Ch. 9-12 Exam

RioFit periodically tests employees to determine their physical fitness to perform their jobs. These examinations are prehire physical exams. fitness-for-duty evaluations. required by OSHA. discriminatory.

fitness-for-duty evaluations.

The purpose of a profit-sharing plan is to instill commitment to the employee's immediate work group. allow workers to contribute specific knowledge to improving the organization. give employees the opportunity to increase their earnings. enable workers to share in labor cost savings.

give employees the opportunity to increase their earnings.

The Family and Medical Leave Act provides all of the following EXCEPT continuation of medical benefits. up to 12 weeks of unpaid leave. job protection. promotions missed during leave.

promotions missed during leave.

The compensation committee at Robix needs to justify its large executive compensation packages. They might use all of the following arguments EXCEPT large incentives reward superior performance. good executive talent is in great demand. the pay gap between the CEO and employees builds credibility. effective executives create shareholder value.

the pay gap between the CEO and employees builds credibility.

Unemployment compensation payments to individuals vary according to their previous wage rate and the type of job held before layoff. job type and length of previous employment. the type of job held before layoff. their previous wage rate and length of previous employment.

their previous wage rate and length of previous employment.

The log of work-related injuries and illnesses is filed in the Federal Register. by an employer's insurance company. under OSHA Form 300. in the fitness-for-duty roster.

under OSHA Form 300.

Kendra's job is not covered by OSHA. Kendra most likely works for a private sector company. works for the local government. is self-employed. works for the state government.

works for the local government.

To qualify for retirement benefits, a person must reach retirement age and have earned 60 credits. 40 credits. 20 credits. 80 credits.

40 credits.

__________ is the single word that best describes the design of individual incentive plans. Comprehensiveness Motivation Flexibility Consistency

Flexibility

Which plan provides opportunities for executives to purchase shares of their organization's stock valued at full market or a discounted price? Stock options Phantom stock Stock purchase Stock appreciation rights

Stock purchase

The most severe stage of distress is job loss. burnout. shock. back pain.

burnout.

Most employers should recognize that alcoholism is a character flaw. predominantly blue-collar problem. disease. personal problem.

disease.

Equity theory is also known as moral justice. procedural justice. administrative justice. distributive fairness.

distributive fairness.

As the workforce has become more diverse, more employers are now willing to provide benefits to employees who establish a joint employment status. codependent relationship. dual taxing relationship. domestic partnership.

domestic partnership.

The Social Security insurance program is funded by employee contributions and general tax funds. employee contributions with matching employer contributions. Old Age, Survivors, and Disability Insurance (OASDI). employer contributions.

employee contributions with matching employer contributions.

The concept that employees should exert greater work effort if they have reason to expect it will result in a valued reward forms the basis of equity theory. internal equity. expectancy theory. instrumentality.

expectancy theory.

Under the Family and Medical Leave Act (FMLA), employees are eligible to take leave if they have worked for their employers for at least twelve months, have at least __________ hours of service, and work in organizations that have 50 or more employees within a 75-mile radius. 750 1,250 1,000 1,500

1,250

According to a National Highway Traffic Safety Administration study, people who send text messages while driving are __________ times more likely to crash than other drivers. 23 35 10 5

23

Laid off employees who have been working in an employment covered by the Social Security Act may get unemployment insurance benefits for up to __________ weeks. 20 26 24 22

26

Workers born after 1928 can receive full Social Security retirement benefits as early as age 62. 58. 67. 65.

67.

Research shows that a merit increase in the range of __________ is necessary to serve as a pay motivator. 15 to 17 percent 11 to 13 percent 3 to 5 percent 7 to 9 percent

7 to 9 percent

__________ enable individual employees to choose the benefits that are best suited to their particular needs. Social Security plans Employee wellness programs Cafeteria plans Employee self-service systems

Cafeteria plans

Private pensions are subject to federal legislation under Retirement Equity Act (REA). Consolidated Omnibus Budget Reconciliation Act (COBRA). Tax Equity and Fiscal Responsibility Act (TEFRA). Employee Retirement Income Security Act (ERISA).

Employee Retirement Income Security Act (ERISA).

The communication of employee benefits information improved significantly with the passage of the Social Security Act. Old Age, Survivors, and Disability Insurance Act. Employee Retirement Income Security Act. Consolidated Omnibus Budget Reconciliation Act.

Employee Retirement Income Security Act.

Which of the following is NOT one of the reasons why variable pay plans may not achieve their proposed objectives or lead to organizational improvements? Limited ability of employees to affect performance standards Failure of management in giving adequate attention to the design and implementation of a plan Failure of incentive plans to satisfy employee expectations for pay gains Employment of employee and management committees to gain cost-reduction improvements

Employment of employee and management committees to gain cost-reduction improvements

Which of the following is NOT a benefit covered under Social Security insurance? Retirement benefits Survivors' benefits Short-term disability Disability benefits

Short-term disability

The term pay-for-performance can encompass all of the following EXCEPT gainsharing plans. base salary. cash bonuses. merit pay.

base salary.

Why would a company consider increasing the amounts that employees have to pay towards their benefits by increasing premiums or deductibles? To limit workers' compensation claims To contain costs To encourage early retirement To comply with ERISA guidelines

To contain costs

Which of the following is NOT a common goal of a strategic compensation policy? To reward employees' past performance To mesh employees' past performance with organizational goals To attract new employees To remain competitive in the labor market

To mesh employees' past performance with organizational goals

Piecework is appropriate when technology changes are frequent. quality is more important than quantity. productivity standards are difficult to develop. a job is fairly standardized.

a job is fairly standardized.

An employee's relative worth can be determined by job analysis. wage-rate surveys. an effective performance appraisal system. labor market conditions.

an effective performance appraisal system.

The Occupational Safety and Health Administration (OSHA) may adjust penalties for violations downward depending on all of the following EXCEPT an employer's ability to pay. the size of an employer's business. an employer's good faith. an employer's history of previous violations.

an employer's ability to pay.

Management should guard against incentive payments being seen as an entitlement. equitable. variable. too competitive.

an entitlement.

Rate busting refers to an increase in productivity due to external competition. an increase in output that results in the disapproval of fellow employees. setting incentive performance standards for employees. a decrease in productivity due to lack of motivation.

an increase in output that results in the disapproval of fellow employees.

An advantage of a health savings account is that if there are funds remaining in the account at the end of the year the money goes back to the employer, helping the employer contain costs. is placed in the employee's retirement account. is forfeited. belongs to the employee.

belongs to the employee.

The most widely used sales incentive program is the __________ plan. straight commission combined salary and commission straight salary commission plus bonus

combined salary and commission

Steve has to submit a timecard every week and his compensation is based upon the amount of time he works, rather than what he accomplishes. Steve is compensated based on hourly work. piecework. skilled labor. competence.

hourly work.

Workers' compensation insurance covers certain work-related misunderstandings. pay inequities. lawsuits. illnesses.

illnesses.

The number of injuries and illnesses per 100 full-time employees during a given year is the safety rate. illness rate. accident rate. incidence rate.

incidence rate.

The people who are least likely to get cumulative trauma disorder from their jobs are models. meat cutters. textile workers. dental hygienists.

models.

When communicating benefits programs to employees, it is a good idea to use graphics and presentation software to conceal unpleasant news. one uniform method to communicate to all employees. multiple media techniques. technical legal language to avoid subsequent liability.

multiple media techniques.

A problem with creating team incentive plans is that they don't enable employees to share efficiency gains. not all teams that are created are alike. they encourage negativity rather than cooperative behavior. they pay only when agreed-upon standards are met or exceeded.

not all teams that are created are alike.

Escalator clauses in employee contracts may actually reduce motivation for employees to improve performance because pay is unrelated to individual performance. too many conditions must be met to receive raises. the raises are not high enough to be meaningful. employees have to work too many hours.

pay is unrelated to individual performance.

Holiday pay, sick leave, and vacation pay are examples of payment for time not worked. categories of health care benefits. unearned benefits. benefits required by law.

payment for time not worked.

Some of the benefits that Robix gives to its CEO and other top executives as a way to attract and retain talented individuals include chauffeurs, country club memberships, and special vacation policies. These are known as golden parachutes. assigned benefits. executive rewards. perquisites.

perquisites.

Stress basically comes from two basic sources which are emotional distress and work overload. physical and emotional activity. mental impairment and outside influences. family and friends.

physical and emotional activity.

Instrumentality refers to development of both internal and external pay equity. wage rates above the pay range maximum. rewards that are valued and motivate employees. wage rates of acceptable level.

rewards that are valued and motivate employees.

Frequently, employers will create a group consisting of representatives of various segments of an organization to work on safety-related issues. These groups are commonly referred to as human resources assistants. labor-management committees. safety committees. monitors.

safety committees.

Salespeople at Julee's are compensated based on a percentage of sales. This is known as a straight salary plan. straight commission plan. straight ratio plan. straight bonus plan.

straight commission plan.

The exempt or nonexempt status of employees is determined by the U.S. Department of Labor. the National Labor Relations Board. the Office of Programs and Budgets. the Secretary of Labor.

the U.S. Department of Labor.