Compensation and Benefits, Topics 1-3

Name the four generic business competitive strategies.

Cost Leadership, Differentiation, Niche Focused, Hybrid

True or False: A company cannot have a hybrid strategy.

False

True or False: Blue-collar workers are always non-exempt employees.

False

True or False: Gaining buy-in for a job analysis is not necessary to create a value-added analysis.

False

True or False: Pay is not a broad category that refers to the monetary compensation that is provided to an employee in exchange for their work.

False

True or False: Total Rewards refers to all forms of pay and compensation, tangible benefits, and other intangible rewards that an organization provides.

False

True or False: Understanding the total rewards system will not allow you to create a meaningful total rewards plan.

False

True of False: Meaningful work would be considered a discretionary employee benefit.

False ( it is an example of intangible benefit)

Rewards strategies that work in the ______ term, while the firm is niche focused, may be forced to change in the _______ term.

Short, Long

Name the four specific competitive business strategies.

Strategic Process: SWOT Analysis -Internal - Strengths & Weaknesses -External - Opportunities & Threats Strategic Outcomes: Critical Success Factors

True or False: CSFs take into account both internal strengths of the organization and the external values of customers and markets.

True

True or False: Cash compensation can have an influence on the employee's perception of how much they are valued at the firm.

True

True or False: If pay rates are set based upon what a job was three years ago and not what it is today, then it will not meet the needs of the employees doing the job today.

True

True or False: Job descriptions are simple and cannot contain every detail relating to the job.

True

True or False: Key personnel throughout the organization should be involved in the data's collection, synthesis, and documentation.

True

True or False: Managing total rewards is an art and a science.

True

True or False: One set of awards may fit one firm but may not fit another firm.

True

True or False: The goal of job analysis is to understand the work involved in creating value for the organization.

True

True or False: Total Rewards are one of those decisions that businesses make that influences their cost structure and their ability to provide those low costs to customers. TrueFalse

True

True or False: Understanding relevant tools for a job, such as Microsoft Excel or Power Point, are valuable in creating a job description.

True

True or False: Using each type of question presents both strengths and weaknesses in the interview process.

True

True or False: When total rewards is used to change a culture, past norms should still be considered.

True

True or False: When you think about a company's health benefits or retirement plan, you are thinking about employee benefits.

True

A job family is: a. A grouping of jobs that have similar functions or content b. A grouping of employees that have similar functions c. A grouping of management that have similar functions to other management in other companies d. None of the above

a. A grouping of jobs that have similar functions or content

A job title is: a. A name by which the job is known throughout the company b. A name by which the product an organization makes is known c. A name by which a job family is known d. A name by which an employee is known throughout the company

a. A name by which the job is known throughout the company

A Reference ID is: a. A series of numbers and letters that is used to reference the job b. A series of numbers and letters that is used to reference an employee c. A series of numbers and letters that is used to reference a government agency d. A series of numbers and letters that is used to reference a company

a. A series of numbers and letters that is used to reference the job

The employment relationship is: a. An agreed-upon basis for organizations and people meeting each other's needs b. A disagreed-upon basis for organizations and people meeting each other's needs c. An agreed-upon basis for organizations and government meeting each other's needs d. None of the above

a. An agreed-upon basis for organizations and people meeting each other's needs

An employer has to determine if the employee is: a. An independent contractor or an employee b. An employee c. An independent contractor d. A dependent contractor or an employee

a. An independent contractor or an employee

Which of the following laws relates to total rewards? a. Civil rights laws b. Arbitrage law c. Litigation d. None of the Above

a. Civil rights laws

Which of the following would not be part of a traditional job interview? a. Compensation b. Time Spent on Activities c. Preset Questions d. Skills Needed

a. Compensation

n the differentiation strategy, the costs of the organization will be passed on to the: a. Customer b. Organization c. Government d. Employees

a. Customer

The Fair Labor Standards Act requires that organizations: a. Determine the "employee status" of each job. b. Determine the "employee job duties" of each job c. Determine the "employee benefits" of each job d. Determine the "employee compensation" of each job

a. Determine the "employee status" of each job.

Cash compensation is monetary pay from ____________ to __________________. a. Employers, employees b. Employees, employers c. Government, citizens d. None of the above

a. Employers, employees

KSAO's stand for: a. Knowledge, Skills, Ability, and Other b. Kindness, Skills, Agility, and Other c. Kindness, Skills, Ability, and Other d. Knowledge, Skills, Agility, and Other

a. Knowledge, Skills, Ability, and Other

Within the cost leadership strategy, a business will have a ____________ cost structure. a. Lower b. Higher c. Expensive d. Frugal

a. Lower

If customer perception is part of the business strategy, which of the following is NOT aligned with the strategy? a. NOT making a good impression on the customer b. Knowing a customer by name c. Making the customer feel welcome d. Using a friendly tone of voice

a. NOT making a good impression on the customer

Employees can only be classified as exempt if they pass the: a. Primary Duties Test b. Non-Exempt Test c. Exempt Test d. Secondary Duties Test

a. Primary Duties Test

What is a generic questionnaire? a. Questions brought in by a third party b. Irrelevant c. Questions developed from previous interviews d. Questions developed from senior management

a. Questions brought in by a third party

The more a rewards system deviates from 'the way we do things around here,' the more likely it is to be: a. Rejected b. Ignored c. Accepted d. Changed

a. Rejected

Which of the following is not a function of Human Resources? a. Risk Management b. Human Resource Information System c. Recruiting d. Performance Management

a. Risk Management

Base pay includes: a. Salary or hourly wages b. Hourly and benefits c. Benefits and salary d. None of the above

a. Salary or hourly wages

Organizational Cultural Fit is: a. The extent to which the rewards strategy aligns with and supports the ingrained practices, norms, and values of the organization b. The extent to which the rewards strategy fits make senior management happy c. The ability to keep employees happy with pay when an organizational change occurs d. The fit to make the human resources and finance departments agree upon the strategy for the organization

a. The extent to which the rewards strategy aligns with and supports the ingrained practices, norms, and values of the organization

What is a communication strategy? a. The plan for sharing the compensation strategy with employees and receiving their ongoing feedback b. The plan for communicating with other HR professionals to understand market data c. The plan for sharing coworkers' salary data d. The plan for communicating with employees about competitive salaries

a. The plan for sharing the compensation strategy with employees and receiving their ongoing feedback

Human resource strategy is: a. The policies, practices, and systems that manage the interface between the organization and its employees in order to enable long-term organizational performance b. A strategy in which employees are given duties to perform to achieve long-term business results c. The alignment between management and employees to develop goals focused on business results d. A strategy in which management aligns the people to the business in order to enable long-term organizational performance

a. The policies, practices, and systems that manage the interface between the organization and its employees in order to enable long-term organizational performance

Employee Performance represents: a. The quality and quantity of the work that individual employees produce in the organization b. The quantity of the work that individual employees produce in the organization c. The quality and quantity of the work that an organization has in the market d. The quality of the work that individual employees produce in the organization

a. The quality and quantity of the work that individual employees produce in the organization

Job descriptions can also reference any _______ involved in doing the job. a. Tools b. Necessities c. Both A & B d. None of the above

a. Tools

What is the total rewards content strategy? a. Type, Level, and Combination of rewards offered b. Market-driven levels of rewards offered c. A negotiation between management and the employee for total rewards offered d. Experienced-based rewards offered

a. Type, Level, and Combination of rewards offered

The goal of a job analysis is to: a. Understand the work involved and how it creates value b. Understand the way that the employee feels valued in the organization c. Understand how to develop an employee d. Understand the organizational chart and how an employee should be compensated

a. Understand the work involved and how it creates value

Which of the following is not considered an intangible reward? a. cash bonuses b. meaningful work c. playing a key role in a company d. rewarding relationships

a. cash bonueses

This fairness perception focuses on the process by which the reward distribution was determined. a. procedural justice b. interactional justice c. distributive justice d. extreme justice

a. procedural justice

Organizations provide value for employees through ____________________. a. reward systems b. jobs c. company perks d. employee development

a. reward systems

Reward Systems are mechanisms for exchanging value among how many parties? a. two b. one c. three d. four

a. two

An organizational citizenship behavior is: a. A value-creating activity that engages employees, which is part of the job b. A value-creating activity engaged in by employees, but not as part of the job c. A value-creating activity that is asked from senior management to mid-level management to complete d. A value-creating activity that employees do as part of the job description

b. A value-creating activity engaged in by employees, but not as part of the job

A job incumbent is: a. An employer that is seeking to hire new employees b. An employee that is currently working in a job that you are studying c. An employee agency seeking new part time workers d. None of the above

b. An employee that is currently working in a job that you are studying

To create a strategic total rewards plan, you need to understand all of the following except: a. Market b. Benefits c. Customers d. None of the above

b. Benefits

Job analysis needs to be _____________ to achieve buy in. a. Incredible b. Credible c. Understandable d. Respectable

b. Credible

This is a benefit to using generic questions in an interview: a. Length of interview b. Efficient in time c. Financial cost d. Number of interviewers

b. Efficient in time

How often should a job description be updated? a. Every 3 years b. Every time a performance review is completed c. Every 2 years d. As needed and appointed by the HR manager

b. Every time a performance review is completed

The primary product of the job analysis process is the: a. Development b. Job description c. Employee trainings d. Compensation

b. Job description

Generally, an organization that follows the differentiation strategy will be able to pay their employees: a. Less b. More c. A higher overall total compensation package d. Higher benefits

b. More

What is variable pay? a. Being paid variably through the month b. Performance-based rewards and long-term equity c. Ability to negotiate salary d. Being paid in a variety of ways (i.e. base salary, fringe benefits, etc.)

b. Performance-based rewards and long-term equity

A custom questionnaire is: a. Irrelevant b. Questions that the job incumbent completes c. Extra questions that the interviewer asks d. Questions that only one incumbent will be asked

b. Questions that the job incumbent completes

Job descriptions often contain information about the _________ that are important for accomplishing the job. a. Monetary values b. Relationships c. Understanding d. Strengths

b. Relationships

As a compensation manager, you will NOT: a. Explain the compensation plan to others b. Require the organization to implement a market-standardized compensation plan c. Manage company goals d. Understand the compensation plan

b. Require the organization to implement a market-standardized compensation plan

The bulk of the job description does not include: a. Duties b. Rewards c. Responsibilities d. Tasks

b. Rewards

Reward form combination strategy refers to: a. Rewards (cash, benefits, etc.) and how they differ from each other b. Rewards (cash, benefits, etc.) and how they relate to each other c. Rewards (cash, benefits, etc.) and how they compete with departments within the organization d. Rewards (cash, benefits, etc.) and how they compete in the market

b. Rewards (cash, benefits, etc.) and how they relate to each other

Rewards Strategy Coherence refers to: a. An irrelevant topic and should be dismissed b. The extent to which the parts of the strategy fit together in a logical and clear way c. The basic idea of the rewards strategy, which is to place the company in an attractive view to potential employers and competitors d. The ability for all members of an organization to completely understand the goals of the rewards strategy

b. The extent to which the parts of the strategy fit together in a logical and clear way

Job analysis will be _____________ if management and employees do not buy-in to it. a. Useful b. Useless c. Understandable d. None of the above

b. Useless

Understanding opportunities can help ask the question: a. What can we do that our competitors can't? b. Where can we improve? c. What can our competitors do that we can't? d. What societal flaws can hurt the organization?

b. Where can we improve?

How do Employees define total rewards? a. the ability to provide a fair, competitive salary in the job market b. all forms of pay and compensation, tangible benefits and other intangible reward that an organization provides. c. base salary d. all forms of benefits such as insurance and paid time off, NOT including salary.

b. all forms of pay and compensation, tangible benefits and other intangible reward that an organization provides.

Job analysis is designing a process to understand how to _______________________. a. create career growth b. create value c. create financial success d. create jobs

b. create value

Employees create value for organizations through _________________. a. employee referrals b. work

b. work

What is the longest a job description should be? a. 4 pages b. 2 pages c. 1 page d. 3 pages

c. 1 page

What department of the company is not affected by the compensation plan? a. Marketing b. Accounting c. All departments are affected d. Research and development

c. All departments are affected

A traditional interview does not consist of: a. Time spent on activities on the job b. Content c. Asking about family history d. Skills

c. Asking about family history

Absolute level refers to: a. Fair salary b. Experience salary c. Base salary d. Competitive salary

c. Base salary

Total rewards includes: a. Base salary b. Benefits, base salary, paid time off c. Base salary and benefits d. Benefits

c. Base salary and benefits

In a traditional interview, one advantage would be: a. Allowing for exploration b. Asking for clarification c. Both A & B d. None of the above

c. Both A & B

________________________ refers to the direct monetary pay given to an employee in exchange for their contributions to the organization. a. Total rewards b. Time off c. Cash compensation d. Benefits

c. Cash compensation

Team performance: a. Comprises the star employees' level of performance b. Comprises senior management level of performance c. Comprises the collective actions of groups of employees d. Comprises customer feedback regarding employees

c. Comprises the collective actions of groups of employees

Which of the following does organizational performance not include? a. Effectiveness at meeting customer needs b. Gains in market share c. Developing employees d. New product creation

c. Developing employees

Cash compensation influences: a. Management perception b. Government perception c. Employee perception d. Market perception

c. Employee perception

This is a disadvantage to using generic questions in an interview: a. Efficient in time b. Amount of people in an interview c. Financial cost d. Length of interview

c. Financial cost

Cost leadership focuses more on: a. Strategy b. Leadership c. Price d. Cost

c. Price

The bulk of job descriptions do not include which of the following: a. Tasks b. Responsibilities c. Requirements d. Duties

c. Requirements

Which of the following would not be included as an intangible reward? a. Meaningful work b. Positive working relationships c. Salary d. Location

c. Salary

Job Analysis is: a. The process of understanding how many jobs are in an organization b. The process of developing an organizational chart for an organization c. The process of systematically analyzing the work done in organizations d. The process of adding the sum value of salaries throughout the organization

c. The process of systematically analyzing the work done in organizations

Understanding threats can help ask the question: a. What can we do that our competitors can't? b. Where can we improve? c. What societal flaws can hurt the organization? d. What can we not do?

c. What societal flaws can hurt the organization?

This fairness perception is based upon employees' views of the distribution of rewards in the organization. a. procedural justice b. interactional justice c. distributive justice d. extreme justice

c. distributive justice

Human Resource Strategy is to ______ business strategy and CSFs. a. Separate b. Analyze c. Investigate d. Align

d. Align

Which of the following job families would not be affected by total rewards? a. Engineers b. Finance c. Marketing d. All job families are affected by total rewards

d. All job families are affected by total rewards

When creating a job analysis, you would want to speak with: a. Job incumbents b. Supervisors c. Managers d. All of the Above

d. All of the Above

An organization's total rewards strategy is composed of: a. Pay forms b. Plans c. Policies d. All of the above

d. All of the above

Compensation affects which groups of people in a company? a. HR managers b. Employees c. Potential employees d. All of the above

d. All of the above

In your capacity as a generalist, your ability to impact compensation will happen in the following way: a. Staffing b. Training c. Recruiting d. All of the above

d. All of the above

Reward forms include: a. Salary b. Retirement c. Intangibles d. All of the above

d. All of the above

Within the cost leadership strategy, the customers will be charged ________________. a. More b. Less c. Nothing d. All of the above

d. All of the above

The relative level involves which of the following: a. Leading the market b. Lagging the market c. Matching the market d. Any of the above

d. Any of the above

Strategic Human Resource Management ensures that HR practices are aligned with the ____________ _____________ in general and critical success factors in particular. a. Market Trends b. Management Goals c. Employee Preferences d. Business Strategy

d. Business Strategy

Fringe benefits have become quite ____________ to compensation plans. a. Proven b. Unimportant c. Conditional d. Central

d. Central

The primary outcome of SWOT analysis is to list out: a. Critical Success Factors b. Critical Summation Factors c. Critical Series Factors d. Critical Sample Factors

d. Critical Sample Factors

Organizational performance includes all but: a. Profits b. New market share c. Meeting customer needs d. Employee satisfaction

d. Employee satisfaction

To have an effective rewards system, you will not need to understand: a. Market conditions b. Customer needs c. Profitability d. Employees' previous salary

d. Employees' previous salary

Of the following, which is not considered a guide to fairness in total rewards: a. Procedural b. Interactional c. Distributive d. Extreme

d. Extreme

Which of the following industries best demonstrates the cost leadership strategy? a. Manufacturing b. Technology c. Fine dining d. Fast food

d. Fast food

In this course, you will learn that as a compensation manager, you will: a. Explain to senior management why employees are unhappy with their salary b. Develop strategies in which you will be able to create opportunities for career advancement c. Help employees understand how to negotiate a higher salary d. Improve compensation systems and better enable your organization to meet its goals

d. Improve compensation systems and better enable your organization to meet its goals

Who should be involved in the job analysis? a. Lower level employees b. Human resources department c. Executive level management d. Key personnel

d. Key personnel

Name one disadvantage to a panel interview? a. Not Part of the Job b. Too Much Work c. Not Needed d. Length of Time

d. Length of Time

In a niche-focused strategy, an organization will have to compete with the following strategies: a. Cost leadership b. Differentiation strategy c. Hybrid d. None of the above

d. None of the above

Job analysis is gathered by ____________. a. Data b. Computer graphics c. Guessing d. People

d. People

Organizations get work done through: a. Product b. Dollars c. Customers d. People

d. People

What is another term for "fringe benefits"? a. Salary b. Company parties c. Paid time off d. Perks

d. Perks

SWOT stands for: a. Supply, Weakness, Opportunities, Threats b. Strengths, Weaknesses, Opportunities, Transfer c. Supply, Weakness, Opportunities, Transfer d. Strengths, Weaknesses, Opportunities, Threats

d. Strengths, Weaknesses, Opportunities, Threats

What is base pay? a. The salary based on the market rate b. An hourly employee's wage for training hours c. The salary or hourly wage including benefits d. The salary or hourly wage in exchange for the employee's contribution to the organization

d. The salary or hourly wage in exchange for the employee's contribution to the organization

Total rewards plays a ______________ role in the business strategy. a. Not important b. Important c. Not very important d. Vital

d. Vital

Understanding weaknesses can help ask the question: a. Where can we improve? b. What societal flaws can hurt our organization? c. What can we do that our competitors can't? d. What can we not do?

d. What can we not do?

This fairness perception focuses on the perceptions of the extent to which the employee was treated with due respect. a. procedural justice b. interactional justice c. distributive justice d. extreme justice

d. interactional justice

The effectiveness of your compensation plan can be addressed by which of the following questions: a. Is your rewards system augmenting or inhibiting employee, team, and organizational performance? b. Does it help your organization attract and retain its best employees or cause them to seek better opportunities elsewhere? c. Is your system seen as fair and does it satisfy employees' needs? d. Does your rewards system accomplish its objectives in an efficient, cost-conscious way? e. All of the above

e. All of the above