Compensation
Research shows that skills, one of the compensable factors, accounts for _____ percent or more of the variance in job evaluation results. A. 90 B. 70 C. 55 D. 42
A. 90
Which of the following tests of competitive advantage is probably the easiest test to pass? A. Alignment test B. Differentiation test C. Integration test D. Value-addition test
A. Alignment test
Which of the following methods requires evaluators to agree on which jobs are the most and least valuable, then the next most and least valued, and so on until all the jobs have been ordered? A. Alternation-ranking method B. Classification method C. Point method D. Paired-comparison method
A. Alternation-ranking method
Inclusion of essential elements in job descriptions for jobs covered by the legislation is required by the A. Americans With Disabilities Act. B. Civil Rights Act. C. Fair Labor Standards Act. D. Equal Pay Act.
A. Americans With Disabilities Act.
Which of the following is the underlying assumption in the assessment of job content? A. Content has intrinsic value outside external market. B. Content has no artistic value. C. Stakeholders are the best judge for assessing the quality of content. D. Content can be determined with or without external market.
A. Content has intrinsic value outside external market.
Which of the following policy decisions directly affects employees' attitudes and work behaviors? A. Employee contributions B. Internal alignment C. External competitiveness D. Management
A. Employee contributions
Which of the following is a fundamental objective, and NOT a policy, in the pay model? A. Fairness B. Competitiveness C. Contributions D. Alignment
A. Fairness
The roots of job-based pay structures is traced to _____. A. Frederick Taylor B. Karl Marx C. Adam Smith D. Ronald McFreyer
A. Frederick Taylor
Hourly compensation costs for production workers in manufacturing are higher in _____ than in the United States. A. Germany B. Czech Republic C. Mexico D. China
A. Germany
The most widely used point method job evaluation is the: A. Hay plan. B. Equal Pay Act generic plan. C. factor comparison plan. D. Position Analysis Questionnaire plan.
A. Hay plan.
Which form of pay does not permanently increase labor costs? A. Incentive B. Merit pay C. Cost-of-living adjustments D. Base pay
A. Incentive
Which of the following statements is true of a job evaluation plan? A. It is developed using benchmark jobs and then applied to nonbenchmark jobs. B. It excludes the pay decisions made by a company. C. It provides the impetus to increase job levels and titles. D. It is always carried out separately for major domains of work.
A. It is developed using benchmark jobs and then applied to nonbenchmark jobs.
Who among the following is examining the validity of a job evaluation? A. Keira, who is measuring the degree to which the job evaluation plan matches an agreed-upon pay structure for benchmark jobs B. Laila, who is measuring the effectiveness of a formal appeals process C. Keith, who is surveying employee attitudes about the job evaluation plan D. Rita, who is requesting the management for a reanalysis and a reevaluation of the required skills as she feels her job is evaluated incorrectly
A. Keira, who is measuring the degree to which the job evaluation plan matches an agreed-upon pay structure for benchmark jobs
Which of the following companies is taking efforts to improve the work/life balance of its employees? A. MH Corp. increases the number of paid holidays given to its senior employees. B. Kay Corp. increases the transport allowance for its employees by 10 percent. C. Haywire Corp. allows its employees to buy company stocks at a reduced price of $30 per share. D. Halo Corp. increases the variable pay for its employees.
A. MH Corp. increases the number of paid holidays given to its senior employees.
In mapping a total compensation strategy, the question of how important compensation is in the overall HR strategy is part of _____. A. Objectives B. internal alignment C. external competitiveness D. corporate responsibility
A. Objectives
Most unions prefer which of the following? A. Small pay differences among jobs and seniority-based promotions B. Large pay differences among jobs and seniority-based promotions C. Large pay differences among jobs and performance-based promotions D. Equal pay raises for employees
A. Small pay differences among jobs and seniority-based promotions
_____ is a crucial factor that affects the perception of fairness of a skill-based plan. A. The design of the certification process B. The number of compensable factors C. The extent of alignment with an organization's strategy D. The number of weights and factor degrees
A. The design of the certification process
Which of the following is the reason why skill-based pay plans have maximum flexibility? A. They pay employees for the highest level of skill they have achieved regardless of the work they perform. B. They focus on placing the right people in the right job. C. They only pay as much as the work performed is worth, regardless of any greater skills the employee may possess. D. They encourage employees to focus on how to get promoted rather than on how to get the required competencies.
A. They pay employees for the highest level of skill they have achieved regardless of the work they perform.
GreenRain Corp. faces an increase in employee turnover rate. The CEO calls for a board meeting with the senior executives to discuss the issue. Who among the following suggests increasing the relational returns that employees receive to reduce the turnover rate at GreenRain? A. Tom suggests increasing the decision-making authorities given to the employees to make work more challenging. B. Deena suggests providing more work/life balance for the employees by increasing the number of paid leaves. C. Syed suggests increasing the medical insurance coverage offered to the employees. D. Liam suggests increasing merit bonuses.
A. Tom suggests increasing the decision-making authorities given to the employees to make work more challenging.
Which theory predicts that individual performance will be maximized when the pay differentials between job levels is large? A. Tournament theory B. Equity theory C. Marginal productivity theory D. Reinforcement theory
A. Tournament theory
_____ refers to openness and communication about pay. A. Transparency B. Ownership C. Prominence D. Centrality
A. Transparency
MXB Inc. is a carwash service provider. It orders the jobs in the company on the basis of the least important job to the most important job. In this case, MXB is most likely using a(n): A. alternation-ranking method. B. paired-comparison method. C. classification method. D. point method.
A. alternation-ranking method.
Common characteristics of the point method include all of the following EXCEPT: A. benchmark factor classes. B. numerically scaled factor degrees. C. factor weights. D. compensable factors.
A. benchmark factor classes.
The best way to establish _____ is to account for competing explanations, either statistically or through control groups. A. causation B. profitability C. correlation coefficient D. internal alignment
A. causation
The well-defined jobs at McDonald's and their small differences in pay are an example of a(n) _____ internal pay structure. A. closely tailored B. loosely coupled C. very competitive D. egalitarian
A. closely tailored
Jacob works at PrimeClean Corp., a carwash company. He is asked to follow a set of instructions in a predetermined order to wash a car. All the details including the amount of washing liquid to use for each type of car are clearly specified. In this case, Jacob's company is most likely to use a: A. closely tailored pay structure. B. loosely coupled pay structure. C. pay structure with large differences in pay among jobs. D. pay structure that is highly flexible.
A. closely tailored pay structure.
When job analysis shows that managers and employees disagree on parts of a job, the best answer is to A. collect more data. B. use quantitative job analysis. C. refer the problem to the compensation committee. D. use an experienced compensation consultant.
A. collect more data.
The process of identifying competencies in person-based structures resembles identifying _____ as part of job evaluation in job-based structures. A. compensable factors B. job description C. employee requirement D. work flow outlay
A. compensable factors
Mich Inc., a hardware store, has a rating system in place that rates employees on their friendliness, usefulness, and product knowledge. Based on the ratings an employee receives, he or she gets an incentive. The compensation strategy followed by Mich is most closely described as a: A. customer-focused strategy. B. cost-cutter strategy. C. innovator strategy. D. differentiation strategy.
A. customer-focused strategy.
Reliability of job evaluation techniques is measured by: A. determining if different evaluators produce the same results. B. asking the question "What does the evaluation measure?" C. determining hit rates. D. surveying employee attitudes about the evaluation.
A. determining if different evaluators produce the same results.
The final step in designing a point plan involves _____. A. developing online software support B. selecting compensable factors C. communicating the plan and training users D. scaling the factors
A. developing online software support
A difference between incentives and merit increases is that incentives: A. do not increase the base wage, whereas merit increases the base wage. B. cannot be tied to the performance of an individual, whereas merit increases can be tied to the performance of an individual. C. rely on a subjective measure of performance, whereas merit increases rely on an objective measure of performance. D. are relational returns, whereas merit increases are part of the total compensation.
A. do not increase the base wage, whereas merit increases the base wage.
Competencies are derived from the _____ beliefs about the organization and its strategic intent. A. executive leadership's B. stakeholders' C. competitors' D. customers'
A. executive leadership's
According to the government's procedures of the job analysis process, the first interview should be conducted with the _____. A. first-level supervisor B. chief executive officer C. HR manager D. incumbent's co-workers
A. first-level supervisor
Research investigating high-performance workplaces found that performance-based pay _____ when combined with other high-performance practices. A. improves attitudes and behaviors B. increases the number of middle men required C. reduces labor costs D. has little effect on quality
A. improves attitudes and behaviors
The advantage of using questionnaires in job analysis is that the involvement of employees _____. A. increases their understanding of the process B. lowers the use value of the goods produced by an organization C. reduces the subjectivity of employment decisions D. increases the exchange value that is agreed upon by employees and employers
A. increases their understanding of the process
A compensation system using market-based pay is most likely to be part of a(n) _____ strategy. A. innovator B. cost-cutter C. cost leadership D. customer-focused
A. innovator
Flexible-generic job descriptions would most likely be used with a(n) _____ strategy. A. innovator B. customer-focused C. differentiated D. cost-cutter
A. innovator
All of the following statements regarding offshoring are true EXCEPT that _____. A. offshoring is limited to low-skill jobs B. art director and animal scientist jobs are low in susceptibility to offshoring C. medial transcriptionists and proofreaders are high in susceptibility to offshoring D. labor costs and proximity to customers affect offshoring decisions
A. offshoring is limited to low-skill jobs
Conventional methods of collecting job information are _____. A. open to bias and favoritism B. reliable and objective C. not well-suited to small organizations D. relatively less time consuming
A. open to bias and favoritism
The role non-HR managers play in making pay decisions is called _____. A. ownership B. Transparency C. technology D. decentralized decision-making
A. ownership
When a statistical process is used to duplicate an existing pay structure, it is called: A. policy capturing. B. committee a priori judgment approach. C. factor analysis. D. regression analysis.
A. policy capturing.
A group of tasks performed by one person makes up a(n) _____. A. position B. job title C. appraisal D. incumbency
A. position
James says, "I don't trust the way the company determines pay rates in my department." If James feels this way despite being happy with his current salary, he is most likely concerned about _____. A. procedural justice B. distributive justice C. internal equity D. external equity
A. procedural justice
Jane works as a copy editor at TreeTime Inc. She receives an e-mail from the human resources department with a link to a questionnaire that asks her to rate the necessary attributes required for her job. In this scenario, the approach used by TreeTime is characterized as: A. quantitative job analysis. B. objective job analysis. C. conventional job analysis. D. paired-comparison job analysis.
A. quantitative job analysis.
All of the following are advantages of the ranking method of job evaluation EXCEPT that: A. rankings are easy to defend and justify. B. the evaluation process is fast. C. the evaluation process is inexpensive. D. the evaluation process is not complex.
A. rankings are easy to defend and justify.
Job analysis is important for both managers and employees because it is A. the basis for a work-related rationale for pay differences. B. an important result of the job evaluation process. C. required under the Fair Labor Standards Act. D. required for increasing employee turnover rates.
A. the basis for a work-related rationale for pay differences.
The problem that is most likely to be faced by organizations using an egalitarian pay structure is _____. A. the difficulty in external recruitment B. in maintaining cooperation among employees C. the perception of excessive CEO pay D. the difficulty in performing teamwork
A. the difficulty in external recruitment
Pay for temporary workers is based upon A. the internal structure of their home employer. B. the internal structure of the temporary workplace. C. the strict requirements set by an international workers union. D. education only.
A. the internal structure of their home employer.
Routine work is also termed _____. A. transactional work B. hygiene work C. tacit work D. system work
A. transactional work
Marginal productivity theory argues that employers pay _____. A. use value B. exchange value C. surplus value D. differential value
A. use value
The most common bases for determining internal structures are: A. work content and its value B. seniority and experience C. use value and exchange value D. pay surveys and job evaluation
A. work content and its value
Most factor scales have _____ degrees. A. 6-9 B. 4-8 C. 3-7 D. 2-4
B. 4-8
Which of the following statements regarding allowing employees a choice in their pay mix is NOT true? A. Allowing employees their choice is difficult to manage B. Allowing employees their choice is easy for competitor companies to imitate C. Providing unlimited choices for employees to choose from is difficult to design D. Providing too many choices can confuse people
B. Allowing employees their choice is easy for competitor companies to imitate
When cooperation is important for successful organization performance, which of the following pay structures is most suitable? A. A tournament theory-based pay structure B. An egalitarian pay structure C. An hierarchical pay structure D. A layered pay structure
B. An egalitarian pay structure
Which of the following is the correct order of the steps in formulating a total compensation strategy? A. Assess the strategy, implement the strategy, map the strategy, and reassess the strategy. B. Assess the strategy, map the strategy, implement the strategy, and reassess the strategy. C. Map the strategy, implement the strategy, assess the strategy, and reassess the strategy. D. Map the strategy, assess the strategy, implement the strategy, and reassess the strategy.
B. Assess the strategy, map the strategy, implement the strategy, and reassess the strategy.
Which of the following is least likely to be used in establishing skill-based certification methods? A. Tests B. College degree C. Peer review D. On-the-job demonstration
B. College degree
_____ are more likely to conduct job evaluations of senior management jobs. A. Compensation analysts B. Compensation managers C. Peers D. Junior incumbents
B. Compensation managers
Which of the following is a policy, and NOT an objective, in the pay model? A. Ethics B. Competitiveness C. Efficiency D. Fairness
B. Competitiveness
Which of the following is NOT a test of whether a pay strategy is a source of competitive advantage? A. Alignment test B. Cost-effectiveness test C. Differentiation test D. Value-addition test
B. Cost-effectiveness test
Which of the following is an example of a relational return? A. Short-term incentives B. Employment security C. Long-term incentives D. Income protection
B. Employment security
According to the text, which of the following decisions should be made jointly? A. Internal alignment and management decisions B. External competitiveness and employee contribution decisions C. Employee contribution and internal alignment decisions D. Management and external competitiveness decisions
B. External competitiveness and employee contribution decisions
_____ refers to comparisons among jobs or skills inside a single organization. A. External competitiveness B. Internal alignment C. Compliance D. Merit increase
B. Internal alignment
Which of the following is a disadvantage of the point method? A. It can leave too much room for manipulation. B. It can become bureaucratic and rule-bound. C. It does not allow for comparisons. D. It does not communicate what is valued.
B. It can become bureaucratic and rule-bound.
In the formula predicting performance, the component most closely related to compensation is _____. A. A B. M C. O D. C
B. M
_____ are related to greater performance when the work flow depends on individual contributors. A. More egalitarian structures B. More hierarchical structures C. More delayered structures D. More even-handed structures
B. More hierarchical structures
Hierarchical pay structures have all BUT which of the following characteristics? A. Support a close fit with the organization B. Prefer team performance over individual performance C. Many levels D. Based upon the job or person
B. Prefer team performance over individual performance
_____ is the measure of how important total compensation is in the overall HR strategy. A. Competitiveness B. Prominence C. Centrality D. Ownership
B. Prominence
Which of the following is often the largest component in an executive pay package? A. Base pay B. Stock options C. Merit pay D. Perks
B. Stock options
The scheme used in the text for classifying competencies consists of three groups. Which of the following is NOT one of them? A. Personal characteristics B. Team dynamics C. Visionary D. Organization specific
B. Team dynamics
Which of the following is an advantage of skill-based pay plans? A. They guarantee a low rate of employee turnover. B. They aid in deploying workers in a way that better matches the work flow. C. They are less expensive than job-based plans. D. They are viewed more favorably by courts than any other type of pay plans.
B. They aid in deploying workers in a way that better matches the work flow.
The verification step of the government's job analysis method is always conducted with _____. A. only the HR manager B. all the interviewees together C. either the supervisor or the manager D. only the high-performing employees
B. all the interviewees together
In the context of the point method of job evaluation, _____ are those characteristics in the work that an organization values; that help it pursue its strategy and achieve its objectives. A. competitive skills B. compensable factors C. core competencies D. benchmark factors
B. compensable factors
Comparisons on the forms of compensation used by other companies are part of _____. A. internal alignment B. external competitiveness C. employee contributions D. corporate responsibility
B. external competitiveness
Compensation policy choices that affect the pay level relative to other companies are most closely associated with the _____ aspect of the pay model. A. internal alignment B. external competitiveness C. employee contributions D. pay system management
B. external competitiveness
The degree to which pay influences individual and aggregate motivation among employees at any point in time is referred to as a(n): A. sorting effect. B. incentive effect. C. turnover effect. D. directional effect.
B. incentive effect.
Robert, the CEO of GameTrack Corp., wants to restructure the pay plan without increasing the labor costs in the long run. He is most likely to achieve this, while retaining his top employees, by: A. increasing base pay and decreasing variable pay. B. increasing incentive pay and decreasing base pay. C. hiring more employees and reducing the marginal product output requirements. D. providing across-the-board increases on a monthly basis.
B. increasing incentive pay and decreasing base pay.
Career growth, hierarchy, and flexible design are most closely associated with the _____ aspect of mapping a total compensation strategy. A. objectives B. internal alignment C. external competitiveness D. employee contributions
B. internal alignment
The process of collecting information that identifies the similarities and differences among jobs is known as _____. A. job performance B. job analysis C. use value evaluation D. exchange value analysis
B. job analysis
Engineering, sales, and maintenance are examples of _____. A. tasks B. job families C. job dimensions D. appraisals
B. job families
Issues of transparency, technology, and choice are most closely associated with the _____ aspect of mapping a total compensation strategy. A. objectives B. management C. employee contributions D. internal alignment
B. management
The majority of applications of skill-based pay have been in: A. education industries. B. manufacturing industries. C. health-care industries. D. service industries.
B. manufacturing industries.
According to a WorldatWork survey, the primary method of job evaluation is _____. A. ranking B. market pricing C. the point method D. the classification method
B. market pricing
Trying to measure an ROI for any compensation strategy implies that A. it is possible to align and differentiate and still fail to add value. B. people are "human capital," similar to other factors of production. C. adding value is the most difficult test. D. value created as a result of costs is difficult to specify.
B. people are "human capital," similar to other factors of production.
When organization performance declines A. a virtuous circle may be created. B. performance-based pay plans do not pay off. C. managers must avoid changing the pay practices. D. employee attrition rate declines considerably.
B. performance-based pay plans do not pay off.
In the strategic approach to pay, internal alignment is the _____ issue to be decided. A. first B. second C. third D. fourth
B. second
A specific statement of what a worker does on a job is known as a(n) _____. A. appraisal B. task C. position D. job structure
B. task
The job analysis method that uses information input, mental processes, work output, job context, other job characteristics, relationships with other persons, and general dimensions is _____. A. task inventories method B. the PAQ C. essential elements questionnaire D. job tasks and elements inventory
B. the PAQ
The most common way to collect job information is _____. A. to interview incumbents B. to ask incumbents to fill out a questionnaire C. to ask supervisors to fill out a questionnaire D. to observe the person at work and take notes when on what is being done
B. to ask incumbents to fill out a questionnaire
If several incumbents, supervisors, and peers respond in similar ways to job analysis questionnaires, it suggests that the results are most likely to be _____. A. useful B. valid C. invalid D. unreliable
B. valid
Content refers to the A. worth of the work. B. work performed in a job and how it gets done. C. relative contribution of the work to the organization objectives. D. different pay level policies.
B. work performed in a job and how it gets done.
Among employers that provide health insurance, the cost to provide family coverage per year per employee is approximately _____. A. $4,000 B. $9,000 C. $16,000 D. $22,000
C. $16,000
TreeWind Inc. is a bookstore that uses skill and responsibility as its compensable factors. It assigns 20 percent weight to responsibility and 80 percent weight to skill. If the responsibility factor scores a 60 after multiplying the subfactors with their corresponding weights, and if the skill factor has two subfactors that are rated as 4 and 5, what is the total weightage given to the job? A. 40 B. 120 C. 420 D. 990
C. 420
Nina is a high-performing individual who works best alone. Which of the following companies is the most appropriate for her? A. A company that uses an egalitarian pay structure B. A company that pays its employees based on their seniority rather than their performance C. A company that uses a hierarchical pay structure to pay its employees based on performance D. A company that pays all its employees the same amount of money
C. A company that uses a hierarchical pay structure to pay its employees based on performance
_____ are the observable behaviors that indicate the level of competency. A. Competency sets B. Core competencies C. Competency indicators D. Behavior scale points
C. Competency indicators
Organization factors that shape internal pay structures include all BUT which of the following? A. Strategy B. Human capital C. Cultures and customs D. Employee acceptance
C. Cultures and customs
Which of the following is NOT a factor in defining equal work according to the Equal Pay Act? A. Equal skill B. Equal effort C. Equal experience D. Equal responsibility
C. Equal experience
Which of the following statements is NOT true? A. The effect of performance incentives depends on the context. B. Embedding compensation strategy in HR strategy affects results. C. Focusing only on one dimension of the pay strategy is a best practice. D. The effect of paying more than competitors depends on the context.
C. Focusing only on one dimension of the pay strategy is a best practice.
Which of the following statements regarding reliability of job analysis is NOT true? A. Reliability is higher when analysts are professionals. B. Differences in performance across incumbents affect reliability. C. Gender and race of analysts affect reliability. D. Reliability is higher for specific tasks than for general ones.
C. Gender and race of analysts affect reliability.
Which of the following is NOT included in a strategy map? A. External competitiveness B. Management C. HR alignment D. Employee contributions
C. HR alignment
Today, job analysis is typically performed by _____. A. experienced job incumbents B. new employees C. HR generalists and supervisors D. experienced workers
C. HR generalists and supervisors
Which of the following pay structure procedures would NOT increase perceptions of pay fairness? A. Consistently applying pay procedures to all employees B. Using accurate data C. Hiring consultants to develop the pay structure D. Including appeals procedures
C. Hiring consultants to develop the pay structure
Which of the following statements about reliability of job analysis is true? A. It is a measure of the practicality of the information collected. B. It reflects whether there is a convergence of results among sources of data and methods. C. It is a necessary condition for validity. D. It is a sufficient condition for validity.
C. It is a necessary condition for validity.
_____ is the process of systematically determining the relative worth of jobs for the purpose of creating an organization's job structure. A. Performance evaluation B. Job restructuring C. Job evaluation D. Point factor evaluation
C. Job evaluation
Which of the following is an ordering of jobs based on their content or relative value? A. Job analysis B. Job description C. Job structure D. Job evaluation
C. Job structure
Which of the following is NOT true? A. Greater pay dispersion is related to higher turnover among executives. B. Egalitarian structures are a better fit for executive groups that need to work closely as a team. C. Large raises with a promotion decreases effort and increases absenteeism. D. Employees judge the fairness of their pay structure by making multiple pay comparisons.
C. Large raises with a promotion decreases effort and increases absenteeism.
Which of the following is given as an increment to the base pay in recognition of past work behavior? A. Base pay B. Long-term incentive C. Merit pay D. Short-term incentive
C. Merit pay
Mike, a job analyst, is in the process of conducting a job analysis. He is given an initial tour of the work site by George, a first-level supervisor, and by Haley, a new recruit. According to the conventional job analysis procedures developed by the U.S. federal government, which of the following steps should Mike perform next? A. Mike should conduct an interview with Hayley as she is in a better position to understand how the different tasks fit in the big picture. B. Mike should prepare a preliminary list of duties that will serve as a framework for conducting interviews with Hayley and George. C. Mike should conduct an interview with George to get an overview of the job. D. Mike should review existing documents in order to develop an initial familiarity with the job.
C. Mike should conduct an interview with George to get an overview of the job.
One of the more readily accessible sources for generic job descriptions is the _____. A. Bureau of National Affairs B. Department of Labor C. O*NET D. Dictionary of Occupational Titles
C. O*NET
Leadership, customer orientation, and functional expertise are examples of which group of competencies? A. Personal characteristics B. Visionary C. Organization specific D. Team dynamics
C. Organization specific
In the context of pay relationships, which of the following is illegal in the United States? A. Paying on the basis of the nature of jobs B. Paying on the basis of pay comparisons with competitors C. Paying on the basis of one's age D. Paying on the basis of one's skill level
C. Paying on the basis of one's age
Common bases for modern pay structures include all BUT which of the following? A. The content of the work B. The skills and knowledge required to perform the work C. The extent of external competitiveness and equity D. The work's relative value for achieving organizational objectives
C. The extent of external competitiveness and equity
Which of the following is NOT one of the factors that define an internal pay structure? A. The pay differentials between the levels B. The criteria used to determine pay differentials C. The number of times the pay structure has been changed D. The number of levels of work
C. The number of times the pay structure has been changed
Which of the following is NOT a characteristic of a benchmark job? A. It is not unique to a particular employer. B. A reasonable proportion of the work force is employed in this job. C. The pay level is the best in the industry. D. The content of the job is relatively stable over time.
C. The pay level is the best in the industry.
Which of the following is most likely to be a disadvantage of skill-based pay plans? A. They are generally not favored by employees as it is difficult to see the connection between the plan, the work, and the size of the paycheck. B. They discourage adaptability of employees to changing production needs. C. They are expensive in the long run as the majority of employees become certified at the highest pay levels. D. They dampen employee versatility.
C. They are expensive in the long run as the majority of employees become certified at the highest pay levels.
Which of the following programs introduced by Congress includes restrictions on executive pay that are designed to discourage executives from taking "unnecessary and excessive risks"? A. Corporate Welfare Program B. Employee Welfare Program C. Troubled Asset Relief Program D. Corporate Liability Relief Program
C. Troubled Asset Relief Program
Which of the following reasons makes competencies a risky foundation for a pay system? A. Number of stakeholders and the lack of a global standard B. Openness and non-quantifiable nature C. Vagueness and subjectivity D. Lack of motivation and objectivity
C. Vagueness and subjectivity
Which of the following is NOT a question to ask for determining if research has value? A. Is the research useful? B. Can alternative explanations be ruled out? C. Was the research conducted by PhD researchers? D. Is correlation separated from causation?
C. Was the research conducted by PhD researchers?
Based on the opinions of 10,000 U.S. workers, Hudson found that when given their choice of unconventional benefits, most employees would select _____. A. more supplemental insurance B. more job training C. a more flexible work schedule D. more personal days and family leave
C. a more flexible work schedule
Union preferences are a major factor in _____ a total compensation strategy. A. implementing B. reassessing C. assessing D. mapping
C. assessing
Most job structures are best described as A. job-based structures. B. person-based structures. C. both person- and job-based structures. D. competency-based structures.
C. both person- and job-based structures.
A major decision in job evaluation is to: A. choose which stakeholders to eliminate in the process. B. figure out how to eliminate the use of multiple plans. C. choose among alternative approaches. D. figure out how to eliminate the use single plans.
C. choose among alternative approaches.
A measure of how changes in one variable are related to changes in another variable is the: A. standard deviation B. analysis of variance C. correlation coefficient D. mean deviation
C. correlation coefficient
All of the following EXCEPT _____ are bases for judging job analysis. A. currency B. acceptability C. cost D. usefulness
C. cost
A compensation system focusing on system control and work specifications is most closely associated with a(n) _____ strategy. A. innovator B. customer-focused C. cost-cutter D. differentiated
C. cost-cutter
A compensation system that focuses on competitor's labor costs is most closely associated with a(n) _____ strategy. A. innovator B. customer-focused C. cost-cutter D. differentiated
C. cost-cutter
In the point method, the second step in designing a plan is to: A. conduct job analysis. B. scale the factors. C. determine the compensable factors. D. prepare a job evaluation manual.
C. determine the compensable factors.
Compensable factors, skill blocks, and competency sets are used for: A. assessing relative value. B. collecting work content information. C. determining what to value. D. completely different purposes.
C. determining what to value.
A camper is an employee who _____ in a skill-based pay system. A. tops out B. is a jack-of-all-trades C. does not want to rotate jobs D. moves too quickly from job to job
C. does not want to rotate jobs
In firefighting and rescue squads and global software design teams, a(n) _____ structure is most closely associated with higher performance. A. hierarchical B. pyramidal C. egalitarian D. layered
C. egalitarian
Incentives and merit guidelines are techniques of the _____ policy of the pay model. A. internal alignment B. external competitiveness C. employee contributions D. management of the pay system
C. employee contributions
The decisions to implement pay for performance, flat rate pay, and profit sharing are examples of _____ policy decisions. A. internal alignment B. efficiency C. employee contributions D. management
C. employee contributions
The alignment test A. is difficult to imitate. B. is the most difficult test. C. helps ensure passing the differentiation test. D. becomes difficult if the differentiation test is not clear.
C. helps ensure passing the differentiation test.
A _____ approach controls costs by paying only as much as the work performed is worth, regardless of any greater skills the employee may possess. A. performance-based B. competency-based C. job-based D. skill-based
C. job-based
Organizations in a turbulent and unpredictable environment requiring flexibility in jobs and work processes are likely to be more successful with a(n) _____ internal pay structure. A. egalitarian B. bureaucratic C. loosely coupled D. closely tailored
C. loosely coupled
One of the reasons why 8 in 10 of the uninsured in the United States are from working families is that _____. A. many larger employers do not offer health insurance as it does not guarantee an increase in productivity levels B. health insurance is more costly for larger employers C. many small employers are much less likely than larger employers to offer health insurance to their employees D. most workers decline health insurance when offered by their employers
C. many small employers are much less likely than larger employers to offer health insurance to their employees
According to the Hudson survey, _____ is the single thing that would make 41 percent of the U.S. workers happier. A. more personal days B. flexible work schedule C. more money D. better health insurance
C. more money
The _____ method of job evaluation uses compensable factors. A. classification B. Position Analysis Questionnaire C. point D. ranking
C. point
KayDen Corp., a small organization with 15 employees, conducts job evaluation using the least expensive method for the first time. In this case, KayDen is most likely to have used the _____. A. classification method B. point method C. ranking method D. Hay plan
C. ranking method
In today's organizations, in order to increase competitiveness and success, work is analyzed by separating transactional work from: A. core work. B. hygiene work. C. tacit work. D. system work.
C. tacit work.
The government's job analysis procedures recommend interviewing A. the best performing employees. B. the long-tenure employees. C. the typical employee. D. workers just completing the probationary period.
C. the typical employee.
Research shows that _____ factor(s) account(s) for 98 to 99 percent of the variance in job evaluation plans. A. one B. two C. three D. four
C. three
Most studies report that when different people rank-order jobs, the correlations are between: A. .15 and .36 B. .35 and .46 C. .55 and .66 D. .85 and .96
D. .85 and .96
Recent surveys show that, on average, an outstanding performer receives a _____ merit increase, an average performer a _____ merit increase, and a poor performer a 0.4% merit increase. A. 10.5%; 7% B. 8.4%; 5.2% C. 6.7%; 4.2% D. 4.4%; 2.8%
D. 4.4%; 2.8%
Which of the following is NOT true of the usage of multiple plans versus single job evaluation plans? A. Employers rarely evaluate all jobs in the organization at one time. B. Many employers design different evaluation plans for different types of work. C. Typically, a related group of jobs is used for evaluation. D. A single universal plan is acceptable to employees if the work covered is highly diverse.
D. A single universal plan is acceptable to employees if the work covered is highly diverse.
Who among the following is most likely to be working for a company that uses a competency-based pay plan? A. Julia, who focuses on getting promoted to get a pay increase B. Faiza, a manager, who focuses on choosing the employees best suited for job roles C. Juan, a manager, who focuses on controlling costs through budgets and work assignments D. Carlos, who focuses on obtaining certifications in her field to get a pay increase
D. Carlos, who focuses on obtaining certifications in her field to get a pay increase
_____ translate each core competency into action. A. Competency indicators B. Multifunctional skills C. Skill-based structures D. Competency sets
D. Competency sets
Organization factors that shape internal pay structures include all BUT which of the following? A. Technology B. Cost implications C. HR policy D. Economic pressures
D. Economic pressures
Which of the following is a major decision in job evaluation? A. Choosing the stakeholders to eliminate in the process B. Choosing the method of eliminating multiple plans C. Establishing standards that solely use a single plan D. Establishing the purpose of evaluation
D. Establishing the purpose of evaluation
Whole Foods' shared-fate philosophy of limiting executive salaries to no more than 19 times the average pay of full-time employees is an example of which strategic pay decision? A. External competitiveness B. Employee contributions C. Corporate responsibility D. Internal alignment
D. Internal alignment
In the context of internal alignment, which of the following is the correct sequence? A. Job description > Pay structure > Job evaluation B. Job evaluation > Job description > Job structure C. Pay structure > Job description > Job evaluation > Job analysis D. Job description > Job evaluation > Job structure
D. Job description > Job evaluation > Job structure
Lisa is a manager at Trell Inc. When she hires her employees, she focuses on finding the right job for the right person. Which of the following pay plans is her employer most likely using? A. Skill-based pay plan B. Competency-based pay plan C. Aptitude-based pay plan D. Job-based pay plan
D. Job-based pay plan
Egalitarian pay structures have all BUT which of the following characteristics? A. Few levels B. Small differentials C. Support equal treatment D. Prefer individual performance over team performance
D. Prefer individual performance over team performance
_____ looks at how an organization does its work: activities pursued to accomplish specific objectives for specific customers. A. Job analysis B. Market analysis C. Job structure D. Supply chain analysis
D. Supply chain analysis
Which of the following is NOT a characteristic of aligned pay structures? A. They support the way the work gets done. B. They fit an organization's business strategy. C. They are fair to employees. D. They are designed to increase the turnover rate.
D. They are designed to increase the turnover rate.
Which of the following sentences regarding skill-based structure is FALSE? A. Employees have control over their own development. B. Training is a source of complaints. C. Less supervision is required in comparison to all other pay plans. D. Training costs are the lowest in comparison to all other pay plans.
D. Training costs are the lowest in comparison to all other pay plans.
Employees in a multiskill system earn pay increases: A. by increasing their productivity. B. based on job content. C. based on job assignments. D. by acquiring new knowledge.
D. by acquiring new knowledge.
A job description is compared to class descriptions in the _____ of job evaluation. A. Position Analysis Questionnaire method B. point method C. Hay Group Guide Chart—Profile MethodSM D. classification method
D. classification method
The job evaluation method that most resembles a bookcase with many shelves is: A. ranking. B. the Hay plan. C. the point method. D. classification.
D. classification.
Skill-based plans tend to work best in organizations using a(n) _____ strategy. A. innovator B. defender C. laissez-faire D. cost-cutter
D. cost-cutter
All of the following EXCEPT _____ are compensation systems associated with a cost-cutter strategy. A. focus on competitor's labor costs B. focus on system control and work specifications C. increase in variable pay D. customer satisfaction incentives
D. customer satisfaction incentives
Joshua believes that treating employees equally will improve their job satisfaction, which in turn will increase their work productivity and performance. In accordance to his beliefs, he wants to reduce the number of job levels and the pay differentials between the levels. In this case, he is most likely to use a(n): A. highly layered pay structure. B. hierarchical pay structure. C. highly inequitable pay structure. D. egalitarian pay structure.
D. egalitarian pay structure.
The exchange value of a job is its _____. A. content value B. performance value C. internal market value D. external market value
D. external market value
The certification processes in skill-based pay is analogous to the _____ in a job-based analysis. A. classes B. compensable factors C. regression analysis D. factor degrees and weights
D. factor degrees and weights
External factors are dominant influences on jobs filled via: A. demotions. B. promotions. C. transferring employees. D. hiring graduates.
D. hiring graduates.
Variable pay may also be called _____. A. relational returns B. pensions C. stock options D. incentives
D. incentives
Research shows that _____ will effectively shift an organization in a downward performance spiral to an upward one. A. reinforcing performance-based pay B. implementing team-based pay C. improving work-life balance D. it is unclear what compensation practices
D. it is unclear what compensation practices
A set of identical positions makes a _____. A. procedure B. task C. title D. job
D. job
The list of tasks, duties, and responsibilities that make up a job is known as a _____. A. job search B. job control C. job specification D. job description
D. job description
Managers whose employers use _____ plans focus on placing the right people in the right job. A. person-based B. skill-based C. competency-based D. job-based
D. job-based
Gina announces that she would lose her job as her company is considering to offshore her job to another country. In this case, Gina is most likely to be working in a job that requires her to: A. devise advertising campaigns for his or her company. B. curate art pieces in a museum. C. promote the image of his company to the public. D. manually fix typos in a document.
D. manually fix typos in a document.
The second step of developing a total compensation strategy is to: A. implement the strategy. B. assess total compensation implications. C. estimate the cost of the strategy. D. map the strategy.
D. map the strategy.
A study of 400 compensation specialists revealed that: A. job evaluation data had a larger effect on pay decisions than market data. B. current pay data had a larger effect on pay decisions than market data. C. job titles had a larger effect on pay decisions than job evaluation data. D. market data had a substantially larger effect on pay decisions than job evaluation data.
D. market data had a substantially larger effect on pay decisions than job evaluation data.
ADA has directly led many employers to _____. A. only use the task inventory method for job analysis B. only use the PAQ method for job analysis C. modify special benefits so that allowances can be made for people with disabilities as required by the law D. modify the format of their job descriptions to specifically call out the essential elements
D. modify the format of their job descriptions to specifically call out the essential elements
You are an HR manager, and your boss has told you to find the best way to raise job performance. After some research, you find that _____ have the greatest instrumental value. A. job responsibilities B. training and skill development programs C. goal setting and job enrichment D. monetary incentives
D. monetary incentives
Managers seek internal alignment within their organization by: A. matching the competitors' pay rates. B. following FLSA guidelines. C. using fair merit increases. D. paying on the basis of similarities among jobs.
D. paying on the basis of similarities among jobs.
The _____ method of job evaluation is the most commonly used method in the United States and Europe. A. ranking B. factor comparison C. classification D. point
D. point
The parable of the vineyard owner and the compensation paid to the laborers illustrated: A. the payment to the laborers according to their productivity. B. the payment to the laborers based upon the content of the job. C. the payment to the laborers based upon the hours of work. D. the ignorance of the owner toward the content of work.
D. the ignorance of the owner toward the content of work.
Apart from being reliable, a job analysis is also considered valid if: A. the results of the job analysis are consistent among various analysts. B. the results of the job analysis are consistent among various methods. C. the job analysis is found to be acceptable. D. the results converge among various sources of data and methods.
D. the results converge among various sources of data and methods.
Incentives do not permanently increase labor costs because: A. they rely on a subjective rating of performance. B. they are given based on the past performances of the employees. C. they increase the base wage. D. they are one-time payments.
D. they are one-time payments.