human capital chapter 14, HR ch:9, Chapter 10, Chapter 12, ch 11 383
: Bloom's: Comprehension 75. When communicating benefits programs to employees use: a. correct legal language to avoid subsequent liability. b. one, uniform method to communicate to all employees. c. multiple media techniques. d. graphics and presentation software to conceal unpleasant news.
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 69. Online benefits systems are often referred to as _____ and can result in significant cost savings in benefits administration. a. cafeteria plans b. value-based initiatives c. employee self-service systems d. high-deductible health insurance plans
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 97. Organizations of physicians and other health care professionals that provide a wide range of services to subscribers on a prepaid basis are known as: a. preferred provider organizations (PPOs). b. major medical plans. c. health maintenance organizations (HMOs). d. integrated medical practices.
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Comprehension 127. The Social Security Administration administers the ______________ program. a. Childcare b. ERISA c. Medicare d. SNL
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 106. Beginning in 2014, firms with ____ full-time employees will be required to automatically enroll new full-time employees in their health care plans. a. 50 b. 100 c. 200 d. 250
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 108. Under the Family and Medical Leave Act (FMLA), employees are eligible to take leave if they have worked for their employers for at least twelve months, have at least _____ hours of service, and work in organizations that have 50 or more employees within a 75-mile radius a. 750 b. 1,000 c. 1,250 d. 1,500
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 82. The Social Security insurance program is funded by: a. employer contributions. b. Old Age, Survivors, and Disability Insurance (OASDI). c. employee contributions with matching employer contributions. d. employee contributions and general tax funds.
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 83. Which of the following is NOT a benefit covered under Social Security insurance? a. Old-age insurance benefits b. Disability benefits c. Short-term disability caused by a job-related accident d. Survivors' benefits
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 88. A typical unemployment insurance program does NOT require that: a. all eligible individuals must register for available work. b. all eligible individuals must submit an application for benefits. c. recipients must be willing to accept any job that is offered to them. d. recipients must be willing to accept any suitable job that is offered to them.
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 91. One of the limitations of the Family and Medical Leave Act is that it only applies to companies that have ____ or more employees during 20 or more calendar workweeks in the current or preceding year. a. 30 b. 40 c. 50 d. 60
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 92. The Family and Medical Leave Act: a. applies to employers having 10 or more employees during 20 or more calendar workweeks in the current or preceding year. b. preempts state laws under all circumstances. c. mandates continuation of medical coverage. d. requires the employer to provide up to 24 weeks of unpaid, job-protected leave for certain family and medical reasons.
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 95. Retired persons are eligible for Medicare at the age of: a. 59. b. 62. c. 65. d. 67.
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 96. A portion of the payroll taxes is paid by workers and matched by their employers. In 2011, workers and their employers each paid _____ percent on every dollar of salary or wages paid. a. 1.15 b. 1.30 c. 1.45 d. 1.60
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 99. The _____ mandates that employers make health care coverage, at the same rate the employer would pay, available to employees, their spouses, and their dependents on termination of employment, death, or divorce. a. Health Care and Education Reconciliation Act b. Patient Protection and Affordable Care Act c. Consolidated Omnibus Budget Reconciliation Act d. Social Security Act
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Application 112. The decision whether a pension plan should be offered is the responsibility of the: a. union and Department of Labor representatives. b. employees. c. employer. d. Pension Benefit Guaranty Corporation.
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 116. A pension plan where the amount that an employee is to receive upon retirement is set forth in advance is referred to as a: a. contributory plan. b. noncontributory plan. c. defined-benefit plan. d. defined-contribution plan.
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 121. After an employee works for an employer for a certain period of time, the employee is entitled to the money in his or her pension plan. This employee is now: a. secured. b. endowed. c. vested. d. integrated.
c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM TOPICS: Bloom's: Knowledge 122. Vesting guarantees: a. withdrawal of benefits at any time. b. automatic funding of pension plans. c. accrued pension benefits at retirement age. d. selection of pension options. ANSWER: c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 76. According to the Social Security Administration, in 2014, about _____ people received retirement survivors and disability benefits from Social Security. a. 100 million b. 75 million c. 60 million d. 25 million
c POINTS: 1 DIFFICULTY: Knowledge LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 102. An advantage of a health savings account is that if there are funds remaining in the account at the end of the year the money: a. goes back to the employer, helping the employer contain costs. b. is forfeited. c. belongs to the employee. d. can be withdrawn and placed in the employee's retirement account.
c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 126. Employer-sponsored child care programs and elder care programs are similar because: a. under both programs, most of the caregivers are men. b. both types of programs typically offer on-site care facilities to the employees who bring their wards to the workplace. c. both programs try to maintain or increase productivity by assisting employees with their responsibilities outside the workplace. d. both programs offer substantial income tax benefits to employees.
c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: MGHR.SNEL.17.11-3 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
The Fair Labor Standards Act permits employers to pay a "training wage" of _____ per hour for employees younger than the age of twenty during their first ninety days of employment, provided their employment does not displace other workers. a. $5.26 b. $5.76 c. $6.16 d. $6.56
c. $6.16
Which of the following is NOT a form of pay equity? a. Internal equity b. External equity c. Collective equity d. Individual equity
c. Collective equity
The major provisions of which act are concerned with minimum wage rates and overtime payments, child labor, and equal rights? a. Equal Pay Act b. Davis-Bacon Act c. Fair Labor Standards Act d. Walsh-Healy Act
c. Fair Labor Standards Act
The elements of a job such as skills, efforts, responsibilities, and working conditions are referred to as: a. job specifications. b. job classification factors. c. compensable factors. d. factor comparisons.
c. compensable factors.
The _____ collects and displays the results for all the measures that a company uses to monitor and compare compensation among internal departments or units. a. red circle rate b. competence-based pay system c. compensation scorecard d. point system
c. compensation scorecard
. A _____ is a system of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades. a. point system b. job valuation system c. job classification system d. job ranking system
c. job classification system
Most pay increases may lack motivational value to employees when _____. a. legality is questionable b. they are too large c. salary budgets are low d. benefits are insignificant
c. salary budgets are low
. A job evaluation system that seeks to measure a job's worth through its value to the organization is known as: a. job ranking. b. job classification. c. work valuation. d. the point system.
c. work valuation.
Performance of sales people can be affected by all of the following external factors except:
change in the sales volume standard
employee stock ownership plans (ESOPs)
characteristics of what? -The employer establishes an ESOP trust that qualifies as a tax-exempt employee trust under Section 401(a) of the Internal Revenue Code -Stock bonus plans are funded by direct employer contributions of its stock or cash to purchase its stock. -Leveraged plans are funded by employer borrowing to purchase its stock for the ESOP.
Workplace violence warning signs include all of the following except:
chronic
Under the Occupational Safety and Health Act, the U.S. Department of Labor may do any of the following except:
close plants that are extremely dangerous.
: Bloom's: Knowledge 67. Which of the following represents the greatest expense to which a dollar of the employee compensation goes to in the United States? a. Supplemental pay b. Paid leave c. Legally required benefits d. Health, life, and disability insurance
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 70. To obtain employee input regarding benefits packages, employers often use: a. performance appraisals. b. psychological tests. c. union reports. d. opinion surveys.
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 73. Flexible benefit plans: a. are offered to employees who then must purchase each benefit they select. b. are favored by employers because they reduce administration costs. c. result in wasted benefits because of the number of different types available to employees. d. allow employees to choose benefits suited to their needs.
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 101. Beginning in 2014, firms that employ _____ or more people who work 30 or more hours per week but do not offer them health insurance will have to pay a penalty to the government. a. 12 b. 20 c. 25 d. 50
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 130. Workers' compensation insurance covers certain work-related _____. a. lawsuits b. misunderstandings c. pay inequities d. illnesses
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 87. Laid off employees who have been working in an employment covered by the Social Security Act may get unemployment insurance benefits for up to _____ weeks. a. 20 b. 22 c. 24 d. 26
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 85. The amount of survivors' insurance benefits paid by Social Security is: a. based on the cause of death. b. based on a formula that takes into consideration the number of remaining years the deceased worker had to work until retirement. c. fixed by law and adjusted only by the cost-of-living. d. based on the worker's lifetime earnings covered by Social Security.
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM TOPICS: Bloom's: Knowledge 86. Individuals can receive Social Security benefits as early as age: a. 58. b. 62. c. 65. d. 67. ANSWER: b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 123. To help employees pay for the college expenses of their children and other family members, an increasing number of companies are offering _____. a. additional overtime b. contributory benefit plans c. cafeteria plans d. 529 college savings plans
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-3 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 113. Today, about _____ of households nearing retirement have 401(k)-type of accounts. a. 20 percent b. 30 percent c. 50 percent d. 60 percent
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 117. A pension plan that establishes the basis on which an employer will contribute to a pension plan is referred to as a: a. contributory plan. b. noncontributory plan. c. defined-benefit plan. d. defined-contribution plan.
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
Because of its focus, the Hay profile method is most useful for evaluating which type of jobs? a. Blue-collar jobs b. Entry level jobs c. Executive and managerial positions d. Jobs within a specific wage range
Executive and managerial positions
: Bloom's: Knowledge 119. Annual interest earned on cash-balance pension plans are often tied to a: a. 20-year Treasury rate. b. 10-year Treasury rate. c. 15-year Treasury rate. d. 30-year Treasury rate.
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 132. A major objective of the Pension Protection Act is to _____ 401(k) pension plans. a. reduce the number of b. alter the tax status of c. limit to very small employers the use of d. provide greater control over
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 77. With a diverse workforce, more employers are willing to provide benefits to employees who establish a: a. dual taxing relationship. b. joint employment status. c. codependent relationship. d. domestic partnership.
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 78. A standard definition of domestic partnership includes all of the following EXCEPT: a. a requirement that the couple live together. b. a specification of financial interdependence. c. a requirement that the relationship be a permanent one. d. a minimum term of cohabitation requirement.
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 74. Regardless of the medium, which of the following is NOT a general pointer for designing benefits information? a. Avoid complex language when describing benefits. Clear, concise, and understandable language is a must. b. Explain the purpose behind a benefit and the value it offers employees. Be up front about the pros and cons of different benefit plans. c. Provide numerous examples to illustrate how a benefit choice might affect different types of employees, depending upon their personal circumstances. d. Avoid the use of graphics whenever possible to make the information understandable and prevent confusion.
d POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
. The federal civil service job classification system uses which type of job evaluation system? a. Point method b. Job ranking c. Factor comparison method d. Job classification system
d. Job classification system
Which system of job evaluation is being used when jobs are classified according to a series of predetermined wage grades? a. Hay profile method b. Job ranking system c. Factor comparison method d. Job classification system
d. Job classification system
The Hay profile method uses which three factors for evaluating jobs? a. Knowledge, skill, and responsibility b. Responsibility, mental ability, and skill c. Responsibility, knowledge, and mental ability d. Knowledge, accountability, and mental ability
d. Knowledge, accountability, and mental ability
The simplest and oldest system of job evaluation is the _____, which arrays jobs on the basis of their relative worth. a. job valuation system b. point system c. job classification system d. job ranking system
d. job ranking system
. The exempt or nonexempt status of employees is determined by: a. the National Labor Relations Board. b. the Secretary of Labor. c. the Office of Programs and Budgets. d. the U.S. Department of Labor.
d. the U.S. Department of Labor.
. The relationship between the relative worth of jobs and their wage rates can be represented by means of a: a. regression line. b. wage survey. c. salary progression chart. d. wage curve.
d. wage curve.
administration
effective incentive plan _____________ -Grant incentives based on individual performance differences. -Have the financial resources to reward performance. -Set clearly defined, accepted, and challenging yet achievable performance standards. -Use an easily understood payout formula -Keep administrative costs reasonable. -Do not "ratchet up" performance standards
Which of the following is NOT one of the simple rules for maintaining motivation among professionals?
eliminate autonomy in work
Penalties for violation of safety rules by employees are usually stated in the:
employee handbook
The concept that employees should exert greater work effort if they have reason to expect it will result in a valued reward forms the basis of: a. expectancy theory. b. equity theory. c. instrumentality. d. internal equity.
expectancy theory.
. When the organization pays wages that are relatively equal to that of other employers for similar work, it is the basis of: a. comparable worth. b. external equity. c. compensable factors. d. equal pay.
external equity.
An OSHA inspection of imminent danger situations is a ____ priority.
first level
improshare
gainsharing based on increases in productivity of the standard hour of output of work teams
There is reason to believe that pay secrecy can do all of the following EXCEPT: a. generate distrust in the compensation system. b. reduce employee motivation. c. inhibit organizational effectiveness. d. generate feelings of commitment.
generate feelings of commitment.
When dealing with stress, having too much to do in too short as time is known as:
high demand
Noncash incentive rewards are most effective as motivators when the award:
is combined with a meaningful employee recognition program
The predominant approach to employee compensation is: a. pay-for-performance. b. competence-based pay. c. job-based pay. d. individual contract.
job-based pay.
In order for organizations to minimize the problems of merit raises, they should use:
merit guidelines.
. American President Obama enacted a five-year freeze on federal salaries to help the government achieve its objectives of reducing the deficit. a. True b. False
F
. An advantage of published wage surveys is compatibility with the organization's jobs. a. True b. False
F
. Job evaluation is a non-systematic, qualitative process of determining the relative worth of jobs in order to establish a comparison with the prevailing market and regional value of a job within a job family. a. True b. False
F
. Job ranking is a simple method that provides a precise measure of each job's worth. a. True b. False
F
. Managers in companies with compensation scorecards often struggle to know if the promotions, raises, bonuses, and pay adjustments they make are in line with the rest of the organization and its strategy. a. True b. False
F
. The worth of a job is determined formally through the wage and salary survey. a. True b. False
F
54. A major benefit of job-based compensation systems is that they encourage employees to learn new skills and capabilities.
F
64. Seniority, merit, and individual incentive plans are factors affected under the Equal Pay Act.
F
65. Wages paid above the range maximum are called blue square rates.
F
A compensation scorecard can cloud the transparency of how people are rewarded and makes managers responsible for how they spend company money.
F
A point manual can be used to determine the external equity of a job. a. True b. False
F
An advantage of competence-based pay from the employee's perspective is that there is no limit to what they can earn by learning new skills.
F
Expectancy theory predicts that people expect to be paid as much or more than individuals in a similar job class. a. True b. False
F
Rewarding an employee's past performance is not a goal of a strategic compensation policy. a. True b. False
F
Strategic compensation is the term used for all the processes used to determine the market rates to pay employees.
F
The wage curve represents the wages paid to jobs after adjustment for cost-of-living. a. True b. False
F
scanlon plan
rewards come from employee participation in improving productivity and reducing costs
Employees whose compensation is calculated on the basis of weekly, biweekly, or monthly periods are classified as: a. salaried employees. b. hourly employees. c. management employees. d. white-collar employees.
salaried employees.
Common output measures for productivity include:
sales
gainsharing incentive plans
scanlon plan and improshare
An OSHA investigation of catastrophes, fatalities, and accidents that result in hospitalization of five or more employees are _____ priorities.
second level
. Employers may _____ their workforce to help them identify the most valuable contributors. a. segment b. reorganize c. educate d. overhaul
segment
Of the following, which circumstances are of the highest priority for OSHA inspections?
situations that present imminent danger to employees
If employees' pay is based not on the actual amount of time it takes them to complete a job but instead on a predetermined amount of time for completing the job, which incentive plan are they working under?
standard hour plan
Enterprise incentive plans include:
stock options
Long-term incentive plans in which rights are granted to executives to purchase shares of their company's stock at a fixed price for a fixed period of time are known as:
stock options.
A compensation plan that compensates sales employees based on a percentage of sales is known as a:
straight commission plan.
When employees receive a certain rate for each unit produced, they are working under which incentive plan?
straight piecework
. The relative worth of a job evaluated using the point manual is determined by: a. benchmark jobs contained in the point manual. b. the wage mix. c. the number of steps within the pay grade. d. the total points that have been assigned to that job.
the total points that have been assigned to that job.
Employer-sponsored stress-management programs are least likely to include a segment on:
using alcohol to combat stress.
. The job evaluation system that seeks to measure a job's worth through its value to the organization is known as the: a. point method. b. job ranking system. c. work valuation system. d. Hay profile method.
work valuation system
High risk work circumstances that are associated with workplace violence include all of the following except:
working with information technology
. With respect to pay equity, which of the following is NOT considered an input? a. Salary b. Ability c. Skill d. Experience
Salary
The straight commission plan is limited by all of the following disadvantages, EXCEPT:
Salespeople will stress low-priced products
. The point system of job evaluation permits jobs to be evaluated quantitatively based on compensable factors. a. True b. False
T
. Under the Fair Labor Standards Act (FLSA), an employer must pay an employee for whatever work the employer "suffers or permits" the employee to perform, even if the work is done away from the workplace and even if it is not specifically expected or requested.
T
53. One of the major criticisms of job-based compensation systems is that they often fail to reward employees for their skills or the knowledge they possess.
T
66. Competence-based pay systems represent a fundamental change in the attitude of management regarding how work should be organized and how employees should be paid for their work efforts.
T
A Bloomberg National Poll showed that most Americans believe that large bonuses for Wall Street companies that took taxpayer bailouts should be prohibited
T
A critical concern for a successful pay-for-performance system is the perceived fairness of the pay decision. a. True b. False
T
A major criticism of competence-based pay systems is that after achieving the top wage, employees may be reluctant to continue their educational training.
T
Because management positions are more difficult to evaluate and involve certain demands not found in jobs at the lower levels, some organizations do not attempt to include them in their job evaluation programs for hourly employees.
T
For employees, pay equity is achieved when the compensation received is equal to the value of the work performed. a. True b. False
T
Under the Fair Labor Standards Act, most of hourly workers involved in interstate commerce are considered nonexempt. a. True b. False
T
: Bloom's: Knowledge 71. The communication of employee benefits information improved significantly with the passage of the _____. a. Employee Retirement Income Security Act b. Social Security Act c. Old Age, Survivors, and Disability Insurance Act d. Consolidated Omnibus Budget Reconciliation Act
a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 109. In January 2008, Congress passed the __________ which amended the Family and Medical Leave Act (FLMA) to provide eligible employees working for covered employers new leave rights related to military service. a. National Defense Authorization Act b. Consolidated Omnibus Budget Reconciliation Act c. Patient Protection and Affordable Care Act d. Health Care and Education Reconciliation Act
a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 129. Workers' compensation insurance may be provided through private or _____ insurance. a. state-funded b. employee-prepaid c. federally-funded d. SNL-funded
a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 81. Which of the following groups of employees is NOT covered by Social Security insurance? a. Railroad workers b. Clergy c. Self-employed persons d. Most military personnel
a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 94. Under the Family and Medical Leave Act, if an employee is returned to an equivalent job, rather than his/her original job, the equivalent job must have: a. identical pay, benefits, and terms of employment. b. terms of employment and promotional opportunity. c. promotional opportunity and benefits. d. identical pay, benefits, and promotional opportunity.
a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 104. Holiday pay, sick leave, and vacation pay are examples of: a. payment for time not worked. b. benefits required by law. c. categories of health care benefits. d. unearned benefits.
a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-3 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 128. In recent years, several companies have banded together to provide elder care in a cooperative arrangement referred to as a: a. consortium. b. limited partnership. c. combined subsidiary. d. hostel.
a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-3 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 118. A popular plan that offers employees an opportunity to save through payroll deductions and have their contributions matched by the employer is known as the: a. 401(k) plan. b. tax reduction plan. c. ERISA benefit plan. d. Individual Retirement Plan.
a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
The National Institute of Mental Health estimates that nearly ____ million Americans suffer from depression each year.
17
In a Zogby poll, _____ of American adults said they had been bullied at work.
18 percent
A study on bonus vs. actual pay raises showed that improving one's pay through merit increases by 1 percent would increase future performance by ___ percent.
2
The standard time for producing one unit of work in a job paying $12.75 per hour was set at twelve minutes. The piece rate would be ____ per unit a.
2.55
In most profit-sharing plans, about _____ of the net profit is shared.
20 to 25 percent
A study of 20,000 employees found that ____ of "high potential" employees planned to leave their company by the end of 2010 due to perceived pay inequity.
27 percent
Studies show that _____ of night-shift workers report falling asleep at least once a week while on the job.
30 to 50 percent
Employee musculoskeletal injuries must be reported on OSHA Form:
300
ESOPs can qualify as tax-exempt employee trusts under section ____ of the Internal Revenue Code.
401(k)
A survey of more than 2,000 employers conducted by the National Safety Council found that ____ had some type of cell-phone usage policy in place.
58 percent
Research shows that a merit increase in the range of ____ percent is necessary to serve as a pay motivator.
7 to 9
Research shows that a merit increase in the range of _____ is necessary to serve as a pay motivator.
7 to 9 percent
A Bloomberg National Poll showed that more than _____ of Americans thought big bonuses should be banned for Wall Street companies that took taxpayer bailouts. a. 90 percent b. 80 percent c. 85 percent d. 70 percent
70 percent
According to a National Highway Traffic Safety Administration study, distracted driving accounts for ______ of all accidents.
80 percent
More than _____ of companies globally are offering variable pay programs.
80 percent
In a survey by the University of Chicago's National Opinion Research Center, ____ of employees "agree" or "strongly agree" that safety and health conditions where they work are good.
92 percent
: Bloom's: Knowledge 124. In 1996, Congress passed the ______, which provides that a same-sex domestic partner may not be treated as an employee's spouse for purposes of federal law. a. Defense of Marriage Act b. Employee Retirement Income Security Act c. Health Insurance Portability and Accountability Act d. Health Care and Education Reconciliation Act
a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM TOPICS: Bloom's: Knowledge 125. Mildly ill child care facilities provide: a. tax benefits b. medical supervision c. a negative investment d. telecommuting facilities for working parents with ill children ANSWER: b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-3 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
The performance threshold in incentive pay programs is:
a minimum level an employee must reach in order to qualify for variable pay
An appropriate reward for a consumer service representative who worked long hours to fill a new customer's large order is:
a spot bonus
An incentive given for a special employee contribution not directly tied to a performance standard is:
a spot bonus
A sales incentive plan that permits salespeople to be paid for performing various duties not reflected immediately in their sales volume is known as:
a straight salary plan.
incentive pay programs
a strategic reason for _______________; -Establish a performance "threshold" to qualify for incentive payments. -Emphasize a shared focus on organizational objectives. -Create shared commitment in that every individual contributes to organizational performance and success.
. A U.S. survey found that _____ of employees say they work in a place where discussions of pay are "formally prohibited and/or employees caught discussing wages could be punished." a. 19 percent b. 38 percent c. 57 percent d. 76 percent
a. 19 percent
Compensation programs that compensate employees for the knowledge they possess are known as: a. competence-based pay plans. b. performance-based pay plans. c. merit-based pay plans. d. seniority-based pay plans.
a. competence-based pay plans.
Employers wishing to encourage employees to accept a promotion to a job in a higher grade would: a. increase the size of successive rate ranges. b. increase the point spread of pay grades. c. decrease the size of successive rate ranges. d. decrease the point spread of pay grades.
a. increase the size of successive rate ranges
straight salary plan
advantages and disadvantages of what? advantages -encourages building customer relationships -provides compensation during periods of poor sales disadvantages -may not provide sufficient motivation for maximizing sales volume
Employee stock ownership plans (ESOPs)
advantages of what? -retirement benefits -pride of ownership -deferred taxes
combined salary and commission plan
advantages to what? -Combines the advantages of straight salary and straight commission forms of compensation. -Offers greater design flexibility -Can be used to develop the most favorable ratio of selling expense to sales. -Motivates sales force to achieve specific company marketing objectives in addition to sales volume.
team incentive plans
advantages to what? -Team incentives support group planning and problem solving, thereby building a team culture. -The contributions of individual employees depend on group cooperation. -Team incentives can broaden the scope of the contribution that employees are motivated to make. -Team bonuses tend to reduce employee jealousies and complaints over "tight" or "loose" individual standards. -Team incentives encourage cross-training and the acquiring of new interpersonal competencies.
Contemporary reasons given by organizations for implementing incentive plans are:
all of the above.
An employee's relative worth can be determined by: a. job analysis. b. labor market conditions. c. wage-rate surveys. d. an effective performance appraisal system.
an effective performance appraisal system.
Which of the following would not be considered a "recordable case" under OSHA law?
an employee's finger cut at home
straight piecework
an individual incentive plan; An incentive plan under which employees receive a certain rate for each unit produced.
Material Safety Data Sheets:
are a primary method of informing employees about health risks and handling instructions associated with chemicals and potentially hazardous substances.
Strategic Partnership Programs (SPPs):
are long-term agreements between employers and OSHA aimed at reducing serious workplace hazards and to achieve a high level of worker safety and health.
Under the Fair Labor Standards Act, exempt employees: a. are required to be paid at the rate of one and a half times their regular pay rate for hours worked in excess of 40 hours in a week. b. must be paid at the rate of one and a half times their regular hourly wage for time worked in excess of eight hours in a day. c. are those employees not covered by the overtime provisions of the Act. d. include most hourly personnel employed in interstate commerce.
are those employees not covered by the overtime provisions of the Act.
Voluntary protection programs (VPPs):
attempt to get employers to go beyond the basics of OSHA law and provide workers with better protection on the job.
66. Benefits can represent more than ______ of the employer's total payroll costs. a. 28 percent b. 7 percent c. 12 percent d. 66 percent
b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Comprehension 103. Disease management programs: a. are comprehensive insurance benefits that serve as a supplemental health insurance. b. assist employees by providing information on monitoring and treating health conditions. c. assist employees as work-site fitness programs. d. are a major portion of worker's compensation insurance.
b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 68. _____ enable individual employees to choose the benefits that are best suited to their particular needs. a. Employee self-service systems b. Cafeteria plans c. Employee wellness programs d. Social Security plans
b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 72. Which of the following is NOT a method that employers commonly use to communicate benefits to employees? a. Brochures b. Word-of-mouth c. Social media d. Blogs
b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 84. Tax revenues derived from Social Security pay for each of the following benefits, EXCEPT: a. disability benefits. b. unemployment. c. retirement. d. survivors' benefits.
b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 89. Unemployment compensation payments to individuals vary according to: a. the type of job held before layoff. b. their previous wage rate and length of previous employment. c. job type and length of previous employment. d. their previous wage rate and the type of job held before layoff.
b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 90. To qualify for old-age benefits, a person must reach retirement age and have earned: a. 20 credits. b. 40 credits. c. 60 credits. d. 80 credits.
b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 93. The Family and Medical Leave Act provides all of the following EXCEPT: a. up to 12 weeks of unpaid leave. b. promotions missed during leave. c. continuation of medical benefits. d. job protection.
b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 98. Despite its high unemployment rate, in 2011, _____ became the first state to cut the number of weeks to 20 because its unemployment fund was so far in the red. a. Pennsylvania b. Michigan c. South Dakota d. California
b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 105. Federal government employees can usually be expected to be paid for ____ holidays a year. a. 24 b. 10 c. 15 d. 20
b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-3 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 107. A plan that enables an employee who is laid off to draw, in addition to state unemployment compensation, weekly benefits from the employer that are paid from a fund created for this purpose is referred to as: a. severance pay. b. supplemental unemployment benefits. c. leave insurance compensation. d. unemployment protection payments.
b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-3 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 111. Polaroid allows employees the opportunity to try out retirement with a leave program, or gradually reduce their work hours as they approach retirement age. This is an example of: a. a severance leave. b. a preretirement program. c. family-friendly benefits. d. policies recommended by Social Security.
b POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
In a 2010 survey of more than 1,000 entrepreneurs, _____ of all small businesses in the United States had to make pay cuts. a. 10 percent b. 35 percent c. 50 percent d. 65 percent
b. 35 percent
Which of the following is NOT an internal factor affecting the pay mix? a. Worth of job b. Cost of living c. Employer's ability to pay d. Employee's relative worth
b. Cost of living
The federal wage law that is criticized for a rule that allows minimum pay to be based on the prevailing rate, which often includes higher union wages is: a. Equal Pay Act. b. Davis-Bacon Act. c. Fair Labor Standards Act. d. Walsh-Healy Act.
b. Davis-Bacon Act.
One of the basis for compensation centers on whether employees are classified as nonexempt or exempt under the _____. a. Equal Pay Act b. Fair Labor Standards Act c. Taft-Hartley Act d. Employment Classification Act
b. Fair Labor Standards Act
_____ may create problems for managers who wish to maintain pay secrecy among employees. a. NASDAQ information b. Internet salary survey data c. FLSA requirements d. Davis-Bacon standards
b. Internet salary survey data
Which system of job evaluation is being used when cards that list the duties and responsibilities of the job are arranged by raters in order of the importance of the job? a. Point method b. Job ranking c. Job grade system d. Factor comparison method
b. Job ranking
Which is the simplest and oldest method of job evaluation? a. Job worth system b. Job ranking system c. Job grade system d. Point system
b. Job ranking system
When computing executive pay, ____ link operational yardsticks to traditional gauges.
balanced scorecards
The term pay-for-performance can encompass all of the following EXCEPT: a. merit pay. b. base salary. c. cash bonuses. d. gainsharing plans.
base salary.
Wages gained through collective bargaining extend: a. to hourly employees only. b. to both hourly and management employees. c. beyond the segment of the labor force that is unionized. d. to both exempt and nonexempt employees.
beyond the segment of the labor force that is unionized.
Collapsing many salary grades into a few wide salary bands is known as: a. red circling. b. broadbanding. c. pay ranging. d. factor comparison.
broadbanding
The most severe stage of distress is:
burnout
According to one budget survey, what percentage of reporting organizations use variable pay?
80
combined salary and commission plan
A compensation plan that includes a straight salary and a commission component ("leverage").
profit sharing
Any procedure by which an employer pays, or makes available to all regular employees, in addition to their base pay, current or deferred sums based upon the profits of the enterprise.
noncash incentive awards
Are most effective as motivators when the award is combined with a meaningful employee recognition program.
Which of the following is NOT a component of the Consumer Price Index? a. Clothing b. Automobiles c. Charges for medical services d. Transportation fares
Automobiles
____ helps eliminate the obsession with grades and, instead, encourages employees to move to jobs they can develop in their careers and add value to the organization. a. Red circling b. Broadbanding c. Pay ranging d. Factor comparison
Broadbanding
A major problem of ESOPs is that:
ESOPs place employees' pensions at risk because they are tied to the market performance of the organization.
Which of the following is an example of a nonfinancial compensation? a. Bonuses b. Commissions c. Health insurance d. Employee recognition programs
Employee recognition programs
The worth of a job, as it is determined by its comparative worth with jobs in other firms, is an external factor in the wage mix. a. True b. False
F
While most managers agree that pay should be linked to performance, employees do not. a. True b. False
F
A study by Duke University researchers who examined the records of nearly 12,000 university employees found that obese employees experienced medical costs that were more than ____ times higher than those of nonobese workers
Five
Employers with exemplary health and safety records may receive recognition under the ____ program.
SHARP
60. Strategic compensation is the compensation of employees in ways that enhance motivation and growth while concurrently aligning their efforts with the goals of the organization.
T
Companies are more heavily scrutinized than they have been historically by shareholders, government, and the public for how much they pay their people. a. True
T
Compensable factors include skills, efforts, responsibilities, and working conditions. a. True b. False
T
Employers refer to the area from which they obtain certain types of workers as the labor market. a. True b. False
T
Equity theory is also referred to as distributive fairness. a. True b. False
T
Pay secrecy is still prevalent in organizations despite its negative effect on motivation and employee trust. a. True b. False
T
Pay secrecy seems to be an accepted practice in many organizations. a. True b. False
T
Raising selection standards and hiring better-qualified employees can reduce training costs.
T
The compensation scorecard creates a comparative tool within the organization that can reinforce desired outcomes that are unique to the company's strategy. a. True b. False
T
The job ranking system ranks jobs on the basis of relative worth and can be done by a single person familiar with all jobs. a. True b. False
T
The three factors that constitute the evaluation in the Hay profile method are knowledge, mental activity, and accountability. a. True b. False
T
Wages of unionized employees are generally higher than those of nonunion employees. a. True b. False
T
When employees are paid according to the skills and knowledge they have rather than the specific jobs they perform, they are paid according to competence-based compensation.
T
: Bloom's: Knowledge 114. A pension plan where contributions are made jointly by employees and employers is referred to as a: a. contributory plan. b. noncontributory plan. c. defined-benefit plan. d. defined-contribution plan.
a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 131. Employers pay for workers' compensation insurance in ___________ states. a. all b. a majority of c. large d. heavily industrialized
a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 120. Private pensions are subject to federal legislation under: a. Employee Retirement Income Security Act (ERISA). b. Consolidated Omnibus Budget Reconciliation Act (COBRA). c. Tax Equity and Fiscal Responsibility Act (TEFRA). d. Retirement Equity Act (REA).
a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
the executive pay package
an incentive for executives -base salary -short term incentives or bonuses -long term incentives or stock plans -benefits -perquisites (perks)
justifications
an incentive for executives; -large financial incentives reward superior performance -business competition is pressure filled and demanding -good executive talent is in great demand -effective executives create shareholder value
Rate busting refers to:
an increase in output that results in the disapproval of fellow employees
differential piece rate
an individual incentive plan; A compensation rate under which employees whose production exceeds the standard amount of output receive a higher rate for all of their work than the rate paid to those who do not exceed the standard amount
standard hour plan
an individual incentive plan; An incentive plan that sets pay rates based on the completion of a job in a predetermined "standard time." If employees finish the work in less than the expected time, their pay is still based on the standard time for the job multiplied by their hourly rate.
bonus
an individual incentive plan; Incentive payment that is supplemental to the base wage for cost reduction, quality improvement, or other performance criteria.
spot bonus
an individual incentive plan; Unplanned bonus given for employee effort unrelated to an established performance measure.
: Bloom's: Knowledge 115. A pension plan where contributions are made solely by the employer is referred to as a: a. contributory plan. b. noncontributory plan. c. defined-benefit plan. d. defined-contribution plan.
b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
: Bloom's: Knowledge 79. Employees desiring domestic companion benefits typically must sign: a. a writ of Common Domestic Marriage. b. an Affidavit of Domestic Partnership. c. an Affidavit of Residency within their state of residence. d. a waiver of legal liability.
b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-4 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
The most widely used sales incentive program is the ____________________ plan.
combined salary and commission
Using the point method of job evaluation requires that managers: a. employ either a standardized program or customize a point method to fit their particular jobs. b. compare the job descriptions against the various factor-degree descriptions. c. link point totals to the wage curve. d. rank jobs by compensable factors.
compare the job descriptions against the various factor-degree descriptions.
Under OSHA, employers must do all of the following except:
compensate employees who have been injured or have become ill due to work-related factors.
: Bloom's: Knowledge 80. Which of the following benefits is NOT a legally required employee benefit? a. Employer contributions to Social Security b. Employer contributions to unemployment insurance c. Employer contributions to workers' compensation insurance d. Employer contributions to minimum life insurance
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-2 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
Disadvantages of profit sharing include all of the following except:
effective profit-sharing plans require a second HR program.
One word, _____, describes the design of individual incentive plans
flexibility
OSHA's special-emphasis inspections aimed at specific high-hazard industries, occupations, or substances that are injurious to health are ____ priorities.
fourth level
The Equal Pay Act prohibits wage discrimination based on: a. seniority. b. gender. c. merit. d. individual incentive.
gender
restricted stock
grand of stock units at a reduced price with the condition that the stock not be transferred or sold (By risk of forfeiture) before a specified employment date
phantom stock
grant of units equal in value to the fair market or book value of a share of stock; on a specified data the executive will be paid the appreciation in the value of the units up to that time
performance units
grants analogous to annual bonuses except that the measurement period exceeds one year. The value of the grant can be expressed as a flat dollar amount or converted to a number of "units" of equivalent aggregate value
performance shares
grants of actual stock or phantom stock units. Value is contingent on both predetermined performance objectives over a specified period of time and the stock market
When dealing with stress, having to expend too much mental or physical energy over too long a period of time is known as:
high effort
The following are methods of preventing health hazards in the workplace except:
hiring an outside vendor to do the work
purposes
incentive plan _________ -Encourage employees to assume "ownership" of their jobs, thereby improving effort and job performance. -Motivate employees to expend more effort than under hourly and/or seniority-based compensation systems. -Support a compensation strategy to attract and retain top-performing employees.
effectiveness
incentive plan ____________ There is evidence of a relationship between incentive plans and improved organizational performance.
The number of injuries and illnesses per 100 full-time employees during a given year is:
incidence rate
productivity
increase in _________ is gained when: -greater output is obtained with less or equal input -equal production output is obtained with less input
greater
increase in productivity is gained when: -___________ output is obtained with less or equal input -equal production output is obtained with less input
less
increase in productivity is gained when: -greater output is obtained with less or equal input -equal production output is obtained with ______ input
. Elements of the compensation package are said to have _____ when an employee's high performance leads to monetary rewards that are valued. a. validity b. consistency c. instrumentality d. reliability
instrumentality
. Job evaluation helps to establish: a. job classifications. b. the organization's ability to pay. c. internal equity. d. labor market conditions that affect pay.
internal equity.
. The area from which employers obtain certain types of workers is known as the: a. labor market. b. region. c. recruiting area. d. supply region.
labor market.
In conducting a wage and salary survey for office personnel, the relevant labor market to be surveyed is most likely: a. regional. b. local. c. national. d. international
local
When dealing with stress, having too little influence over the way a job is done on a day-to-day basis is known as:
low control
When dealing with stress, receiving inadequate feedback on performance and no recognition for a job well done is known as:
low reward
Which of the following is an individual type of incentive plan?
lump sum merit pay
Problems associated with video display terminal use include all of the following except:
lung disease
The purpose of a profit-sharing plan is to:
motivate a total commitment to the organization as a whole.
. Employees covered by the overtime provisions of the Fair Labor Standards Act are labeled: a. protected workers. b. nonexempt employees. c. salaried workers. d. exempt employees.
nonexempt employees.
A problem with creating team incentive plans is:
not all teams are alike
piecework systems
problems with ____________ -Are not always an effective motivator -Piecework standards can be difficult to develop. -Individual contributions can be difficult measure. -Not easily applied to work that is highly mechanized with little employee control over output. -Piecework may conflict with organizational culture (teamwork) and/or group norms ("rate busting"). -When quality is more important than quantity. -When technology changes are frequent.
incentive plans
successful ___________ -Employees have a desire for an incentive plan. -Employees are encouraged to participate. -Employees see a clear connection between the incentive payments they receive and their job performance. -Employees are committed to meeting the standards. -Standards are challenging but achievable. -Payout formulas are simple and understandable. -Payouts are a separate, distinct part of compensation.
Studies have shown that variable pay plans may not achieve their proposed objectives or lead to organizational improvements due to each of the following, EXCEPT:
taxes are often a demotivator
The requirements for federal contractors to take steps to ensure a drug-free workplace is found in:
the Drug-Free Workplace Act.
The gainsharing plan that has as its most significant feature effective employee participation through committee representation is:
the Scanlon Plan.
A major concern of executive compensation involves:
the amount of compensation.
The measure of the average change in prices over time in a fixed "market basket" of goods and services is known as: a. cost-of-living allowance. b. cost-of-living adjustment. c. the consumer price index. d. the inflation index.
the consumer price index.
Advantages of ESOPs include all of the following except:
the employees' pensions are less vulnerable due to diversification.
It is the responsibility of ____ to ensure employees use protective equipment on the job.
the employer
Piecework is appropriate when:
the job is fairly standardized
The greatest influence on executive base salary is most likely:
the levels of competitive salaries in the job market.
Pay levels are limited in part by: a. the organization's profits and the productivity of employees. b. collective bargaining limitations. c. strategic compensation planning. d. the mobility of employee skills.
the organization's profits and the productivity of employees.
Compensation committees justify large executive compensation packages for all of the following reasons except:
the pay gap between the CEO and employees builds credibility
. A quantitative job evaluation procedure that determines a job's relative value on the basis of quantitative assessments of specific job elements is known as: a. the point system. b. the job ranking system. c. the factor comparison method. d. the job grade system.
the point system.
merit pay program (merit raise)
Links an increase in base pay to how successfully an employee achieved some objective performance standard.
employee stock ownership plans (ESOPs)
Stock plans in which an organization contributes shares of its stock to an established trust for the purpose of stock purchases by its employees.
Real wages represent the difference between wage increases and cost-of-living increases. a. True b. False
T
The Hay profile method is useful for evaluating jobs of all types and levels. a. True b. False
T
The National Compensation Survey published by the Bureau of Labor Statistics can provide local, regional, and national compensations statistics
T
The consumer price index is available in separate indexes by size of city and region of the country. a. True b. False
T
The consumer price index tracks the change in price over time of a "market basket" of goods and services. a. True b. False
T
The expectancy theory of motivation predicts that one's level of motivation depends on the attractiveness of the rewards sought by employees and the probability of obtaining those rewards. a. True b. False
T
executive compensation reform
current reform measures -The Internal Revenue Service (IRS) is looking for tax-code violations in executive pay packages and will make executive pay a part of corporate audits. -The Securities and Exchange Commission issued pay disclosure rules which require companies listed on the New York Stock Exchange and NASDAQ to disclose the true size of their top executive pay packages. -The Financial Accounting Standards Board (FASB) now requires that stock options be recognized as an expense on income statements. other reform measures -The adoption of performance formulas that peg executive compensation to organizational benchmarks other than stock price -Shareholder resolutions that allow shareholders the right to vote on executive pay packages -Greater accountability by compensation committees to justify large executive pay awards or severance or retirement packages
Jobs least likely to cause cumulative trauma disorder would be:
outside salespersons
In 2011, a study by the American Psychological Association found that _____ of employees feel they receive inadequate nonmonetary awards and recognition for their contributions at work.
43 percent
A Duke study found that morbidly obese workers file ____ more workers' compensation claims and take longer to recover from injuries.
45 percent
Executive base salaries represent between ____ percent of the total annual compensation.
30 to 40
If a willful violation results in the death of an employee, OSHA can assess penalties up to ____ for an individual or ____ for a corporation
$250,000;$500,000.
The average penalty imposed by OSHA for serious violations is now ____.
$3,000-$4,000
The largest ever fine by OSHA was an _____ penalty levied in 2009 against the oil giant BP after a 2005 explosion killed 15 workers and injured 170 others at a BP refinery in Texas
$87 million
The most common cost-of-living adjustments are ____ per hour for each .3-point or .4-point change in the consumer price index (CPI). a. 1 cent b. 2 cents c. 3 cents d. 4 cents
1 cent
The National Institute of Mental Health estimates that nearly _____ of the adult population experience depression each year.
10 percent
According to the National Center for Employee Ownership, in 2010 approximately _____ organizations have employee stock ownership plans
10,500
According the compensation scorecard, functions with a compa ratio below ______ are considered to be paying their employees below the company norm. a. 25 percent b. 50 percent c. 75 percent d. 100 percent
100 percent
Which of the following is NOT a category of OSHA's voluntary protection program?
Achiever
Each of the following can begin health and safety standards procedures except:
American Medical Association (AMA)
For real wages to increase, which of the following must be true? a. An employee's wage increase must be greater than the increase in the consumer price index (CPI). b. An employee must receive a lump-sum wage increase equal to the increase in the consumer price index (CPI). c. An employee's wage must simply increase with out the influence of consumer price index (CPI). d. The consumer price index (CPI) must increase at least as much as the employee's wage.
An employee's wage increase must be greater than the increase in the consumer price index (CPI).
The job classification system is a quantitative job evaluation procedure that determines a job's relative value by calculating the total points assigned to it. a. True b. False
F
Jobs that are grouped into the same pay grade should: a. all receive the same wage rate in order to achieve equality. b. be paid within a range that does not overlap with bordering job grades so that distinctions between grades are maintained. c. be paid within a range that may overlap with adjoining grades, so that an employee with experience can be paid as much as or more than a newer employee in a higher grade. d. be paid at different wage rates because the worth of these jobs to the organization may differ.
C be paid within a range that may overlap with adjoining grades, so that an employee with experience can be paid as much as or more than a newer employee in a higher grade.
Which of the following is an internal factor that can influence the rates at which employees are paid? a. Labor market conditions b. Collective bargaining c. The employer's ability to pay d. Cost of living
Collective bargaining
straight commission plan
Compensation plan based upon a percentage of sales.
straight salary plan
Compensation plan that permits salespeople to be paid for performing various duties that are not reflected immediately in their sales volume.
team incentive plans
Compensation plans where all team members receive an incentive bonus payment when production or service standards are met or exceeded.
Which of the following is an external factor that can influence the rates at which employees are paid? a. The worth of the job b. The employees' relative worth c. The employer's ability to pay d. Cost of living
Cost of living
____ is the decrease in functional activity accompanied by symptoms of low spirits, gloominess, and sadness.
Depression
_____ encompasses employee wages and salaries, incentives, bonuses, and commissions. a. Nonfinancial compensation b. Indirect compensation c. Direct compensation d. Component compensation
Direct compensation
The job classification system is used commonly by smaller employers. a. True b. False
F
63. Indirect compensation includes healthcare benefits and commissions.
F
This group is between the ages of 25 and 41 and values a balanced lifestyle of work and play.
Generation X
stock options
Granting employees the right to purchase a specific number of shares of the company's stock at a guaranteed price (the option price) during a designated time period; The value of an option is subject to stock market conditions at the time that option is exercised.
The ___________ department is usually responsible for the safety program for most employers.
HR or industrial relations
Group incentive plans include:
Improshare
When the determination of a bonus includes both production employees and nonproduction employees and this bonus is based on overall group productivity, which type of gainsharing program is being used?
Improshare
Which of the following is NOT an advantage of an incentive pay program?
Incentive payouts are fixed costs linked to the achievement of results.
The U.S. Supreme Court ruled in __________ that employers may not bar women of childbearing age from certain jobs because of potential risk to their fetuses
International Union v. Johnson Controls
Which of the following is NOT a recommendation for calming an angry employee?
Keep the discussion as subjective as possible
OSHA may cite employers under all of the following violations except:
Minor
The major source of OSHA standards is:
National Institute for Occupational Safety and Health (NIOSH)
_____ includes employee recognition programs, rewarding jobs, organizational support, work environment, and flexible work hours to accommodate personal needs. a. Financial compensation b. Nonfinancial compensation c. Direct compensation d. Indirect compensation
Nonfinancial compensation
A "recordable case" is any occupational death, illness, or injury to be recorded in _________.
OSHA Form 300.
Injury and Illness Report form is also known as:
OSHA Form 301
Criticisms of OSHA's enforcement of rules include all of the following except:
OSHA both sets and enforces its own standards
awards
Often used to recognize productivity gains, special contributions or achievements, and service to the organization.; Employees feel appreciated when employers tie awards to performance and deliver awards in a timely, sincere and specific way.
According to Sammer, which of the following is NOT a characteristic of a successful incentive plan?
Payout formulas should be technically detailed, quantitative and extremely thorough to prove that management took significant effort to create the plan
A grant of units equal in value to the fair market value or book value of a share of stock; on a specified date the executive will be paid the appreciation in the value of the units up to that time. This is known as:
Phantom stock
_____ is a pay system in which employees are paid according to the number of units they produce. a. Piecework b. Hourly work c. Non-exempt work d. Exempt work
Piecework
Which of the following compensation options would not qualify under the term pay-for-performance? a. Seniority-based pay b. Group incentive c. Pay banding d. Gainsharing plans
Seniority-based pay
A cash or stock award determined by increase in stock price during any time chosen by the executive in the option period, which does not require executive financing is known as:
Stock appreciation rights
A popular and prevalent method used in many different industries for motivating and compensating hourly, salaried, and executive personnel is:
Stock options
Enterprise incentive plans include:
Stock options
Which plan provides opportunities for executives to purchase shares of their organization's stock valued at full market or a discounted price?
Stock purchase
Compensation specialists recognize all the following generations of employees except:
Synthesizers
. Broadbanding refers to collapsing of many traditional salary grades into a few wide salary bands. a. True b. False
T
. Employees are likely to accept a promotion if succeeding rate ranges are larger in size. a. True b. False
T
. Managers group similar jobs into a pay grade in order to help with the setting of wages for all jobs. a. True b. False
T
. Red circle rates are above the maximum for the pay range and are often frozen until the range shifts upward through market wage adjustments
T
. Steps within a rate range allow pay increases based on merit or seniority. a. True b. False
T
: Bloom's: Knowledge 100. Groups of physicians that contract with an employer to provide medical resources on a more cost-efficient basis in exchange for a greater share of patients are known as: a. preferred provider organizations (PPOs). b. major medical plans. c. health maintenance organizations (HMOs). d. integrated medical practices.
a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
Which of the following is NOT a common goal of a strategic compensation policy? a. To reward employees' past performance b. To mesh employees' past performance with organizational goals c. To remain competitive in the labor market d. To attract new employees
To mesh employees' past performance with organizational goals
These individuals are over the age of 60 and are less likely to spend money on themselves.
Traditionalists
variable pay
Tying pay to some measure of individual, group, or organizational performance.
The federal wage law that may require government contractors to pay overtime for work more than eight hours a day is: a. Equal Pay Act. b. Davis-Bacon Act. c. Fair Labor Standards Act. d. Walsh-Healy Act.
Walsh-Healy Act.
Which job evaluation system serves to direct compensation dollars to the type of work pivotal to organizational goals? a. Point method b. Job ranking c. Work valuation d. Hay profile method
Work valuation
sales
_________ incentive plans -straight salary -straight commission -salary and commission combinations
Management should guard against incentive payments being seen as _____.
an entitlement
draw
a cash advance that must be paid back as commissions are earned
Which of the following is not an executive long-term incentive program?
assigned benefits
The Fair Labor Standards Act prohibits the employment of those between the ages of _____ in hazardous occupations such as mining, logging, and meatpacking. a. 14 and 21 b. 16 and 18 c. 16 and 21 d. 18 and 21
b. 16 and 18
Lack of personal fulfillment in a job may be a symptom of:
burnout
If a supervisor suspects that a subordinate has a severe drinking problem, the action to be avoided is:
confronting the employee with his or her alcoholism during the first meeting and threatening dismissal if the employee does not seek help.
The success of the Lincoln Electric Company profit-sharing plan rests largely on:
contributions by employees.
Injuries that result from workers using the same motions again and again are known as:
cumulative trauma disorders.
Profit sharing refers to any procedure by which an employer pays employees:
current or deferred sums based on the organization's financial performance.
: Bloom's: Knowledge 110. A _____ is a plan in which employees fund accounts by having money deducted from their paychecks. a. consumer-driven plan b. healthcare spending plan c. health reimbursement account d. flexible spending account
d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: MGHR.SNEL.17.11-1 NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills STATE STANDARDS: United States - OH - DISC: HRM
Which of the following is not an outcome associated with depression?
decreased substance abuse
The biggest challenge with competence-based pay is: a. encouraging employees to take advantage of it. b. reduction in organizational flexibility. c. loss of productivity. d. developing appropriate measures of skills and competencies.
developing appropriate measures of skills and competencies.
When employees receive a higher rate of pay for all of their work if production exceeds a standard level of output, they are working under which incentive plan?
differential piece rate
Employee stock ownership plans (ESOPs)
disadvantages of what? -liquidity and value -single funding basis -not insured
team incentive plans
disadvantages to what? -Individual team members may perceive that "their" efforts contribute little to team success or to the attainment of the incentive bonus. -Intergroup social problems—pressure to limit performance and the "free-ride" effect may arise. -Complex payout formulas can be difficult for team members to understand.
straight commission plan
disadvantages to what? -Salespeople will stress high-priced products. -Customer service after the sale is likely to be neglected. -Earnings tend to fluctuate widely between good and poor periods of business, an turnover of trained sales employees tends to increase in poor periods. -Salespeople are tempted to grant price concessions.
Most employers should recognize that alcoholism is a:
disease that follows a rather predictable course.
Stress becomes ____ when we begin to sense a loss of our feelings of security and adequacy.
distress.
Team incentive bonuses may be paid out in all of the following ways except:
distributed on the basis of individual performance appraisal
. Equity theory is also known as: a. procedural justice. b. distributive fairness. c. administrative justice. d. moral justice.
distributive fairness.
Companies with award-winning ergonomics programs list all the following as common elements of success except:
do not bother to involve your employees - ergonomics is really a complex engineering science most employees cannot understand.
Red circle rates above the maximum for the range can result because: a. promotional opportunities are plentiful. b. employees have high seniority. c. employees are demoted. d. grades are added to the range.
employees have high seniority.
The philosophy behind the Scanlon Plan is that:
employees should make suggestions to improve performance and be rewarded for their contributions.
OSHA may adjust penalties for violations for all of the following circumstances except:
employer's ability to pay
Under OSHA, _____________ are required to train employees as required by OSHA standards.
employers
When cost-of-living pay increases are given routinely, employees may view them as _____. a. insults b. entitlements c. highly motivating d. long overdue
entitlements
The fact that people make comparisons to others is central to: a. expectancy theory. b. the need for pay secrecy. c. pay-for-performance programs. d. equity theory.
equity theory.
Clauses in labor agreements that provide for quarterly cost-of-living adjustments in wages, basing the adjustments on changes in the consumer price index are known as: a. maintenance clauses. b. escalator clauses. c. roll-up clauses. d. guarantee clauses.
escalator clauses.
The log of work-related injuries and illnesses is filed:
on OSHA Form 300
On-site consultation may qualify employers for a ____ year exemption from routine OSHA inspection.
one
stock purchase
opportunities for executives to purchase shares of their organization's stock valued at full market or a discount price, often with the organization providing financial assistance
Special benefits given to executive employees, such as assigned chauffeurs, country club memberships, and special vacation policies, are known as:
perquisites
Stress basically comes from two areas. These areas are:
physical and emotional activity.
In ____, employees are paid according to the number of units they produce. a. hourly work b. piecework c. commission d. production work
piecework
Recommendations for minimizing the negative effects of video display terminal use do not include:
place monitor at a 45% angle to reduce glare
The best method to capitalize on the benefits of video display terminals while safeguarding employee health is:
placing the computer screen 4 to 9 inches below eye level.
Alternative approaches to health include all of the following, except:
pre-employment medical examinations
Executive compensation consists of all of the following except:
proficiency adjustments.
When setting performance measures for incentive systems, we can say that the best measures are:
quantitative, simple to understand, and show a clear relationship to improved performance.
Group incentive plans do all of the following except:
reduce free-ride effect
In terms of workplace violence, which of the following should organizations avoid?
refraining from hiring persons with arrest records
. Instrumentality refers to: a. wage rates of acceptable level. b. development of both internal and external pay equity. c. wage rates above the pay range maximum. d. rewards that are valued and motivate employees.
rewards that are valued and motivate employees.
Laws that require employers to disclose relevant safety information to employees are known as:
right-to-know laws.
stock options
rights granted to executive to purchase shares of their organization's stock at an established price for a fixed period of time. stock price is usually set at market value at the time the option is granted
AS early as 1984 management guru Peter F. Drucker argued that CEO pay had ________.
rocketed out of control
Frequently, employers will create a group consisting of representatives of various segments of the organization to work on safety-related issues. These groups are commonly referred to as:
safety committees.
An OSHA investigation of valid employee complaints of alleged violations of standards or of unsafe or unhealthful working conditions is a ____ priority.
third level
A recent study by Liberty Mutual found that employers saved ____ dollars for each dollar invested in workplace safety.
three
According to a National Highway Traffic Safety Administration study, people who send text messages while driving are _____ times more likely to crash than other drivers
three
Pay-for-performance programs: a. tie rewards to firm profitability. b. are easy to implement and measure. c. tie rewards to employee effort. d. result in negligible increases in output.
tie rewards to employee effort.
Which of the following organizations are not required to follow OSHA's Bloodborne Pathogen standards?
travel agencies
Pay levels are limited in part by profitability of the firm and productivity of employees. a. True b. False
T
Employees who are compensated on an hourly basis are referred to as salary earners. a. True b. False
F
Nonexempt employees are not covered by overtime requirements under the Fair Labor Standards Act. a. True b. False
F
Pay-for-performance programs have little, if any, effect on employee productivity. a. True b. False
F
Point manuals contain job descriptions and the number of points assigned to each job type. a. True b. False
F
merit guidelines
Guidelines for awarding merit raises that are tied to performance objectives.
Nonexempt employees are covered by the Fair Labor Standards Act and must be paid at the rate of a rate of one and a half times their regular pay rate for time worked in excess of forty hours in their workweek. a. True b. False
T
gainsharing plans
Programs under which both employees and the organization share the financial gains according to a predetermined formula that reflects improved productivity and profitability.
Pay equity is achieved when employees' compensation is equal to the value of the work they perform. a. True b. False
T
. Internal factors that influence wage rates include the worth of a job and the employer's ability to pay. a. True b. False
T
A formal statement of compensation policy would typically include the rate of pay within the organization and whether it is to be above, below, or at the prevailing market rate.
T
Among the goals of a strategic compensation policy are rewarding past performance, attracting new employees, and reducing turnover. a. True b. False
T
Exempt employees are not covered by the overtime provisions under the Fair Labor Standards Act. a. True b. False
T
If rates of pay are high, which creates a large applicant pool, then organizations may choose to raise their selection standards. a. True b. False
T
stock appreciation rights (SARs)
cash or stock award determined by increase in stock price during any time chosen by the execute in the option period; does not require executive financing
profit sharing
challenges of what? -Agreement over the percentages of shared profits and the forms of distribution (cash or deferred) of profits between company and employees -Annual variations and possibility of no payout due to financial condition of company -Maintaining motivational connection of profit-sharing to performance of employees
team incentive
establishing ____________ payments -Set performance measures upon which incentive payments are based -Determine the size of the incentive bonus. -Create a payout formula and fully explain to employees how payouts will be distributed.
merit raises
problems with ____________ 1. Money for merit increases may be inadequate to satisfactorily raise all employees' base pay. 2. Managers may have no guidance in how to define and measure performance; there may be vagueness regarding merit award criteria. 3. Employees may not believe that their compensation is tied to effort and performance; they may be unable to differentiate between merit pay and other types of pay increases. 4. Employees and their managers may hold different views of the factors that contribute to job success. 5. Merit pay plans may create feelings of pay inequity.
enterprise incentive plans
profit sharing, stock options, and employee stock ownership plans is a form of what?
incentive plans
requirements for successful _____________ -Identify important organizational metrics that encourage employee behavior. -Involve employees. Incentive programs should seem fair to employees. -Find the right incentive payout. Payout formulas should be simple & understandable. -Establish a clear link between performance and payout.
incentive plans
why ___________ fail -They fail to meet employee expectations for pay gains. -There is confusion about incentive payment calculations due to poor design and implementation of the plan. -Employees do not have the capability to change their performance levels. (employees don't see a link between effort and performance (expectancy theory)) -The organization environment does not support plan.
