HRM ch 9 concept check quiz

In the context of nonmandated benefits, which of the following allows employees to choose the benefits they really want?

A cafeteria-style benefits plan

Which of the following statements is true of nonmandated benefits?

Businesses may elect to provide these benefits in order to attract more qualified workers

In the context of compensation, which of the following terms refers to comparisons made by employees to others employed by different organizations performing similar jobs?

External equity

Hamid, a 68-year-old man, recently retired from a corporate company as a languages trainer. He now tutors school children to cover his monthly expenses. Additionally, Hamid also receives some income from the government. This income is based on his average monthly salary that he used to earn, weighted toward the latter years of his career. In the given scenario, Hamid most likely receives

Income under the Social Security System

Which of the following statements is true of unemployment insurance

It is funded by premiums paid by employers

Which of the following statements is true of the Employee Retirement Income Security Act (ERISA) of 1974?

It makes vesting rights operational after 6 years of service at the most

Which of the following statements is true of benefits programs?

Most experts argue that money spent on benefits programs affects job satisfaction and subsequent turnover

Social Security is officially known as the ___________.

Old Age Survivors and Disability Insurance Program

Which of the following refers to the extent to which information on the compensation of any individual in an organization is formally made available to other individuals?

Pay secrecy

Which of the following statements is true of executive compensation?

The traditional method of Incentive pay for executives is in the form of bonuses

Which of the following was one of the basic aims of the Affordable Care Act?

To lower the number of uninsured employees

Ralph, a sales representative in a car showroom, was fired from his job because he could not meet the monthly sales targets over the past 6 months. He is currently looking for another job. Which of the following mandated benefits can Ralph avail until he finds another job?

Unemployment Insurance

Which of the following terms refers to guaranteed rights to receive pension benefits?

Vesting rights

Reuben, an electrician who works at Fresnas Builders, got severely injured when the transformer he was repairing at a construction site short-circuited. Reuben suffered many injuries, and the doctor advised him to rest for at least 2 months. During these 2 months, Reuben's medical expenses were covered by his employer. In the given scenario, Reuben is most likely insured under _____________

Workers' compensation

Leonard, an executive employee at a bank, contributes a part of his salary to a retirement account in his name every month. Even his employer contributes some amount to this account on a monthly basis. The collective aim of Leonard and his employer is to amass a predetermined amount by the time Leonard retires so that he can receive those benefits after retirement. This amount is based on Leonard's salary and his years of service at the bank. In the given scenario, Leonard and his employer are contributed to ___________.

a defined benefit plan

As part of a new benefit program, a law firm conducts physical exercise sessions for its employees twice a week to keep them healthy. The aim of this program is to keep employees from getting sick and help them stay fit and active. The given scenario illustrates ____________.

a wellness program

In the context of nonmandated benefits, which of the following concentrates on keeping employees from becoming sick rather than simply paying expenses when they do become sick?

a wellness program

Which of the following statements is true of the classification system for job evaluation?

after job grades have been determined, the job evaluator writes descriptions of each job class

Oliver, a stockholder at an investment firm, is addicted to alcohol. This addiction has severely affected his performance at work. He speaks with his HR manager about the addition and signs up for a voluntary program at his office that helps employees deal with chronic alcohol addiction. In the given scenario, Oliver has most likely signed up for _____________.

an employee assistance plan

Most senior executives receive their compensation in two forms, they are:

bas salary and some form of incentive pay

The various rewards, incentives, and other things of value that an organization provides to its employees beyond their wages, salaries, and other forms of direct financial compensation are known as

benefits

the set of rewards that organizations provide to individuals in return for their willingness to perform various jobs within the organization is known as ____________

compensation

Shireen, a chartered accountant at an investment firm, is dissatisfied with the compensation she receives from her firm. She speaks to her friend Davis, who has the same job profile in a rival firm. She learns that his salary is substantially higher than hers. In the given scenario, Shireen is most likely to be concerned about _____________.

external equity

Bianca is a product engineer at Argon Inc. She learns that the salary she receives is less than that received by the other product engineers in the company with similar qualifications and job experiences as hers. As a result, she becomes unhappy with her compensation and feels demotivated. She later talks to her manager and asks for a raise. In this scenario, Bianca has experienced problems with ____________

internal equity

In the context of compensation, which of the following terms refers to comparisons made by employees within the same organization

internal equity

Pay compression is likely to occur in an organization if an experienced employee's salary:

is not much more than that of an entry-level employee

Which of the following is an advantage of the factor-comparison method for job evaluation?

it provides a rigorous assessment of the true value or various jobs

Which of the following statements is true of the point system for job evaluation?

it typically evaluates 8-10 compensable factors for each job

Which of the following is a method for determining the relative value or worth of a job to an organization so that individuals who perform that job can be compensated adequately and appropriately

job evaluation

Laura is a layout artist at an advertising agency and has been part of the organization for 5 years. However, she earns less than Andrea, a digital artist who has been in the organization for only 3 years. This is because digital advertising is the latest trend in the advertising industry, and hence, there is a huge demand for digital designers in the market. The given scenario is an example of ____________.

pay inversion

Which of the following refers to a situation where new employees in an organization are actually paid more than experienced employees in the organization because of rapid changes in the external market?

pay inversion

Anna, an employee at a manufacturing company, contacted the HR manager of her company to inquire about the compensation received by her colleague for working overtime. The HR manager, however, refused to disclose the details to Anna stating that it was confidential. The given scenario illustrates ___________.

pay secrecy

Human resources managers are most likely to obtain much of the information concerning external equity from a

pay survey

The Employee Retirement Income Security Act (ERISA) was passed to

protect employees who had contributed to their pensions but were unable to collect those benefits later

Which of the following describes compensation on a monthly or annual basis and compensates employees not for how much time they spend in the organization but for their overall contributions to the organization's performance

salaries

Which of the following rewards employees for acquiring new expertise?

skill-based pay

which of the following rewards employees for acquiring new expertise?

skill-based pay

Which of the following job-evaluation techniques attempts to group sets of jobs together into clusters, with are often called grades?

the classification system

Which of the following is a problem with cafeteria-style benefits plans

the employee most likely to select a benefit is also most likely to use the benefit, which tends to drive up benefit costs

Which of the following statements is true of defined benefit plans?

they are closely monitored under the Employee Retirement Income Security Act of 1974.

Which of the following statements is true of above-market pay policies

they are likely to foster a culture of elitism and competitive superiority

Which of the following statements is true of defined contribution plans

they can include donations from both the employer and the employee

Which of the following refers to hourly compensation paid to operating employees?

wages

Which of the following is a difference between wages and salaries?

wages generally refer to hourly compensation, whereas salaries refer to monthly or annual compensation

in the context of mandated protection programs, which of the following covers individuals who suffer a job related illness or accident

workers' compensation