WAS CHP 9-10 WARM UP AND QUIZZES

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 petitioning that all businesses be unionized in order to offer the most benefits possible to employees D. By requiring that all​ businesses, union and​ nonunion, give employees discretionary benefits E. By standardizing the discretionary benefits that businesses can offer employees

A. By pushing for the National Labor Relations​ Act, which legitimized bargaining for benefits

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

A. They can promote particular employee behaviors that have strategic value.

Skills assessment is a consideration when going from​ job-based pay to​ person-focused pay. Which of the following questions is NOT relevant to skills​ assessment? A. What input should customers provide in the skills assessment​ process? B. What input should employees provide in the skills assessment​ process? C. How often should a skills assessment be​ conducted? D. Who should conduct the skills​ assessment? E. What data should serve as the basis for the skills​ assessment?

A. What input should customers provide in the skills assessment​ process?

The chief reason that human resource and compensation professionals in​ today's work environment need to think like CEOs is to​ ________. A. accomplish strategic organizational goals B. ensure that salaries keep up with inflation C. achieve pay equity across all ranks D. overcome the negative image of the HR department E. communicate with organizational stakeholders

A. accomplish strategic organizational goals

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

A. age​ 21; 1 year

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

A. based on the needs of a homogenous workforce consisting mostly of males

Pay rates that fall along the market pay line represent​ ________. A. competitive pay rates based on relevant labor market B. incentive pay historically paid by the company C. bonus pay awarded to workers on a random basis D. minimum wage rates as determined by the government E. labor uniondash-determined pay rates negotiated and agreed upon by the company

A. competitive pay rates based on relevant labor market

When a company thoroughly examines its external market context and its internal​ factors, it​ is, in​ essence, ________. A. conducting a strategic analysis B. determining compensation policies C. conducting a management analysis D. conducting a compensation survey E. assessing​ competitors' pay practices

A. conducting a strategic analysis

Corporate strategy formulation is typically based on​ ________, which help determine threats and opportunities. A. environmental scanning activities B. competing businesses C. market forces D. financial outlooks E. historical insights

A. environmental scanning activities

Which statement about benchmark jobs is​ TRUE? A. Benchmark jobs are common across many different employers. B. Benchmark jobs increase the time required to determine pay levels. C. Benchmark jobs represent a limited number of jobs within a company. D. Benchmark jobs are used for determining appropriate employee benefits. E. Benchmark jobs are typically unstable over time in most industries.

A. Benchmark jobs are common across many different employers.

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

B. An employee must use the accumulated money in the account by a specific time or it will be lost.

How are HMO and​ fee-for-service plans​ similar? A. Both require the use of medical specialists 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 have low coinsurance rates. E. Both offer prepaid services.

B. Both have​ out-of-pocket maximums and coinsurance.

How do compensation professionals serve executives in a​ company? A. By helping executives comply with labor​ legislation, but not with regard to pay and benefits B. By designing sound compensation systems C. By attracting employees for​ short-term employment D. By helping executives achieve low production costs E. By striving to change labor legislation

B. By designing sound compensation systems

Which of the following ensures that employees possess at least a minimally acceptable level of skill proficiency upon completion of a training​ unit? A. Pay ranges B. Certification C. Skill blocks D. Promotion E. Pay structure

B. Certification

Carissa and her colleagues have received an annual merit pay increase on June 15 for the last two years. What is the term used to define the date when Carissa and her colleagues receive the annual merit​ increase? A. Merit pay raise date B. Common review date C. Employee anniversary date D. Compensation budget date E. Performance review date

B. Common review date

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

B. Companies with fewer than 20​ employees, church​ plans, and plans maintained by the U.S. government

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

B. Employers should try to reduce the chances of workers filing compensation claims.

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

B. Escalating cost increases in​ workers' compensation

Which statement about extrinsic compensation is​ TRUE? A. Extrinsic compensation includes any reward that may be internal to the individual but external to the organization. B. Extrinsic compensation includes both monetary and nonmonetary rewards. C. Extrinsic compensation includes only monetary rewards. D. Extrinsic compensation includes any reward that makes employees feel better about themselves. E. Extrinsic compensation includes only nonmonetary rewards.

B. Extrinsic compensation includes both monetary and nonmonetary rewards.

What is the primary limitation of a​ two-tier pay​ structure? A. It limits a​ company's ability to retain​ senior, experienced workers. B. It limits the​ company's ability to recruit and retain qualified workers. C. It increases the total compensation costs for the company. D. It restricts the​ company's ability to award merit pay. E. It leads to discord between workers inside and outside the company.

B. It limits the​ company's ability to recruit and retain qualified workers.

Which two processes are used by compensation specialists to create internally consistent job​ structures? A. Job analysis followed by job training B. Job analysis followed by job evaluation C. Job design followed by job evaluation D. Job description followed by job analysis E. Job duties followed job orientation

B. Job analysis followed by job evaluation

What do compensation professionals use to establish pay differentials among employees within a​ company? A. Academic background B. Job evaluation C. Skills and qualifications D. Seniority in the company E. Job descriptions

B. Job evaluation

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

B. Voluntary benefits paid by the employer that are for the intellectual or social development of the employees

Under noncontributory financing for benefits​ programs, ________. A. the state government and the firm share the costs of each discretionary benefit B. a firm assumes total costs for each discretionary benefit C. employers do not contribute to the financing of discretionary benefits D. a firm and its employees share the costs E. the federal government covers the benefits program

B. a firm assumes total costs for each discretionary benefit

When setting up an appeals process for employees to challenge the job evaluation​ process, it is best to have​ ________ be present. A. members of the union B. a group of compensation​ professionals, supervisors, and employees C. an external labor consultant D. as many employees as possible E. no more than one or two key individuals from HR

B. a group of compensation​ professionals, supervisors, and employees

What are the components of a pay​ mix? A. Core compensation cost compared to incentive pay B. Percentage of total pay and merit pay C. Employer compensation costs compared to core compensation and benefits D. Total cost of benefits and incentives E. Total cost of all bonuses

C. Employer compensation costs compared to core compensation and benefits

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. Employees are not given the option of​ full-time work. C. Employers must make substantial financial contributions. D. Employers receive no tax breaks. E. Employees receive compensation even after employment with their company has ended.

C. Employers must make substantial financial contributions.

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, the labor union and the employer must equally share the medical 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, employees must assume the costs.

C. For injuries and accidents that occur on the​ job, employers must assume the costs.

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

C. Industrial accidents and occupational illnesses among workers

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

C. Injuries that are​ self-inflicted

Which of the following refers to knowing that​ one's work matters in the lives of​ others? A. Core compensation B. Employee benefits C. Intrinsic compensation D. Extrinsic compensation E. Psychological rewards

C. Intrinsic compensation

What major trend are companies following by using the broadbanding concept to consolidate existing pay grades and ranges into fewer pay grades and wider​ ranges? A. Keeping profit margins as drivers of all business operations B. Keeping the​ least-cost strategy central to all business operations C. Making the organizations flatter D. Thinking of employees as key assets of a business E. Making labor unions major partners of an organization

C. Making the organizations flatter

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

C. Monitor their reasons for terminating employees

___________ policies refer to the combination of core compensation and employee benefits components that make up an​ employee's total compensation package. A. Market match B. Central pay C. Pay mix Your answer is correct. D. Market lead E. Pay match

C. Pay mix

Many companies use market match or market lead policies for which types of​ employees? A. Administrative employees B. Unskilled employees C. Professional and managerial employees D. New employees E. ​Part-time employees

C. Professional and managerial employees

Which statement about compensation surveys is​ FALSE? A. Most companies lack qualified personnel who can design accurate surveys. B. Developing a customized survey requires specialized knowledge. C. Published compensation surveys are mostly inaccurate. D. Developing​ in-house surveys is expensive. E. The custom development of surveys involves potential risks for employers.

C. Published compensation surveys are mostly inaccurate.

Which is true of merit pay​ increases? A. Merit pay is not viewed by employees as having any relationship to​ cost-of-living adjustments. B. Merit pay can be administered regardless of the level of funding for merit pay. C. Research shows that boosting merit pay will not necessarily increase productivity. D. Merit pay should be substantive in the absolute​ sense, not a relative​ sense, for the employee. E. Merit pay should be awarded equally across the board for it to be meaningful.

C. Research shows that boosting merit pay will not necessarily increase productivity.

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

C. Restrictions on choice of health care providers

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

C. Retirement benefits of​ today's retirees are funded by the current workforce and their employers.

Of the​ following, which is NOT regulated by ERISA​ (Employee Retirement Income Security Act of​ 1974)? A. pension program B. medical benefits C. Social Security D. life insurance E. disability benefits

C. Social Security

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

C. The Employee Retirement Income Security Act of 1974

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

C. The federal government invests the money and disburses it back to the states as needed.

Why has HR traditionally been viewed as an administrative or support​ function? A. HR was mostly about determining pay scales. B. Most HR professionals work in a support function. C. The financial or marketing value of HR was not as apparent. D. HR was mostly about assistance to CEOs. E. HR was mostly about recruiting.

C. The financial or marketing value of HR was not as apparent.

Which of the following best explains the concept of an internally consistent compensation​ system? A. The compensation system for internal​ full-time employees remains consistent over​ time, whereas the compensation paid to contractors and outside agents is subject to change depending on market fluctuations. B. Compensation systems do not change over time. When an employee is hired by an​ organization, the employee is guaranteed that the compensation system in place upon hiring will remain in place until separation. C. The relative value and corresponding compensation associated with each job is compared to all jobs within a company. D. The value of each job is determined by a​ cross-functional team, which then assigns compensation based on a formula incorporating both longevity and employee skill sets necessary to complete tasks. E. Every employee within an organization should be paid​ equally, regardless of duties and responsibilities.

C. The relative value and corresponding compensation associated with each job is compared to all jobs within a company.

Before investing time and money into compensation​ surveys, which question is most important for compensation professionals to​ consider? A. How long will the survey be​ valid? B. Should company employees be involved in constructing the​ survey? C. What does the company want to gain from the​ survey? D. Should the survey focus on benefits or​ compensation? E. How long will it take to conduct the​ survey?

C. What does the company want to gain from the​ survey?

Which of the following is a list of educational​ qualifications, KSAs, and other qualifications an individual must possess to perform a job​ adequately? A. Job duties B. Job content C. Worker specifications D. Job analysis E. Job summary

C. Worker specifications

Pay mix policy may be expressed in​ ________. A. total savings in compensation B. dollars expressing total payroll taxes paid in a given year C. a percentage of total dollars allocated for compensation D. hours spent on the job E. wages and benefits

C. a percentage of total dollars allocated for compensation

When companies strive to achieve the lowest cost of production or product​ differentiation, they are mainly trying to​ ________. A. please the customer B. beat inflation C. achieve competitive advantage D. strive for the lowest cost possible E. keep up with production demands

C. achieve competitive advantage

Monetary compensation is best described as​ ________. A. a small portion of a total compensation package B. a type of intrinsic reward C. an​ employee's core compensation D. a​ cost-of-living adjustment E. the experiential part of an​ employee's total compensation

C. an​ employee's core compensation

In a​ pay-effort bargain, the basis for employee compensation is​ ________. A. an​ employee's ability,​ skill, and knowledge B. the organizational culture regarding wages C. an​ employee's job performance level D. an​ employer's perception of what a job is worth E. labor market compensation studies

C. an​ employee's job performance level

The process of individuals actively working together to construct meaning and knowledge is​ _____. A. critical thinking B. knowledge application C. collaboration D. ethics E. analysis

C. collaboration

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

C. contributory

Within the HR​ profession, a(n)​ ________ is a​ top-level manager who reports directly to the​ corporation's CEO or to the head of a major division. A. specialist B. generalist C. executive D. HR specialist E. vice president

C. executive

Economists call the sets of collective​ skills, knowledge, and abilities of employees​ ________. A. financial capital B. pay structures C. human capital D. employee benefits E. pure capital

C. human capital

A problem associated with​ ________ is that they often lead to bureaucracy that can lead to higher fixed costs and a less competitive position. A. ​hourly-wage-based pay systems B. flexible pay systems C. internally consistent compensation systems D. ​salary-based pay systems E. internally inconsistent compensation systems

C. internally consistent compensation systems

The difference between job analysis and job evaluation is that​ ________. A. job analysis is more specific than job evaluation B. job analysis is conducted to determine pay​ levels, whereas job evaluation is conducted to determine a ranking for different jobs C. job analysis is​ descriptive, whereas job evaluation reflects​ management's priorities for different positions D. job analysis requires committee​ approval, whereas job evaluation requires approval from the​ manager, the​ employee, and the union E. job evaluation is conducted by HR​ professionals, whereas job analysis is conducted by supervisors

C. job analysis is​ descriptive, whereas job evaluation reflects​ management's priorities for different positions

Noor, an HR​ specialist, has expertise in labor laws due to his​ master's degree in HR and years of experience in the field. According to the​ EEOC, Noor's HR expertise is considered​ ________. A. a skill B. a qualification C. knowledge D. an ability E. a benefit

C. knowledge

Seniority pay is based on​ ________. A. the time you have been associated with a certain department B. your position in the company C. length of service D. the perception of compensation professionals E. your age and service to the organization

C. length of service

When compensation analysts use regression​ analysis, they are trying to​ ________. A. establish the highest and lowest salary levels on the survey B. come up with an average of the salaries on a survey C. predict the values of one variable from another D. predict salary increases in the future E. study the amount of deviation in salaries

C. predict the values of one variable from another

All of the following are examples of differentiation strategies EXCEPT​ ________. A. creating a brand name B. providing superior use of technology C. producing​ low-cost, standardized goods D. offering superior customer service E. using low prices to attract customers

C. producing​ low-cost, standardized goods

Martina is a sales manager in a major department store. Two independent job analysts have listed​ Martina's duties, which match the sales manager job description. This approach is known as the​ ________. A. valid job analysis method B. interview method C. reliable job analysis method D. observation method E. data collection method

C. reliable job analysis method

A major limitation of the​ two-tiered pay system is that​ ________. A. lower pay levels of senior employees cause them to be resentful of new hires who get higher wages B. ​lower-level employees who are brought in at a lower pay level may be rewarded extra for doing extra duties C. the company has difficulty recruiting and retaining new hires who are brought in at a lower pay scale D. new hires get better bonuses than senior employees E. ​senior-level employees are not happy when they see new hires receiving lower pay than themselves

C. the company has difficulty recruiting and retaining new hires who are brought in at a lower pay scale

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

C. weekly

The social context within which waiters in a restaurant interact with​ guests, or tax accountants in a tax preparation office interact with​ clients, is known as the​ ________. A. KSAs B. job content C. working conditions D. job description E. worker requirements

C. working conditions

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

C. ​Protection, paid time​ off, and services

Which term refers to a salesperson receiving a set salary plus a single payment for the achievement of​ specific, exceptional​ goals? A. ​Commission-only plan B. ​Salary-plus-commission C. ​Salary-plus-bonus plan D. ​Salary-plus-draw plan E. ​Salary-only-plan

C. ​Salary-plus-bonus plan

When determining pay structure based on geographical​ consideration, many employers consider the​ ________. A. sales taxes in a given area B. payroll taxes in a given area C. ​cost-of-living adjustment for a certain area D. insurance costs in a given area E. minimum wage in a given area

C. ​cost-of-living adjustment for a certain area

What is the first step in the job evaluation​ process? A. Training employees to conduct job evaluations B. Choosing the job evaluation committee C. Documenting the job evaluation plan D. Determining single versus multiple job evaluation techniques E. Setting up the appeals process

D. Determining single versus multiple job evaluation techniques

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. There are now limits to benefits for health insurance plans. D. Employers are no longer able to purchase insurance plans with lower maximum benefits at a lower cost. E. Employers are required to​ self-fund the insurance plans they provide.

D. Employers are no longer able to purchase insurance plans with lower maximum benefits at a lower cost.

Which of the following is the correct equation that models the prediction of the market pay​ line? A. Predicted salary equals the X intercept plus the job evaluation points. B. Predicted salary equals the Y intercept plus the slope multiplied by job evaluation points. C. Job evaluation points equal the Y intercept plus the slope multiplied by the predicted salary. D. Predicted salary equals the total budget divided by the total number of employees. E. Predicted salary equals the Y intercept plus the slope multiplied by job evaluation points divided by the number of predicted employees.

B. Predicted salary equals the Y intercept plus the slope multiplied by job evaluation points.

Which of the following measures the purchasing power of a​ dollar? A. Market pay line B. Real compensation C. Central tendency D. Nominal compensation E. Standard deviation

B. Real compensation

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

B. The rapid growth of industrialization and the Great Depression

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

B. They may also undermine the imperatives of strategic compensation efforts.

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

B. To promote a positive image of the company

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 meet increased union demands B. To provide incentives for workers in lieu of pay raises C. To comply with new government legislation D. To expand employee assistance programs E. To reduce the number of unscheduled employee absences

E. To reduce the number of unscheduled employee absences

What is a key difference between a health reimbursement account​ (HRA) and a flexible spending account​ (FSA)? A. Employees contribute to HRA​ accounts, but not to FSA accounts. B. FSAs allow employees to carry over unused​ amounts, but HRAs do not. C. Employees partially fund their​ FSAs, but they are required to fully fund HRA accounts. D. For​ FSAs, employees can make​ contributions, but in​ HRAs, they cannot E. 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.

D. For​ FSAs, employees can make​ contributions, but in​ HRAs, they cannot

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

E. They extend a preestablished set of​ benefits, such as medical​ insurance, as a program core.

What was the motivation behind the Social Security​ Act? A. Making employers responsible for the​ well-being of their employees 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. Preventing families from becoming financially overwhelmed once unemployed

E. Preventing families from becoming financially overwhelmed once unemployed

What statistical method makes it possible for compensation specialists to set pay rates for a set of jobs that are consistent with the pay rates in the​ market? A. Hypothesis testing B. Average deviation C. Normal distribution D. Standard deviation E. Regression analysis

E. Regression analysis

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

E. State and local governments and​ not-for-profit companies

Which of the following would be the best source for providing information on the interrelationship among jobs when conducting a job​ analysis? A. New hires B. Compensation specialists C. Job incumbents D. ​Ex-employees E. Supervisors

E. Supervisors

Which of the following describes midpoint pay​ value? A. The vertical dimension of pay grades B. High pay rates for certain employees in order to retain valued individuals C. An index of the relative competitiveness of internal pay rates D. The difference between the maximum and minimum pay rates E. The halfway mark on the pay range of minimum and maximum rates

E. The halfway mark on the pay range of minimum and maximum rates

Which is the first step in constructing a pay​ structure? A. Evaluating the results B. Calculating pay ranges for each pay grade C. Determining a market pay line D. Deciding on the number of pay structures E. Defining pay grades

D. Deciding on the number of pay structures

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

A. 60-70 percent of​ employees' pretax salary on a monthly or weekly basis

Which term refers to money received by employees on a recurring basis for performing their​ jobs? A. Base pay B. Employee benefits C. Subsistence pay D. Minimum pay E. Performance pay

A. Base pay

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

A. Companies and union​ representatives, when​ appropriate, should determine which benefits are most important for employees.

________ are blueprints that describe the allocation of monetary resources. A. Compensation budgets B. Merit payments C. Bonuses D. Hiring budgets E. Incentive payments

A. Compensation budgets

Compensation professionals must be aware of certain characteristics of compensation surveys. Which statement about compensation surveys is​ FALSE? A. Compensation surveys represent​ real-time data. B. Compensation surveys become outdated quickly. C. Compensation survey data requires statistical analysis. D. Compensation surveys contain a wide range of pay rates across companies. E. Compensation surveys are loaded with information.

A. Compensation surveys represent​ real-time data.

________ refers to the job duties and tasks as well as such pertinent factors as the skill and effort needed to perform a job adequately. A. Job content B. A job specification C. Job analysis D. Job motivation E. A job requirement

A. Job content

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. ​Cost-containment programs, government financing​ programs, and core plus options programs C. ​Employee-first programs,​ low-cost programs, and​ employee-financed programs D. ​Employee-first programs,​ low-cost programs, and contributory programs E. Noncontributory​ programs, contributory​ programs, and core plus options programs

A. Noncontributory​ programs, contributory​ programs, and​ employee-financed programs

What is the primary method used by companies to purchase the use of human​ capital? A. Paying wages and benefits B. Providing pension programs C. Providing discretionary benefits D. Hiring the best recruiters E. Offering health benefits

A. Paying wages and benefits

What is the sixth and final step in the job evaluation​ process? A. Setting up the appeals process B. Training employees to conduct job evaluations C. Choosing the job evaluation committee D. Documenting the job evaluation plan E. Communicating with employees

A. Setting up the appeals process

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

A. Social Security​ programs, workers'​ compensation, unpaid family and medical​ leave, and health insurance

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 gave unemployed individuals consumption ability to keep the economy afloat. B. Subsistence payments gave subsidies to employers to keep the economy strong and growing. C. Subsistence payments helped unemployed workers start establishing their own businesses with the money they received. D. Subsistence payments went into funding programs that would help unemployed individuals find work. E. Subsistence payments helped the unemployed become retrained to find work.

A. Subsistence payments gave unemployed individuals consumption ability to keep the economy afloat.

Which two forces have contributed to a strategic approach towards​ HR? A. Technological advances and global competition B. Global competition and the declining use of robotics C. An increased use of robotics and a decline in imports D. Technological advances and increases in payroll processing E. A decline in global competition and a decline in technological advances

A. Technological advances and global competition

What is the biggest drawback for a company that follows a tightly defined job description based on an internally consistent pay​ system? A. The company ends up being less flexible in responding to its​ competitor's pay practices. B. The company ends up giving employees greater bargaining power in an internally consistent pay system. C. The company usually ends up paying more to its employees than its competitors do. D. It becomes difficult for supervisors to assess employees on narrowly defined job descriptions. E. The company ends up with fewer jobs than it normally would.

A. The company ends up being less flexible in responding to its​ competitor's pay practices.

Which statement about commissions is​ TRUE? A. The intrinsic motivation of some sales professionals is undermined by​ commission-only plans. B. Younger sales professionals typically prefer​ commission-only plans much more than older sales professionals. C. Commission plans generate cohesiveness among most sales professionals. D. Commissions interfere with the​ cost-cutting measures of most organizations. E. As​ incentives, commissions are considered the best tactic for compensating sales professionals.

A. The intrinsic motivation of some sales professionals is undermined by​ commission-only plans.

What is the best approach to producing valid job​ descriptions? A. The results obtained from multiple data sources and multiple methods should converge. B. Data from government websites and employee questionnaires should be gathered by job analysts. C. Employees should provide detailed​ information, as well as document their daily tasks and activities for one year. D. Supervisors should study jobs for a minimum of six​ months, and conduct extensive job interviews with employees. E. External HR consulting companies should communicate with supervisors and employees for one month.

A. The results obtained from multiple data sources and multiple methods should converge.

The first step in conducting a pointmethod valuation is to select benchmark jobs. A benchmark job can be defined as a job​ ________. A. found outside the company that is used as a reference point to judge jobs within the company B. found inside the company that is used to determine the pay levels for​ entry-level employees C. used to determine benchmark pay levels within the company to help supervisors and union leaders negotiate starting salaries D. performed by a new hire within the company who has been with the company six months or less E. used as a reference to write job descriptions and conduct job analysis so that any​ job's relative worth can be determined internally

A. found outside the company that is used as a reference point to judge jobs within the company

Custom compensation surveys designed by consulting firms for clients may be superior to existing surveys because they​ ________. A. include questions specifically designed to meet client​ needs, unlike existing surveys B. use multiple sources to collect​ data, unlike existing​ surveys, which use one source C. are not as out of date as existing surveys D. consider the total compensation package of the​ client, unlike existing surveys E. cost much less than existing surveys

A. include questions specifically designed to meet client​ needs, unlike existing surveys

The index component of National Compensation​ Data, the Employer Cost Index​ (ECI), measures changes in​ ________. A. labor costs B. pay relative to inflation C. hourly versus salaried wages D. pay raises E. benefits

A. labor costs

Knowledge application and analysis can be described​ as: A. learning a new concept and applying it in another setting to achieve a higher level of understanding. B. guiding principles that influence the way individuals behave within society. C. corporate sustainability that focuses on the future impact of an organization on​ society, including social welfare and the environment. D. the ability to use data to translate quantitative information for placement into the employment context. E. the ability to​ access, assess,​ interpret, manipulate,​ summarize, and communicate data.

A. learning a new concept and applying it in another setting to achieve a higher level of understanding.

The data collected on compensation by professional and industry association members tends to be accurate because​ ________. A. members themselves stand to benefit from the data Your answer is correct. B. it is valuable​ information, and therefore goes through several cycles of accuracy checks C. members are proficient in statistical techniques D. it takes a very long time to compile the data E. it is extremely expensive to purchase the data

A. members themselves stand to benefit from the data Your answer is correct.

When the pay spread between newly hired or less qualified employees and more qualified job incumbents is​ small, it is known as​ ________. A. pay compression B. a pay grade C. a green circle rate D. a red circle rate E. broadbanding

A. pay compression

Merit pay systems use​ ________ to determine​ employees' performance. A. performance appraisals B. seniority C. the labor​ union's input D. the​ employee's job title E. customer feedback

A. performance appraisals

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

A. protection​ programs, paid time​ off, and services

Under the principle of social​ adequacy, benefits are designed to​ _____. A. provide subsistence income to all beneficiaries regardless of job performance B. help employees feel better about their total compensation package C. reward those who show superior interpersonal skills in the workplace D. provide motivation for superior performance by employees E. help employees who have no health issues to remain active and fit

A. provide subsistence income to all beneficiaries regardless of job performance

There is a basic principle that companies rely on for building an internally consistent compensation system. This principle states that​ ________. A. the greater the responsibilities and complexities of a job the greater the pay B. there is very little difference in job characteristics between jobs that fall within a job family C. jobs should be ranked on the basis of seniority D. all employees should be paid equally E. the relative value of each job should be based on the academic qualifications required to perform the job

A. the greater the responsibilities and complexities of a job the greater the pay

The first pension plan was established to specifically benefit​ ________. A. widows and children of Presbyterian ministers B. any soldier who fought in World War II C. individuals who were employed​ full-time D. widows and children of military veterans E. former railroad employees

A. widows and children of Presbyterian ministers

What is the reason many companies use a​ market-based evaluation plan when conducting job​ evaluation? A. ​Market-based evaluation plans determine appropriate pay rates relative to the market. B. ​Market-based evaluations plans are more accurate than​ job-content evaluations. C. ​Market-based evaluation plans do not rely on any questionnaires or surveys and therefore are easier to conduct. D. ​Market-based evaluation plans use​ companies' internal value system in establishing job worth. E. ​Market-based evaluation plans are preferred by compensation specialists.

A. ​Market-based evaluation plans determine appropriate pay rates relative to the market.

Compensation specialists hope to gain information regarding​ ________ from compensation surveys. A. ​competitors' base pay and mix of total monetary compensation B. ​competitors' benefits packages C. labor​ unions' preferences regarding pay D. employee preferences regarding pay E. ​competitors' hiring practices

A. ​competitors' base pay and mix of total monetary compensation

Dysfunctional turnover is best defined as the departure of​ ________. A. ​high-quality employees B. poor performing employees C. ​part-time employees D. senior level managers E. supervisors

A. ​high-quality employees

In a​ ________, employees earn a higher rate of commission for all sales made in a given period if the sales level exceeds a predetermined level. A. ​multiple-tiered commission plan B. ​salary-only plan C. ​draw-only plan D. graduated commission plan E. ​commission-only plan

A. ​multiple-tiered commission plan

Long-term disability plans usually state that​ _______. A. there should be no waiting period for an employee before the employee can apply for​ long-term disability income B. an employee has to wait three to six months before disability payments are made following an illness or injury C. employees are eligible only if they did not have a​ pre-existing condition at the start of the plan D. an employee should have a waiting period of three months after the expiration of​ short-term benefits E. an employer should cover the employee even before the sick leave or​ short-term benefits run out

B. an employee has to wait three to six months before disability payments are made following an illness or injury

The guiding principles that influence the way organizations behave within society are referred to as​ _____. A. social responsibility B. business ethics C. knowledge application D. strategic plans E. ​labor-management relations

B. business ethics

​Income, higher company stock​ prices, economic​ value, strong positive brand​ identity, and reputation can all be generated by acquiring​ _________. A. compensable factors B. capital C. competitive advantage D. differentiation strategies E. capital equipment

B. capital

Questionnaires, interviews,​ observations, and participation are methods for​ ________. A. training job analysts B. collecting information for job analysis C. conducting job evaluation D. determining pay raises E. conducting job orientation

B. collecting information for job analysis

One of the limitations of an internally consistent compensation system is that it​ ________. A. creates additional work for supervisors B. creates a bureaucratic job structure C. leads to​ less-structured job descriptions D. leads to lower employee benefits over time E. creates strife among employees

B. creates a bureaucratic job structure

A relevant labor market can be defined on the basis of all of the following EXCEPT​ ________. A. product market competitors B. customer type C. occupational classification D. service market competitors E. geography

B. customer type

In recent​ years, ________ have become part of compensation surveys because they are key elements of​ market-competitive pay systems. A. pension plans B. employee benefits C. wage rates D. bonuses E. merit increases

B. employee benefits

The Standard Occupational Classification System​, trade​ associations, professional​ societies, and trade unions are​ ________. A. external sources that HR professionals can use to develop performance appraisals B. external sources that job analysts can use to find pertinent job information to conduct job analysis C. internal sources from which pertinent information on labor laws can be determined D. external sources from which pertinent information on pay raises can be determined E. excellent sources that companies can use when developing training programs for employees

B. external sources that job analysts can use to find pertinent job information to conduct job analysis

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

B. handle personal problems that affect job performance

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

B. it protects the​ transfer, disclosure, and use of health care information

All of the following are effective goals and objectives for sales professionals EXCEPT​ ________. A. expanding overall sales B. keeping current distribution channels C. acquiring new direct customers D. improving sales productivity E. achieving customer objectives

B. keeping current distribution channels

All of the following activities are part of designing a​ market-competitive pay system EXCEPT​ ________. A. determining compensation policies B. matching job descriptions to pay levels C. assessing​ competitors' pay practices with surveys D. integrating internal job structures with external market pay rates E. conducting strategic analyses

B. matching job descriptions to pay levels

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

B. the percentage of the covered expense that the insured person will pay

What are the key aspects of​ vesting? A. Cliff vesting provides full vesting after 1 year of service for full time employees and gradual vesting for 3 years for​ part-time employees. B. ​Employees' contributions to pension plans are always vested and a company is required to give full vesting rights to employer contributions based on a predetermined schedule. C. ​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. D. Cliff vesting requires 2 years of service and gradual vesting requires 3 years of​ service; 100% vesting occurs after 6 years of service. E. Cliff vesting begins after 6 years of service and gradual vesting begins after 3 years of service.

B. ​Employees' contributions to pension plans are always vested and a company is required to give full vesting rights to employer contributions based on a predetermined schedule.

Which of the following is important for successful​ pay-for-knowledge programs? A. Making training optional rather than necessary B. Offering competitive pay rates C. Developing and implementing systematic training programs D. Establishing mentorship programs E. Hiring and retaining superior employees

C. Developing and implementing systematic training programs

What is the key advantage associated with nonrecurring merit pay​ increases? A. ​Non-recurring merit pay increases are costly for the company but save money in both the short and long term. B. ​Non-recurring merit pay increases strengthen the​ pay-for-performance link and contain costs for the company. C. ​Non-recurring merit pay increases give much smaller amounts in raises than do permanent merit increases. D. Employees prefer​ non-recurring merit pay increases to permanent merit increases. E. In recent​ years, non-recurring merit pay increases have been gaining favor with supervisors.

B. ​Non-recurring merit pay increases strengthen the​ pay-for-performance link and contain costs for the company.

Which type of plan spreads the risk of selling between the company and its sales​ professionals? A. ​Salary-plus-bonus B. ​Salary-plus-commission C. Commission only D. Salary only E. ​Multi-tiered commission

B. ​Salary-plus-commission

Which of the following is NOT a step that compensation professionals use to begin plans for setting the merit pay​ grid? A. Determine if the projected merit increase totals are within the budgeted amount B. Ask managers for the performance distribution of their employees C. Ask managers for the names of employees receiving merit pay increases D. Calculate the expected number of employees who will fall into each cell E. Gather data on employee positions in the pay range

C. Ask managers for the names of employees receiving merit pay increases

Which term refers to the set of data that clusters around a typical numerical​ value? A. Quartile B. Variation C. Central tendency D. Standard deviation E. Regression analysis

C. Central tendency

According to the Civil Rights Act of​ 1991, who is responsible for proving that alleged discriminatory pay practices are not​ discriminatory? A. Company executives B. Employees C. Compensation professionals D. Labor courts E. Labor unions

C. Compensation professionals

What is the end result of a reliable job analysis​ method? A. Precise job descriptions B. An equitable pay system C. Consistent results under similar conditions D. Less work for supervisors E. An internally inconsistent compensation system

C. Consistent results under similar conditions

The​ ________ survey is a monthly survey of the payroll records of businesses establishments that provides national estimates of average weekly hours and average hourly earnings for the private sector for all employees and for production and nonsupervisory employees. A. Consumer Price Index B. National Estimates C. Current Employment Statistics D. National Compensation E. Bureau of Labor Statistics

C. Current Employment Statistics

Which of the following is NOT a step in the job analysis​ process? A. Selecting and training analysts B. Directing job analyst orientation C. Determining a plan for the pay structure D. Determining data collection methods E. Writing a job description

C. Determining a plan for the pay structure

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. 90 percent above the cost of the coverage of the plan 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. 102 percent of the cost of health expenses incurred by the employee

D. 102 percent of the cost of the coverage of the plan

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

D. 18 months

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

D. 3 years

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. 5.2​ percent; $5,500 D. 6.2​ percent; $7,000 E. 5​ percent; $7000

D. 6.2​ percent; $7,000

What is one of the most difficult tasks managers face when they guide employees towards​ person-focused pay? A. Making employees understand the incentive pay structure B. Making employees understand the base pay structure C. Trying to help employees understand the connection between seniority and​ person-focused pay systems D. Aligning employee pay with the knowledge structure E. Helping employees understand how training relates to the performance appraisal system

D. Aligning employee pay with the knowledge structure

What is one of the reasons for the significant growth of companies who began offering discretionary benefits to employees even though they were not required to do​ so? A. To comply with government requirements regarding worker benefits B. To compensate for the low wages offered in many industries C. For the improvement of intellectual or social comfort of employees D. Because of the favorable tax treatment of the plans and​ government-imposed wage increase controls E. To offer employees financial assistance for home purchases and improvements

D. Because of the favorable tax treatment of the plans and​ government-imposed wage increase controls

How can employers involve employees in the benefits determination​ process? A. By asking employees to design surveys to gather data about employee benefits preferences 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 conducting employee interviews and focus groups E. By having employees compose their own benefits plans and submitting them for review to an HR manager

D. By conducting employee interviews and focus groups

Which term refers to an incentive compensation based on the percentage of the selling price of a product or​ service? A. Draw B. Recoverable draw C. Nonrecoverable draw D. Commission E. Salary

D. Commission

Why are​ commission-only sales plans best suited for companies that are pursuing​ lowest-cost strategies? A. Companies using​ commission-only plans can avoid paying commission to salespeople if they do not meet their required quota of sales. B. Companies using​ commission-only plans are not required to give pay raises to employees on a regular basis. C. Companies using​ commission-only plans can pay smaller and smaller commissions on incremental sales. D. Companies using​ commission-only plans have compensation expenditures that vary with sales revenue. E. ​Generally, in​ commission-only plans, companies pay draws to salespeople but do not provide any incentive pay.

D. Companies using​ commission-only plans have compensation expenditures that vary with sales revenue.

Which of the following is a TRUE statement about​ compensation? A. Compensation offers only monetary rewards. B. Compensation offers only subjective rewards. C. Compensation offers only intrinsic rewards. D. Compensation offers both intrinsic and extrinsic rewards. E. Compensation offers only extrinsic rewards.

D. Compensation offers both intrinsic and extrinsic rewards.

What is one of the requirements of the​ Davis-Bacon Act? A. It requires private companies to match wages paid by government agencies. B. It requires private contractors who employ more than 15 workers to pay​ $10 above the minimum wage rate. C. It requires private contractors to give the minimum wage as set by the state. D. It requires private contractors to provide wages that are equal to or above the prevailing wage rates in the area where work is being performed. E. It requires government agencies to match the wage rates to prevailing wages paid by private contractors.

D. It requires private contractors to provide wages that are equal to or above the prevailing wage rates in the area where work is being performed.

Which of the following refers to the actual activities that an employee must perform on the​ job? A. Job evaluation B. Internally consistent job structure C. Job description D. Job content E. Job analysis

D. Job content

​________ is when companies make corrections for differences between their jobs and external benchmark jobs. A. Subjective correction B. Point factor leveling C. Objective correction D. Job leveling E. Occupational classification

D. Job leveling

In which type of selling situation will salary represent a significant pay​ component? A. Furniture store B. Home electronics sales C. Cosmetic sales D. Pharmaceutical sales E. Auto sales

D. Pharmaceutical sales

Which of the following evaluation methods is most popular because it gives compensation professionals better control over balancing internal and market​ considerations.? A. Balanced evaluation B. ​Job-content evaluation C. Compensation evaluation method D. Point method E. ​Market-based evaluation

D. Point method

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

D. Protection programs

Which is TRUE of using ranking as an alternative​ job-content evaluation​ approach? A. Ranking plans use objective data. B. Qualitative methods used to study job content assign numerical values to rank jobs. C. Simple ranking plans use different criteria to rank jobs. D. Ranking plans use neither job analyses nor job​ descriptions, which makes them harder to defend legally. E. ​Private-sector organizations use classification plans extensively.

D. Ranking plans use neither job analyses nor job​ descriptions, which makes them harder to defend legally.

The point method is a​ job-content valuation technique. What is the first step when using this​ technique? A. Defining factor degrees B. Choosing compensable factors based on a benchmark C. Determining point values for each factor D. Selecting benchmark jobs E. Determining the weight of each factor

D. Selecting benchmark jobs

Which of the following best describes what a​ well-designed pay structure​ promotes? A. A reduction in payroll costs B. Identification of which pay system is the best to use C. A​ company-wide balanced budget D. The retention of valued employees E. Limiting the number of excess employees

D. The retention of valued employees

What does the term market pay line imply when conducting a regression​ analysis? A. The lowest wages paid in the market B. The highest wages paid in the market C. The deviation in pay rates D. The typical market pay rates expressed as a mean or median E. Insignificant pay rate increases in the market

D. The typical market pay rates expressed as a mean or median

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

D. They both have​ out-of-pocket maximum limits.

Who is ultimately responsible for making compensation policy​ decisions? A. Employees B. HR specialists C. Supervisors D. Top management E. Labor unions

D. Top management

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

D. Unemployment insurance and old Old​ age, Survivor, and disability insurance​ (OASDI)

Which of the following statements about coverage for disability benefits is​ FALSE? A. 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. B. The disability must be expected to last for at least one year or to result in death. C. Becoming disabled at 29 would mean needing credit for four years of employment. D. Younger workers need more quarters of coverage because of their young age and inexperience. E. Young workers need fewer quarters of coverage because they have had fewer years to accumulate them.

D. Younger workers need more quarters of coverage because of their young age and inexperience.

A committee created to​ design, oversee, and evaluate jobs would include representatives from all of the following groups EXCEPT​ ________. A. supervisors B. ​rank-and-file employees C. managers D. customers E. labor unions

D. customers

A job evaluation committee frequently uses the point method as a job valuation technique. When using the point​ method, an evaluation committee examines the importance of a factor to the overall value of the​ job, which means the committee is​ ________. A. defining factor degrees B. verifying factor degrees and point values C. selecting benchmark jobs D. determining the weight of each factor E. determining the point value of each compensable factor

D. determining the weight of each factor

When there is a collective bargaining​ agreement, compensation professionals ensure that​ ________. A. labor legislation is not violated B. union workers are treated fairly C. collective bargaining terms are part of the labor contract D. employees receive​ cost-of-living adjustments and seniority pay increases as negotiated E. pay is equitable across all ranks

D. employees receive​ cost-of-living adjustments and seniority pay increases as negotiated

The Patient Protection and Affordable Care Act of 2010 requires that​ ________. A. employers are responsible for the safe retirement of their employees if they have worked a minimum of 10 years B. employers provide​ health-care coverage to​ employees, even if the employees work fewer than 15 hours a week 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. employers offer health insurance to their​ employees, and if individuals do not have insurance from​ employers, they should get insurance on their own

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

D. encourage certain worker behaviors that have strategic value to the firm

The Pension Benefit Guaranty Corporation​ (PBGC) was created to​ _______. A. ensure that employers offer defined benefits to those workers who have been with the company 10 years or more B. help employees obtain permanent retirement income from companies in case of disability C. help the government collect revenue from companies for unemployment protection payments D. insure retirement income for workers covered under a​ private-sector defined benefit plan E. help employees file legal claims against their employers when employers fail to make retirement payments

D. insure retirement income for workers covered under a​ private-sector defined benefit plan

Marco is employed as a production worker at TVX Industries. Marco is best described as a​ ________. A. specialist B. generalist C. staff employee D. line employee E. contingent worker

D. line employee

Companies emphasize some elements relative to others such as merit pay and​ short-term incentives focused on individual performance in formulating​ ____________. A. core benefits B. pay match C. stock options D. pay mix E. ​long-term compensation awards

D. pay mix

Cost-of-living adjustments represent​ ________. A. changes in retirement benefits B. changes in health care benefits C. increases based on geographical location D. periodic base pay increases E. pay increases based on industry

D. periodic base pay increases

A key piece of information that compensation specialists hope to gain from compensation surveys is about​ ________. A. the​ cost-of-living adjustments being given at other companies B. the types of benefits their competitors are offering C. the role supervisors play at other companies regarding pay D. the pay practices of their competitors and employee preferences for different forms of compensation E. the type of​ on-site facilities employees want

D. the pay practices of their competitors and employee preferences for different forms of compensation

Rita has applied for an​ entry-level position in a marketing firm. She believes she meets the minimum qualifications for the job and that she has the​ knowledge, skills, and abilities to perform the job well. In other​ words, Rita believes she has the necessary​ ________. A. job content B. worker certification C. work ethic D. worker requirements E. background check

D. worker requirements

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

D. ​Fee-for-service plans have no preexisting condition clauses.

Juan works as a salesperson for a major farming equipment manufacturer.​ Usually, there is considerable lead time between when he approaches a prospective client and when the sale is finalized. Juan typically generates demand for the product and another member of the sales team closes the sale. What type of commission would be most appropriate for​ Juan? A. ​Commission-plus-draw plan B. ​Salary-plus-commission plan C. ​Commission-only plan D. ​Salary-only plan E. ​Salary-plus-bonus plan

D. ​Salary-only plan

Which of the following rewards newly hired employees less than established or tenured​ employees? A. Pay compression B. Broadbanding C. ​Salary-only plans D. ​Two-tier pay structures E. ​Commission-only plans

D. ​Two-tier pay structures

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. 2 months B. 6 weeks C. 5 months D. 1 year E. 6 months

E. 6 months

What is the balance that companies must strike when it comes to designing a differentiation pay​ strategy? A. Providing employees generous benefits while keeping compensation costs to a minimum B. Paying employees lower pay than competitors and keeping employees from joining unions C. Trying to match their overhead costs to their competitors while keeping up with productivity levels D. Paying employees competitively while pursuing a​ lowest-cost strategy E. Attracting and retaining qualified candidates with sufficient pay and giving them adequate resources with which to work

E. Attracting and retaining qualified candidates with sufficient pay and giving them adequate resources with which to work

Which of the following is TRUE in regard to​ benefits? A. Benefits costs have been falling for most companies. B. Benefits are becoming a smaller component of total compensation packages. C. Benefits are currently far less important to employees than base pay. D. Compensation surveys do not take into account​ benefits; they concentrate on base pay. E. Benefits costs have​ increased, giving rise to greater variability in benefits among companies.

E. Benefits costs have​ increased, giving rise to greater variability in benefits among companies.

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

E. By giving employers a tax break on the amount paid out as​ employees' retirement payments

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

E. Contribute to Medicare and OASDI at a higher tax rate

An appropriate pay mix should consider the relative worth of jobs within a structure. Keeping this in​ mind, most of the bonus compensation in a technology company like Intel would likely be given to which of the following​ groups? A. Custodial staff B. Sales and marketing staff C. Blue collar workers D. Administrative staff E. Engineers

E. Engineers

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

E. FSAs allow certain benefits​ (like child​ care) to be paid with pretax dollars.

Which law established criteria for determining whether employees should be paid hourly or by​ salary? A. Equal Pay Act of 1963 B. National Labor Standards Act C. Social Security Act D. ​Davis-Bacon Act of 1931 E. Fair Labor Standards Act

E. Fair Labor Standards Act

A hospital that has been looking to fill the position for a neurosurgeon​ (a highly skilled and specialized job where demand is high and supply is​ low). Which of the following would the relevant labor market be based​ on? A. Occupational classification B. Product market competitors C. Service market competitors D. The local area where the hospital is located E. Geography

E. Geography

What are the three key laws that have influenced discretionary benefits​ practices? A. Internal Revenue​ Code, National Labor Relations​ Act, and ERISA B. ​ERISA, Internal Revenue​ Code, and Fair Labor Standards Act C. National Labor Relations​ Act, Fair Labor Standards​ Act, and Civil Rights Act of 1964 D. National Labor Relations​ Act, Fair Labor Standards​ Act, and Internal Revenue Code E. Internal Revenue​ Code, ERISA, and Pension Protection Act of 2006

E. Internal Revenue​ Code, ERISA, and Pension Protection Act of 2006

Who should be involved in job leveling in a​ company? A. Employees and HR professionals B. Employees and union leaders C. Compensation professionals D. Compensation professionals and HR specialists E. Job incumbents and supervisors

E. Job incumbents and supervisors

Following which type of pay level policy would enable a company to follow a​ lowest-cost strategy? A. Market match B. Market lead C. Pay mix D. Base wage E. Market lag

E. Market lag

What is a​ draw? A. A bonus payment B. An increase in base pay C. A type of merit pay D. An employee incentive E. Money to cover basic living expenses

E. Money to cover basic living expenses

________ group jobs based on similar compensable factors for the purpose of pay policy application. A. Pay compressions B. Red circle rates C. Green circle rates D. ​Compa-ratios E. Pay grades

E. Pay grades

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

E. allow employees to continue with their medical coverage through their employer temporarily

Companies traditionally competed for qualified candidates on the basis of​ ________. A. ​sign-up bonuses B. generous relocation allowances C. quality pension plans D. benefits E. base pay

E. base pay

Skill blocks are sets of skills​ (knowledge) necessary to perform a job. Before grouping skills into​ blocks, a company needs to​ ________ and​ ________. A. develop job​ descriptions; conduct skills development training B. conduct job​ analyses; determine pay raise structures C. conduct job​ analyses; meet with supervisors to determine job skills D. conduct performance​ appraisals; determine merit and incentive pay levels E. develop job​ descriptions; organize jobs into job families

E. develop job​ descriptions; organize jobs into job families

When sales professionals are required to perform a significant amount of nonsales​ duties, they should be compensated primarily with​ ________. A. incentive pay B. bonus pay C. draws D. frequent promotions E. fixed pay

E. fixed pay

Equity assessments become more difficult when​ ________. A. competitors change their pricing practices B. the company uses an externally consistent compensation program C. costs and benefits are fixed D. the number of employees increases E. job definitions become more fluid

E. job definitions become more fluid

Internally consistent compensation systems facilitate the use of lowest cost strategy for companies when​ ________. A. job descriptions are broadly defined and focus on quality B. jobs are placed on a​ hierarchy, with most jobs placed on the​ lower-paid levels C. jobs are valued​ numerically, with most jobs being assigned lower points D. merit pay is not part of the compensation E. job duties and responsibilities are clearly defined with a focus on efficiency

E. job duties and responsibilities are clearly defined with a focus on efficiency

Generally, the greater the influence of the salesperson on the buying​ decision, the​ ________. A. less likely that the salesperson will serve as a consultant to the buyer B. less emphasis on incentive pay in the compensation mix C. greater the likelihood of receiving a straight​ salary-only plan D. less effort will be exerted by the salesperson E. more emphasis on incentive pay in the compensation mix

E. more emphasis on incentive pay in the compensation mix

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

E. pension plans

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

E. rising health care costs and a lack of growth in the amount of funds available to support compensation programs

The​ job-content evaluation technique that rates all jobs from the lowest to the highest on a single criterion is known as​ a(n) ________. A. alternation ranking B. ​job-content plan C. classification plan D. paired comparison E. simple ranking plan

E. simple ranking plan

What type of a compensation plan is best suited for a salesperson who dislikes having to attain a specific volume of sales and who prefers concentrating on presale and​ post-sale activities? A. ​Salary-plus-bonus plan B. ​Commission-only plan C. ​Commission-plus-draw plan D. ​Salary-plus-commission plan E. ​Salary-based sales plan

E. ​Salary-based sales plan