Compensation Management and Reward Systems Midterm
Organization factors that shape internal pay structures include all BUT which of the following? A) Cost implications B) HR policy C) Economic pressures D) Technology
C
Which of the following is NOT included in a strategy map? A) Management B) Employee contributions C) HR alignment D) External competitiveness
C
In the regression equation, y = a + bx, job evaluation points are denoted by _____. b a y x
X
Common bases for modern pay structures include all BUT which of the following? A) The extent of external competitiveness and equity B) The skills and knowledge required to perform the work C) The content of the work D) The work's relative value for achieving organizational objectives
A
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) core competencies B) compensable factors C) benchmark factors D) competitive skills
B
Routine work is also termed _____. A) tacit work B) transactional work C) hygiene work D) system work
B
The _____ pay strategy emphasizes external competitiveness and deemphasizes internal alignment A) job structure B) market pricing C) broad banding D) reference rate
B
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 Liability Relief Program B) Troubled Asset Relief Program C) Corporate Welfare Program D) Employee Welfare Program
B
Which of the following statements regarding allowing employees a choice in their pay mix is NOT true? A) Providing too many choices can confuse people B) Allowing employees their choice is easy for competitor companies to imitate C) Allowing employees their choice is difficult to manage D) Providing unlimited choices for employees to choose from is difficult to design
B
_____ is a crucial factor that affects the perception of fairness of a skill-based plan A) The extent of alignment with an organization's strategy B) The design of the certification process C) The number of weights and factor degrees D) The number of compensable factors
B
_____ 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 evaluation C) Point factor evaluation D) Job restructuring
B
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) egalitarian pay structure B) highly layered pay structure C) highly inequitable pay structure D) hierarchical pay structure
A
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) ranking method B) Hay plan C) classification method D) point method
A
Pay ranges: A) reflect the differences in performance or experience that an employer wishes to recognize with pay B) usually lead to an increase in employee turnover C) cause employees to believe that their compensation cannot increase in the same job D) are flexible enough to deal with differences in quality but not with the productivity or value of these quality variations
A
The pay-level policy that is most likely to reduce pay dissatisfaction is a(n) _____. A) lead policy B) lag policy C) employer of choice policy D) match policy
A
The scheme used in the text for classifying competencies consists of three groups. Which of the following is NOT one of them? A) Team dynamics B) Personal characteristics C) Visionary D) Organization specific
A
Which form of pay does not permanently increase labor costs? A) Incentive B) Cost-of-living adjustments C) Merit pay D) Base pay
A
Which of the following is an example of a relational return? A) Employment security B) Short-term incentives C) Long-term incentives D) Income protection
A
Which of the following is an ordering of jobs based on their content or relative value? A) Job structure B) Job description C) Job evaluation D) Job analysis
A
Which of the following statements is true regarding broad bands? A) They foster cross-functional growth B) They remove limits on total salary budgets C) They increase the hierarchical nature of organizations D) They support recognition via titles or career progression
A
A set of identical positions makes a _____. A) procedure B) job C) task D) title
B
A compensation system using market-based pay is most likely to be part of a(n) _____ strategy A) cost-cutter B) innovator C) cost leadership D) customer-focused
B
ADA has directly led many employers to _____. A) only use the PAQ method for job analysis B) modify special benefits so that allowances can be made for people with disabilities as required by the law C) modify the format of their job descriptions to specifically call out the essential elements D) only use the task inventory method for job analysis
C
Among employers that provide health insurance, the cost to provide family coverage per year per employee is approximately _____. A) $22,000 B) $4,000 C) $16,000 D) $9,000
C
One of the reasons why 8 in 10 of the uninsured in the United States are from working families is that _____. A) most workers decline health insurance when offered by their employers B) many larger employers do not offer health insurance as it does not guarantee an increase in productivity levels C) many small employers are much less likely than larger employers to offer health insurance to their employees D) health insurance is more costly for larger employers
C
Which of the following is most likely to be a disadvantage of skill-based pay plans? A) They discourage adaptability of employees to changing production needs B) They dampen employee versatility C) They are expensive in the long run as the majority of employees become certified at the highest pay levels D) 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
C
Which of the following jobs would most likely fall into a fuzzy market? A) The position of English professor that was filled by a Ph.D. holder in English Language and Literature with five years of teaching experience B) The position of Sound Engineer that was filled by a graduate with a degree in audio engineering C) The position of Senior Director of Future Vision Services that was filled by a software engineer with e-commerce, marketing, and theater experience D) The position of Vice-President of a marketing firm that was filled by a marketing manager with 15 years of experience in the marketing field
CC
A small lawn care company has two mowers and four employees. If it hires another employee and the factors of production remain the same, how will the productivity of the fifth employee compare to that of the current four employees? A) There is not enough information to determine productivity B) The productivity will increase C) The productivity will remain the same D) The productivity will reduce
D
All of the following are important factors in defining a market for compensation purposes EXCEPT A) geography B) the skill or knowledge required C) product and/or labor market competitors D) the ability to pay
D
In the context of internal alignment, which of the following is the correct sequence? A) Job evaluation > Job description > Job structure B) Job description > Pay structure > Job evaluation C) Pay structure > Job description > Job evaluation > Job analysis D) Job description > Job evaluation > Job structure
D
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 review existing documents in order to develop an initial familiarity with the job D) Mike should conduct an interview with George to get an overview of the job
D
The _____ minimizes the distortion of the central tendency caused by outliers A) weighted mean B) mean C) standard deviation D) median
D
The market pay rate is the A) minimum wage rate set by the Department of Labor B) pay rate at which applicants will deny a job offer C) difference between use value and surplus value D) point at which supply and demand lines cross
D
The second step of developing a total compensation strategy is to: A) implement the strategy B) estimate the cost of the strategy C) assess total compensation implications D) map the strategy
D
Which of the following is an example of a bourse market? A) Neurofort, a website that sells surgical equipment in bulk at fixed prices B) Needlefarm, a store that sells premium furniture at discounted rates C) Hardknox, a hardware store that sells all its products at 10 percent above the maximum retail price D) Flatcake, a website that allows buyers to negotiate the prices with the sellers of handmade goods
D
Which of the following statements is true of pay level A) The higher the pay level relative to what competitors pay, the lower the relative costs to provide similar products or services B) Pay level is independent of the number of employees in an organization C) Pay level is the same across all organizations for the same job D) Pay level is directly proportional to labor costs
D
T/F Distributive justice is more important than procedural justice for employee acceptance of their pay.
F
T/F Skill-based plans become increasingly economical as the majority of employees become certified at the highest pay levels.
F
T/F Managers often regard external market data as more objective than internal job evaluation
T