MGT 461 Final 13-16 (no T/F)
Steve has a small company with 12 employees. One of his employees, Larry, has been laid off because his work has been outsourced. Larry had health coverage through Steve's company and wants to continue that coverage. According to COBRA, how long can Larry continue his coverage through Steve's company after being laid off?
0 months
Union employees in the public sector earn, on average, about _____ more than their nonunion counterparts.
22 percent
The majority of defined benefit plans calculate average earnings over the last ________ years of service for a prospective retiree
3-5
Research indicates that the presence of a union adds about _____ to employee benefits.
30 to 40 percent
Today, top executive pay is more than _______ times the pay of the average worker
300
For an employee to gain lifetime coverage under Social Security, they must have worked for ________ quarters during which they were covered by the Act.
40
Which of the following is NOT true of expatriates?
49 percent of U.S. expatriates are women
The differential between supervisors' base pay and their highest paid subordinate is typically _________ percent
5 to 30
Almost ____ percent of the companies offering child care assistance to employees also offer elder care assistance
50
Today, ________ percent of the workers participate in the pension plan coverage provided by their employers
53
Some level of dental coverage is provided by about ______ percent of all employers with above 500 employees
60
Data from WellPoint Inc. Shows that _________ percent of its 29 million customers account for over 60 percent of its medical costs.
7
Which of the following is a hybrid of defined benefit and defined contribution plans?
Cash balance plan
In which of the following situations would the engineering jobs be most likely treated as a special compensation group?
Computer engineers employed at a software firms
Which of the following plans gives employees part ownership in the company?
ESOPs
Which of the following is true of hiring LCNs?
Employment of LCNs satisfies nationalistic demands for hiring locals.
which of the following types of workers are generally NOT covered by workers' compensation?
Farm workers
Contingent workers receive _____________ benefits than regular workers; contingent workers' benefits cost ______ for employers than it does for regular workers
Fewer; less
Which of the following is not a reason for the recent decline in the use of stock options in executive pay?
Financial accounting standard number 313 raises the cost of using stock options
popular stereotypes of salespeople characterize them as being heavily motivated by _______________
Financial compensation
__________ is designed to lessen an employer's ability to deny coverage to an employee for a preexisting condition
HIPPA
Which of the following statements is true of the localization approach to expatriate compensation?
It ties salary to the host country's salary scales.
Jacob, an 18-year-old, has been working at HoldVille Corp. for over a year. If HoldVille offers full vesting after one year, which of the following statements is true?
Jacob is not eligible for pension as he is not over 21
Michael was laid off by his company owing to budget cuts. Before being laid off, he earned $1,000 per week. If he has been receiving unemployment insurance benefits for 26 weeks, which of the following statements is true in this scenario?
Michael is no longer eligible for unemployment benefits
NaxWell Corp. sells a smart wristband that, apart from monitoring heart rate and blood pressure, also reminds users to stand and walk every half hour. As part of its promotional efforts, a celebrity starts wearing the wristband, thereby increasing its popularity and ease of sale. Which of the following is most likely to happen?
NaxWell is likely to increase base salaries and decrease incentives
Jennifer is hurt at work while driving a forklift. Her employer claims that she was injured as a result of her careless driving, and therefore she is not eligible for workers' compensation. What will the outcome of the employer's challenge to her worker's compensation claim?
She will likely receive workers' compensation benefits
Which of the following benefits is a federally administered program?
Social security
Which of the following countries has the highest number of people in the workforce belonging to unions?
Sweden
_____ is an example of a country with a highly decentralized approach to pay setting with higher wage flexibility.
The United States of America
Which of the following ties salary to a region?
The modified balance sheet approach
Which of the following is a feature of defined contribution plans?
They are faster to vest than defined benefit plans
KayLeaf Inc. wants to set up a unit in China. To facilitate this, it sends its manager to China to gather information. Which of the following is most likely to be a suggestion from its manager?
Use a hierarchical pay structure as there is high power distance in China.
What is the first question that should be asked when determining the amount of retirement income an employer should provide?
What level of retirement compensation would the employer like to set as a target, expressed in relation to pre-retirement earnings?
Which of the following involves periodic adjustments based typically on changes in the consumer price index?
a COLA clause
The most common approach to motivating executives to make decisions that are in the best interests of stockholders is _____________
a long-term incentive plan using stock options
Which of the following is a factor determining base pay in the Japanese traditional national system?
career category
in a _____ plan, an employer agrees to provide a specific level of retirement pensions, which is expressed as either a fixed dollar or a percentage-of-earnings amount that may vary (increase) with years of seniority in the company
defined benefit
Experts attribute the decline in dollar cost of workers' compensation after 2005 relates to:
employer safety programs
The largest gains in wages for public sector employees are reported for _____.
firefighters
A recent article analyzing the results form over 100 executive pay studies shows that the best predictor of executive pay, by far, is ___________
firm size
An employee who changes jobs four or more times during his or her career will likely receive a pension approximately ________ as that of an employee whose working career is spent with one employer, assuming that both employees have the same starting salary and receive annual increases equal to inflation rate.
half the size
According to Hofstede's cultural dimensions, in Malaysia and Mexico, where there is high power distance, _____ pay structures are appropriate.
hierarchical
Basically a phenomenon of the union sector, two-tier wage structures differentiate pay based upon the _____.
hiring date
At the time it is granted, which of the following has no tax implications for an executive?
incentive stock options
Hannah is the CEO of JF Corp, a steel manufacturing company. she finds that the market is exhibiting the signs of a maturing market. She wants to revise the compensation package for her sales employee to adapt to the changing market conditions. In this case, Hannah is most likely to:
increase base pay
Pay-for-knowledge plans do all of the following EXCEPT _____.
increase the probability of work being subcontracted out to nonunion organizations
Which of the following is a reason for unions favoring gain-sharing plans?
increased involvement with job activities
The biggest trend in supervisory pay centers on ___________
increased use of variable pay
An Indian citizen working for a Japanese company in India is a _____.
local country national
The _________ component of executive compensation has grown the most since 2012
long-term incentives
Working through a temporary-help agency usually means:
low pay in administrative or day labor positions
___________ are one-time cash payments to employees that are not added to an employee's base wages
lump-sum awards
Which of the following is a benefit under social security?
lump-sum death payments
The degree of discretion managers have to make total compensation a strategic tool is referred to as _____.
managerial autonomy
Which of the following statements about evolution and change in the traditional German model is true?
many of the changes in Germany are the result of global competitive pressures and technological changes
annual bonuses often play a major role in executive compensation and are primarily designed to
motivate better short-term performance
Which of the following is true regarding a gain-sharing plan?
not all unions would be in favor of the plan
Bonuses paid in Japan are _____.
not necessarily related to performance
From the past 10 years, a stable _________ of all major collective bargaining agreements is the private sector have contained a provision for lump-sum payouts
one-third
A Japanese citizen working for Toyota in Georgetown, Kentucky, is a _____.
parent-country national
If improved account retention became a major focus of attention, the performance measure stressed would be ______
percentage account erosion
A(n) _______________ awards cash or stock that is determined by an increase in stock price at a fixed future date
phantom stock plan
A _______ plan is a hybrid health plan combining the benefits of HMO and ____________
point-of-service; preferred provider organization
The CEO of Board Com Inc, James, negotiates a new union contract with the union leader. If James wants to reduce expenses and keep the union happy, which of the following suggestions is most likely to be helpful?
provide lump-sum awards in exchange for merit pay increases
Nonqualified stock options require ____________________
purchase of stock at a stipulated price, not conforming with the internal revenue code
Which of the following is a reason for unions opposing gain-sharing plans?
reduce need for job due to increased productivity
When designing a sales compensation plan, it should be kept in mind that:
salespeople under an incentive system will view customer service as an imposition
_________ relieves an employer's liability when a pre-employment injury combines with a work-related injury to produce a disabilkity greater than that caused by the latter alone.
second-injury funds
In Japan, internal alignment based on _____ is far more important than other factors.
seniority
Which of the following statements regarding unions is not true?
since 1997, there has been a consistent 2 percent annual decrease in certification elections decided in favor of unionization
Which of the following statements about single rates is true?
single rates are usually specified for workers within a particular job classification
The _____________ theory argues that executive pay rises to maintain the same relative relationship with the salaries of low-level employees
social comparison
When taxes are deducted from employees' earnings up to the same amount of taxes they would pay had they remained in their home country, it is known as _____.
tax equalization
_____ sets salaries according to the home-country system and simply offers employees lump sums of money to offset differences in standards of living.
the cafeteria approach
MaxTrain Corp. recognizes that its competitor GlasWell Corp., which is unionized, offers higher wages and benefits. To avoid unionization demands from its workers, MaxTrain decides to offer the same wages and benefits to its employees as GlasWell. Which of the following phenomena is exemplified in this case?
the spillover effect
Roughly ______ of all employees have access to paid life insurance
three-fourths
In a(n) _______ pay plan, a contract is negotiated which specifies that employees hired after a given target date will receive lower wages than their higher-seniority peers working on the same or similar jobs
two-tier
A study of unions in 114 companies concluded that _____.
unions make a difference in wages across all studies and time periods
A useful tool for determining the true worth of an entire executive compensation package is __________
a tally sheet
Which of the following is not one of the clauses relating to the benefits employers can provide executives?
average value of benefits for low-paid employees must be at least 90 percent of that for highly paid employees
Leah, the CEO of SteadyResults Corp., feels that she is underpaid, so she hires a compensation consultant to survey actual competitors of the company. According to agency theory, if StradyResults performs poorly, her salary will most likely:
be increased in order to retain her
With gain-sharing plans, the most common union strategy is to _____.
delay taking a stand until real benefits are more apparent
Which of the following is not one of the popular explanations for the decline of union memberships?
growing industries are most heavily unionized, while declining industries are less so
In recent years, some firms have tried to deal with the plateau effect and also accommodate the different career motivations of mature scientists and engineers through a(n) _________
dual-career ladder
In the majority of the states, unemployment insurance is financed exclusively by:
employers that pay federal and state unemployment insurance
In the negotiation stage of a multiyear wage contract, Mark, the manager of SifCo Corp., specifies that changes will be made to the wage based on the changes in the consumer price index and mentions the effective dates of adjustment. Which of the following types of clauses has Mark introduced in the contract?
escalator clause
Which of the following is the most popular executive perk offered by most companies?
executive physicals
A(n) _____ approach to compensation involves designing a total pay system at headquarters and applying it globally.
exporter
The rising costs of Social Security have been covered by:
increases in the maximum earning base and the rate at which that base is taxed
a deferred wage increase
is negotiated at the time of initial contract negotiations with the timing and amount specified in the contract
Which of the following is the most likely reason for most unions o insist on group-based performance measures with equal payouts to members?
it cuts down on strife and internal quarrels
Company A and Company B are in the same industry, but Company A is unionized and Company B is not. Therefore, ______________
it is difficult to argue wit assurance that wage differences between the two firms are attributable to the presence of the union, although the possibility exists
The base salary plus incentives for expatriates is usually determined by _____.
job evaluation
When compared to the impact of unions during periods of strong economies, the impact of unions during periods of higher unemployment is ________
larger
Traditionally, Japan's employment relationships were supported by _____.
lifetime security within the company
A health maintenance organization (HMO) pulls together a group of providers willing to provide services at an agreed upon rate in exchange for employers:
limiting employees to these providers for health services
MayFly Inc., a firm headquartered in Paris, France, sends one of its employees to Frankfurt, Germany and Barcelona, Spain to manage its operations in these cities. The employee would be required to alternate between the two cities every six months. Mayfly offers only a moving expense on top of the base pay as the employee would be moving only within the European Union countries. Which of the following approaches to expatriate compensation is exemplified in this situation?
modified balance sheet approach
Which of the following approaches seeks to ensure that employees on overseas assignments have the same spending power as they would in their home country?
the balance sheet approach
KYZ Inc., a U.S. firm, sends its manager, Ryan, to London to manage its operations there. Ryan's salary is still based on the U.S pay system, however KYZ offers him a lump-sum payment to offset the additional standards-of-living expense in London. In this case, which of the following approaches to expatriate compensation is used by KYZ?
the cafeteria approach
Individualism is _____.
the degree to which people are supposed to look after themselves or remain integrated into groups, usually around the family
Uncertainty avoidance is _____.
the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations
The phenomenon where the nonunion management continues to enjoy the freedom from union "interference" in decision making, and the workers receive the rewards already obtained by their unionized counterparts is known as _____.
the spillover effect
Executives, supervisors, and sales staff often receive special compensation treatment because ____________
these jobs face conflicting demands
A Korean citizen working for Toshiba, a Japanese company, in Canada is a _____.
third-country national
Wage adjustments in multiyear contracts may be specified through all of the following ways EXCEPT _____.
turnover clause
All of the following EXCEPT ________ would be considered a special compensation group
unpaid interns
Slow growth and competition has led Japanese companies to
use more performance-based pay
Which of the following is not a benefit that is required by statutory law?
Pension and retirement benefits
A(n) _________ awards cash or stock if specific goals are achieved
Performance share plan
In the comparison of the pay systems of two well-known Japanese companies Toyota and Toshiba, Toyota _____.
Places greater emphasis on external market rates
Which of the following statements about ownership and financial markets is true?
Recent tax law changes in many countries have made stock options more attractive, but limited ownership of many companies remains the rule.
____________ curve expresses the relationship between years since last degree, performance and salary
a maturity
_____ is movement through the wage ranges where seniority is specified as the basis of the movement.
automatic progression
Increased global competition has caused unions to:
because more receptive to alternate reward systems that link pay to performance