MHR 413 Chapter 1 Quiz

Since HR research contains information useful to managers, most managers read research in HR, management and compensation journals.

(False) (Pg. 25)

Most U.S. firms use merit pay increases

(True) (Pg. 14)

Causality is one of the most difficult questions to answer and continues to be an important and sometimes perplexing problem for researchers

(True) (Pg. 26)

The objective of procedural fairness suggests the way a pay decision is made may be as important to employees as the results of that decision (pg. 19)

??? (T/F)

When unemployment increases, the proportion of the population covered by health insurance decreases. True False

??? (T/F)

Which form of pay does not permanently increase labor costs?

??? A. Incentive B. Merit pay C. Cost-of-living adjustments D. Base pay

Which of the following companies is taking efforts to improve the work/life balance of its employees?

??? A. MH Corp. increases the number of paid holidays given to its senior employees. B. Kay Corp. increases the transport allowance for its employees by 10 percent. C. Haywire Corp. allows its employees to buy company stocks at a reduced price of $30 per share. D. Halo Corp. increases the variable pay for its employees.

A difference between incentives and merit increases is that incentives:

??? A. do not increase the base wage, whereas merit increases the base wage. B. cannot be tied to the performance of an individual, whereas merit increases can be tied to the performance of an individual. C. rely on a subjective measure of performance, whereas merit increases rely on an objective measure of performance. D. are relational returns, whereas merit increases are part of the total compensation.

Robert, the CEO of GameTrack Corp., wants to restructure the pay plan without increasing the labor costs in the long run. He is most likely to achieve this, while retaining his top employees, by:

??? A. increasing base pay and decreasing variable pay. B. increasing incentive pay and decreasing base pay. C. hiring more employees and reducing the marginal product output requirements. D. providing across-the-board increases on a monthly basis.

The decisions to implement pay for performance, flat rate pay, and profit sharing are examples of _____ policy decisions.

Employee contributions

Which of the following policy decisions directly affects employees' attitudes and work behaviors?

Employee contributions

Which of the following is a policy, and NOT an objective, in the pay model?

Fairness

Hourly compensation costs for manufacturing workers are higher in

Germany than the U.S.

_____ refers to comparisons among jobs or skills inside a single organization.

Internal alignment

Which of the following is given as an increment to the base pay in recognition of past work behavior?

Merit pay

Which of the following is NOT a question to ask for determining if research has value?

Was the research conducted by PhD researchers?

The best way to establish causation is to account for competing explanations,

either statistically or through control groups (Pg. 27)

Largest component in an executive pay package

is stock options

Managers seek internal alignment within their organizations by

paying on the basis of similarities among jobs

The degree to which pay influences individual and aggregate motivation among the employees at any point in time is (pg. 11)

referred to as incentive effect.