MGMT 494 Test 3

In most​ cases, the maximum continuation period for an employee on COBRA is​ ________. A. 18 months B. 12 months C. 6 months. D. 24 months E. 48 months

A

_____ offer(s) a reward pool based upon achieving performance targets and communicates organizational priorities. A. The balanced scorecard B. Stock options C. Deferred profit sharing D. Cash profit sharing

A

Which of the following can undermine the positive effects of discretionary​ benefits? A. Having less money for research and development. B. Presenting benefits to employees as entitlements C. Experiencing less effective recruitment D. Associating benefits with competitive advantages E. Negotiating with labor unions

B

According to economic​ theory, CEO compensation should be set​ ________. A. by an unbiased third party B. by using the​ market's going price C. through negotiation D. by the buyer E. by the seller

C

According to the Bureau of Labor​ Statistics, a​ part-time employee works fewer than​ ________ hours per week. A. 40 B. 10 C. 35 D. 25 E. 15

C

Compensation consultants determine executive pay based on a strategic analysis of internal and external factors of an organization. The most important internal factor in determining executive compensation is the​ ________. A. amount of total compensation for nonexecutive employees in the company B. number of employees in the company C. financial condition of the company D. total revenue from the product or service provided by the company E. strength of the labor union in the company

C

Coinsurance refers to​ ________. A. where the employer is responsible for 25 percent of incurred medical expenses of the employee B. when the employer and the employee split equally the medical expenses incurred by the employee C. the maximum amount a policy holder must pay out of pocket D. the percentage of the covered expense that the insured person will pay Your answer is correct. E. the amount a policy holder must pay before insurance benefits are applicable

D

​________ plans use a set level of benefits for some discretionary benefits such as medical​ insurance, and then allow employees to choose from benefit options that suit their needs. A. Hybrid B. Employee assistance C. Roth​ 401(k) D. Wellness E. Core plus option

E

The total quality management advocates contend that telling raters that much of performance is caused by the system rather than the individual employee makes ratings less accurate.

False

Employees working under individual incentive plans tend to resist the introduction of new technology.

True

The "bandwagon" effect is when an employer offers a new benefit offered by a competitor without careful consideration.

True

The most widely used benefit survey is conducted by: A. the U. S. Chamber of Commerce. B. Watson-Wyatt. C. the Society for Human Resource Management. D. the American Compensation Association.

A

) A _____ plan divides a task into simple actions and determines the time an average worker takes to complete each action. A. standard hour B. Rowan C. Bedeaux D. Merrick

C

) _____ have (has) advantages of having minimal impact on the company's financial statements. A. Cash profit sharing B. A balanced scorecard C. Stock options

C

A negative outcome of MBO is ________ A. managers attitudes tend to decline with continued use. B. superior/subordinate communication becomes more challenging. C. performance pressure and stress increases. D. organizational performance improvements are short-lived.

C

An officer in an organization is someone who​ _________. A. works for an administrative executive B. works on​ short-term, strategic projects C. has the title and authority of an officer D. has the title of an officer but little authority E. is not considered a key employee per the U.S. Treasury Regulations

C

The two theories emphasizing line of sight are __________. A. equity and reinforcement. B. Maslow and Two-Factor. C. expectancy and goal-setting. D. agency and equity.

C

All of the following except ____ require periodically "re-earning" the added pay. A. success sharing plan B. lump-sum bonus C. profit-sharing plan D. cost of living

D

By designing discretionary employee benefits programs to fit a​ company's strategic​ needs, a company can most likely​ ________. A. expand the​ short-term disability elimination period B. eliminate health care coverage for all employees C. guarantee disability insurance coverage to all employees D. reduce its tax liability and promote competitive advantage E. strengthen the entitlement mentality among its employees

D

Surveys show the most popular type of variable pay plan is ____________ A. stock options. B. gainsharing. C. individual incentives. D. special recognition

D

The Internal Revenue Code​ (IRC) recognizes two groups that play a major role in a company. Which ones are​ they? A. Core employees and contingent workers B. Supervisors and union leaders C. ​Blue-collar workers and their supervisors D. Highly compensated employees and key employees E. Top executives and accounting experts

D

When designing executive​ compensation, consultants consider strategic​ analyses, which are based on​ ________. A. the financial outlook in the markets B. the amount of international experience an executive has C. the competition for the skills of a potential candidate D. external market context and internal analysis E. the experience and past record of the executive

D

Each state has​ workers' compensation laws based on the principle of​ ________. A. ​states' rights preceding federal laws B. federal laws preceding state laws C. liability with fault D. liability with fault and state laws preceding federal laws E. liability without fault

E

When members of an organization agree on mistaken solutions because they desire to​ conform, it is called​ ________. A. an agency problem B. job sharing C. deindividuation D. unionization E. groupthink

E

Which of the following acts extended​ employees' rights in the area of defined contribution​ plans? A. Employee Retirement Income Security Act B. Employee Assistance Programs Act C. National Labor Relations Act D. Fair Labor Standards Act E. Pension Protection Act

E

Which statement about flexible spending accounts​ (FSAs) is​ true? A. FSAs have no dollar limits per year. B. FSAs allow unused funds to be rolled over to another year. C. FSAs can be funded on an​ after-tax basis only. D. FSAs are matched dollar for dollar by employers. E. FSAs allow certain benefits​ (like child​ care) to be paid with pretax dollars.

E

Security in terms of compensation refers to the predictability of one's paycheck from one time to another.

True

Supervisors' ratings are less likely to terminate employees for performance when unemployment is low.

True

Which of the following was established in 1759 to assist the widows and children of Presbyterian​ ministers? A. Pension plans B. ​Old-Age, Survivors, and Disability Insurance C. Social Security D. Life insurance E. Individual retirement accounts

A

In the _____ benefit package, a package is designed with the average employee in mind. A. shared B. standard C. cafeteria-style D. federal

B

A primary benefits objective of most employers is to: A. obtain employee cooperation in controlling benefit costs. B. increase employee knowledge of benefit costs. C. encourage employee responsibility for their own financial security. D. increase employee understanding of plan objectives.

D

The U.S. federal government uses which time frame basis for overtime​ pay? A. Number of excess hours above a​ 50-hour workweek B. Number of hours worked in excess of 80 hours every two weeks C. Number of hours over the usual time in a month D. Number of hours worked in a week E. Number of hours worked in excess on a​ semi-annual basis

D

The best variable pay plan for employees when company financial performance is poor is _____. A. profit sharing B. a balanced scorecard C. stock ownership D. gain sharing

D

The best way for companies to decide whether or not the company can afford a benefit is on a _____ basis. A. package B. first dollar deductible C. discounted cost D. cost-centered

D

The question, "Does the instrument lend itself well to validating employment tests?" applies to which criterion of appraisal formats? A. Validity B. Administrative C. Cost D. Personnel research

D

Under exclusion provisions for​ short-term disability​ plans, what kind of disability is almost always​ excluded? A. All injuries sustained at home B. All mental illnesses C. All​ stress-related illnesses D. Injuries sustained at work E. Injuries that are​ self-inflicted

E

According to available evidence, a good strategy for a company to remain non-union is to offer the same benefits as those provided by unionized firms.

False

Agency theory argues that employees prefer risky pay since rewards can be greater than a salary.

False

All five dimensions of good appraisal formats are important for all organizations.

False

Gain sharing poses greater risk to individual employees than profit sharing.

False

Generally, team-based incentives are more attractive than individual incentives.

False

Recent research shows that performance-irrelevant factors such as political skill influence performance ratings as much as actual performance.

False

Recently, the private sector has shown more interest and innovation using merit pay than the public sector.

False

Research has shown that the BARS format has proven the best for reducing rating errors.

False

Since peers and co-workers have good knowledge of the work of their peers, peer ratings have become more common than ratings done by supervisors.

False

Surveys find 360-degree ratings are used for both development and pay decisions.

False

T/F In the formula (behavior = f (M, A, E)), M standards monetary incentives.

False

The favorable tax status granted to many benefits is safe from the threat of recurrent tax reform proposals.

False

The first question in designing merit guidelines is how much of an increase does it take for employees to recognize the raise as a real increase.

False

The percent of companies using some form of variable pay is declining because many employees prefer base wages.

False

) Keeping a performance diary helps employers defend against discrimination charges stemming from performance ratings.

True

A fast and efficient worker would earn more money under a Rowan plan than under a Halsey 50-50.

True

A good solution to the problem of production variability is to set gain sharing goals based upon industry norms.

True

A problem with incentive pay plans is workers focus exclusively on behaviors that are rewarded.

True

A recommended practice for appraisal interviews is to have the employee complete a self-appraisal form prior to the appraisal interview.

True

Benefits can be an effective tool to attract and retain employees when benefits address needs of a target group.

True

One study suggests that benefits focusing on work/life balance lead to greater worker involvement in productivity initiatives.

True

Over time, lump-sum bonuses cost employers less than merit pay.

True

Performance-dimension training provides raters with a standard of comparison or frame of reference for making appraisals.

True

Risk-sharing plans include a provision for cuts in base pay that are only recaptured in years when the organization meets performance objectives.

True

Since much of performance may be explained by one performance factor, it may not be useful to rate performance on many dimensions.

True

The authors argue that a system of flexible compensation could lead to more desirable employee behaviors at a lower total cost.

True

All of the following are steps to creating a good performance appraisal process except: A. performance dimensions are linked to the strategic plan. B. use experienced consultants to develop the rating process. C. train raters in use of the system. D. diagnose performance problems in advance.

b

The trend in recent variable-pay design is to combine the best of _____ and _____ plans. A. individual, group B. gain-sharing, profit-sharing C. short-term, long-term D. long-term, short-term

b

) According to expectancy theory, effort level depends on which of these factors? (1) expectancy (2) valence (3) instrumentality (4) reward (5) goals A. 1, 2, 3 B. 2, 3, 4 C. 1, 4, 5 D. 2, 5, 4

A

In which of the following incentive pay plans does the wage rate not increase for production above the standard? A. Standard hour plan B. Rowan plan C. Taylor plan D. Merrick plan

A

Turnover tends to be highest among _____. A. poor performers B. good performers C. single women with children D. ethnic minorities

A

Which of the following theories is least relevant to merit pay? A. Herzberg's theory B. Expectancy theory C. Equity theory D. Reinforcement theory

A

In what type of system are annual goals established and passed down through the organization? A. Performance standards review B. Management by objectives C. Forced distribution D. Total Quality Management

B

The best appraisal format for employee development is: A. BARS. B. MBO. C. the essay method. D. the ranking method.

B

A _____ is an employer-provided subsidized basic medical plan with buy-up options. A. full-defined contribution B. menu-driven health-care plan C. managed competition D. health savings account

C

Among peer raters, the most objective evaluations are given by: A. more experienced workers. B. workers who are not close friends with ratees. C. high performing workers. D. low performing workers.

C

Employees' assessment of their ability to perform required job is called ____________ A. equity. B. instrumentality C. expectancy D. reinforcement

C

What is a potential cost associated with extensive discretionary benefits​ programs? A. They may make recruiting more difficult. B. They usually lead to higher turnover rates. C. They may weaken strategic compensation efforts. D. There are no tax advantages associated with discretionary benefits. E. They usually lead to higher absenteeism rates.

C

What programs did the Social Security Act​ establish? A. ​Profit-sharing, stock​ bonus, and employee ownership plans B. Employee ownership​ plans, unemployment​ insurance, and Medicare C. Unemployment​ insurance; old​ age, survivor, and disability​ insurance; and Medicare D. Benefits for tuition reimbursement and professional accreditations E. ​Vacation, sick​ leave, and personal day benefits

C

All of the following are human resource capabilities performance indicators used for group incentive plans except: A. employee satisfaction. B. total recruitment costs. C. promotability index. D. accuracy/error rates.

D

The costs of employee benefits have grown​ considerably; the growth in funds available to support overall employee compensation has​ ________. A. declined B. increased dramatically C. declined dramatically D. stagnated E. increased slightly

D

​Miranda, the CEO of TVX​ Enterprises, has a compensation arrangement in which the TVX board of directors promises to pay her a bonus in the form of the equivalent of either the value of TVX shares or the increase in that value over a period of time. Which term refers to​ Miranda's compensation​ arrangement? A. A capital gains plan B. A golden parachute C. An incentive stock option plan D. A phantom stock plan E. An equity plan

D

How long can individuals have insurance coverage under​ COBRA? A. 1 year B. 28 months C. 3 months D. 3 years E. 18 months

E

In addition to cost​ control, how do contingent workers and flexible work schedules promote competitive​ advantage? A. Improving quality B. Increasing collaboration C. Reducing production D. Improving morale E. Supporting product innovation

E

In a​ corporation, ________ are often responsible for making executive pay recommendations to the board of directors. A. chief financial officers B. corporate vice presidents C. employees D. company shareholders E. compensation committees

E

Subordinate ratings ___________ A. tend to be inflated if they are not anonymous. B. are more reliable than peer ratings. C. are more valid than self ratings. D. are used by 70% of team-style organizations.

A

Which of the following statements about the Social Security system is​ true? A. Retirement benefits of​ today's retirees are funded by the current workforce and their employers. B. The Social Security system is not a​ pay-as-you-go system. C. ​Self-employed individuals have to pay only 15 percent of the amount required for the Medicare Part A program. D. Not all payroll amounts and wages are taxed under the Social Security system. E. The Medicare tax is subject to a wage base.

A

Which type of health insurance program combines the features of​ fee-for-service plans and HMO​ plans? A. ​Point-of-service plans B. Prescription drug plans C. Managed care plans D. ​Carve-out plans E. Preferred provider organization

A

) _____ mandates 12 weeks of leave for all workers at companies that employ 50 or more people. A. Health Maintenance Act 1973 B. FLSA 1938 C. FMLA 1993 D. COBRA 1984

C

A compressed workweek means employees complete their work​ ________. A. within fewer than 4 days in a​ 5-day workweek B. by completing 90 percent of their work via telecommuting C. within fewer than 5 days in a​ 5-day workweek D. within fewer than 3 days in a​ 5-day workweek E. by logging​ 15-hour days without a break

C

Labor costs are to value added as pay roll costs are to: A. total standard value hours B. production costs minus scrap C. SVOP D. customer satisfaction

C

Polaroid​ Corporation's example of​ "24-hour" coverage integrates medical insurance with​ ________. A. pension plans B. wellness and stress programs C. ​workers' compensation. D. merit compensation E. ​time-related benefits

C

The major complaint of both managers and employees regarding the appraisal process is that: A. appraisals were not helpful in guiding improvement. B. reviews don't differentiate between poor, average and good performance. C. appraisals are too subjective. D. rating forms are too complex and time consuming.

C

_____ is the most frequent method of benefit communication. A. An orientation session B. On-line benefits information C. An employee benefit handbook D. A meeting with supervisor

C

_____ theory argues that performance-based pay is best for complex jobs where monitoring employee performance is difficult. A. Reinforcement B. Goal setting C. Agency D. Expectancy

C

_____ theory contends that success-sharing plans will be motivating but at-risk plans will be de-motivating. A. Equity B. Expectancy and agency C. Herzberg's two-factor D. Agency

C

All of the following are advantages of flexible benefits except: A. costs of benefits are contained. B. employee understanding of benefits increases. C. introduction of new benefits is less costly. D. administrative expenses increase.

D

All of the following are conditions supporting use of individual incentives except: A. task accomplishment is independent of others. B. the worker has a strong commitment to their profession. C. production methods and labor mix are stable. D. presence of a union.

D

Each of the following is a duty performed by a compensation committee EXCEPT​ ________. A. discussing the assets and liabilities of the recommendations of the consultant B. making recommendations to the board of directors C. consulting with tax and legal experts D. discussing the alternate options for compensation with the CEO E. reviewing the compensation​ consultant's recommendations

D

What are the three categories of discretionary​ benefits? A. Protection​ programs, paid time​ off, and services B. Disability​ insurance, sick​ leave, and employee assistance programs C. Employee assistance​ programs, family assistance​ programs, and tuition reimbursement D. Disability​ insurance, life​ insurance, and retirement programs E. Outplacement​ programs, wellness​ programs, and sick leave

D

How are welfare practices​ defined? A. A person or​ group's health,​ happiness, and old age retirement B. Anything for the professional development of an employee to increase wage earning potential C. Monetary support given to people in need D. Lawful procedures or social efforts designed to stimulate the basic physical and material​ well-being of people in need E. Voluntary benefits paid by the employer that are for the intellectual or social development of the employee

E

One of the provisions of the Health Insurance Portability and Accountability Act of 1996​ (HIPAA) is that​ _________. A. ​employees, upon changing​ employment, cannot have health care coverage for a dependent from the new employer if the dependent has a​ life-threatening disease B. employees cannot make claims against Social Security benefits if they continue to receive health care coverage from their employer C. employees must take mandatory time off for a period of six months if diagnosed with a​ life-threatening disease D. employees must disclose their health history to the HR office before an employment offer is made E. employees are protected from being discriminated against for having preexisting health conditions

E

To qualify for unemployment​ insurance, workers must meet which of the following​ conditions? A. Have worked a minimum of one of the last four quarters in a year B. Have been a nonunion employee C. Be seeking work if they have left a job voluntarily D. Not have been laid off E. Not have left a job voluntarily

E

Under the rules of​ COBRA, companies are permitted to charge terminated employees​ ________ of the cost of coverage. A. slightly more than 65 percent B. slightly more than 10 percent C. 25 percent D. 50 percent E. slightly more than 100 percent

E

What is an advantage associated with offering discretionary​ benefits? A. They usually result in lower material acquisition costs. B. They typically increase profits by​ 20% in the first year of their use. C. They lower the chance of product liability lawsuits. D. They can result in lower costs of production. E. They can promote particular employee behaviors that have strategic value.

E

What is a​ short-term disadvantage of legally required​ benefits? A. Employers are only allowed to contribute so much to any one benefits program. B. Employers receive no tax breaks. C. Employees receive compensation even after employment with their company has ended. D. Employees are not given the option of​ full-time work. E. Employers must make substantial financial contributions.

E

Which act legitimized bargaining for​ employees? A. Occupational and Safety Health Act B. Civil Rights Act C. Employee Retirement Income Security​ Act D. Fair Labor Standards Act E. National Labor Relations Act

E

Which of the following plans is designed to best meet the needs of a diverse group of​ employees? A. Noncontributory plans B. ​Employee-financed benefits C. Employee assistance programs D. Contributory plans E. Cafeteria plans

E

T/F Growing evidence suggests HR practices affect employee perception of their employer which influences organization performance.

True

T/F The point of the behavior = f (M, A, E) model is that, though very important, compensation alone cannot change employee behavior.

True

Under which of the three broad categories for discretionary benefits does disability insurance​ fall? A. Protection programs B. Services C. Safety programs D. Paid time off E. Voluntary programs

A

What is the main difference between insurance plans offered by insurance companies and​ self-funded insurance​ plans? A. The way each type of plan finances the benefits B. The types of benefits offered C. The number of employees to whom they are able to offer insurance D. The way each type of company chooses to execute the plan E. The way deductible amounts are determined

A

A business has a centralized structure and a compensation system that rewards sales volume. However, sales volumes are low compared to competitors who respond more quickly to changes in consumer demand. Which of the following is the most likely source of the low sales performance? A. A poorly designed compensation program B. An ineffective recruitment and selection program C. An inappropriate organization design D. A poorly designed performance management program

C

All of the following are categories of rater training except _____ training. A. rater-error B. performance-standard C. behavior modeling D. performance-dimension

C

The main components of executive compensation​ include: A. ​Person-focused pay and​ organization-focused pay B. Core compensation and benefits C. Core​ compensation, deferred core​ compensation, and nondeferred compensation D. Core​ compensation, deferred core​ compensation, employee​ benefits, and clawback provisions E. Core​ compensation, discretionary​ benefits, and nondiscretionary benefits

D

What are the categories of legally required​ benefits? A. Retirement​ benefits, unemployment​ insurance, and disability insurance B. Life​ insurance, disability​ insurance, and unpaid family and medical leave C. Unemployment​ insurance, medical​ insurance, and disability insurance D. Social Security​ programs, workers'​ compensation, unpaid family and medical​ leave, and health insurance E. Medical​ insurance, disability​ insurance, and retirement benefits

D

Which of the following is NOT a stipulation in​ fee-for-service plans? A. Maximum benefit limits B. ​Out-of-pocket maximums C. Coinsurance D. Restrictions on choice of health care providers E. ​Pre-existing condition clauses

D

Across five studies ranking preference for benefits,_________ had the lowest average rating. A. Long-term disability B. Sick pay C. Pensions D. Dental insurance

A

As the compensation manager for a small company, the CEO has asked you to explain why an experienced supervisor gave many employees who reported to her inaccurate performance ratings this year. Which of the following factor is not a likely cause for the behavior? The supervisor: A. spent too much time preparing the ratings. B. feels guilty. C. dislikes confrontation. D. failed to observe actual performance.

A

The first issue in setting up a benefits package is: A. who should be protected or benefited. B. how much choice should employees have among benefits. C. how should benefits be financed. D. are benefits legally defensible.

A

Which of the main provisions of HIPAA has been eliminated by the Patient Protection and Affordable Care​ Act? A. Those covering​ pre-existing conditions B. Those covering free health insurance to employees earning below the poverty line C. Those covering free health insurance for disabled employees D. Those covering disclosure of patient information E. Those covering extension of benefits to dependents

A

Who is exempt from​ COBRA? A. Companies with fewer than 20​ employees, church​ plans, and plans maintained by the U.S. government B. Companies with fewer than 50 employees C. Employers who agree to provide excellent health benefits to their employees D. Employers and government plans that guarantee coverage for an​ employee's dependents E. Employers who agree never to disclose or transfer their​ employees' health information

A

A cliff vesting schedule requires that an employee be 100 percent vested after​ ________ years of service. A. 2 years B. 5 years C. 3 years D. 10 years E. 7 years

C

Paying a dime for every bottle collected and turned into a collection center is an example of: A. a commission based work. B. a standard hour based work. C. straight piecework. D. a Rowan plan.

C

Executive compensation plans are said to be top heavy if the account balances for key employees exceed​ ________. A. 50 percent of the​ firm's profits from that fiscal year B. 60 percent of the dividends paid to shareholders in that fiscal year C. 40 percent of the dividends paid to shareholders in that fiscal year D. 60 percent of the account balances for all employees E. 40 percent of the account balances for all employees

D

Which of the following factors has led to greater use of flexible benefit plans for​ employees? A. Technology B. Legislation C. Globalization D. Workforce diversity E. Costs

D

Which of the following statements is true regarding rater training? A. Training programs lasting over two hours are as effective as shorter ones. B. Rater-error training is more effective than performance-standard or performance-dimension. C. Lectures on how to improve ratings are ineffective. D. Training to reduce halo and improve accuracy have been most successful.

D

Which federal legislation requires every American to have health​ insurance? A. Federal Unemployment Tax Act B. Federal​ Employees' Compensation Act C. Social Security Act D. Family and Medical Leave Act E. Patient Protection and Affordable Care Act

E

If Company A uses software programmers it hires from another company on a​ long-term basis to continually modify and maintain important aspects of its​ website, this would be an example of which of the​ following? A. Direct hire arrangement B. ​On-call arrangement C. Consultant D. Lease company arrangement E. Job sharing

D

If a CEO were to attempt to influence the compensation committee by using data from other CEOs who had higher compensation in the same​ industry, this would be an example of​ ________. A. conflict theory B. the agency problem C. agency theory D. social comparison theory E. tournament theory

D

In which of the following rating formats are leniency, severity, and central tendency errors not present? A. Standard rating scales B. BARS C. MBO D. Ranking

D

It is observed that _____ is/are commanding a larger share of the total compensation for all employee groups. A. merit pay B. health benefits C. retirement benefits D. variable pay

D

Last year your performance was not very good and your performance rating was below average, but this year you have done very well exceeding your performance goals. To your surprise, your boss gives you just an average performance rating. What error has your boss most likely committed? A. Horn B. Halo C. Severity D. Spillover

D

Which statement about flexible work schedules and overtime pay is​ FALSE? A. Flexible employees may not work exactly 40 hours every week. B. The FLSA overtime provisions are based on work occurring during set hours in a fixed work period. C. Unpredictable flexible schedules make overtime pay calculations difficult. D. State governments use a variety of time bases to determine overtime pay eligibility. E. The FLSA overtime provisions allow companies to pay less than one and​ one-half times the normal pay to employees on flexible schedules.

E

How can employers involve employees in the benefits determination​ process? A. By conducting employee interviews and focus groups B. By asking employees to conduct benchmark studies on benefit plans C. By requiring that all employees understand the kinds of benefits they are allowed to receive D. By asking employees to design surveys to gather data about employee benefits preferences E. By having employees compose their own benefits plans and submitting them for review to an HR manager

A

The amount of fairness given to employees refers to _____. A. total justice B. quantitative justice C. procedural justice D. distributive justice

D

The current executive core compensation consists of​ ________. A. base pay with possible quarterly stock options B. incentives and merits C. base pay and benefits D. annual base pay and bonuses E. base pay and a percentage of profits each year

D

The key to designing a pay-for-performance system rests on standards. Specifically, managers need to be concerned about the: A. objectives, structure, eligibility, and funding. B. strategy, measures, structure, and equity. C. structure, efficiency, equity, and funding. D. objectives, measures, eligibility, and funding

D

Up to what percentage can an employer charge COBRA beneficiaries a premium for continuation​ coverage? A. 50 percent above the cost of the coverage of the plan B. 102 percent of the cost of health expenses incurred by the employee C. 36 percent of the cost of the coverage of the plan D. 102 percent of the cost of the coverage of the plan E. 90 percent above the cost of the coverage of the plan

D

What is a notable drawback to flexible spending accounts​ (FSAs)? A. They motivate employees to be less vigilant regarding medical expenses. B. Hourly employees are not allowed to contribute to an FSA. C. Employees can only use money on​ themselves, not their dependents. D. An employee must use the accumulated money in the account by a specific time or it will be lost. E. They place a limit on the amount an employee can allocate to an FSA.

D

What is a potential cost associated with extensive discretionary benefits​ programs? A. They usually lead to higher turnover rates. B. They usually lead to higher absenteeism rates. C. There are no tax advantages associated with discretionary benefits. D. They may weaken strategic compensation efforts. E. They may make recruiting more difficult.

D

When employee performance is easily measured and the organization's performance is fairly stable over time, the most effective type of compensation is to offer _____. A. large base and low-incentive pay B. variety of rewards and base pay C. a variety of rewards with significant incentive pay D. monetary rewards with large incentives

D

Which act was established to protect employee benefits​ rights? A. The Patient Protection and Affordable Care Act of 2010 B. The National Labor Relations Act C. The Fair Labor Standards Act D. The Employee Retirement Income Security Act of 1974 E. The Civil Rights Act of 1964

D

Which of the following plans supplements Medicare Part A and Part​ B, helping cover the costs of​ coinsurance, copayments, and​ deductibles? A. Part D B. Medicare medical savings account C. Part C D. Medigap E. Medicare Advantage

D

Which of the following work arrangements allows employees to work fewer days as long as they meet the number of required work​ hours? A. ​Part-time B. Flextime C. Telecommuting D. Compressed workweek schedule E. Banking hours

D

Which of the following would an employer be least likely to use if they sought to reduce benefit costs? A. Dual coverage B. Benefit ceiling C. Coinsurance D. Defined benefit plans

D

Which statement regarding contingent workers is​ FALSE? A. Contingent workers do not have an explicit or implicit contract for continuing employment. B. Contingent workers cannot expect an indefinite relationship with their employer. C. Contingent workers are different than those classified as core employees. D. Persons who do not continue their jobs for personal reasons like attending school are still classified as contingent workers. E. Contingent workers are also referred to as​ "on demand" workers.

D

_____ allows employees who have resigned or were laid off to continue to purchase health insurance under their employer's plan. A. Health Maintenance Act 1973 B. FLSA 1938 C. Tax reforms of 1982, 1986 D. COBRA 1984

D

According to the Bureau of Labor​ Statistics, a​ part-time employee works fewer than​ ________ hours per week. A. 15 B. 25 C. 40 D. 10 E. 35

E

Based on the criteria for key​ employees, which of the following positions would be considered a key​ employee? A. Assistant to the vice president B. Accounts payable clerk C. Senior recruiter D. Director of customer service E. CEO

E

Currently, most of the benefits plans offered by companies are​ ________. A. noncontributory B. a combination of contributory and​ employee-financed C. ​employee-financed D. a combination of noncontributory and​ employee-financed E. contributory

E

Generally, companies expect more from​ part-time salaried employees. One of the ways to reduce the number of hours of work for a​ part-time employee is to​ ________. A. give​ part-time employees extra perks like flex workweeks B. expect less from the​ part-time employees C. have extra incentives available for only​ part-time employees by which they can add to their compensation package D. pay​ part-time employees more per hour than​ full-time salaried employees E. have explicit​ work-related goals and​ work-hour limits

E

How do flexible work schedules help companies pursue the​ lowest-cost strategy? A. Flexible work schedules mean that workers are not entitled to vacation or sick days. B. Companies generally do not offer benefits for workers who want flexible work schedules. C. Companies can pay lower wages to workers who want flexible work schedules. D. Those workers who want flexible work schedules are not usually union​ members, and therefore employers can demand more work for the same pay. E. Flexible work schedules boost productivity and lower​ absenteeism, which helps companies cut costs.

E

How does the Internal Revenue Service view equipment that companies purchase for employees who​ telecommute? A. It is taxable or nontaxable depending upon how far the employee lives from the company. B. It is taxable or nontaxable depending upon how ownership is transferred. C. It is a taxable form of compensation. D. It is a taxable benefit. E. It is nontaxable.

E

If a company is in a very competitive labor market with a shortage of qualified workers living near the​ workplace, which of the following benefits would likely produce the most value for the​ company? A. Outplacement assistance B. Family assistance programs C. Tuition reimbursement D. Wellness programs E. Transportation services

E

If​ Coca-Cola makes it possible for its executives to buy Coke stock shares in the future at a predetermined​ price, Coca-Cola is granting the executives​ a(n) ________. A. employee stock purchase plan B. restricted stock unit C. nonstatutory stock option D. phantom stock plan E. incentive stock option

E

If​ Coca-Cola makes it possible for its executives to buy Coke stock shares in the future at a predetermined​ price, Coca-Cola is granting the executives​ a(n) ________. A. phantom stock plan B. nonstatutory stock option C. employee stock purchase plan D. restricted stock unit E. incentive stock option

E

Participation requirements are applicable to​ ________. A. ​non-qualified plans B. distribution plans C. qualified plans D. retirement plans E. pension plans

E

Statistics show that diversity in the United States is likely to​ ________, leading to​ ________ demand for flexible benefit plans. A. ​decrease; increased B. remain​ unchanged; decreased C. ​increase; decreased D. ​decrease; decreased E. ​increase; increased

E

A key factor in increasing trust in top management is _____. A. an acceptable appraisal system B. high base pay C. stock options D. a well-designed piece rate system

A

A major criticism of standard rating scales is: A. raters have different definitions of scale levels. B. employees don't understand standard scales. C. they are costly to develop. D. they encourage halo and horns errors.

A

As per the _____ theory, relative pay is important as employees evaluate their pay-effort balance in comparison to other employees. A. equity B. expectancy C. agency D. reinforcement

A

Boards of directors are usually composed of​ ________. A. approximately 15 members B. no more than 5 members C. 20 or more members D. 6 or 7 key players E. retired CEOs of small companies

A

Hoarding star performers, reluctance to accept new team members and resistance to transferring team members are examples of which team-related compensation problem? A. Level B. Large variety of teams C. Pay plan complexity D. Control

A

If you are​ self-employed, what does the​ Self-Employment Contributions Act​ (SECA) require you to​ do? A. Contribute to Medicare and OASDI at a higher tax rate B. Provide facilities that support the ideal working conditions to minimize chances of employee injuries C. Partner with nonprofit companies to reduce tax burdens D. Contribute equally to your fund and your​ employees' funds E. Design and implement health and fitness programs for your workers

A

In​ 2014, the typical percentage of total compensation awarded in equity plans for U.S. CEOs was approximately​ ________. A. 50 percent B. 30 percent C. 25 percent D. 70 percent E. 40 percent

A

More complex gain sharing plans create needs for: A. higher levels of trust among participants and more effective communication. B. greater variety of incentives and more effective communication. C. revisions in the management worker split and revisions to the scope of the formula. D. more effective communication and greater variety of incentives

A

Some companies have dropped the use of "rank and yank" because _____. A. of law suits charging age discrimination. B. they can hurt morale. C. they are not effective in getting rid of "deadwood." D. managers resist this rating format.

A

Stock compensation plans generally increase the ownership interest of an executive. What increases the value of a​ stock? A. The gain in company performance B. The sales revenue generated C. The number of companies acquired in a given year D. The industry ranking E. The amount of cost savings achieved in a year

A

The Internal Revenue Code​ (IRC) defines highly compensated employees by certain criteria. Which of the following is NOT one of the​ criteria? A. A 20 percent owner in the current or preceding year B. An employee in the top 20 percent of​ highest-paid employees C. An employee that made more than​ $120,000 in 2015 or the preceding year D. An employee in the​ top-paid group of people in the company E. A 5 percent owner in the current or preceding year

A

The U.S. federal government uses which time frame basis for overtime​ pay? A. Number of hours worked in a week B. Number of hours over the usual time in a month C. Number of hours worked in excess of 80 hours every two weeks D. Number of excess hours above a​ 50-hour workweek E. Number of hours worked in excess on a​ semi-annual basis

A

The ability triangle includes _____. A. selection B. performance management C. compensation D. organization development

A

The authors argue that for merit pay to live up to its potential, all of the following should be done except _________ A. use more peer than supervisor raters. B. improve the accuracy of appraisals. C. allocate enough merit money to truly reward performance. D. ensure merit pay differentiates across performance levels.

A

The highest level of agreement among respondents to a study of successful MBO programs was on the fact that: A. goals and objectives should be specific. B. objectives should be assigned a priority. C. objectives should include a plan of action. D. pay incentives should be attached to goals.

A

When an organization's performance has regular and large swings and individual performance is unclear and hard to measure, the most effective compensation mix is to offer _____. A. base pay with low incentives and a variety of rewards B. monetary rewards with large incentives C. large base and low-incentive pay D. a wide range of rewards and significant incentives

A

When companies adopt flexible working arrangements to help balance work and family​ roles, which of the following compensation issues is the most difficult to​ manage? A. Paid​ time-off benefits B. Working condition fringe benefits C. Overtime pay D. Discretionary benefits E. Retirement benefits

A

When moving from an individual to a group incentive plan, you would expect _____. A. high turnover among high performers B. an increase in instrumentality C. an increase in the output of high performers D. an increase in perceived equity

A

Which of the following is NOT a feature of​ fee-for-service plans? A. Limitations and restrictions on health care providers to be used B. Coinsurance C. A​ pre-existing condition clause D. A deductible E. An​ out-of-pocket maximum

A

Which of the following is NOT true of the Pension Benefit Guaranty Corporation​ (PBGC)? A. It protects​ employees' health benefits. B. It was established by ERISA. C. It protects retirement income. D. It insures private companies. E. It is​ self-financed.

A

Which of the following is a likely result of flexible work​ arrangements? A. Decreased time and expense associated with commuting B. Imbalance between work and family roles C. Increased employee tardiness and absenteeism D. Inefficient customer service E. Improved relationships between managers and employees

A

Which of the following is not a benefit administration issue? A. Benefit adequacy B. Benefit financing C. Degree of choice among benefits D. Legal defensibility of benefits

A

Which of the following is not true of lump-sum bonuses? A. They help maintain competitive pay position relative to competitors. B. They are less expensive than merit pay. C. Employees dislike them. D. They are a more visible reward than merit pay.

A

Which of the following is the most common form of defined contribution​ plan? A. ​401(k) plan B. Pension plan C. Profit sharing plan D. Employee assistance plan E. 457 plan

A

Which of the following is true for HMOs and​ fee-for-service plans? A. They both include​ pre-existing condition clauses. B. They both offer prepaid services. C. They both have unlimited maximum benefits. D. ​Fee-for-service plans use primary care physicians whereas HMOs do not. E. Coinsurance rates are higher in HMOs than in​ fee-for-service plans.

A

Which of the following is true of the pay of independent contractors and the companies that employ​ them? A. It is possible that the status of contractors could change and they could be considered employees. B. Independent contractors are subject to minimum wage requirements. C. Companies take out federal income tax from their pay. D. Contractors can claim protection under the Americans with Disabilities Act. E. Contractors are eligible for COBRA benefits.

A

Which of the following statements is true of core plus option​ plans? A. They extend a​ pre-established set of​ benefits, such as medical​ insurance, as a program core. B. They allow an employee to have one core benefit plus one additional benefit of their choosing added on. C. They allow employees to pay for their core benefits expenses with pretax dollars. D. They allow an employee to have one core benefit plus two additional benefits of their choosing added​ on, making up the whole of their benefits plan. E. They allow employees to choose only one kind of benefit.

A

Which of the following work arrangements is based on working around a common set of employee work​ hours? A. Flextime B. Telecommuting C. ​Part-time D. Compressed workweek schedule E. Banking hours

A

With​ performance-based pay, successful performance usually leads to​ ________. A. merit and incentive awards B. more challenging performance standards C. unrealistic expectations about promotions D. anger among nonperformers in the company E. new motives to work for a competing firm

A

_____ is one of the best appraisal formats in terms of legal defensibility. A. BARS B. MBO C. Standard rating scales D. Ranking

A

_____ is/are one of the most preferred benefits. A. Stock plans B. Profit sharing C. Shorter working hours D. Early retirement

A

_____ is/are the primary reason why businesses adopt flexible benefit programs. A. Cost savings B. Increased employee understanding C. Federal requirements under EEO laws D. Maintaining external equity

A

A cliff vesting schedule requires that an employee be 100 percent vested after​ ________ years of service. A. 2 years B. 3 years C. 10 years D. 5 years E. 7 years

B

A right granted by a company to an employee to purchase a number of stocks at a designated price is called​ a(n) ________. A. exercise of stock B. stock option C. stock grant D. stock disposition E. discretionary bonus

B

A team leader with a free rider problem could maximize performance by: A. instructing them to do their best. B. specifying performance levels and due dates. C. assigning another team member to monitor their performance. D. punishing free riders who fail to meet standards.

B

Alternatives to financing benefit plans include all of the following except: A. contributory B. 401K C. noncontributory D. employee financed

B

Generally, companies expect more from​ part-time salaried employees. One of the ways to reduce the number of hours of work for a​ part-time employee is to​ ________. A. give​ part-time employees extra perks like flex workweeks B. have explicit​ work-related goals and​ work-hour limits C. pay​ part-time employees more per hour than​ full-time salaried employees D. have extra incentives available for only​ part-time employees by which they can add to their compensation package E. expect less from the​ part-time employees

B

How are HMO and​ fee-for-service plans​ similar? A. Both have low coinsurance rates. B. Both have​ out-of-pocket maximums and coinsurance. C. Both require a primary care physician to determine the need for a specialist. D. Both require the use of primary care physicians. E. Both offer prepaid services.

B

How do companies create an ownership interest for an​ executive? A. Through offering a guaranteed lifetime income B. Through granting stock and stock options C. Through increasing the bonus amounts each year D. Through promising a fixed percentage of total amount saved in a given year E. Through guaranteeing a percentage of the profits

B

If employees do not sign on to receive insurance from their​ employers, what are they required to do per the PPACA of​ 2010? A. Work additional hours at a lower wage rate B. Purchase their own insurance C. Pay as they go for their health coverage without having an insurance plan D. Pay a fine and reimburse the employer for any fines levied on the employer E. Sign up with a health insurance industrial pool created for all employees in the given industry

B

The most common form of outcomes-based appraisal is: A. the essay method. B. MBO. C. the performance standards review. D. the BARS.

B

Under this​ agreement, the board of directors is allowed to take back an​ executive's performance-based compensation if it finds performance expectations were not met. A. Stock option B. Clawback provision C. Platinum parachute D. Phantom stock plan E. Disposition

B

Which gain sharing plan is most similar to the standard hour plan? A. Scanlon B. Improshare C. Rucker D. Cash profit sharing

B

Which of the following benefits are not mandated by state or federal legislation? A. Workers' compensation B. Pensions C. Social security D. Unemployment insurance

B

Which of the following best supports a culture of flexibility and innovation? A. A flexible benefits package B. A strong commitment to job security C. High base wage D. Stock options

B

Which of the following is not a strength of supervisors as raters? A. They are knowledgeable about subordinates' jobs. B. Their ratings show little halo and leniency. C. Supervisors have rating experience. D. They assign work to subordinates.

B

A type of benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called _____ plan. A. a select choice B. a no-deductible C. flexible benefit D. flat dollar benefit

C

Employers base sick leave and vacation time on​ ________. A. recommendations from the supervisors B. the number of days the employee was absent in a given month C. the number of hours worked in a month D. the length of employment E. severity of illness and FMLA

C

First impression error is to _____ error as leniency error is to severity error. A. halo B. horn C. recency D. clone

C

In 1959, benefits were approximately _____ percent of payroll and in 2010, the percent was _____. A. 30, 50 B. 20, 38 C. 25, 30 D. 30, 60

C

Research suggests that for employees to notice and work hard to perform behaviors desired by the organization, incentives need to be _____ percent. A. 5-8 B. 8-10 C. 15-20 D. 25-30

C

The total cost of employee benefits in the U. S. is _____ dollars. A. two trillion B. one trillion C. four trillion D. one billion

C

Usually _____ are awarded for exceptional performance, often on special projects or for performance that so exceeds expectations as to be deserving of an add-on bonus. A. variable pay awards B. individual spot awards C. lump-sum bonuses D. merit pay

C

The main reasons unions oppose flexible work schedules and contingent workers center on which two​ issues? A. Health issues and quality of life issues B. Contempt for contingent workers and security issues C. Isolation issues and truthfulness issues D. Lack of union membership of contingent workers and isolation issues E. Job security and inequitable treatment issues

E

What are the three categories of discretionary​ benefits? A. Disability​ insurance, sick​ leave, and employee assistance programs B. Employee assistance​ programs, family assistance​ programs, and tuition reimbursement C. Disability​ insurance, life​ insurance, and retirement programs D. Protection​ programs, paid time​ off, and services E. Outplacement​ programs, wellness​ programs, and sick leave

C

The main reasons unions oppose flexible work schedules and contingent workers center on which two​ issues? A. Lack of union membership of contingent workers and isolation issues B. Isolation issues and truthfulness issues C. Contempt for contingent workers and security issues D. Health issues and quality of life issues E. Job security and inequitable treatment issues

E

What change occurred with the passing of the​ PPACA? A. Coinsurance for employees is no longer an option. B. Employers can now purchase cheaper insurance plans with lower maximum benefits limits. C. Employers are no longer able to purchase insurance plans with lower maximum benefits at a lower cost. D. There are now limits to benefits for health insurance plans. E. Employers are required to​ self-fund the insurance plans they provide.

C

Desired employee behaviors are influenced by ________ A. motivation. B. ability. C. environment. D. ability, motivation and environment.

D

How can employers reduce the costs associated with required​ benefits? A. Employers should offer only limited types of benefits. B. Employers should make the process of filing compensation claims difficult. C. Employers should refuse to offer benefits to employees if the costs become too great. D. Employers should try to reduce the chances of workers filing compensation claims. E. Employers should try to hire as few employees as possible.

D

How did providing subsistence payments to those who were unemployed or injured help boost the U.S.​ economy, especially after the Great​ Depression? A. Subsistence payments helped the unemployed become retrained to find work. B. Subsistence payments went into funding programs that would help unemployed individuals find work. C. Subsistence payments helped unemployed workers start establishing their own businesses with the money they received. D. Subsistence payments gave unemployed individuals consumption ability to keep the economy afloat. E. Subsistence payments gave subsidies to employers to keep the economy strong and growing.

D

Which of the following is not an advantage of team incentives? A. Stimulates problem solving B. May better reflect how work is performed C. Encourages competition between teams D. Minimizes distinctions between team members

C

An advantage of group incentives is turnover may be higher among poorer performers because they hurt group performance.

False

Individual incentives never include financial penalties for poor performance.

False

Merit pay differs from other forms of incentive pay in that it must be "earned" every year.

False

Most employers are pleased that 3 Americans in 10 stayed in a job they wanted to leave simply because they could not give up their health-care coverage.

False

Overall performance in both the standard rating scale and MBO is the weighted average of ratings on all dimensions.

False

Performance appraisals are more accurate when raters are required to provide feedback to subordinates.

False

The focus of team incentive plans is work groups or teams and does not include divisions or an entire company.

False

The free-rider problem is common in firms using individual incentive plans.

False

There is good evidence that a sound benefits program reduces turnover.

False

When ratings will be used to determine merit increases, they are more likely to differentiate among subordinates than when the ratings will be used for other purposes.

False

While health care costs have risen rapidly during the past two decades, pension costs have been declining due to the strong stock market.

False

) Pay-for-performance plans are used for more than three-quarters of all exempt, clerical, and administrative employees.

True

) Performance plans typically feature corporate performance objectives for a time three years in the future.

True

) Though raters typically store information about worker performance accurately, when they recall information, it is in terms of trait categories.

True

A group performance based pay plan is superior to an individual plan when individual production standards and production methods must change to meet changing events.

True

A job ad stating generous benefits leads applicants to place higher value on benefits in choosing among jobs.

True

A major difference between rankings and ratings is ratings use an absolute versus a relative scale.

True

A major problem of group incentive plans is performance targets are not correctly set.

True

A major reason for the proliferating cost of benefit programs is the narrow focus of benefit administrators.

True

Firms high on business risk and those with uncertain outcomes, have higher corporate performance without incentive plans than with them.

True

Incentive effect means pay can motivate people to perform better.

True

MBO requires more paperwork than other rating methods and increases both performance pressure and stress.

True

Most variable-pay plans have some form of profit "trigger" linked to revenue growth or profit margins.

True

Of the many factors affecting supervisors' ratings of subordinates, the major influence is actual performance.

True

The biggest current trend in health care is market-based or customer-driven.

True

The biggest recent trend in health care is consumer-driven health care.

True

The greatest amount of research on rating formats has focused on reducing error and improving accuracy.

True

Work load and work variety are both components of a total reward system.

True

The most obvious sorting factor is _____. A. seniority B. ability C. experience D. educational qualification

B

The most reliable performance ratings are done by: A. peers. B. supervisors. C. customers. D. self.

B

All of the following are true findings regarding MBO except that: A. individual performance improves. B. organizational performance improves. C. superior/subordinate communication improves. D. MBO requires less documentation than other rating methods.

D

Cost pressure related to increasing diversity of the workforce is one of the reasons companies are offering flexible benefit plans.

True

Eligibility refers to who in the organization may participate in an incentive pay program.

True

Employees who are dissatisfied with performance appraisals are less satisfied with their pay.

True

Line of sight means that employees believe they can influence performance targets.

True

The average per hour cost of benefits is higher in state and local governments than in the private sector.

True

Though commonly believed by managers, there is only anecdotal evidence supporting the belief that higher benefit levels increase employee retention.

True

When pay raises are based on events over which employees lack significant control, they are likely to regard the system as unfair

True

Various studies have found that only two specific benefits curtailed employee turnover: _____ and _____. A. vacation days; dental plans B. profit-sharing plans; life insurance C. retirement benefits; paid vacations D. pensions; medical coverage

. D

) The criticism, "different raters have different ideas about what "average work" is, is associated with the ________ rating format. A. standard rating scale B. BARS C. ranking D. MBO

A

A Definitive Proxy Statement under section 14A of the SEC deals with the​ ________. A. compensation given to the CEO and the four most highly compensated officers B. total compensation paid to all of the employees in a given​ year, excluding executives C. total compensation paid to the CEO in a given year D. total amount paid to corporate consultants in a given year E. amount of money paid to the people who serve on the board of directors

A

All of the following are advantages of managing benefits via the internet or intranet except: A. employees have fewer interactions with HR staff. B. benefit handbook cost is minimized. C. benefit transactions costs are reduced. D. fewer employee benefits staff are required.

A

The variable pay plan with the highest instrumentality is _____. A. gain sharing B. team incentives C. a balanced scorecard D. stock ownership

A

When a job involves very routine, mechanistic tasks, the best appraisal format that is most appropriate is: A. BARS. B. MBO. C. standard rating scales. D. alternation ranking.

A

Which statement about hiring contingent workers is​ true? A. Employers with contingent workers save money in the areas of legally required benefits. B. Contingent workers limit staffing flexibility for most employers. C. Contingent workers tend to increase problems associated with groupthink. D. Employers must provide discretionary benefits to contingent workers. E. Contingent workers tend to be highly productive but frequently absent from work.

A

Which type of executive compensation does NOT need to be reported to the Securities and Exchange​ Commission? A. Paid time off B. Salary C. Bonuses paid D. Pension plan E. Stock awards

A

Which of the following is not true about individual spot awards? A. Smaller companies may be more casual about recognition. B. Someone in the organization alerts top management to the exceptional performance. C. A majority of companies do not feel that these awards are effective. D. Smaller companies are more subjective about deciding the size of the award.

C

Which of the following is responsible for the designations of key or highly compensated​ employees? A. Social Security Act B. ​Dodd-Frank Act C. Internal Revenue Code​ (IRC) D. Executive compensation consultants E. Securities Exchange Act

C

"Rank and yank" is a _____ rating format. A. alternation ranking B. forced distribution ranking C. paired-comparisons D. BARS

B

Named executive officers​ (NEOs) are the​ ________. A. two highest paid officers in an organization B. four most highly compensated officers after the CEO C. officers in charge of company finances D. officers in charge of employee compensation E. top executives who make strategic decisions

B

Telling raters that sometimes the work environment and system affect job performance more than the individual employee's behavior: A. helps improve inter-reliability. B. leads to higher ratings. C. has very little effect on ratings. D. leads to lower ratings.

B

The primary guiding force that determines needed employee behaviors is _____. A. corporate goals B. organization strategy C. strategic business unit goals D. department/team goals

B

The purpose of this variable pay plan is to foster a "one for all" culture and to educate employees about business. A. Team incentives B. Cash profit sharing C. Balanced score card D. Stock options

B

The typical employee can recall _____ percent of the benefits they receive. A. almost 50 B. less than 15 C. over 30 D. 40

B

How are HMOs and​ fee-for-service plans the​ same? A. They both operate on a reimbursement basis. B. They both use primary care physicians as a​ cost-control measure. C. They both have​ out-of-pocket maximum limits. D. They both have low coinsurance rates. E. They both offer prepaid services.

C

How long can individuals have insurance coverage under​ COBRA? A. 3 months B. 28 months C. 18 months D. 1 year E. 3 years

C

The Family Medical Leave Act​ (FMLA) allows an eligible employee up to​ ________ weeks of leave during any​ 12-month period. A. 3 paid and 12 unpaid B. 6 paid and 6 unpaid C. 12 unpaid D. 12 paid E. 6 paid

C

The SEC Act of 1934 deals with​ ________. A. financial settlements with union leaders B. the number of employees a company has C. corporate financial information and executive compensation D. the transparency of executive compensation practices E. the amount of money given to company lobbyists in​ Washington, D.C.

C

The biggest trend in cost-containment is: A. benefit limitations. B. HMO's. C. outsourcing. D. higher deductibles.

C

The motivation triangle includes _____. A. selection B. organization design C. culture D. organization development

C

Which of the following is NOT one of the categories of legally required​ benefits? A. ​Workers' compensation B. Health insurance C. Unpaid family and medical leave D. Social Security programs E. Defined retirement plans

E

Goal setting theory argues that employees' performance in maximized when performance targets are stated as "do your very best".

False

Incentive pay systems are an effective way to motivate workers to perform a variety of tasks in changing situations

False

Individual incentive systems are growing in popularity.

False

Rankings are more popular among managers than ratings as they are less complex and uni-dimensional.

False

T/F The text authors argue compensation has more influence on performance than selection or performance management.

False

Unlike employment tests, performance appraisals are not subject to the same EEO regulations.

False

Workers who start out as high performers but decline, are rated slightly higher than those whose performance is consistently low.

False

Which of the following questions is LEAST relevant to ask when determining whether U.S. executives are​ overpaid? A. Does the company maintain competitive advantage in the global​ market? B. Is executive pay tied to corporate​ performance? C. Are the​ company's executives​ qualified? D. What is the spread between executive pay levels and the pay rates of nonexecutive​ employees? E. Is executive pay fair and​ equitable?

C

Which of the following types of rankings would be least preferred by managers of more than 10-15 employees? A. Straight B. Alternate C. Paired comparisons D. Forced distribution

C

) Individual incentives yield higher productivity gains

True

According to agency theory, because employees prefer a salary, they demand higher total pay if performance-based pay is used.

True

An important implication of reinforcement theory is that when employees receive pay is important.

True

Before World War II, hourly employees were given time off for holidays but without pay.

True

Many of the disadvantages of individual incentives are due to both a fear production standards may be changed and workers' focus on maximizing output.

True

Maslow's theory suggests that performance-based pay can be de-motivating.

True

Most employers prefer to avoid providing benefits on a defined-level basis.

True

The ideal approach to determining employee benefit preferences is a flexible benefit plan.

True

The level problem in team compensation is an example of the line of sight problem.

True

The main problem of use of merit pay is how to get employees to view raises as a reward for performance.

True

The only two benefits shown to reduce turnover are pensions and medical coverage

True

The standard hour plan is likely to be an effective incentive plan for plumbers employed by a plumbing company.

True

The trend today is toward less stable and less secure compensation packages.

True

How are HMO and​ fee-for-service plans​ similar? A. Both have​ out-of-pocket maximums and coinsurance. B. Both have low coinsurance rates. C. Both require the use of primary care physicians. D. Both offer prepaid services. E. Both require a primary care physician to determine the need for a specialist.

A

For which motivation theory is it important for organizations to pay attention to the training and development needs of their employees? A. Equity B. Expectancy C. Goal setting D. Reinforcement

B

An incentive system with three piecework rates is the _____ plan. A. Taylor B. Gantt C. Halsey 50-50 D. Merrick

D

Available evidence indicates managers believe the most important factor for pay increases is _____. A. effort B. nature of the job C. seniority D. performance

D

With​ performance-based pay, successful performance usually leads to​ ________. A. unrealistic expectations about promotions B. more challenging performance standards C. anger among nonperformers in the company D. new motives to work for a competing firm E. merit and incentive awards

E

Flexible benefits allow organizations to control benefit costs.

True

For most benefits, providing a level of coverage is more costly to employers than providing a benefit at a specific cost level

True

General Motors spends more than twice as much for employee health insurance as for the steel that goes into each car they produce.

True

Group incentive pay increases turnover of better performers while individual incentive increases turnover of poorer performers.

True

Herzberg's Two-factor theory argues success-sharing plans will be motivating while at-risk plans will be demotivating.

True

High performance ratings are nearly always statistically related to high merit increases.

True

If adverse selection occurs for one or more benefits in a flexible benefits plan, the higher cost will likely lead to those benefits being dropped from the plan.

True

In merit guidelines, employees low in the pay range receive higher percentage increases than employees higher in the range.

True

In most Asian cultures, employees do not welcome performance feedback

True

Each of the following is an example of a structural change in the U.S. economy that has contributed to the rise of contingent employment EXCEPT​ ________. A. economic recession B. ​employees' unwillingness to work​ full-time C. runaway costs of​ employer-sponsored health insurance D. a shift from manufacturing to services E. international competition

B

Health maintenance organizations​ (HMOs) are part of which broad class of health insurance​ programs? A. ​Point-of-service plans​ (POS) B. Managed care plans C. Preferred provider organizations​ (PPO) D. ​Carve-out plans E. ​Fee-for-services plans

B

Under which of the three broad categories for discretionary benefits does disability insurance​ fall? A. Voluntary programs B. Paid time off C. Safety programs D. Services E. Protection programs

E

The services category of discretionary benefits does NOT include​ ________. A. health insurance B. employee assistance programs C. transportation services D. tuition reimbursement E. outplacement assistance

A

Bosses who are in a good mood give higher performance ratings than those who are grumpy.

True

Both pay level and pay system characteristics affect applicants decisions to accept a job.

True

Employee benefits may be accurately described as a costly entitlement of the American workforce.

True

Evidence suggests that skill-based pay may not increase productivity

True

Evidence suggests that talented people are motivated to join organizations with strong links between performance and pay.

True

In making performance appraisals, managers tend to focus on either good performance, counterproductive performance, or both.

True

Line of sight is highest in individual incentive plans

True

One common feature an established standard against which worker performance is compared to determine the magnitude of the incentive pay.

True

Some experts argue applying the principles of Total Quality Management can improve performance appraisals.

True

Standard hour plans are better for non-repetitive jobs requiring numerous skills for completion.

True

While interest in teams and team compensation has grown significantly, most companies are not happy with their team compensation systems.

True

All of the following factors are reasons for the growth of benefits except: A. foreign competition. B. unions. C. cost effectiveness of benefits. D. government impetus.

A

Research shows that all of the following except ______ are in the top three aspects of pay systems desired by workers. A. team-based pay B. changes in cost of living C. pay at market rate D. seniority

A

Why are several state legislatures considering integrating​ employer-sponsored medical insurance and​ workers' compensation​ programs? A. Escalating cost increases in​ workers' compensation B. ​Employers' unwillingness to share the costs of​ workers' compensation programs C. Coverage for employees with many dependents D. Health benefit provisions for hourly and​ part-time employees E. ​Employees' excessive demands for employers to pay for coverage

A

Which statement about designing and planning benefits programs is​ true? A. Employee benefits programs must include at least two of these three​ functions: protection​ programs, paid​ time-off, and services. B. Companies and union​ representatives, when​ appropriate, should determine which benefits are most important for employees. C. Employee benefits programs first must be approved by employees before being officially offered to them. D. Employee input is required in the development of a​ company's benefits program. E. All​ companies' benefits programs must meet the objective outline in the protection​ programs, paid​ time-off, and services functions.

B

Who benefits from discretionary​ benefits? A. Only the employee B. All stakeholders C. Only the labor unions D. Only the employee and the company E. Only the company

B

_____ is not an example of an approach to customer-driven health care. A. Tiered networks B. Cafeteria plans C. Managed competition D. Full-defined contribution

B

_____ is/are not a method of determining employee benefit preferences. A. Demographic data B. Competitor pay surveys C. Employee surveys D. A cafeteria plan

B

​________ are contingent workers who form​ independent, working relationships with businesses to complete​ short-term projects requiring specialized skills that are often in short supply in the labor market. A. ​Part-time employees B. Consultants and freelancers C. Temporary employees D. Commissioned sales personnel E. Leased employee arrangements

B

​________ refers to the minimum amount of time an employee must wait after becoming disabled before receiving disability payments. A. Medical leave B. The elimination period C. The​ pre-eligibility period D. Sabbatical leave E. The exclusion period

B

Which statement regarding contingent workers is​ FALSE? A. Contingent workers are different than those classified as core employees. B. Contingent workers are also referred to as​ "on demand" workers. C. Persons who do not continue their jobs for personal reasons like attending school are still classified as contingent workers. D. Contingent workers do not have an explicit or implicit contract for continuing employment. E. Contingent workers cannot expect an indefinite relationship with their employer.

C

Which theories would support a higher minimum wage? A. Reinforcement and agency B. Goal setting and equity C. Maslow and Herzberg's two-factor D. Expectancy and agency

C

Why do businesses use integrated paid​ time-off policies, which group together​ holidays, vacation, sick​ leave, and personal leave into a single paid​ time-off policy? A. To expand employee assistance programs B. To provide incentives for workers in lieu of pay raises C. To reduce the number of unscheduled employee absences D. To comply with new government legislation E. To meet increased union demands

C

_____ is an individual level form of performance pay. A. Risk sharing B. Gain sharing C. Lump-sum bonus D. Success sharing

C

________ theory argues line of sight is a critical part of performance-based pay systems. A. Agency B. Maslow's C. Reinforcement D. Expectancy

D

) If the work of a secretary is judged by the number of words per minute and errors per page, the measure is: A. very reliable. B. a fair and valid performance measure. C. well accepted by employees and supervisors. D. likely deficient.

D

) Standard hour plan is to Rowan plan as straight piecework is to ______________ plan. A. Halsey 50-50 B. Gantt C. Bedeaux D. Taylor or Merrick plan

D

A customer-driven health care plan that offers employees a choice of medical plans that include systems of varying cost is the: A. full-defined contribution. B. health savings account. C. managed competition. D. tiered networks.

D

A penalty for poor performance rather than reward for good is an example of: A. benchmarking. B. a reengineering plan. C. a Rowan plan. D. a reverse incentive plan.

D

Which of the following is true of flexible work​ schedules? A. Telecommuting as a type of flexible work schedule is decreasing in popularity. B. Research shows that employees prefer structured work weeks more than flexible schedules. C. Companies are getting away from offering flexible work schedules for their employees for legal reasons. D. Flextime schedules practiced in most organizations today are still very rigid and limited. E. Flextime and the compressed work week are the most common types of flexible work schedules.

E

otal​ sales, stock​ price, and assets fall under which of the following corporate performance​ measures? A. Profitability B. Leverage C. Liquidity D. Capital markets E. Size

E

) The Rowan plan uses a standard that is purposefully set high requiring high performance levels

FAlse

Subordinate ratings are more accurate when they are not anonymous.

FAlse

Unions prefer individual to group incentive pay plans since members can earn more money.

Fals

) Advantages of the balanced scorecard are that it is easily understood by employees and has low administrative costs.

False

) The performance of hourly workers is more likely to be tied to quantifiable measures than managerial workers.

False

) Today, benefits are twenty-five percent of payroll costs.

False

A job involving production of many parts each hour would have a rate based upon a time period per unit of production.

False

According to a recent SHRM survey, pay is the top factor driving job satisfaction.

False

A recent survey shows that the majority of employers are responding to increased benefit costs by______ A. requiring employees to pay higher deductibles and copays. B. raising premiums. C. dropping health care plans. D. relying on the Patient Protection and Affordable Care Act

A

According to _________ theory, ensuring fairness and consistency of performance-based pay across employees is important. A. equity. B. instrumentality C. expectancy D. reinforcement

A

All of the following are strengths of 360-degree feedback except that it: A. is useful for both administrative and development purposes. B. improves employee self-awareness. C. promotes better performance. D. improves communication between supervisors and staff.

A

All of the following are true of the ethical considerations regarding executive pay​ EXCEPT: A. Most CEOs who are hired from within make more money than those who are recruited from outside the company. B. The typical compensation in equity plans for CEOs is about 50 percent. C. Many members of boards of directors and compensation professionals argue that high pay is necessary to attract executives. D. Labor unions argue that pay discrepancies between CEOs and​ non-CEOs are unjust. E. The typical earnings of a fast food cook are a mere​ one-half of 1 percent of what an executive makes.

A

All of the following factors except _____ have been associated with success of Scanlon/Rucker plans. A. the presence of a union B. managers open to criticism C. competent supervision D. cooperative union-management attitudes

A

Compared to other incentive plans, line of sight is lowest in _____. A. profit sharing B. gain sharing C. risk sharing D. success sharing

A

Deming's major argument regarding performance appraisals is that: A. the work situation is the major determinant of performance. B. performance appraisals support team work. C. peer ratings are better than supervisor ratings. D. lack of training makes performance appraisals redundant.

A

Employers prefer contributory benefits financing for all except which of the following? A. more favorable tax treatment B. A "free good," is less valuable to an employee. C. Employees have little personal interest in controlling the costs of a free good. D. It helps control benefit costs.

A

How can employers involve employees in the benefits determination​ process? A. By conducting employee interviews and focus groups B. By asking employees to conduct benchmark studies on benefit plans C. By having employees compose their own benefits plans and submitting them for review to an HR manager D. By asking employees to design surveys to gather data about employee benefits preferences E. By requiring that all employees understand the kinds of benefits they are allowed to receive

A

In the​ 1930s, how did unions influence businesses offering discretionary benefits to their​ employees? A. By pushing for the National Labor Relations​ Act, which legitimized bargaining for benefits B. By requiring businesses to share a minimum percentage of their profits for retirement plans C. By requiring that all​ businesses, union and​ nonunion, give employees discretionary benefits D. By standardizing the discretionary benefits that businesses can offer employees E. By petitioning that all businesses be unionized in order to offer the most benefits possible to employees

A

In the​ 1930s, how did unions influence businesses offering discretionary benefits to their​ employees? A. By pushing for the National Labor Relations​ Act, which legitimized bargaining for benefits B. By requiring that all​ businesses, union and​ nonunion, give employees discretionary benefits C. By standardizing the discretionary benefits that businesses can offer employees D. By requiring businesses to share a minimum percentage of their profits for retirement plans E. By petitioning that all businesses be unionized in order to offer the most benefits possible to employees

A

In​ general, labor unions do not support​ organizations' use of contingent workers. Which of the following is a common concern of labor​ unions? A. That contingent workers receive lower wages and benefits than core employees B. That contingent workers are overly interested in collective bargaining activities C. That contingent workers are too vocal about wanting benefits from their temporary employers D. That contingent workers receive the same fringe benefits as core employees E. That contingent workers exhibit a strong loyalty towards their temporary employers

A

Louie received the highest performance rating and is in the second quartile of his pay range, and received a pay increase of 8 percent. Bart also received the highest performance rating and is in the third quartile. Given the way most merit increase grids work, what size pay increase would you expect Bart to receive? A. Less than 8 percent B. More than 8 percent C. 8 percent D. There is no relationship between ratings and position in pay range.

A

One of the key advantages for employers in hiring more contingent workers is that contingent workers​ ________. A. bring new​ ideas, which leads to creativity and innovation for a company B. generally are trained very well by temporary employment agencies C. get along better with core employees than do new hires in a company D. have no issues with absenteeism E. are much better employees than core workers

A

The __________ act requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship. A. Patient Protection and Affordable Care Act B. Family and Medical Leave Act C. Health Maintenance Organization Act D. No act requires these actions.

A

The purpose of giving benefits to employees is to​ ________. A. provide subsistence income to all beneficiaries regardless of job performance B. help employees feel better about their total compensation package C. help employees who have no health issues to remain active and fit D. reward those who show superior interpersonal skills in the workplace E. provide motivation for superior performance by employees

A

The three broad areas in which employers provide discretionary benefits are​ ________. A. protection​ programs, paid​ time-off, and services B. tuition​ reimbursement, outplacement​ assistance, and wellness programs C. disability​ insurance, life​ insurance, and retirement programs D. disability​ insurance, employee assistance​ programs, and family assistance programs E. wellness​ programs, financial​ education, and outplacement assistance

A

What was the motivation behind the Social Security​ Act? A. Preventing families from becoming financially overwhelmed once unemployed B. Motivating employees to be more productive at work C. Complying with benefits requirements of the U.S. federal government D. Having employers assume the costs of injuries that happen on the job E. Making employers look out for the​ well-being of their employees

A

When executives are paid large bonuses to leave the company because of their low​ performance, it is commonly referred to as​ ________. A. ​pay-for-failure B. deferred compensation C. say on pay D. a golden parachute E. phantom stock

A

Which is true when comparing​ non-U.S. CEOs with U.S.​ CEOs? A. U.S. CEOs make 300 percent more than​ non-U.S. CEOs. B. The range of pay and composition of pay among​ non-U.S. CEOs is not very wide. C. There is no variation in pay when comparing​ non-U.S. CEOs and U.S. CEOs. D. U.S. CEOs when compared with their​ non-U.S. counterparts have a huge gap in pay. E. Countries globally provide detailed data on total compensations of​ CEOs, which makes comparison with U.S. executive pay easier.

A

Which of the following (is)are not true regarding performance appraisals? A. Race has no effect in layoff decisions. B. Males are rated higher than females. C. Raters with traditional stereotypes rate females less accurately. D. Variation in performance affects ratings.

A

Which of the following are​ non-deferred incentives that are designed to reward executives for achieving intermediate performance​ goals? A. ​Short-term incentives B. Incentive stock options C. Equity plans D. Capital gains E. Stock compensation

A

Which of the following describes the agency​ problem? A. Executives make decisions in their own​ self-interests. B. Company shareholders make decisions that benefit other shareholders. C. Board members delegate authority to company executives. D. Union leaders create pay equity between executive and nonexecutive employees in a company. E. Company employees look out for themselves by doing the minimum amount of wo

A

Which of the following employee benefits has most recently been mandated by the federal​ government? A. Health insurance B. Unemployment insurance C. Social Security D. Medicare E. ​Workers' compensation

A

Which of the following would be hired by a firm to recommend executive compensation packages based on strategic​ analyses? A. Executive compensation consultants B. The compensation committee C. Internal members of a​ company's board of directors D. An executive committee E. External members of a​ company's board of directors

A

After states have paid into the central unemployment tax​ fund, what happens to the​ money? A. The unemployed are able to ask for withdrawals from the central unemployment tax fund to help them buy whatever they need. B. The federal government invests the money and disburses it back to the states as needed. C. The federal government puts the money into an emergency account to be used only in times of severe need. D. The money is distributed to​ not-for-profit organizations dedicated to helping the unemployed. E. The federal government uses the funds for the training and development of federal employees.

B

All of the following are true regarding merit pay except _______ A. it has a small, but significant effect on performance. B. removal of merit pay lowers satisfaction but not performance. C. departments and units with merit pay show higher performance. D. merit pay has a sorting effect.

B

Compensation security is highest for workers who fail to complete tasks within the standard time under the _____ plan? A. Halsey 50-50 B. Gantt C. Taylor D. Rowan

B

Compensation should reinforce all but which of the following behaviors? A. Attracting and hiring good employees B. Keeping turnover to nearly zero C. Encourage skill development D. Motivate high job performance

B

Employee assistance programs​ (EAPs) are established by companies to help employees​ ________. A. provide child care and elder care programs for workers B. handle personal problems that affect job performance C. manage conflicts between workers and supervisors D. receive additional job training at no cost E. facilitate flexible scheduling

B

Employees must be allowed to participate in pension plans after they have reached​ ________ and have completed​ ________ of service. A. age​ 35; 5 years B. age​ 21; 1 year C. certain status within the​ company; 5 years D. age​ 25; 3 years E. certain status within the​ company; 1 year

B

If you had repair work done on your car, the compensation system the shop uses to pay the mechanics is most likely the ________ plan. A. Bedeaux B. standard hour C. Halsey 50-50 D. straight piece-work

B

In situations in which the nature of the task is so uncertain that it may be difficult to specify expected goals, the most appropriate rating format is ______________ A. MBO B. standard rating scale C. BARS D. essay

B

In​ general, employee compensation tends to emphasize the​ individual's effort, whereas legally required benefits emphasize​ ________. A. state rights over federal rights B. social adequacy C. employee responsibility D. the​ firm's competitive strategy E. merit

B

The Internal Revenue Code​ (IRC) recognizes two groups that play a major role in a company. Which ones are​ they? A. Core employees and contingent workers B. Highly compensated employees and key employees C. Top executives and accounting experts D. ​Blue-collar workers and their supervisors E. Supervisors and union leaders

B

The SEC Act of 1934 deals with​ ________. A. the amount of money given to company lobbyists in​ Washington, D.C. B. corporate financial information and executive compensation C. financial settlements with union leaders D. the transparency of executive compensation practices E. the number of employees a company has

B

The most frequently used incentive system is the: A. standard hour plan. B. straight piecework. C. Halsey 50-50 plan. D. Taylor differential piece-rate plan.

B

The two most commonly used team incentive performance standards are: A. productivity and quality. B. productivity and customer satisfaction. C. financial performance and quality. D. customer satisfaction and financial performance.

B

Theories dealing with exchange include _____. A. Maslow and Herzberg B. agency, equity and expectancy C. expectancy and reinforcement D. goal setting and equity

B

There is evidence that every 10 percent increase in the bonus paid to employees yields a _____ percent increase in ROA to the firm. A. 1 B. 1.5 C. 5 D. 15

B

Variable pay as a percent of payroll is __ percent. A. 5 B. 12 C. 17 D. 21

B

What can employers do to contain unemployment insurance​ costs? A. Only employ​ part-time hourly employees B. Monitor their reasons for terminating employees C. Hire workers based on conditional contracts and stipulations D. Only hire highly skilled and​ well-educated employees E. Make it a point to lay off workers when they do not need them

B

What is one of the reasons that companies began offering discretionary benefits to employees even though they were not required to do​ so? A. To compensate for the low wages offered in many industries B. To increase worker productivity and encourage good management C. To meet employee demands for extra benefits D. To comply with government requirements regarding worker benefits E. To make employees feel valued

B

What is the key difference between target plan bonus and predetermined allocation​ bonus? A. Predetermined allocation bonuses are smaller than target plan bonuses. B. Predetermined allocation bonuses are​ fixed; target plan bonuses are not. C. Predetermined allocation bonuses are not determined by the board of​ directors, but target plan bonuses are. D. Target plan bonuses are determined in​ advance, but predetermined allocation bonuses can fluctuate. E. Target plan bonus amounts are smaller than predetermined allocation bonuses.

B

When a firm is _____ on business risk and outcomes are _____, corporate performance is higher without any incentive plans. A. high, well defined B. high, uncertain C. low, well defined D. low, uncertain

B

When a job involves less routine tasks, but an outcome can be specified, an excellent rating format is: A. BARS B. MBO C. standard rating scales D. essay

B

When determining who receives​ coverage, companies usually withhold discretionary benefits to probationary​ employees, which are typically employees working at a company for a period no longer than​ ________. A. 6 weeks B. 6 months C. 2 months D. 5 months E. 1 year

B

Which act allows employees to continue to receive​ employer-sponsored medical care after leaving the​ company? A. HIPAA B. COBRA C. PPACA D. FMLA E. Medigap

B

Which authority provides the criteria for defining an​ executive? A. U.S. Labor Department B. Internal Revenue Code C. A board of directors D. U.S. Securities and Exchange Commission E. Organization stockholders

B

Which of the following is NOT a stipulation in​ fee-for-service plans? A. Maximum benefit limits B. Restrictions on choice of health care providers C. ​Pre-existing condition clauses D. Coinsurance E. ​Out-of-pocket maximums

B

Which of the following is most likely to motivate employees to perform better? A. Across-the-board increases common in unionized firms B. Raises based on demonstration of competencies C. Raises based on the CPI D. Seniority-based pay increases

B

Which of the following is true of flexible work​ schedules? A. Telecommuting as a type of flexible work schedule is decreasing in popularity. B. Flextime and the compressed work week are the most common types of flexible work schedules. C. Flextime schedules practiced in most organizations today are still very rigid and limited. D. Companies are getting away from offering flexible work schedules for their employees for legal reasons. E. Research shows that employees prefer structured work weeks more than flexible schedu

B

Which of the following is true regarding the comparison between U.S. and foreign executive​ compensation? A. Executives in other countries are paid on the same level as executives in the United States. B. There is little disclosure or transparency of executive compensation in other countries. C. Foreign companies​ aren't concerned with profits or​ productivity, D. Currency conversions make comparisons too difficult. E. It is too difficult to understand the responsibility level of executives in other countries.

B

Which of the following statements is true regarding ways to improve rater training? A. Use rater error training. B. Combine performance-standard and performance-dimension training. C. Use training programs less than 2 hours. D. Use computer-based, individual training.

B

A professional consultant can create a conflict of interest when hired by a CEO to determine his or her compensation. In what way can a professional compensation consultant create this​ conflict? A. By identifying with the workers and recommending that the workers rather than the executives receive raises B. By receiving a higher fee or payment for recommending a salary raise for the​ CEO's friends in the company C. By conducting an objective analysis of executive compensation and being tasked with protecting the financial interest of the CEO D. By recommending the services of friends and family to the CEO E. By keeping the interest of the shareholders and the interest of the board of directors in mind

C

A professional consultant can create a conflict of interest when hired by a CEO to determine his or her compensation. In what way can a professional compensation consultant create this​ conflict? A. By recommending the services of friends and family to the CEO B. By keeping the interest of the shareholders and the interest of the board of directors in mind C. By conducting an objective analysis of executive compensation and being tasked with protecting the financial interest of the CEO D. By identifying with the workers and recommending that the workers rather than the executives receive raises E. By receiving a higher fee or payment for recommending a salary raise for the​ CEO's friends in the company

C

A study of the factors affecting MBA students' job choice showed _____ was ranked as least important. A. geographic location B. promotion opportunities C. employee benefits D. opportunity for advancement

C

A team works on a project with specific performance level goals and time deadlines, but weather problems cause the team to miss the deadline. What is the key factor affecting how the team feels about their incentive? A. The incentive was as promised B. The incentive was less than promised C. The team's perception of reward fairness D. The timing of the incentive

C

Advantages of employer sponsored life and health insurance include all of the following except: A. favorable tax treatment. B. lower rates. C. employees can choose coverage levels. D. easy qualifying standards.

C

Advantages of individual incentive plans include all of the following except: A. lowered production costs. B. less direct supervision. C. greater trust between workers and management. D. higher productivity.

C

All of the following except _____ are factors affecting employer choices of components of a benefits package. A. relationship to total compensation costs B. legal requirements C. equity D. competitor offerings

C

Boards of directors are usually composed of​ ________. A. 20 or more members B. 6 or 7 key players C. approximately 15 members D. retired CEOs of small companies E. no more than 5 members

C

Company X pays for performance. Allan, an employee of the company, is not in favor of this reward system and, therefore, leaves Company X in search of another company with different rules for getting rewards. This is an example of the: A. design effect. B. compensation effect. C. sorting effect. D. incentive effect.

C

Each of the following is a benefit of integrated paid​ time-off policies​ EXCEPT: A. Administration is relieved of the burden of managing several plans. B. There is a substantial reduction in the incidences of unscheduled absences. C. Bereavement or funeral leave is incorporated into the paid​ time-off bank. D. It eliminates the need for written verification of illness or accident. E. The ability of employees to schedule time off without justification.

C

Each of the following is a reason why labor unions have been reluctant to allow their members to participate in telecommuting EXCEPT​ ________. A. the potential for unfair performance appraisals B. employee isolation C. the use of​ employer-provided equipment as a working condition fringe benefit D. the monitoring of an​ employee's home E. the perception of inequitable treatment

C

Executives are awarded​ short-term incentive compensation. What is the reason for giving​ short-term incentive compensation to​ executives? A. To increase their commitment to quality in the product or service provided by the company B. To reduce their costs by lowering​ company-provided benefits C. To recognize their pursuit of competitive strategy goals D. To make their company a leader in the industry based purely on sales E. To keep the​ company's payroll costs low

C

Growing evidence suggests that the major effect of skill-based pay is _____. A. high productivity B. reduced labor costs C. high quality products D. low training costs

C

How do executives receive an income tax benefit by participating in incentive stock option​ plans? A. Executives pay taxes at a flat rate of 2 percent on any profits made when they sell their stock. B. Executives pay taxes up front when they purchase the stock at a discounted price. C. Executives do not pay any taxes until they sell their​ stock, and when they do​ sell, the tax rates are lower than their income tax. D. Any taxes owed on stock options are covered by the board of​ directors, under a special arrangement on behalf of the executive. E. Executives do not pay any taxes on their profits from selling stock.

C

If you worked in a cyclical industry such autos, which set of pay components would be least desirable? A. gain sharing and lump-sum bonus B. merit pay and base wage C. profit sharing and lump-sum bonus D. cost of living and base wage

C

In _____ ranking, raters look at a list of employees, decide who the best employee is, and cross that person's name off the list. From the remaining names, the manager decides who the worst employee is and crosses that name off the list—and so forth. A. paired-comparison B. straight C. alternation D. forced distribution

C

In _____ theory, incentive pay is motivating if it helps an employee gain a sense of achievement, recognition or approval. A. Herzberg's two-factor B. equity C. Maslow's D. Reinforcement

C

Named executive officers​ (NEOs) are the​ ________. A. officers in charge of employee compensation B. officers in charge of company finances C. four most highly compensated officers after the CEO D. two highest paid officers in an organization E. top executives who make strategic decisions

C

One of the ways companies can use discretionary benefits is to​ _________. A. pursue​ lowest-cost strategies to gain market share B. limit the amount of overtime pay given to workers C. encourage certain worker behaviors that have strategic value to the firm D. reduce the​ firm's chances of​ compensation-related lawsuits E. lower employee expectations regarding future pay raises

C

Sometimes temporary workers work less diligently than they should. The chief reason for this poor performance is that​ ________. A. most temporary workers are not highly skilled or educated and therefore do not perform well B. temporary workers are treated harshly by supervisors and coworkers C. pay differences in equity exist between core employees and temporary workers D. temporary workers do not receive any guidance from temporary employment agencies E. temporary workers are not perceived as good workers by employers and therefore perform at the expected level

C

The costs for discretionary benefits​ ________. A. have remained constant over the last 5 years B. have been largely cut by recent legislation such as the Health Care Affordability Act C. account for nearly 25 percent of total compensation costs in 2014 D. matched the growth rate of funds available to support them E. remain less than that of nondiscretionary benefits

C

The legal requirement for employee benefits stems from the​ ________. A. Whiskey Rebellion in the 1790s B. Civil Rights movement in the 1960s C. growth of industrialization in the early 1900s D. return of a large number of troops from World War II and the resulting demand for health insurance E. devastation and financial depression caused by the Civil War in the 1860s

C

What are the key aspects of​ vesting? A. Cliff vesting lasts for 1 year of service and gradual vesting for 3​ years; 100% vesting occurs after 5 years of service. B. ​Employees' contributions to pension plans are always​ vested, a company is required to give full vesting rights to employer​ contributions, and it must use a gradual vesting schedule. C. ​Employees' contributions to pension plans are always vested and a company is required to give full vesting rights to employer contributions. D. Cliff vesting lasts for 6 years of service and gradual vesting for 3 years. E. Cliff vesting lasts for 2 years of service and gradual vesting for 3​ years; 100% vesting occurs after 6 years of service.

C

What brought about the earliest social insurance​ programs? A. Workers demanding better treatment and the rapid growth of industrialization B. Workers demanding better treatment and businesses wanting an advantage over their competition C. The rapid growth of industrialization and the Great Depression D. The Great Depression and governmental regulation that benefits be given to employees E. Governmental regulation requiring benefits be given to employees and the rapid growth of industrialization

C

What is a key difference between a health reimbursement account​ (HRA) and a flexible spending account​ (FSA)? A. FSAs allow employees to carry over unused​ amounts, but HRAs do not. B. Employees contribute to HRA​ accounts, but not to FSA accounts. C. For​ HRAs, employers make the​ contributions, but in FSAs they do not. D. HRAs require employees to forfeit the leftover amount within the account at the end of the​ year, but in an FSA account the amount can be rolled over. E. Employees partially fund their​ FSAs, but they are required to fully fund HRA accounts.

C

What is a key principle of​ workers' compensation? A. For injuries and accidents that occur on the​ job, employers and employee assume the costs equally. B. For injuries and accidents that occur on the​ job, employees must assume the costs. C. For injuries and accidents that occur on the​ job, employers must assume the costs. D. For injuries and accidents that occur on the​ job, medication costs are paid by the employer but any hospitalization costs are paid by the worker. E. For injuries and accidents that occur on the​ job, the labor union and the employer must equally share the medical costs.

C

Which alternative work arrangement causes some employees to feel​ isolated? A. Independent consulting B. Flexible work arrangements C. Telecommuting D. Compressed workweeks E. Banking hours

C

Which of the following is a true statement about executive compensation​ packages? A. Executive compensation emphasizes​ short-term rewards. B. Executive compensation emphasizes nonmonetary rewards. C. Executive compensation emphasizes​ long-term rewards and deferred compensation. D. Executive compensation is mostly in the form of benefits and less in cash awards. E. Executive compensation depends more on core compensation and less on benefits and deferred rewards.

C

Which of the following is not a disadvantage of flexible benefit programs? A. Administrative burdens and expenses increase. B. Adverse selection. C. New benefits are more difficult to introduce. D. Flexible benefits are subject to nondiscrimination requirements in Section 125 of IRS code.

C

Which of the following is not a long-term incentive plan? A. ESOPs B. Broad-based option plans (BBOPs) C. Improshares D. Performance plans

C

Which of the following is true of seasonal​ employment? A. Seasonal employees are hired at any time during the year to fill a need. B. Seasonal employees are not protected against discriminatory hiring practices. C. Some seasonal employees are exempt from the​ FLSA's minimum wage and overtime pay provisions. D. Seasonal employees are always eligible for qualified pension benefits. E. The FLSA extends coverage to seasonal employees.

C

Which statement is FALSE regarding the​ "say on​ pay" provision of the​ Dodd-Frank Act? A. The say on pay provision requires shareholders to say yes or no on executive compensation. B. The say on pay provision gives the board of directors an indication of how shareholders feel about executive compensation. C. The say on pay provision states that the shareholder vote is a binding vote. D. The say on pay provision applies to golden parachute agreements for executives. E. The say on pay provision applies to deferred compensation for executives.

C

A person with low self-esteem is likely to seek _____. A. an organizations with pay plans based upon individual not group performance B. an organizations with a significant amount of pay based upon performance C. a small organization with large benefits D. a large, decentralized organization with little performance-based pay

D

A study of ratings of managers found that approximately ____ percent were rated below average. A. 30 B. 20 C. 10 D. 5

D

After which legislation did the United States see the most growth in businesses offering discretionary benefits to​ employees? A. The Americans with Disabilities Act B. The National Labor Relations Act C. The Social Security Act D. The Revenue Act E. The Patient Protection and Affordable Care Act

D

COBRA was designed to​ ________. A. allow employees to continue their medical coverage through their employer for an extended period of time if coverage must discontinue because of layoffs B. set limits on the amount of time that health plans and insurance issuers may impose​ pre-existing health conditions C. guarantee employees health insurance coverage under a different​ employer's health plan should they choose to leave their previous​ employer's group health plan D. allow employees to continue with their medical coverage through their employer temporarily E. protect the transfer of health care information

D

For many​ decades, discretionary benefits were​ ________. A. offered to workers for their exceptional performance B. offered on the basis of an​ employee's age and physical condition C. offered to workers who were union members D. offered to a homogenous workforce consisting mostly of males E. offered on the basis of an​ employee's years of service

D

How do companies know when compensation expenditures become​ excessive? A. When companies are paying more to executives than to the majority of their labor force B. When companies pay excessive amounts compared with other global companies C. When companies meet all the financial demands of labor unions D. When compensation expenditure is greater than quantity and quality of labor output E. When companies are not able to meet payroll

D

How do flexible work schedules help companies pursue the​ lowest-cost strategy? A. Companies generally do not offer benefits for workers who want flexible work schedules. B. Companies can pay lower wages to workers who want flexible work schedules. C. Those workers who want flexible work schedules are not usually union​ members, and therefore employers can demand more work for the same pay. D. Flexible work schedules boost productivity and lower​ absenteeism, which helps companies cut costs. E. Flexible work schedules mean that workers are not entitled to vacation or sick days.

D

In a discussion of theoretical explanations for setting executive​ compensation, the actions of executives in their own​ self-interest are known as​ ________. A. conflicts of interest B. agency theory C. social comparison theory D. the agency problem E. tournament theory

D

In gain sharing plan formulas, _____ is/are the numerator and _____ the denominator. A. productivity measures, inputs B. productivity measures, labor inputs C. costs and scrap rate, revenues D. labor inputs, productivity measures

D

In the _____ type of performance evaluation, supervisors answer open-ended questions. A. MBO B. standard rating scale C. BARS D. essay format

D

In​ general, labor unions do not support​ organizations' use of contingent workers. Which of the following is a common concern of labor​ unions? A. That contingent workers are too vocal about wanting benefits from their temporary employers B. That contingent workers exhibit a strong loyalty towards their temporary employers C. That contingent workers are overly interested in collective bargaining activities D. That contingent workers receive lower wages and benefits than core employees E. That contingent workers receive the same fringe benefits as core employees

D

Most​ short-term disability plans pay employees​ ________. A. 100 percent of​ employees' pretax salary with a total limit of​ $30,000 on an annual basis B. 60- 70 percent of​ employees' pretax salary with a total limit of​ $50,000 on an annual basis C. 100 percent of​ employees' pretax salary on a monthly or weekly basis D. 60-70 percent of​ employees' pretax salary on a monthly or weekly basis E. 50 percent of​ employees' pretax salary on a monthly or weekly basis

D

One of the provisions of the Health Insurance Portability and Accountability Act of 1996​ (HIPAA) is that​ _________. A. ​employees, upon changing​ employment, cannot have health care coverage for a dependent from the new employer if the dependent has a​ life-threatening disease B. employees must disclose their health history to the HR office before an employment offer is made C. employees cannot make claims against Social Security benefits if they continue to receive health care coverage from their employer D. employees are protected from being discriminated against for having preexisting health conditions E. employees must take mandatory time off for a period of six months if diagnosed with a​ life-threatening disease

D

Raters who are low on conscientiousness and very agreeable tend to: A. be very accurate raters. B. commit central tendency error. C. commit halo error. D. commit leniency error.

D

Sometimes temporary workers work less diligently than they should. The chief reason for this poor performance is that​ ________. A. most temporary workers are not highly skilled or educated and therefore do not perform well B. temporary workers are treated harshly by supervisors and coworkers C. temporary workers do not receive any guidance from temporary employment agencies D. pay differences in equity exist between core employees and temporary workers E. temporary workers are not perceived as good workers by employers and therefore perform at the expected level

D

The Internal Revenue Code​ (IRC) defines highly compensated employees by certain criteria. Which of the following is NOT one of the​ criteria? A. An employee in the​ top-paid group of people in the company B. An employee that made more than​ $120,000 in 2015 or the preceding year C. A 5 percent owner in the current or preceding year D. A 20 percent owner in the current or preceding year E. An employee in the top 20 percent of​ highest-paid employees

D

The Patient Protection and Affordable Care Act requires that​ ________. A. employers provide​ health-care coverage to​ employees, even if the employees work fewer than 15 hours a week B. employers are responsible for the safe retirement of their employees if they have worked a minimum of 10 years C. employers absorb the full cost of catastrophic illnesses of their employees D. employers offer health insurance to their​ employees, and if individuals do not have insurance from​ employers, they should get insurance on their own E. individuals contribute at least 20 percent of their paychecks towards health benefits to avoid a financial penalty

D

The traditional performance component of the balanced scorecard is__________ A. customer satisfaction, B. employee internal growth and commitment, C. operational efficiency in internal processes, and D. financial

D

What entities are typically exempt from​ FUTA? A. Any business that employs fewer than 20 employees B. ​Not-for-profit companies and​ for-profit companies that donate funds C. City and county governments D. State and local governments and​ not-for-profit companies E. Private businesses with diversity hiring practices

D

What is an advantage associated with offering discretionary​ benefits? A. They can result in lower costs of production. B. They usually result in lower material acquisition costs. C. They lower the chance of product liability lawsuits. D. They can promote particular employee behaviors that have strategic value. E. They typically increase profits by​ 20% in the first year of their use.

D

What was a common occurrence during the early twentieth century that led to​ workers' compensation​ insurance? A. Industrial hygiene not being a concern for many​ employers, which caused​ work-related illnesses B. Employers demanding long working​ hours, which caused health issues for workers C. Workers being required to handle harmful​ chemicals, which caused many health concerns D. Industrial accidents and occupational illnesses among workers E. Many employers not allowing regular work​ breaks, which caused workers to have​ fatigue-related illnesses

D

When referring to executive​ compensation, what is mean by the term ​pay-for-failure​? A. ​Ironically, executives are better compensated when they fail to make employees work harder. B. Compensation consultants recommend higher executive pay even when the company fails to achieve a higher ranking in the industry. C. Executives perpetuate an overall culture in the company that rewards failure rather than success. D. Executives receive pay for nonperformance and are given generous amounts to leave the company. E. Executives receive lucrative compensation for taking innovative risks even though they might fail.

D

Which of the following allows company shareholders to have a say in executive compensation​ proposals? A. U.S. Securities and Exchange Commission revised rules of 2008 B. Securities and Exchange Commission revisions of 1992 and 1993 C. Securities Exchange Act D. Wall Street Reform and Consumer Protection Act E. Social Security Act

D

Which of the following benefits has been found to increase productivity in organizations? A. Child care B. Employee stock options C. Health care D. No benefit has been found to increase productivity.

D

Which of the following best describes an​ executive? A. Any person in the company who owns company stock B. Any person in the company who is a decision maker C. A company employee who plays a key role in promoting products and services D. A company leader who directs the implementation of competitive strategies E. A company employee who manages subordinates

D

Which of the following is LEAST likely a compensation issue arising from​ part-time employment? A. Should​ part-time employees be eligible for paid time​ off? B. Should​ part-time employees be eligible for incentive​ programs? C. Do equity problems arise between core employees and​ part-time employees? D. Should the company contribute to​ workers' compensation insurance for​ part-time employees? E. Should companies pay​ part-time employees a​ salary?

D

Which of the following is a NOT a reason that labor unions are generally opposed to a​ company's use of contingent​ workers? A. ​Part-time employment tends to erode labor standards. B. Employers tend to exploit contingent workers by paying them lower wages and benefits than core employees. C. ​Employers' efforts to get cheap labor will lead to a poorly trained and less skilled workforce. D. The level of performance of a telecommuting employee is lower than that of a core employee. E. The longer work hours of compressed workweeks and flextime could endanger​ workers' safety and health.

D

Which of the following is not true regarding self-ratings? Self-ratings: A. tend to be lenient. B. are best used for development. C. are often used as the first step in the appraisal process. D. tend to be more reliable than peer ratings.

D

Which of the following is not true? A. More companies are using pay based upon individual, group and organization performance. B. Workers with high security needs may accept lower pay for pay security. C. Workers may need higher pay to stay and perform in an at-risk pay company. D. Companies are moving back to entitlement-oriented pay to reduce turnover

D

Which of the following would help a company contain the cost of employee unemployment​ insurance? A. Terminating underperforming employees before the end of their probationary period B. Hiring fewer​ contract-based employees than permanent employees due to higher turnover rates C. Pushing employees to voluntarily leave before they are terminated D. Monitoring why employees are terminated and creating a plan to avoid terminations E. Hiring more​ full-time employees due to their having lower turnover rates than​ part-time employees

D

Which statement about flexible work schedules is​ FALSE? A. Flexible work schedules create a better work environment for​ employees, which gives the company a strategic advantage. B. Flexible work schedules allow workers to attend to personal matters. C. Flexible work schedules enable employees to work when they are at their best. D. Flexible work schedules benefit morning employees but not evening employees. E. Flexible hours can reduce distractions and worry for employees.

D

Which statement regarding executive compensation is​ true? A. Executives are compensated based on how they are perceived by their employees. B. Research indicates that most executives are compensated unfairly for their performance. C. The sales of a company are not considered a performance measure to determine executive compensation. D. Academic research is not decisive regarding a connection between executive compensation and company performance. E. Shareholder returns have no bearing on executive compensation.

D

Which type of work arrangement allows an employee to partner with another worker to perform a single​ full-time job and in return continue to receive​ benefits, including​ retirement? A. Temporary employment B. Leased employment C. Working as a consultant D. Job sharing E. Involuntary​ part-time employment

D

_____ involves identifying what is important to a person and offering it to them in exchange for some desired behavior. A. Conditioning B. Goal setting C. Empathy D. Motivation

D

A conflict of interest can occur between the CEO and the compensation committee when the​ ________. A. CEO appoints the president of the board of directors B. CEO communicates directly with shareholders the desire for more pay C. bulk of the CEO compensation package is based on stock​ performance, which in turn benefits the shareholders D. CEO negotiates with the compensation committee to receive a huge bonus in the event the CEO is terminated E. CEO hires an outside consultant to make recommendations to the compensation committee

E

According to​ ERISA, employees must be allowed to participate in pension plans after they have reached 21 years of age and​ ________. A. moved from hourly to salary compensation B. completed 5 years of service C. completed any mandatory training​ (regardless of time​ required) D. shown proof of U.S. citizenship E. completed 1 year of service

E

Each of the following is an approach of​ consumer-driven health care EXCEPT​ ________. A. achieving cost control through​ non-vesting B. implementing flexible spending accounts​ (FSAs) C. employers selecting plans with higher employee deductibles D. implementing health reimbursement accounts​ (HRAs) E. reducing costs through restricted choices

E

Employers base sick leave and vacation time on​ ________. A. the length of employment B. severity of illness and FMLA C. recommendations from the supervisors D. the number of days the employee was absent in a given month E. the number of hours worked in a month

E

Individuals who meet the eligibility criteria for unemployment benefits receive​ ________ benefits. A. quarterly B. yearly C. daily D. monthly E. weekly

E

One of the key advantages for employers in hiring more contingent workers is that contingent workers​ ________. A. generally are trained very well by temporary employment agencies B. have no issues with absenteeism C. get along better with core employees than do new hires in a company D. are much better employees than core workers E. bring new​ ideas, which leads to creativity and innovation for a company

E

The Patient Protection and Affordable Care Act requires that​ ________. A. employers absorb the full cost of catastrophic illnesses of their employees B. employers provide​ health-care coverage to​ employees, even if the employees work fewer than 15 hours a week C. employers are responsible for the safe retirement of their employees if they have worked a minimum of 10 years D. individuals contribute at least 20 percent of their paychecks towards health benefits to avoid a financial penalty E. employers offer health insurance to their​ employees, and if individuals do not have insurance from​ employers, they should get insurance on their own

E

The largest percentage of total compensation costs incurred by companies currently is due to​ ________. A. paying insurance premiums for legal protection from​ compensation-related lawsuits B. employees demanding increasingly more compensation from their employers C. employers wanting to provide more benefits to improve employee productivity D. a lack of growth in the amount of funds available to support compensation E. rising health care costs and a lack of growth in the amount of funds available to support compensation programs

E

What are the categories of legally required​ benefits? A. Medical​ insurance, disability​ insurance, and retirement benefits B. Life​ insurance, disability​ insurance, and unpaid family and medical leave C. Retirement​ benefits, unemployment​ insurance, and disability insurance D. Unemployment​ insurance, medical​ insurance, and disability insurance E. Social Security​ programs, workers'​ compensation, unpaid family and medical​ leave, and health insurance

E

What programs did the Social Security Act​ establish? A. ​Profit-sharing, stock​ bonus, and employee ownership plans B. Employee ownership​ plans, unemployment​ insurance, and Medicare C. Benefits for tuition reimbursement and professional accreditations D. ​Vacation, sick​ leave, and personal day benefits E. Unemployment​ insurance; old​ age, survivor, and disability​ insurance; and Medicare

E

Which of the following applies to the disclosure of executive compensation​ practices? A. U.S. Department of Treasury regulations B. Social Security Act C. Emergency Economic Stabilization Act D. Wall Street Reform and Consumer Protection Act E. Securities and Exchange Act

E

Which of the following is a true statement about executive compensation​ packages? A. Executive compensation emphasizes nonmonetary rewards. B. Executive compensation depends more on core compensation and less on benefits and deferred rewards. C. Executive compensation emphasizes​ short-term rewards. D. Executive compensation is mostly in the form of benefits and less in cash awards. E. Executive compensation emphasizes​ long-term rewards and deferred compensation.

E

Would a hospital be required to pay overtime to a hospital nurse who normally works a​ 10-hour shift on a​ 4-day schedule and who is required to work an extra​ 8-hour shift on the fifth day because of a flu outbreak that has stressed the capacity of existing health care​ personnel? A. ​No, employees on compressed work schedules are not subject to overtime regulations. B. ​Yes, the hospital would be required to pay​ time-and-one-half for a full​ 10-hour shift. C. It depends on the total hours the nurse works during the month. D. ​No, the hospital would not have to pay​ overtime, because events leading to the extra hours were beyond the​ hospital's control. E. ​Yes, the hospital would be required to pay​ time-and-one-half for the​ 8-hour shift.

E

An individual incentive pay system is associated with high turnover of high performers.

False

Blue-collar workers feel pay increases should be based upon performance

False

Broad-based option plans are usually limited to managerial and professional employees.

False

Cafeteria-style compensation is based on the idea that the organization knows what package of rewards would best suit individual employees' needs.

False

Costing and budgetary control are more difficult using individual incentives than under time-based pay.

False

Dual coverage is when a portion of insurance premiums is paid by the employee.

False

Employees feel their benefits are very fair when they are given extensive communications about benefits but plan design is left to experts.

False

Employees' preferences for various benefits can be predicted well from demographic data.

False

Employers prefer the noncontributory approach to financing benefits because this allows greater control of costs.

False

Flexible benefit plans are complex requiring many choices that lead to poor employee understanding of benefits.

False

Gain sharing plans tend not to use a historical standard to set productivity standards since environmental conditions can change quickly.

False

Group incentives are more effective than individual incentives.

False

Halo error is when performance at the end of a rating period has a large influence on the rating for the entire period.

False

Identifying desired behaviors is the emphasis of agency theory

False

Individual spot awards are an example of an incentive plan.

False

Jobs with short cycle tasks normally have a rate based upon a time period per unit of production.

False

Lump-sum bonuses have less risk for workers than merit pay.

False

MBO is particularly well suited as a basis for administrative decisions such as pay raises.

False

Managers have more control over distributive justice than procedural justice.

False

The Employment Retirement Income Security Act (1974) requires employers to offer some form of pension.

False

The goal of employee benefits should be to keep turnover to near zero.

False

The method of rate determination for incentives for short cycle jobs is typically the time it takes to complete one unit.

False

The most difficult rating error to eliminate is central tendency.

False

Though employer provided benefits cost less due to group rates, they are taxed the same as wages and salaries.

False

When employees earn a lot from sales incentives, customer service will also be very good.

False

When future cost containment of a benefit may be a problem, the benefit should be offered on a noncontributory basis.

False

360-degree feedback is used primarily with managers and other high-level employees.

True

A combination plan often favored by CEOs who don't like to make payouts when the company loses money is a completely self-funding plan.

True

A common problem with incentive systems is workers focus primarily on behaviors and results that are rewarded.

True

How can employers reduce the costs associated with required​ benefits? A. Employers should make the process of filing compensation claims difficult. B. Employers should try to reduce the chances of workers filing compensation claims. C. Employers should try to hire as few employees as possible. D. Employers should offer only limited types of benefits. E. Employers should refuse to offer benefits to employees if the costs become too great.

b

Participation requirements are applicable to​ ________. A. retirement plans B. qualified plans C. ​non-qualified plans D. pension plans E. distribution plans

D

With regard to financing​ programs, what are the three categories from which human resources managers can​ choose? A. Noncontributory​ programs, contributory​ programs, and​ employee-financed programs B. ​Employee-first programs,​ low-cost programs, and​ employee-financed programs C. Noncontributory​ programs, contributory​ programs, and core plus options programs D. ​Cost-containment programs, government financing​ programs, and core plus options programs E. ​Employee-first programs,​ low-cost programs, and contributory programs

A

_____ theory contends that we choose to do those things that we believe are most likely to lead to desired rewards. A. Expectancy B. Reinforcement C. Agency D. Equity

A

________ unions have recently begun to accept the use of flexible work schedules. A. Public sector B. Retail sector C. Manufacturing sector D. Transportation sector E. Service sector

A

Merit guidelines allocate pay increases based upon: A. seniority and performance. B. performance level. C. performance level and employee position in their pay range. D. performance and size of merit budget.

C

Which of the following statements about coverage for disability benefits is​ FALSE? A. Becoming disabled at 29 would mean needing credit for four years of employment. B. Younger workers need more quarters of coverage because of their young age and inexperience. C. Disability is based on the inability to do the original work assigned or any type of new work because of the medical condition of the disabled worker. D. Young workers need fewer quarters of coverage because they have had fewer years to accumulate them. E. Fully insured individuals can receive benefits as early as age 62.

B

Which of the following statements is true of discretionary​ benefits? A. The total cost of discretionary benefits is paid by the employees. B. In the​ past, companies have invested in expanding their offerings of discretionary benefits as an alternative to pay hikes as a motivational tool. C. Discretionary benefits are offered only by benevolent employers. D. Discretionary benefits are a very small percentage of a​ company's total payroll. E. The total cost of discretionary benefits is paid by the employer.

B

Which of the following is not a problem with team compensation? A. Complexity B. Control C. Consistency D. Communications

C

With regard to financing​ programs, what are the three categories from which human resources managers can​ choose? A. ​Employee-first programs,​ low-cost programs, and​ employee-financed programs B. Noncontributory​ programs, contributory​ programs, and core plus options programs C. ​Employee-first programs,​ low-cost programs, and contributory programs D. Noncontributory​ programs, contributory​ programs, and​ employee-financed programs E. ​Cost-containment programs, government financing​ programs, and core plus options programs

D

With regard to​ FUTA, the amount that an employer contributes is equal to​ ________ of the first​ ________ earned by each employee. A. 6.2​ percent; $40,900 B. 2​ percent; $40,900 C. 5​ percent; $7000 D. 6.2​ percent; $7,000 E. 5.2​ percent; $5,500

D

The common feature to all types of incentive plans is: A. a standard of performance to determine magnitude of incentive pay. B. a sharing formula between worker and employer. C. penalties for poor performance. D. limits on magnitude of incentive pay.

A

A Definitive Proxy Statement under section 14A of the SEC deals with the​ ________. A. total amount paid to corporate consultants in a given year B. compensation given to the CEO and the four most highly compensated officers C. amount of money paid to the people who serve on the board of directors D. total compensation paid to all of the employees in a given​ year, excluding executives E. total compensation paid to the CEO in a given year

B

A compressed workweek means employees complete their work​ ________. A. within fewer than 4 days in a​ 5-day workweek B. within fewer than 5 days in a​ 5-day workweek C. by completing 90 percent of their work via telecommuting D. by logging​ 15-hour days without a break E. within fewer than 3 days in a​ 5-day workweek

B

A major approach to increasing employee awareness of health care choices and cost is: A. customer-driven health care. B. cafeteria plans. C. large deductibles. D. large co-pays.

B

A recent survey shows employees ranking employee benefits __________ in explaining job satisfaction. A. first B. second C. third D. last

B

After which legislation did the United States see the most growth in businesses offering discretionary benefits to​ employees? A. The Americans with Disabilities Act B. The Revenue Act C. The National Labor Relations Act D. The Social Security Act E. The Patient Protection and Affordable Care Act

B

All of the following are cost containment practices except: A. probationary periods. B. physical exams of all new hires. C. copay. D. seeking competitive bids for benefit delivery.

B

Components identified as vital to the success of both Scanlon and Rucker plans are: A. top management support and employee acceptance. B. a flexible and accepted pay out formula. C. union and top management support. D. a productivity norm and effective worker committees.

D

The key ingredient in _____ is careful cost analysis to make sure the dollar cost of the package an employee selects meets employer budgetary limits. A. gain-sharing plans B. individual incentive plans C. success-sharing plans D. cafeteria-style compensation

D

Tiered networks, managed competition and health savings accounts are all examples of choices for _____________ A. menu-driven health care. B. flexible benefits. C. cafeteria plans. D. customer-driven health care.

D

Which of the following is not a major benefits planning and design issue? A. Benefit adequacy B. Competitiveness of benefits C. Cost effectiveness D. Diversity compliance

D

Which of the following is not a part of the cost-centered approach for deciding to provide a benefit? A. Checking compliance B. Evaluating competitiveness of current benefits C. Examining employee preferences D. Basing benefits on historical costs

D

The idea behind deferred compensation for an executive is to​ ________. A. keep the interests of the workers of the company in mind B. give the executive a chance to work in the​ executive's best interest C. keep the interests of the board of directors in mind D. keep the interests of the stockholders in mind E. align the​ executive's and​ shareholders' interests in the long term

E

When an organization's performance has frequent highs and lows and individual performance is fairly stable and performance measures are clear, the most effective compensation mix is to offer _____. A. base pay with low incentives and a variety of rewards B. monetary rewards with large incentives C. large base and low-incentive pay D. a wide range of rewards and significant incentives

B

Which of the following is a stipulation for​ fee-for-service plans? A. ​Fee-for-service plans require that insured employees are of a certain age. B. ​Fee-for-service plans do not have a set deductible for all insurance plans. C. ​Fee-for-service plans have no​ pre-existing condition clauses. D. ​Fee-for-service plans require the employer to pay all costs up front for employees. E. ​Fee-for-service plans require employers to pay 100 percent of covered expenses.

C

Which of the following is not an advantage of group incentive pay plans? A. Performance measures are easier to develop than for individual plans B. Cooperation within and across groups is encouraged C. Compensation risk to income stability is reduced D. Employee participation in decision-making increases

C

Which of the following is not one of the dimensions on which an appraisal format is evaluated? A. Cost B. Personnel research potential C. Employee agreement D. Administrative ease

C

_____ has the disadvantage that employees may be required to spend money to obtain the incentive. A. Cash profit sharing B. A balanced scorecard C. Stock options D. Deferred profit sharing

C

Which of the following documents is intended to make executive compensation more transparent by showing core and deferred​ compensation? A. Executive compensation budget B. All other compensation report C. Definitive proxy statement D. Summary compensation table E. Consultant recommendations report

D

When designing executive​ compensation, consultants consider strategic​ analyses, which are based on​ ________. A. the amount of international experience an executive has B. the competition for the skills of a potential candidate C. external market context and internal analysis D. the experience and past record of the executive E. the financial outlook in the markets

C

When developing a flexible compensation system, which theory or theories would be most useful? A. Expectancy theory B. Equity theory and agency theory C. Maslow's theory and Herzberg's theory D. Goal setting

C

When employee performance measures are ambiguous and vary from time to time and the organization's performance is fairly stable over time, the most effective type of compensation is to offer _____. A. large base and low-incentive pay B. variety of rewards and base pay C. a variety of rewards with significant incentive pay D. monetary rewards with large incentives

C

When tasks are highly uncertain and it is not clear how to define successful performance, the most appropriate rating format is: A. BARS. B. MBO. C. standard rating scales. D. ranking.

C

Which of the following is true of key​ employees? A. Key employees have substantial experience with the company. B. A key employee must be one of the top 20 percent most highly compensated employees at the company. C. A key employee is an officer of the company having an income greater than​ $170,000 or a 5 percent owner of the business. D. A key employee is the same as a highly compensated employee. E. Key employees must hold a college degree.

C

Which of the following statements is not true? A. Workers who start out high in performance and then get worse are rated lower than workers who remain consistently low. B. Workers whose performance improves over time are seen as more motivated. C. Workers whose performance is consistently average are rated higher than those with greater variability. D. Workers performance that varies over time are seen as less motivated.

C

_____ is the belief that when a specified level of job performance is attained, the employee will receive a specified reward. A. Valence B. Expectancy C. Instrumentality D. Utility

C

_____ is the best appraisal format across the five criteria for evaluating rating formats. A. Ranking B. MBO C. BARS D. Standard rating scales

C

Which statement about unions and the use of contingent workers is​ true? A. The use of contingent workers by companies is advocated by most unions. B. Most unions hold a neutral position towards the use of contingent workers. C. Experts believe that most unions will support the use of contingent workers in the near future. D. In​ general, unions oppose companies using contingent workers. E. In​ general, unions strongly support the use of contingent workers by companies

D

What brought about the earliest social insurance​ programs? A. Governmental regulation requiring benefits be given to employees and the rapid growth of industrialization B. Workers demanding better treatment and businesses wanting an advantage over their competition C. The Great Depression and governmental regulation that benefits be given to employees D. Workers demanding better treatment and the rapid growth of industrialization E. The rapid growth of industrialization and the Great Depression

E

When considering executive​ compensation, boards of directors are theoretically representing the interests of​ ________. A. blue collar workers B. government agencies C. labor leaders D. competitors of the firm E. shareholders

E

How has the government encouraged employers to provide retirement benefits to employees since as early as the​ 1900s? A. By giving employers a tax break on any benefits paid to employees in lieu of a retirement plan B. By giving employers an incentive to disallow a union or collective bargaining as long as they provide employee retirement plans C. By giving employers a tax break on the amount paid out as​ employees' retirement payments D. By giving employers the assurance that they would not be audited as long as they provided employee retirement plans E. By imposing a maximum tax rate limit of 10 percent on corporate earnings as long as they provided employee retirement plans

c

Teaching raters what constitutes good, average, and poor performance is _____ training. A. performance-standard B. rater-error C. performance-dimension D. Six-Sigma

A

Why would a company provide outplacement assistance to an​ employee? A. To promote a positive image of the company B. To comply with federal regulations during company layoffs C. To address safety issues at work because laid off employees are a threat to a company D. To satisfy the demands of unions which require outplacement services E. To avoid legal complications when terminating employees

A

he safe harbor rule applies to leased employee​ ________benefits. A. retirement B. unemployment C. overtime D. health care E. ​time-off

A

Surveys show that the most highly valued benefit is: A. dental plans. B. a pension. C. paid vacation and holidays. D. medical insurance.

D

Which of the following does not use the time period per unit of production to determine the rate? A. Gantt plan B. Rowan plan C. Halsey 50-50 method D. Merrick system

D

Due to a potential conflict of​ interest, what is the primary consideration for executive consulting firms when suggesting executive​ pay? A. The moral principles involved in the decision making B. The respect of labor union members C. The costs and benefits of working with CEOs D. The annual revenue of the consulting firm E. The public image of the consulting firm

E

Which statement is FALSE regarding the​ "say on​ pay" provision of the​ Dodd-Frank Act? A. The say on pay provision gives the board of directors an indication of how shareholders feel about executive compensation. B. The say on pay provision applies to golden parachute agreements for executives. C. The say on pay provision applies to deferred compensation for executives. D. The say on pay provision requires shareholders to say yes or no on executive compensation. E. The say on pay provision states that the shareholder vote is a binding vote.

E