MGT302 Final

Social Security includes all the following EXCEPT: A. retirement B. disability benefits C. Medicare D. survivor benefits E. workers' compensation

C. Medicare

One disadvantage of group incentives is that individual high-performers may be pressured to ___________ their output to conform to group norms. A. lower B. raise C. retract D. forget about E. None of the above

A. lower

Mad Max retail store hires workers for $8.50 per hour, which is the same hourly rate as other nearby retail stores. Mad Max is paying _________. A. minimum wage B. at market C. above market D. below market E. profit sharing

B. at market

Performance philosophies of compensation don't tend to work well in competitive industries. T/F

False

While not required, many U.S. employers provide employees with some paid holidays, sick leave, and/or vacation time. These voluntary benefits fall under the category of ________. A. paid time off B. group health insurance C. employee services D. retirement plans E. Family Medical Leave

A. paid time off

_______ refers to an organizational philosophy that bases pay on employees' performance in their jobs. A. Pay for performance B. Pay for longevity C. Above-market pay D. At-market pay E. Below-market pay

A. pay for performance

Andrew earns $12 per hour during regular shifts. However, when he has to work the night shift, his pay goes up to $14 per hour. This part of his compensation is considered ________. A. base pay B. a wage and salary add-on C. incentive pay D. benefits E. profit sharing

B. a wage and salary add-on

The best reason to pay above market is: A. to attract better workers and enhance our employment brand B. to take advantage of tax incentives C. to keep the unemployment rates down D. to invest in workforce development opportunities E. to avoid negligent hires

A. to attract better workers and enhance our employment brand

One advantage of a ________ is that it "broadens individual outlook." A. group incentive B. executive incentive C. individual incentive D. professional incentive E. benefit

A.group incentive

The FMLA provides paid leave for 12 weeks for reasons such as the birth/adoption of a child or to care for a family member who has a serious health condition. T/F

False

Mallory would like to attract better workers and enhance her organization's employment brand. Adopting a(n) ________ organizational philosophy on compensation could help her achieve her goals. A. at-the-market B. above-the-market C. pay for longevity D. pay secrecy E. profit pay

B. above-the-market

Colton's salary is $40,000 per year. This part of his compensation is considered ________. A. base pay B. wage and salary add-on C. incentive pay D. benefits E. profit sharing

A. BasePay

__________ includes anything that an employee may value and desire and that the employer is willing and able to offer in exchange. A. Compensation system B. Equity theory C. Wage compression D. Broadbanding E. Pay structure

A. Compensation System

_______________ must identify themselves and tell the employer the reason for the inspection upon arrival at the worksite. A. Inspectors B. Interviewers C. Union workers D. Undercover officers E. Questioners

A. Inspection

Naoyuki is a surgical technologist at a hospital. His job involves helping out during surgeries. Among other things, he hands supplies to surgeons and surgeons' assistants, holds retractors and other instruments, and performs various tasks requested by the surgeon. An individual bonus plan would not work for Naoyuki because of which disadvantage of individual incentives? A. Many jobs have no direct output B. May motivate undesirable employee behaviors C. Record-keeping burden is high D. May not fit organizational culture E. None of the above

A. Many jobs have no direct output

Which of the following is an employee right as opposed to a responsibility? A. Request an inspection B. Tell the truth if interviewed by an OSHA inspector C. Follow employer safety and health rules D. Keep the workplace free from hazards E. Report job-related injuries or illnesses to supervisors

A. Request an inspection

__________is compensation that depends on some measure of individual or group performance or results in order to be awarded. A. Variable pay B. Merit pay C. Vesting D. Golden parachutes E. Perquisites

A. Variable pay

Jacob sat down with his supervisor at the beginning of the quarter and set a goal to reduce defects on the assembly line from 5% to 2%. If he achieves this goal by the end of the quarter, he will receive a ________ of $4,000. A. bonus B. commissions C. merit pay D. piecework E. exit pay

A. bonus

A _______________ is a payment typically provided to a salesperson for selling an item to a customer and is usually paid as a percentage of the price of an item that is sold. A. commission B. employee stock option C. merit pay D. piece-rate E. bonus

A. commission

The OSHA general duties clause states that: A. employers shall furnish a place of employment that is free from recognized hazards that are causing or are likely to cause death. B. employers shall keep the workplace secure from outside threats and loss of confidential information. C. employers have a duty to pay more to their employees than just a living wage. D. employers have a general duty to obey all civil rights laws. E. employers must allow OSHA inspectors to freely inspect company premises.

A. employers shall furnish a place of employment that is free from recognized hazards that are causing or are likely to cause death

A disadvantage of __________ is that "many jobs have no direct output." A. individual incentives B. executive incentives C. benefits D. group incentives E. professional incentives

A. individual incentives

Upon completion of FMLA leave, the employee will return to work to: A. any open position B. an equivalent position C. a position of promotion D. any part-time position E. None of the above

B. an equivalent position

Which of the following is not an employer right under OSHA rules? A. Receive a copy of the complaint B. Refuse access to secured areas of the business C. Be present when the inspector interviews any employees, unless the employee requests otherwise D. Ask the inspector for his or her credentials, including name and badge number E. Have a company representative accompany the inspector while on site

B. Refuse access to secured areas of the business

When she is not working, Shelby trains to run marathons. She wishes she had more time to travel to various races, but work keeps her busy. Kevin does not want time off work. He needs to earn as much overtime as possible to pay off his college loans. The company recently offered either a week's pay or a week off as the bonus to the salesperson who made the most sales. Both Shelby and Marcus worked hard to win. Which advantage of individual incentives does this illustrate? A. Easy to evaluate individual employees B. Ability to match rewards to employee desires C. Promotes the link between performance and results D. May motivate less productive employees to work harder E. None of the above

B. Ability to match rewards to employee desires

__________is a law that requires employers to offer to maintain health insurance on individuals who leave their employment (for a period of time). A. high-deductible health plan (HDHP) B. COBRA C. Traditional Health Care Plans D. Defined Benefit Plan E. PBGC

B. COBRA

_____ is a concept that when jobs are distinctly different but entail similar levels of ability, responsibility, skills, and working conditions, they are of equal value and should have the same pay scale. A. Equal worth B. Comparable worth C. Equitable value D. Differential value E. Comparable value

B. Comparable Worth

________ are all rewards that can be classified as monetary payments and in-kind payments. A. Benefits B. Compensation components C. Wages D. Broadbands E. Base pay

B. Compensation Components

__________is a theory that employees are motivated when the ratio of their perceived outcomes to inputs is at least roughly equal to that of other referent individuals. A. Broadbanding B. Equity theory C. Expectancy theory D. Wage compression E. Delayering

B. Equity Theory

As a product promoter, Emily receives a commission on every sale made as a result of her presentations. However, part of her job also is to keep the area around her display neat and to return the items she promotes to their correct locations following demonstrations. Since Emily does not get a bonus for cleaning up, she leaves her area messy and does not return products following demonstrations. Which disadvantage of individual incentives does this illustrate? A. Many jobs have no direct output B. May motivate undesirable employee behaviors C. Record-keeping burden is high D. May not fit organizational culture E. None of the above

B. May motivate undesirable employee behaviors

________ is a voluntary benefit consisting of vacation/annual leave, personal time off, sick days, holidays, and severance pay. A. Contributory pay B. Paid time off C. Deferred compensation D. Fiduciary rule E. Family Medical Leave

B. Paid time off

How soon should OSHA be notified if a fatality occurs? A. Within one hour B. Within eight hours C. Within one day D. Within 48 hours E. Within one week

B. Within eight hours

Katrina's organization is hiring for low-skilled jobs in an industry where unemployment is high and it is easy to find replacement workers. Adopting a(n) ________ organizational philosophy on compensation could allow her to hire plenty of workers. A. wage compression B. below-the-market C. pay for longevity D. competency-based pay E. profit pay

B. below-the-market

Fatalities or hospitalizations of more than three employees are known as: A. accidents B. catastrophe C. culpability D. imminent danger E. upheaval

B. catastrophe

When Stephanie compares the work required in her job to the work required in Heather's job, she finds that the two jobs are similar. While the work in the jobs is different, the jobs involve similar responsibility, skills, and working conditions. However, Heather is paid $2 an hour more than Stephanie is paid. Stephanie's findings appear to reveal a violation of ________. A. pay secrecy B. comparable worth C. equal pay D. market rates E. profit sharing

B. comparable worth

The general duties clause is an_______. A. employer right and employee responsibility B. employer and employee responsibility C. employee right and employer responsibility D. employer and employee right E. illegal concerted activity

B. employer and employee responsibility

Conner has received steady pay increases over the years for his solid sales performance. This year, the organization merged with another organization and money has become tight. Conner doubts there's any money available for raises. Therefore, he has not been motivated to work as hard. According to expectancy theory, Conner is unmotivated because _________ is lacking. A. valence B. instrumentality C. expectancy D. significance E. confidence

B. instumentality

Which of the following is an employer responsibility as opposed to a right? A. Accompany inspectors when on site B. Keep accurate records of work-related injuries or illnesses C. Know who is interviewed by an inspector D. Take notes on what OSHA officials have inspected and any discrepancies E. Know the reason for inspection visits

B. keep accurate records of work-related injuries or illnesses

_______ refers to an organizational philosophy that bases pay on organizational loyalty/tenure. A. Pay for performance B. Pay for longevity C. Skill-based pay D. At-market pay E. Below-market pay

B. pay for longevity

Abigail runs a small business of 55 employees. She is working hard to find a way to provide health benefits to all her employees by 2016 to be in compliance with __________. A. Social Security B. the Affordable Care Act C. the Family and Medical Leave Act D. Medicare E. high-deductible health plan (HDHP)

B. the Affordable Care Act

A common advantage of group incentives is that: A. the best performers will maximize their efforts to make up for free riders. B. they broaden the individual outlook of group members. C. they encourage team members to compete with each other. D. they always equally reward the performance of all employees. E. there is very little chance of infighting or conflict with group incentives.

B. they broaden the individual outlook of group members

Mimi is redesigning the compensation mix at her organization to include more family-friendly benefits such as child and elder care. Mimi is working on the ________ portion of her organizational philosophy on compensation. A. ability to pay B. types of compensation C. wage compression D. skill or competency-based pay E. None of the above

B. types of compensation

Martha was promised a 10% raise if she wins a contract with the city government. Martha could use the money to pay off some debts. However, she happens to know that another company already has informally won the contract. There is a very slim chance that she could win the contract away from the other organization, but she does not believe she can do it. According to expectancy theory, Martha is unmotivated to try to win the contract because she lacks __________. A. valence B. instrumentality C. expectancy D. significance E. confidence

C. Expectancy

__________is a theory proposing that employees are motivated when they believe they can accomplish a task and that the rewards for doing so are worth the effort. A. Wage compression B. Pay structure C. Expectancy theory D. Broadbanding E. Equity theory

C. Expectancy Theory

What is the law that governs federal minimum wage and overtime rules? A. Social Security Act B. Equal Employment Opportunity Act C. Fair Labor Standards Act D. Maximum Hour and Wage Act E. Federal Minimum Wage Act

C. Fair Labor Standards Act

The Patient Protection and Affordable Care Act of 2010 mandates that companies with at least ______ employees provide health care coverage or face penalties for not providing health insurance. A. 15 B. 20 C. 50 D. 75 E. 100

C. 50

To attract better workers and enhance the organization's employment brand, which philosophy of compensation might an organization chose? A. Pay secrecy B. Pay for longevity C. Above-market pay D. At-market pay E. Below-market pay

C. Above-the-market

If Brittany reaches her sales goals for this quarter, she will receive a $2,000 bonus. This part of her compensation is considered ________. A. base pay B. a wage and salary add-on C. incentive pay D. benefits E. profit sharing

C. Incentive Pay

With the introduction of an individual incentive program, Caitlin has begun spending an hour each day documenting her employees' outcomes. Which disadvantage of individual incentives does this illustrate? A. Many jobs have no direct output B. May motivate undesirable employee behaviors C. Record-keeping burden is high D. May not fit organizational culture E. None of the above

C. Record-keeping burden is high

Larry produced 40 pressed inner fenders out of sheet metal per hour and got paid $24 per hour ($0.60 x 40), but Michelle only produced 30 inner fenders per hour and got paid $18.00 ($0.60 x 30). What type of compensation program are Larry and Michelle working under? A. Commission B. Merit pay C. Straight piece-rate D. Bonus E. Pay differential

C. Straight piece-rate

_______________ placed some significant limits on executive pay in public corporations and added new requirements for both reporting of compensation and of shareholder involvement with executive compensation. A. Executive Compensation and Shareholder Involvement Act of 2010 B. The Madison Avenue Wall Street Reform and Consumer Protection Act of 2008 C. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 D. The Wall Street Compensation and Shareholder Involvement Act of 2008 E. The Wagner-Tate Executive Reporting Act of 2009

C. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

Trendy Tina's tech shop pays higher wages than any other electronics store in town. Trendy Tina's is paying ________ A. minimum wage B. at market C. above market D. below market E. profit sharing

C. above market

A lump sum payment, typically given to an individual at the end of a period is a(n): A. commission B. merit pay C. bonus D. exit pay E. stock option

C. bonus

When there are more workers available than jobs, the market can get some of them to work for ________. A. more than the normal rate B. extra benefits C. less than the normal rate D. product market competition E. fewer breaks

C. less than the normal rate

Acme Global announced that it had $1 million available for pay increases this year. Lindsey was a top performer and hopes to get a 10% __________ incentive. A. bonus B. commissions C. merit pay D. piecework E. exit pay

C. merit pay

Jim just reached his 10-year anniversary with Acme Global. The company gave him a promotion and raise for being a loyal member of the organization. It appears Acme Global's compensation philosophy is _______. A. below-the-market B. at-the-market C. pay for longevity D. wage compression E. None of the above

C. pay for longevity

Morgan is working on the compensation package for bank tellers. Bank customers like to see the same faces in the bank when they come in to talk about their money. Therefore, Morgan needs to find a way to reduce turnover among the tellers. Adopting a(n) _________ organizational philosophy on compensation might be a good idea. A. below-the-market B. at-the-market C. pay for longevity D. wage compression E. None of the above

C. pay for longevity

Courtney's organization is in a very competitive industry and getting goods to market quickly is vital to the organization's survival. For Courtney, adopting a(n) _________ organizational philosophy on compensation might be a good idea. A. at-the-market B. below-the-market C. pay for performance D. wage compression E. None of the above

C. pay for performance

Alfred has requested unpaid leave to care for his wife. She was injured while serving in the army in Afghanistan. Alfred may be able to take this leave and return to his original job (or an equivalent one) under ________. A. Social Security B. the Affordable Care Act C. the Family and Medical Leave Act D. Medicare`/ E. high-deductible health plan (HDHP)

C. the Family and Medical Leave Act

Matthew has just had a child placed in his foster care. He has requested unpaid leave to care for the child. Matthew may be able to take this leave and return to his original job (or an equivalent one) under ________. A. Social Security B. the Affordable Care Act C. the Family and Medical Leave Act D. Medicare E. High-deductible health plan (HDHP)

C. the Family and Medical Leave Act

Paige was working on a graphic design project for her employer when she cut her hand with scissors and needed stitches. Her employer paid for the doctor's visit to get the stitches under _________. A. Social Security B. Medicare C. unemployment insurance D. worker's compensation E. None of the above

D. workers compensation

FMLA leave, when associated with care of a service member, is allowed for as many as ____ workweeks in a 12-month period. A. 6 B. 12 C. 18 D. 26 E. 36

D. 26

FMLA affects companies with __ or more employees within 75 miles of a central location. A. 15 B. 20 C. 30 D. 50 E. 100

D. 50

The FLSA includes information on each of the following EXCEPT: A. Minimum wage. B. Exempt employees. C. Overtime. D. Benefits. E. Child Labor

D. Benefits

Which of the following is NOT one of the four basic components of compensation? A. Base pay B. Wage add-ons C. Incentives D. Expectancy pay E. Benefits

D. Expectancy pay

Much fanfare was made about Anthony's latest bonus in the office. He has always been a high performer. However, this year he received an extra-large bonus. His coworker Hannah got a little tired of hearing about Anthony's bonus and decided that next year she would win some of the bonus money. Which advantage of individual incentives does this illustrate? A. Easy to evaluate individual employees B. Ability to match rewards to employee desires C. Promotes the link between performance and results D. May motivate less productive employees to work harder E. None of the above

D. May motivate less productive employees to work harder

With the introduction of an individual incentive program, Alexander feels like he is competing with the other members of his team instead of working together with them. While the individual incentive plan could mean more money for some members of the team, most members of the team feel the same way Alexander does. They wish they could go back to working together for a group incentive. Which disadvantage of individual incentives does this illustrate? A. Many jobs have no direct output B. May motivate undesirable employee behaviors C. Record-keeping burden is high D. May not fit organizational culture E. None of the above

D. May not fit an organizational culture

Halle plans to pay her workers the lowest hourly rate of pay generally allowed under the Fair Labor Standards Act. In other words, Halle will pay her workers _________. A. skill-based pay B. overtime wages C. at-the-market wages D. minimum wage E. profit wages

D. Minimum wage

_______refers to the mix of the four basic components of compensation—base pay, wage add-ons, incentives, and benefits—that we employ. We must divide available funds among the components. A. Ability to pay B. Pay for performance C. At-market pay D. Types of compensation E. Wage compression

D. Types of compensation

The insurance program designed to provide medical treatment and temporary payments to employees who cannot work because of an employment-related injury or illness is: A. unemployment insurance B. workers' compensation C. government disability insurance D. Social Security disability E. portability option

D. Workers' compensation

Social loafers: A. give 100% both individually and in a group setting B. are shy and reserved in company social settings C. strive to be recognized as an outstanding performer in a group setting D. avoid exerting maximum effort in group settings because it is difficult to pick out individual performance E. usually cause group infighting by intentionally creating conflict.

D. avoid exerting maximum effort in group settings because it is difficult to pick out individual performance

Sweet Sal's drive-thru eatery pays just above minimum wage, but other restaurants pay their workers more. Sweet Sal's is paying ___________. A. minimum wage B. at market C. above market D. below market E. profit sharing

D. below market

Casey's compensation includes health and dental insurance. This part of her compensation is considered ________. A. base pay B. a wage and salary add-on C. incentive pay D. benefits E. profit sharing

D. benefits

Harold is paid based on a percentage of the value of the products and services he sells. He is being paid by: A. bonus B. base pay C. value pay D. commission E. merit

D. commission

Aryn and Mary started at the organization on the same day. Both are hard workers and perceive that they are equitably rewarded for their efforts. According to equity theory, it is likely that both will ________. A. request a raise B. worker harder or longer C. do less work D. continue to put forth effort E. None of the above

D. continue to put forth effort

For every $1,000 of widgets Tanner sells, he receives a _________ of 10%. A. bonus B. commission C. merit pay D. piecework E. exit pay

D. piecework

In her organization's _________ plan, Nicole is paid for each widget she produces. A. bonus B. commission C. merit pay D. piecework E. exit pay

D. piecework

Employers are required to pay for all of employees' Social Security. T/F

False

What is the total of an employee's pay and benefits. A. Broadbanding B. Delayering C. Pay Structure D. Wage Compression E. Compensation

E. Compensation

__________is the lowest hourly rate of pay generally permissible by federal law. A. Rate range B. Wage compression C. Pay structure D. Compensation E. Minimum wage

E. Minimum wage

__________is a higher than minimum, federally mandated wage, required for nonexempt employees if they work more than a certain number of hours in a week. A. Broadbanding B. Compensation C. Pay structure D. Delayering E. Overtime

E. Overtime

If unemployment is high and it is easy to find replacement workers, which philosophy of compensation might an organization chose? A. Pay for performance B. Pay for longevity C. Above-market pay D. At-market pay E. Below-market pay

E. below-market pay

Merit pay: A. is a percentage of customer sales paid to the sales person B. is a lump sum bonus payment C. is pay for tenure (or length of service) in the organization D. is a type of bonus that is based on a time period and not on individual performance E. increases the annual wages of top performers and carries over from year to year

E. increases the annual wages of top performers and carries over from year to year

Employee rights under OSHA include all of the following except: A. refusing to be interviewed by an inspector. B. having a company representative present during any interview. C. have working conditions free from unnecessary hazards. D. file a complaint about hazardous working conditions. E. reporting hazardous conditions to their supervisor.

E. reporting hazardous conditions to their supervisor

Angelique is paid a flat rate of $2 per pair of pants that she sews at work. Angelique is being paid on a: A. bonus rate basis B. merit pay basis C. differential piece-rate system D. level piece system E. straight piece-rate system

E. straight piece-rate system

All employers pay the same workers' compensation insurance premiums, regardless of the type of industry. T/f

False

Any individual who becomes unemployed is eligible for unemployment benefits. T/F

False

Comparable worth means "similar pay for similar work." T/F

False

Compensation components only include monetary payments to an employee. T/F

False

Competencies and skills are the same thing. T/F

False

Bonuses are more effective when based on meeting or exceeding a performance goal than when based on a time period. T/F

True

Comparable worth means "equal pay for equal work." T/F

True

Compensation components include all rewards that can be classified as monetary payments and in- kind payments. T/F

True

Competency-based or skill-based pay will hinge partly on what skills employees bring to work and whether or not those skills are needed. T/F

True

Group incentives tend to require less supervision than individual incentives. T/F

True

Individual incentives may motivate undesirable employee behaviors. T/F

True

Less productive employees who see others getting valued rewards for performance may be convinced to increase their own performance levels in order to get similar rewards. T/F

True

Organizations can have a performance or a longevity philosophy to compensation. T/F

True

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 gave shareholders the right to a non-binding vote on compensation packages for executives. T/F

True

The longevity philosophy of compensation monetarily rewards employees for their loyalty to the firm. T/F

True

When providing group incentives, individual efforts and results may get "lost" in the group. T/F

True