of discretionary benefit program does this company sponsor? (9) a. employee assistance program b. wellness program c. family assistance program d. employer assistance program
b. wellness program
Which of the following would be an example of a non-monetary reward? (1) a. vacations b. day care assistance c. all of these d. medical insurance
c. all of these
Which job evaluation method entails ordering jobs on the basis of extremes? (6) a. paired comparison b. classification c. alternation ranking d. factor comparison
c. alternation ranking
A company uses graduated first-dollar-of-profits formula for their profit-sharing plans. They choose to share 4% of the first $10 million of after-tax profits and 7% of the after-tax profits in excess of that level. If this company's after-tax profit were $15 million last year, how much of this profit would be distributed to the employees? (10) a. $1,000,000 b. $600,000 c. $750,000 d. $1,200,000
c. $750,000
Which 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. (5) a. Lincoln Electric b. Nabisco c. General Electric d. Wal-Mart
c. General Electric
Developing internally consistent job structures affects the competitive strategy of a company. Which of the following is a potential constraint on competitive strategy? (6) a. Internally consistent job structures potentially cause the definition of jobs to become less fluid. b. Internally consistent job structures lead to less routinization. c. Internally consistent job structures potentially create far more bureaucratization within an organization. d. Internally consistent structures potentially reduce a company's rigidity to respond to moves by the competition.
c. Internally consistent job structures potentially create far more bureaucratization within an organization.
The collective bargaining system was established by passage of which federal act? (3) a. Union Labor Relations Act b. National Labor Regulations Act c. National Labor Relations Act d. Union Labor Regulations Act
c. National Labor Relations Act
As a result of this law enacted by Congress, 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 for U.S. companies to file suit. (2) a. Executive Order 11246 b. Americans with Disabilities Act of 1990 c. The Civil Rights Act of 1991 d. The Older Workers Benefit Protection Act
c. The Civil Rights Act of 1991
Which of the following is true about providing paid time off for volunteer services? (9) a. They take away from commitment to the company. b. They have a negative correlation with employee retention. c. They often help promote the company's overall image in the public eye. d. They make it more difficult to balance work and life demands.
c. They often help promote the company's overall image in the public eye.
Which of the following is a loan from the company to the employee that is carried forward indefinitely until the employee sells enough to repay it? (8) a. an interest-free loan b. a non-recoverable draw c. a recoverable draw d. commission-plus-draw plan
c. a recoverable draw
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. (5) a. task identity b. feedback c. autonomy d. skill variety
c. autonomy
These are used as reference points for setting pay levels. (7) a. median pay b. market-competitive pay c. benchmark jobs d. mean pay
c. benchmark jobs
These are the salient job characteristics that are the general basis for job evaluations and are used to establish relative pay rates. (6) a. occupation descriptions b. job descriptions c. compensable factors d. ranking plans
c. compensable factors
This performance appraisal system is based on employees and supervisors identifying on-the-job behaviors and behavioral outcomes that distinguish successful from unsuccessful performances. (3) a. forced distribution system b. behaviorally anchored rating scales c. critical incident technique d. behavioral observation scales
c. critical incident technique
A policy that applies to all company employees, but unintentionally hurts a protected group disproportionately, would be what form of discrimination? (2) a. situational discrimination b. disparate causality c. disparate impact d. disparate treatment
c. disparate impact
Intentionally treating women less favorably than men solely based upon their gender would be what form of discrimination? (2) a. disparate causality b. situational discrimination c. disparate treatment d. disparate impact
c. disparate treatment
How are compa-ratios calculated? (8) a. dividing the employee's pay rate by the market line rate b. dividing the red circle rates by the normal pay range c. dividing an employee's pay rate by the pay range midpoint d. dividing the green circle rates midpoint by the normal pay range
c. dividing an employee's pay rate by the pay range midpoint
Self-inflicted wounds and drug dependency are generally considered as what in most short-term disability insurance plans? (9) a. elimination provisions b. partial disability provisions c. exclusion provisions d. preexisting conditions
c. exclusion provisions
This policy allows employees to schedule time off without having to justify the reasons and is more effective in controlling absenteeism than other types of absence control policies. (9) a. social service leaves b. sick leaves c. integrated paid time off d. personal paid time off
c. integrated paid time off
How often is the Consumer Price Index calculated for the United States? (7) a. twice a year b. daily c. monthly d. weekly
c. monthly
Which evaluation system requires that supervisors compare each employee to every other employee, identifying the better performer in each pair? (3) a. hierarchical b. the critical incident technique c. paired comparison d. forced distribution
c. paired comparison
Midpoint, minimum, and maximum are values used to define which of the following? (8) a. pay structures b. pay grades c. pay ranges d. pay levels
c. pay ranges
This effect occurs when a rater generalizes good performance behavior in one aspect of the job to all aspects of the job. (3) a. negative halo effect b. similar-to-me effect c. positive halo effect d. first-impression effect
c. positive halo effect
This term refers to the distance of each salary figure from the mean. (7) a. percentile b. deviated mean c. standard deviation d. quartile
c. standard deviation
This term suggests that a loss is likely for the firm, and that the individual will be left with little control. (1) a. reverse opportunity b. negative equity c. threat d. foreclosure
c. threat
What is the main objective of Scanlon plans? (4) a. to encourage unionization b. to increase workforce competitiveness c. to increase employee involvement d. to standardize the workforce
c. to increase employee involvement
Which of the following represents the most approximate percentage for private sector employees who have access to at least one employer-sponsored health insurance program in 2010? (10) a. 90% b. 20% c. 50% d. 70%
d. 70%
Melissa has been working in XYZ Company for the last 8 years. She got a very attractive job offer from another company in the same industry and decided to leave her current company. She is one hundred percent vested. Which of the following acts guarantees that she cannot lose the pension benefits after she leaves her job in XYZ Company? (2) a. ADA b. HIPAA c. COBRA d. ERISA
d. ERISA
Which of the following is a characteristics of integrated paid time off policies? (9) a. Such policies distinguish among reasons for absence. b. Individuals have to justify reason for taking time off. c. Can lead to increased unscheduled absences. d. Holiday, vacation, sick leave, and personal leave are combined.
d. Holiday, vacation, sick leave, and personal leave are combined.
Which gain sharing plan bases incentives on the ratio between labor costs and sales value of production (SVOP)? (4) a. Rucker Plan b. Improshare c. referral plan d. Scanlon Plan
d. Scanlon Plan
Which of the following are stakeholders within a company? (1) a. line managers b. executives c. unions d. all of these
d. all of these
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? (8) a. multiple-tier pay system b. pay compression c. two-tier pay system d. broadbanding
d. broadbanding
A recently opened car dealer uses an incentive compensation plan for its sales people. The dealer provides money to its salespeople to cover basic living expenses and then shares a fixed percentage of the selling price of each car that a salesperson sells. However, the salesperson should repay the subsistence pay component within a year; otherwise he/she cannot continue in the employment of this dealer. What type of sales compensation plan does this dealer adopt? (8) a. commission only b. salary-plus-commission c. salary-plus-bonus d. commission-plus-draw
d. commission-plus-draw
Which two factors should compensation professionals consider before endorsing the use of merit pay systems? (3) a. job analysis and stock price b. job design and supervisor's rating bias c. supervisor's rating bias and stock price d. commitment from top management and job design
d. commitment from top management and job design
This type of bargaining occurs when unions shift from bargaining for large pay increases to simply bargaining for greater job security. (2) a. compensationary b. heightened c. guarded d. concessionary
d. concessionary
Which of the following is NOT a benefit covered by fee-for-service plans? (10) a. surgical benefits b. hospitalization benefits c. physician visits d. dentist visits
d. dentist visits
Which one of the following is probably the main reason that health reimbursement accounts (HRAs) are particularly appealing to employees with relatively low salaries or hourly wages? (10) a. employees do not contribute to them b. the contribution of employees in on a pretax basis c. permits employees to carry unused balances from year to year d. employees forfeit unused balances present at the end of a year
d. employees forfeit unused balances present at the end of a year
Which of the following describes job duties, tasks, and relevant factors needed to perform a job adequately? (6) a. job summary b. job context c. job structure d. job content
d. job content
Which type of individual incentive plan requires the achievement of multiple, complex objectives without compromising the quality and quantity of output that is generated by employees? (4) a. piecework plans b. behavior encouragement plans c. referral plans d. management incentive plans
d. management incentive plans
This unit of analysis is a group of jobs, which is found at more than one business and a common set of tasks are performed. (6) a. job family b. position c. job group d. occupation
d. occupation
Which of the following represents the pay rate differences for jobs and employee contributions of unequal worth to a company? (1) a. retention pay b. merit pay c. incentive pay d. pay structures
d. pay structures
Jose Escobar conducts a survey of salaries at ERL 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? (7) a. fourth b. first c. third d. second
d. second
Which of the following is another name for parallel teams? (4) a. process teams b. innovation teams c. work teams d. task forces
d. task forces
There are positive employer gestures that go beyond what was required by law, created in part to thwart potential union activity. (1) a. scientific management practices b. compensable factors c. employee benefit plans d. welfare practices
d. welfare practices
