Compensation Final Study Guide
How many weeks of leave does the FMLA (1993) mandate for all workers at companies that employ 50 or more people?
12 weeks
A benefit plan that allocates as et dollar amount to employees and allows them to select benefits is called__________ plan.
A Flexible benefit or cafeteria benefit plan
In situations where the nature of the tasks is so much uncertain that it may be difficult to specify expected goals, the most appropriate rating format is:
A standar rating scales
If you had repair work done one your car, the shop most likely used_________ to pay the mechanic
A standard hour plan
Paying a dime for every bottle collected and turned to a collection center is an example of:
A straight piecework system
The purpose of equity incentive programs such as restricted stock or stock options is:
Align employee goals with goals of the shereholders
In which of the following jobs is it most appropriate to use behavioral anchored rating scales?
An assembly line job that involves tightening nuts on an engine
One common feature of ALL types of incentive plans is:
An established standard of performance that us used to determine the magnitude of the incentive pay
Total compensation or total rewards typically refers to
Base-pay, incentive pay, and employee benefits
When a job involves very routine, mechanistic task, the most appropriate appraisal format is:
Behavioral Anchored Rating Scales (BARS)
Which of the following is the best appraisal format in terms of legal defensibility?
Behavioral Anchored Rating Scales (BARS)
Which of the following ratings formats has the lower rating errors?
Behavioral Anchored Rating Scales (BARS)
Which of the following groups can qualify for the exemptions under the Fair Labor Standards Act of 1938?
Computer Employees
Which of the following is a measure of changes in prices of goods and services in the product and service markets over time?
Consumer price index
In which of the following types of cases is the focus on the discriminatory consequences rather than the intent to discriminate?
Disparate Impact
The amount of fairness, in this case amount of pay, given to employees refers to:
Distributive justice
Evaluating pay programs is important; which one is not an evaluation perspective
Employee perceptions, understanding and behavior SWAT analysis Financial and operational impact Administrative reliability and efficiency
__________, a software package, allows workers to make health-care choices, allocate savings to 401(k)s or other savings vehicles, and access vacation schedules.
Employee self-service
Experts attribute the stabilization in the dollar cost of worker's comp since 2010 to:
Employer safety programs
In the majority of states, unemployment insurance is financed exclusively by:
Employers that pay federal and state unemployment insurance
Which of the following is a factor to control in order to manage labor costs in a simple labor cost model?
Employment
_____________ is a variable pay plan where payout depends not on company level performance such as labor cost saving, but rather on performance at some subunit; plant or facility
Gain sharing or scanlon plan
Which Statement is true for tipped employees according to the Fair Labor Standards Act of 1938?
If an employee tips do not get the employee up to the minimum wage, the employers makes up the difference.
Is it illegal to pay women less than men if:
If their jobs are different If their pay difference is based on gender if their pay difference is upon performance All of the above are legal reasons why women can ve paid less than men
Which of the following is a negative outcome of the management by objectives method?
Increase in performance pressure and stress
The determination of pay discrimination on jobs of dissimilar content requires a standard that allows jobs of dissimilar content to be declared comparable and that allows pay differences for jobs that are not comparable. This standard is
Job Evaluation
In the context of the performance evaluation process, which of the following ensures that raters are motivated to rate accurately?
Making sure that managers are graded on how well they utilize and develop Human Resources
The most common form out outcome based appraisal is:
Management by objectives
Which of the following is a reward that recognizes outstanding past performance?
Marit Pay
Susan Works for a landscaping company. Is her employer required to pay her for travel?
Only when she travels between jobs during the workday
The ______________ provides an alternative to employer provided healthcare insurance
Patient Protection and Affordable Care Act
Which of the following is a disadvantage of gain- sharing plans?
Payouts can occur even if a company's financial performance is poor
Various studies have found that only two specific benefits curtailed employee turnover, namely____________ and ______________.
Pensions; medical coverage
A major criticism of standard rating scales is that
Raters have different definitions of scales levels
A major advantage of a ________ is that it reduces benefits costs, something that the other cost-cutting options ordinarily do not achieve.
Reduction in force
Which of the following motivational theories states that performance based payments work best when they closely follow performance?
Reinforcement Theory
A compa-ratio reflects the
Relationship of the average actual salary in each ranch to the midpoint of the range
A survey shows that most employers are responding to increased benefits cost by
Requiring employees to pay higher deductibles and copays
Jennifer is hurt at work while driving a forklift. Her employer claims that she was injured as a result of her careless driving and its therefore not eligible for worker's comp. What will be the outcome of the employer's challenge to her worker's compensation claim?
She will likely receive worker's compensation benefits
Which of the following benefits is a federally administered program desinged to help workers when they retire?
Social Security
_________ have indirect pay performance links and require employees to put up money to exercise grants
Stock options plans
Which of the following is a test that must be met to qualify for the administrative exemption?
The employee must be compensated on salary basis at a rate not less than $455 per week.
Deming's major argument regarding performance appraisals is that:
The work situation is the major determinant of performance
Why don't employees share pay information with employees?
These are all good reasons for not sharing pay information with employees
Which of the following is an advantage of team incentives?
They are effective in stimulating ideas and problem solving.
Which of the following is a feature of defined contribution plans?
They are faster to vest than defined benefit plans
Which of the following statements is true of individual spot awards?
They are given to employees for exceptional performance as an add on bonus
Which of the following statements is true of merit bonuses?
They are viewed as less of an entitlement than merit pay
Which of the following is an advantage of gain sharing plans?
They increase employee's knowledge of business
Which of the following is an advantage of flexible benefit plan?
They increase the involvement of employees in choosing benefit plans
Changes in wages in labor markets are measured
Through pay surveys
Which of the following is an objective of the unemployment insurance program?
To provide an incentive for employers to stabilize employement
When employees are paid more than the maximum of their pay grade, these rates are called?
Bonuses and profit sharing
_______________ has produced more comparable worth pay increases than any other approach
Collective Bargaining
_________, designed for employees or managers, explain compensation policies and practices, answer frequently asked questions, and explain how these systems affect their pay.
Communication portals
Under the_______, employers must pay men and women equally for the same work.
Equal Pay Act
According to__________ theory, relative pay is important as employees evaluate the adequacy of their pay via comparisons with other employees
Equity Theory
The_______ theory of motivation states that employee motivation is the product on instrumentality and valence
Expectancy Theory
In the context of evaluation formats, which of the following is true of the alternation ranking method?
It recognizes that raters are better at ranking people at extreme ends of a distribution
Jacob, and 18 year old, has been working at HoldVille Corp. for a year. If HoldVille offers full vesting after one year, which of the following statements is true?
Jacob is NOT eligible for pensions as he is nit over 21
Who among the following has violated the FLSA of 1938?
Jeremy, who employs his 16 year old cousin in his meat packing plant
Survey show that the most highly valued employee benefit is:
Medical Insurance
The Equal Pay Act requires
Men and women to be paid the same for the same job
Which of the following includes a provision that requires public companies to set policies to allow executive compensation to be taken back if it was based on inaccurate financial statements that did not comply with accounting standards?
The Dodd-Frank Wall Street Reform and Consumer Protection Act
Which of the following statements is true regarding rater training?
Training to reduce halo error and improve accuracy has been most successful
The __________ recognizes the fact that when people leave an organization, they typically are replaced by employees who earn a lower wage.
Turnover effect
An exempt employee (from the FLSA) must be paid
When they go to a dental appointment during the workday
Which of the following benefits is NOT mandated by either the state of federal government?
Work/life balance
Which of the following statements is true of merit pay?
Merit Pay programs are commonly designed to pay different amounts depending on the level of performance
What factors changes are transforming the workplace?
Technology Globalization Workforce demographics All of these factors are transforming the workplace
Regarding pay differences for different jobs
Courts continue to uphold the use of market data to justify differences
Replacing merit grids with __________ eliminates the link between the pay increase and the employees' salary position in the range and performance rating.
Bonuses