true and false

A 401(k) is an example of a defined benefit plan

false

A disadvantage of a skill-based plan is that people cannot be deployed in a way that matches the flow of work, thus causing bottlenecks as well as idle hands.

false

Career moves between bands are more common than within bands.

false

Employees are the sole contributors to their cash balance plans.

false

Employers in highly competitive markets are more able to raise prices without loss of revenues.

false

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

false

It is easier for employers to determine the worth of jobs that fall into fuzzy markets than traditionally relevant markets.

false

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

false

The total-quality-management advocates contend that informing raters that the work environment has more influence on performance than individual employee behavior will make the raters' rate lower.

false

A pay range exists when at least two employees in the same job are paid different rates.

true

A qualified deferred compensation plan offers tax advantages to employers.

true

According to efficiency-wage theory, paying higher wages than competitors can lower labor costs due to more efficient workers.

true

An employer offering lower base pay with high bonuses is a likely signal that it is seeking risk-taking employees.

true

An individual retirement account is a tax-favored retirement savings plan that individuals can establish themselves.

true

Compared to an on-demand review of certifications, scheduling fixed review points makes it easier to budget and control payroll increases.

true

Defining the compensable factors and scales to include the content of jobs held predominantly by women is one of the methods to ensure that job evaluation plans are bias-free.

true

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

true

In the long run, merit bonuses cost employers less than merit pay.

true

Segmenting sources of labor is a means of reducing labor costs

true

Some job incumbents can easily complete the PAQ as the reading level required for it is relatively low

true

The Pension Benefit Guarantee Corporation guarantees payment of vested benefits to employees formerly covered by terminated pension plans.

true

Validity refers to the degree to which an evaluation assesses the relative worth of jobs to an organization.

true

Vesting refers to the length of time an employee must work for an employer before he or she is entitled to employer payments made into a pension plan.

true