MNGT 475 Final

Which of the following is NOT a reason why seniority pay is expected to disappear in the​ future? A. Employee belief that workers become more valuable over time B. Skill deficits of new employees C. Increased global competition D. Skill deficits of current workers E. Rapid technological advancements

A. Employee belief that workers become more valuable over time

Which stipulation is NOT part of the National Labor Relations Act of​ 1935? A. Employer-appointed representative for workers B. Freedom of association C. Collective bargaining D. Negotiating terms and conditions of employment E. Self-organization

A. Employer-appointed representative for workers

Which statement is true regarding the​ knowledge, skills, and abilities​ (KSAs) required to perform a​ job? A. Jobs that are based on KSAs that require higher education typically pay more. B. Jobs that require complex KSAs typically do not require formal education. C. Jobs that require internships pay the same as those that do not require internships. D. Jobs with less complex KSAs typically pay more. E. Jobs that are based on KSAs that require higher education typically pay less.

A. Jobs that are based on KSAs that require higher education typically pay more.

Joanna believes her employer is discriminating against her by paying her a lower salary than a male​ co-worker. Which legislation states that Joanna must file a pay discrimination charge within 180 days of receiving a discriminatory​ paycheck? A. Lilly Ledbetter Fair Pay Act B. Americans with Disability Act C. Age Discrimination in Employment Act D. Title VII of the Civil Rights Act E. Paycheck Fairness Act

A. Lilly Ledbetter Fair Pay Act

John was disappointed when he saw a negligible increase in his paycheck after he was awarded merit pay. This problem can be attributed to which of the following problems with merit​ pay? A. Little motivational value of merit pay B. Lack of open communication between management and employees C. Supervisor's biased ratings of​ employee's job performance D. Undesirable competition among workers E. Mounting costs associated with merit pay

A. Little motivational value of merit pay

What is a​ draw? A. Money to cover basic living expenses B. An employee incentive C. A bonus payment D. A type of merit pay E. An increase in base pay

A. Money to cover basic living expenses

Which of the following statements about the Social Security system is​ true? A. Retirement benefits of​ today's retirees are funded by the current workforce and their employers. B. The Medicare tax is subject to a wage base. C. The Social Security system is not a​ pay-as-you-go system. D. Self-employed individuals have to pay only 15 percent of the amount required for the Medicare Part A program. E. Not all payroll amounts and wages are taxed under the Social Security system.

A. Retirement benefits of​ today's retirees are funded by the current workforce and their employers.

Minimum​ wage, overtime​ pay, and child labor provisions are covered by which federal​ law? A. The Fair Labor Standards Act of 1938 B. The Social Security Act of 1935​ (Title IX) C. The​ Portal-to-Portal Act of 1947 D. Civil Rights Act of 1964 E. Equal Pay Act of 1963

A. The Fair Labor Standards Act of 1938

Which of the following best describes what a​ well-designed pay structure​ promotes? A. The retention of valued employees B. Identification of which pay system is the best to use C. Limiting the number of excess employees D. A reduction in payroll costs. E. A​ company-wide balanced budget

A. The retention of valued employees

The Pension Benefit Guaranty Corporation​ (PBGC) was created to​ _______. A. ensure retirement income for workers from those employers that offer defined benefit plans B. help employees file legal claims against their employers when employers fail to make retirement payments C. help the government collect revenue from companies for unemployment protection payments D. ensure that employers offer defined benefits to those workers who have been with the company 10 years or more E. help employees obtain permanent retirement income from companies in case of disability

A. ensure retirement income for workers from those employers that offer defined benefit plans

Personal effectiveness and academic and workplace competencies can be grouped as​ ________. A. foundational competencies B. occupation-specific competencies C. management competencies D. industry-wide technical competencies E. industry-sector technical competencies

A. foundational competencies

​Noor, an HR​ specialist, has expertise in labor laws due to his​ master's degree in HR and years of experience in the field. According to the​ EEOC, Noor's HR expertise is considered​ ________. A. knowledge B. an ability C. a benefit D. valuable E. a skill

A. knowledge

The index component of National Compensation​ Data, the Employer Cost Index​ (ECI), measures changes in​ ________. A. labor costs B. pay raises C. hourly versus salaried wages D. pay relative to inflation E. benefits

A. labor costs

The purpose of giving benefits to employees is to​ ________. A. provide subsistence income to all beneficiaries regardless of job performance B. help employees feel better about their total compensation package C. reward those who show superior interpersonal skills in the workplace D. help employees who have no health issues to remain active and fit E. provide motivation for superior performance by employees

A. provide subsistence income to all beneficiaries regardless of job performance

The key difference between the​ stair-step model and the skill blocks model is that​ ________. A. the skill blocks model addresses both horizontal and vertical​ skills, but the​ stair-step model addresses skill depth only B. in the​ stair-step model, skills do not build on each​ other, but in the skill blocks​ model, they do C. the​ stair-step model deals with general​ skills, and the skill blocks model deals with specialized skills D. the skill blocks model addresses skill​ depth, but the​ stair-step model does not E. the​ stair-step model depends on a defined​ curricula, but the skill blocks model does not

A. the skill blocks model addresses both horizontal and vertical​ skills, but the​ stair-step model addresses skill depth only

Individuals who meet the eligibility criteria for unemployment benefits receive​ ________ benefits. A. weekly B. monthly C. yearly D. quarterly E. daily

A. weekly

Which type of performance appraisal method relies on many sources for information​ (employees, supervisors,​ coworkers, etc.)? A. BARS B. 360-degree C. Trait D. Comparison E. Forced distribution

B. 360-degree

Anna is a new graduate with a B.S. degree in Business Management and is entering the workforce. Which type of competencies will a future employer expect Anna to​ demonstrate? A. Occupation​ -related competencies B. Foundational competencies C. Industry-related competencies D. Workplace competencies E. Industry-sector technical competencies

B. Foundational competencies

Of the following types of​ businesses, which one will benefit the most from the​ cross-departmental model of​ person-focused pay? A. Dentist office B. Gift store selling holiday items C. Auto body shop D. Hair salon E. Pharmacy

B. Gift store selling holiday items

Which is true of the minimum​ wage? A. Employers do not need a consent from the Department of Labor in order to pay a trainee less than minimum wage. B. In​ general, federal minimum wage law supersedes state minimum wage laws where the federal minimum wage is greater than the state minimum wage. C. Federal minimum wage is always greater than state minimum wage. D. In​ general, state law regarding minimum wage supersedes federal law when the state minimum wage is less than the federal minimum wage. E. State minimum wage is always greater than federal minimum wage.

B. In​ general, federal minimum wage law supersedes state minimum wage laws where the federal minimum wage is greater than the state minimum wage.

​Marketing-for-All relies on its employees developing certain skills that address the key concerns of the​ company, like customer relations skills. The company rewards its employees by assigning points to skills such as customer​ relations, communication​ skills, and creativity. Which type of​ person-focused pay program is​ Marketing-for-All more than likely​ following? A. Horizontal skill model B. Job-point accrual model C. Cross-departmental model D. Skill-block model E. Stair-step model

B. Job-point accrual model

When setting up an appeals process for employees to challenge the job evaluation​ process, it is best to have​ ________ be present. A. no more than one or two key individuals from HR B. a group of compensation​ professionals, supervisors, and employees C. as many employees as possible D. an external labor consultant E. members of the union

B. a group of compensation​ professionals, supervisors, and employees

One of the threats unions face is​ offshoring, which is part of the globalization phenomenon. Offshoring refers to the migration of all or a significant part of the​ development, maintenance, and delivery of services to a company in another​ ________. A. region of the United States B. country C. industry D. state E. geographical area near a sea or ocean

B. country

For many​ decades, discretionary benefits were​ ________. A. offered on the basis of an​ employee's years of service B. offered to a homogenous workforce consisting mostly of males C. offered to workers who were union members D. offered to workers for their exceptional performance E. offered on the basis of an​ employee's age and physical condition

B. offered to a homogenous workforce consisting mostly of males

When considering executive​ compensation, boards of directors are theoretically representing the interests of​ ________. A. blue collar workers B. shareholders C. labor leaders D. competitors of the firm E. government agencies

B. shareholders

The total bonus pool is considered when using the predetermined allocation bonus for an executive. What is the key factor that determines the size of the total bonus​ pool? A. The​ executive's job performance during the year B. A​ company's position ranking in the relevant industry C. A​ company's profits D. The amount of revenue generated during the year E. The recommendation of the board of directors

C. A​ company's profits

What do compensation professionals use to establish pay differentials among employees within a​ company? A. Job descriptions B. Seniority in the company C. Job evaluation D. Academic background E. Skills and qualifications

C. Job evaluation

​Mary's employer rewards employees with periodic additions to base pay according to​ employees' length of service in performing their jobs. What type of pay system is the organization​ utilizing? A. Merit pay B. Comparison pay C. Longevity pay D. Pay-for-performance E. Just-meaningful pay

C. Longevity pay

Which term refers to a salesperson receiving a set salary plus a single payment for the achievement of​ specific, exceptional​ goals? A. Salary-plus-draw plan B. Salary-only-plan C. Salary-plus-bonus plan D. Salary-plus-commission E. Commission-only plan

C. Salary-plus-bonus plan

What does the term market pay line imply when conducting a regression​ analysis? A. The highest wages paid in the market B. The deviation in pay rates C. The typical market pay rates expressed as a mean or median D. Insignificant pay rate increases in the market E. The lowest wages paid in the market

C. The typical market pay rates expressed as a mean or median

During collective bargaining, compensation professionals ensure that ________. A. union workers are treated fairly B. pay is equitable across all ranks C. employees receive cost-of-living adjustments and seniority pay increases D. labor legislation is not violated E. collective bargaining terms are part of the labor contract

C. employees receive cost-of-living adjustments and seniority pay increases

Which of the following are responsible for proving that alleged discriminatory pay practices are not​ discriminatory? A.Employees B.Labor courts C.Compensation professionals D.Company executives E.Labor unions

C.Compensation professionals

The motivational benefit of merit pay can be perceived differently by employees and employers. Of the following factors of merit​ pay, which one is perceived differently by employers and​ employees? A. Value of other employees B. Job description C. Value of competition D. Amount of merit pay increase E. Need for merit pay

D. Amount of merit pay increase

What is a notable drawback to flexible spending accounts​ (FSAs)? A. They place a limit on the amount an employee can allocate to an FSA. B. Hourly employees are not allowed to contribute to an FSA. C. They motivate employees to be less vigilant regarding medical expenses. D. An employee must use the accumulated money in the account by a specific time or it will be lost. E. Employees can only use money on​ themselves, not their dependents.

D. An employee must use the accumulated money in the account by a specific time or it will be lost.

​________ is one of the key features of​ person-focused pay that makes it costly for employers. A. Larger pay raises B. Reduced work hours C. Greater need for staffing D. Higher training costs E. Generous allowances for time off

D. Higher training costs

The chief reason that human resource and compensation professionals in​ today's work environment need to think like CEOs is to​ ________. A. communicate with organizational stakeholders B. achieve pay equity across all ranks C. overcome the negative image of the HR department D. accomplish strategic organizational goals E. ensure that salaries keep up with inflation

D. accomplish strategic organizational goals

Employees must be allowed to participate in pension plans after they have reached​ ________ and have completed​ ________ of service. A. certain status within the​ company; 1 year B. certain status within the​ company; 5 years C. age​ 25; 3 years D. age​ 21; 1 year E. age​ 35; 5 years

D. age​ 21; 1 year

One of the ways companies can use discretionary benefits is to​ _________. A. reduce the​ firm's chances of​ compensation-related lawsuits B. limit the amount of overtime pay given to workers C. lower employee expectations regarding future pay raises D. encourage certain worker behaviors that have strategic value to the firm E. pursue​ lowest-cost strategies to gain market share

D. encourage certain worker behaviors that have strategic value to the firm

The social context within which waiters in a restaurant interact with​ guests, or tax accountants in a tax preparation office interact with​ clients, is known as the​ ________. A. job content B. job description C. worker requirements D. working conditions E. KSAs

D. working conditions

Which of the following is important for successful​ pay-for-knowledge programs? A. Offering competitive pay rates B. Establishing mentorship programs C. Providing​ knowledge-development programs D.Developing and implementing systematic training programs E. Hiring and retaining superior employees

D.Developing and implementing systematic training programs

In order to remain​ competitive, how often should companies update their pay​ systems? A. Every five years B. Every two years C. Quarterly D. Every six months E. Annually

E. Annually

There is evidence that​ well-designed person-focused programs lead to greater employee​ commitment, motivation, and satisfaction. What is the main reason why employees feel the way they do in​ person-focused pay​ programs? A. Employees feel less pressure to develop themselves in this system. B. Employees feel less threatened in this system. C. Employees can take more personal time off in this system. D. Employees feel supervisors communicate better in this system. E. Employees can attain more skills and autonomy in this system.

E. Employees can attain more skills and autonomy in this system.

Workers earning less than​ $23,600 a year are guaranteed overtime protection under what​ guidelines? A. Civil Rights Act of 1964 B. The Social Security Act of 1935​ (Title IX) C. The Equal Pay Act of 1963 D. Lilly Ledbetter Fair Pay Act E. Fair Pay Rules

E. Fair Pay Rules

Which of the following measures the purchasing power of a​ dollar? A. Standard deviation B. Market pay line C. Central tendency D. Nominal compensation E. Real compensation

E. Real compensation

What entities are typically exempt from​ FUTA? A. Private businesses with diversity hiring practices B. Not-for-profit companies and​ for-profit companies that donate funds C. Any business that employs fewer than 20 employees D. City and county governments E. State and local governments and​ not-for-profit companies

E. State and local governments and​ not-for-profit companies

Which of the following is a true statement regarding the National Labor Relations Board​ (NLRB) and its enforcement of the National Labor Relations Act​ (NLRA)? A. The NLRA covers agricultural workers and independent contractors. B. The president of the United States appoints members of the NLRB for​ 10-year terms. C. The NLRB does not enforce the National Labor Relations Act. D. Employees of rail and air carriers get special coverage by the NLRA. E. The NLRA covers most​ private-sector employees.

E. The NLRA covers most​ private-sector employees.

Why has HR traditionally been viewed as an administrative or support​ function? A. HR was mostly about recruiting. B. Most HR professionals work in a support function. C. HR was mostly about assistance to CEOs. D. HR was mostly about determining pay scales. E. The financial or marketing value of HR was not as apparent.

E. The financial or marketing value of HR was not as apparent.

A job evaluation committee frequently uses the point method as a job valuation technique. When using the point​ method, an evaluation committee examines the importance of a factor to the overall value of the​ job, which means the committee is​ ________. A. defining factor degrees B. verifying factor degrees and point values C. determining the point value of each compensable factor D. selecting benchmark jobs E. determining the weight of each factor

E. determining the weight of each factor

Custom compensation surveys designed by consulting firms for clients may be superior to existing surveys because they​ ________. A. consider the total compensation package of the​ client, unlike existing surveys B. are not as out of date as existing surveys C. use multiple sources to collect​ data, unlike existing​ surveys, which use one source D. cost much less than existing surveys E. include questions specifically designed to meet client​ needs, unlike existing surveys

E. include questions specifically designed to meet client​ needs, unlike existing surveys

A problem associated with​ ________ is that they often lead to bureaucracy that can lead to higher fixed costs and a less competitive position. A. flexible pay systems B. salary-based pay systems C. internally inconsistent compensation systems D. hourly-wage-based pay systems E. internally consistent compensation systems

E. internally consistent compensation systems

Before merit pay can be​ awarded, it is important that companies first​ ________. A. consider the amount of time spent on the job by an employee B. make the employee realize that any pay increase is temporary C. ignore the amount of available funds for merit pay D. consider whether the person was employed in a​ for-profit or​ not-for-profit company in the past E. make permanent adjustments to base pay for inflation

E. make permanent adjustments to base pay for inflation

One of the disadvantages of​ person-focused pay programs is that it is hard to assign a monetary value to skill and knowledge sets. This is because compensation surveys​ ________. A. usually are taken from a small number of companies and are therefore limited in nature B. are not always accurate when reporting the monetary value of skill and knowledge sets C. compensation surveys become outdated very quickly D. are biased in reporting the monetary value of skill and knowledge sets E. report the value of entire jobs rather than of individual skill sets

E. report the value of entire jobs rather than of individual skill sets

Up to what percentage can an employer charge COBRA beneficiaries a premium for continuation​ coverage? A. 102 percent of the cost of the coverage of the plan B. 102 percent of the cost of health expenses incurred by the employee C. 36 percent of the cost of the coverage of the plan D. 90 percent above the cost of the coverage of the plan E. 50 percent above the cost of the coverage of the plan

A. 102 percent of the cost of the coverage of the plan

Which of the following is true in regard to​ benefits? A. Benefits costs have​ increased, giving rise to greater variability in benefits among companies. B. Benefits are currently far less important to employees than base pay. C. Compensation surveys do not take into account​ benefits; they concentrate on base pay. D. Benefits are becoming a smaller component of total compensation packages. E. Benefits costs have been falling for most companies.

A. Benefits costs have​ increased, giving rise to greater variability in benefits among companies.

The​ ________ survey is a monthly survey of the payroll records of businesses establishments that provides national estimates of average weekly hours and average hourly earnings for the private sector for all employees and for production and nonsupervisory employees. A. Current Employment Statistics B. Consumer Price Index C. National Compensation D. National Estimates E. Bureau of Labor Statistics

A. Current Employment Statistics

What is the reason many companies use a​ market-based evaluation plan when conducting job​ evaluation? A. Market-based evaluation plans determine appropriate pay rates relative to the market. B. Market-based evaluation plans do not rely on any questionnaires or surveys and therefore are easier to conduct. C. Market-based evaluation plans are preferred by compensation specialists. D. Market-based evaluations plans are more accurate than​ job-content evaluations. E. Market-based evaluation plans use​ companies' internal value system in establishing job worth.

A. Market-based evaluation plans determine appropriate pay rates relative to the market.

All of the following are true of the ethical considerations regarding executive pay​ EXCEPT: A. Most CEOs who are hired from within make more money than those who are recruited from outside the company. B. The typical compensation in equity plans for CEOs is about 50 percent. C. Labor unions argue that pay discrepancies between CEOs and​ non-CEOs are unjust. D. The typical earnings of a fast food cook are a mere​ one-half of 1 percent of what an executive makes. E. Many members of boards of directors and compensation professionals argue that high pay is necessary to attract executives.

A. Most CEOs who are hired from within make more money than those who are recruited from outside the company.

Which is true of merit pay​ increases? A. Research shows that boosting merit pay will not necessarily increase productivity. B. Merit pay should be awarded equally across the board for it to be meaningful. C. Merit pay can be administered regardless of the level of funding for merit pay. D. Merit pay should be substantive in the absolute​ sense, not a relative​ sense, for the employee. E. Merit pay is not viewed by employees as having any relationship to​ cost-of-living adjustments.

A. Research shows that boosting merit pay will not necessarily increase productivity.

Which statement about commissions is​ true? A. The intrinsic motivation of some sales professionals is undermined by​ commission-only plans. B.Younger sales professionals typically prefer​ commission-only plans much more than older sales professionals. C. As​ incentives, commissions are considered the best tactic for compensating sales professionals. D. Commissions interfere with the​ cost-cutting measures of most organizations. E. Commission plans generate cohesiveness among most sales professionals.

A. The intrinsic motivation of some sales professionals is undermined by​ commission-only plans.

Which of the following best explains the concept of an internally consistent compensation​ system? A. The relative value and corresponding compensation associated with each job is determined by compensation professionals in an organization. B. The value of each job is determined by a​ cross-functional team, which then assigns compensation based on a formula incorporating both longevity and employee skill sets necessary to complete tasks. C. Every employee within an organization should be paid​ equally, regardless of duties and responsibilities. D. The compensation system for internal​ full-time employees remains consistent over​ time, whereas the compensation paid to contractors and outside agents is subject to change depending on market fluctuations. E. Compensation systems do not change over time. When an employee is hired by an​ organization, the employee is guaranteed that the compensation system in place upon hiring will remain in place until separation.

A. The relative value and corresponding compensation associated with each job is determined by compensation professionals in an organization.

How do companies create an ownership interest for an​ executive? A. Through granting stock and stock options B. Through increasing the bonus amounts each year C. Through promising a fixed percentage of total amount saved in a given year D. Through offering a guaranteed lifetime income E. Through guaranteeing a percentage of the profits

A. Through granting stock and stock options

Why would a company provide outplacement assistance to an​ employee? A. To promote a positive image of the company B. To avoid legal complications when terminating employees C. To satisfy the demands of unions which require outplacement services D. To address safety issues at work because laid off employees are a threat to a company E. To comply with federal regulations during company layoffs

A. To promote a positive image of the company

Executives are awarded​ short-term incentive compensation. What is the reason for giving​ short-term incentive compensation to​ executives? A. To recognize their pursuit of competitive strategy goals B. To reduce their costs by lowering​ company-provided benefits C. To make their company a leader in the industry based purely on sales D. To increase their commitment to quality in the product or service provided by the company E. To keep the​ company's payroll costs low

A. To recognize their pursuit of competitive strategy goals

Which of the following rewards newly hired employees less than established or tenured​ employees? A. Two-tiered pay structures B. Broadbanding C. Pay compression D. Commission-only plans E. Salary-only plans

A. Two-tiered pay structures

Questionnaires, interviews,​ observations, and participation are methods for​ ________. A. collecting information for job analysis B. training job analysts C. conducting job evaluation D. determining pay raises E. conducting job orientation

A. collecting information for job analysis

A hospital that has been looking to fill the position for a neurosurgeon​ (a highly skilled and specialized job where demand is high and supply is​ low) would more than likely define its relevant labor market in terms of​ ________. A. geography B. the local area where the hospital is located C. product market competitors D. occupational classification E. service market competitors

A. geography

A key difference between​ knowledge-based pay and merit pay is that​ ________. A. merit pay is for job​ performance, and​ knowledge-based pay is for potential future performance B. knowledge-based pay is smaller than merit pay C. merit pay is for the commitment to future job​ performance, but​ knowledge-based pay is not D. merit pay takes into account the number of years of​ service, but​ knowledge-based pay does not E. knowledge-based pay is awarded to employees who achieve high scores on​ training, but merit pay is not

A. merit pay is for job​ performance, and​ knowledge-based pay is for potential future performance

What is one of the most difficult tasks managers face when they guide employees towards​ person-focused pay? A.Aligning employee pay with the knowledge structure B. Trying to help employees understand the connection between seniority and​ person-focused pay systems C. Making employees understand the base pay structure D. Helping employees understand the basic performance appraisal system E. Making employees understand the incentive pay structure

A.Aligning employee pay with the knowledge structure

Which two forces have contributed to a strategic approach towards​ HR? A.Technological advances and global competition B. Global competition and the declining use of robotics C. Technological advances and increases in payroll processing D. A decline in global competition and a decline in technological advances E.An increased use of robotics and a decline in imports

A.Technological advances and global competition

phenomenon? A. Companies in profitable industries typically have low wages but better​ benefits, which means better compensation for workers. B. Companies in profitable industries typically have productive employees with skills and abilities that contribute to company success. C. Companies in profitable industries typically fall in the manufacturing​ category, which is known to pay higher wages. D. Companies in profitable industries have low overhead costs. E. Companies in profitable industries have stronger unions that ask for higher wages.

B. Companies in profitable industries typically have productive employees with skills and abilities that contribute to company success.

Why are​ commission-only sales plans best suited for companies that are pursuing​ lowest-cost strategies? A. Companies using​ commission-only plans can pay smaller and smaller commissions on incremental sales. B. Companies using​ commission-only plans have compensation expenditures that vary with sales revenue. C. Companies using​ commission-only plans are not required to give pay raises to employees on a regular basis. D. Companies using​ commission-only plans can avoid paying commission to salespeople if they do not meet their required quota of sales. E. Generally, in​ commission-only plans, companies pay draws to salespeople but do not provide any incentive pay.

B. Companies using​ commission-only plans have compensation expenditures that vary with sales revenue.

In order to establish an internally consistent compensation​ system, which of the following is absolutely​ necessary? A. Communicating about merit pay B. Conducting job analyses C. Establishing effective appraisals D. Linking performance appraisals to business goals E. Establishing subjective performance measures

B. Conducting job analyses

What are the components of a pay​ mix? A. Total pay and merit pay B. Core compensation and benefits C. Total benefits and bonuses D. Core compensation and incentive pay E. Total benefits and incentives

B. Core compensation and benefits

Which authority provides the criteria for defining an​ executive? A. U.S. Securities and Exchange Commission B. Internal Revenue Code C. Organization stockholders D. A board of directors E. U.S. Labor Department

B. Internal Revenue Code

The point method is a​ job-content valuation technique. What is the first step when using this​ technique? A. Determining the weight of each factor B. Selecting benchmark jobs C. Determining point values for each factor D. Defining factor degrees E. Choosing compensable factors based on a benchmark

B. Selecting benchmark jobs

Monetary compensation is best described as ________. A. a type of intrinsic reward B. an employee's core compensation C. the experiential part of an employee's total compensation D. a small portion of a total compensation package E. a cost-of-living adjustment

B. an employee's core compensation

Harry has worked as a junior clerk for XYZ Company for three​ months, starting at​ $10 per hour. In the next five to seven​ years, if Harry continues to perform well and is willing and​ able, he can more than likely expect​ ________. A. an increase in longevity pay but not seniority pay B. an increase in seniority pay and a promotion C. an increase in longevity and seniority pay​ simultaneously, but not a promotion D. an increase in seniority pay but not longevity pay E. a​ cost-of-living increase with no increase in seniority pay

B. an increase in seniority pay and a promotion

Pay mix policy may be expressed in​ ________. A. dollars expressing the total savings in compensation B. currency or as a percentage of total dollars spent on compensation C. hours spent on the job D. dollars expressing total payroll taxes paid in a given year E. fractions and ratios

B. currency or as a percentage of total dollars spent on compensation

The Standard Occupational Classification System​, trade​ associations, professional​ societies, and trade unions are​ ________. A. external sources that HR professionals can use to develop performance appraisals B. external sources that job analysts can use to find pertinent job information to conduct job analysis C. internal sources from which pertinent information on labor laws can be determined D. excellent sources that companies can use when developing training programs for employees E. external sources from which pertinent information on pay raises can be determined

B. external sources that job analysts can use to find pertinent job information to conduct job analysis

An officer in an organization is someone who​ _________. A. works for an administrative executive B. has the title and authority of an officer C. is not considered a key employee per the U.S. Treasury Regulations D. works on​ short-term, strategic projects E. has the title of an officer but little authority

B. has the title and authority of an officer

Dysfunctional turnover is best defined as the departure of​ ________. A. ​high-quality employees due to bad supervisory behavior B. high-quality employees due to inadequate pay C. employees due to the lack of adequate job benefits D. supervisors due to​ low-quality employees being hired E. part-time employees from the organization due to bad performance reviews

B. high-quality employees due to inadequate pay

Economists call the sets of collective​ skills, knowledge, and abilities of employees​ ________. A. pay structures B. human capital C. financial capital D. pure capital E. employee benefits

B. human capital

Interindustry wage differential can best be defined as​ ________. A. pay and benefits associated between large and small firms B. pay and benefits associated with characteristics of industries C. pay and benefits associated between government and​ non-government organizations D. pay and benefits associated within one industry E. pay and benefits associated with certain firms

B. pay and benefits associated with characteristics of industries

​Cost-of-living adjustments represent​ ________. A. pay increases based on industry B. periodic base pay increases C.changes in health care benefits D.increases based on geographical location E.changes in retirement benefits

B. periodic base pay increases

​Person-focused pay programs are innovative because they​ ________. A. make supervisors more accountable on the job B. treat compensation as a reward rather than an entitlement C. reward employees very well for lack of absenteeism D. reward employees on the basis of loyalty E. reward employees for taking high levels of risk on the job

B. treat compensation as a reward rather than an entitlement

What is the balance that companies must strike when it comes to designing a differentiation pay​ strategy? A. Paying employees competitively while pursuing a​ lowest-cost strategy B. Providing employees generous benefits while keeping compensation costs to a minimum C. Attracting and retaining qualified candidates with sufficient pay and giving them adequate resources with which to work D. Paying employees lower pay than competitors and keeping employees from joining unions E. Trying to match their overhead costs to their competitors while keeping up with productivity levels

C. Attracting and retaining qualified candidates with sufficient pay and giving them adequate resources with which to work

Which term refers to an incentive compensation based on the percentage of the selling price of a product or​ service? A. Recoverable draw B. Draw C. Commission D. Salary E. Nonrecoverable draw

C. Commission

Who is exempt from​ COBRA? A. Employers who agree to provide excellent health benefits to their employees B. Employers and government plans that guarantee coverage for an​ employee's dependents C. Companies with fewer than 20​ employees, church​ plans, and plans maintained by the U.S. government D. Companies with fewer than 50 employees E. Employers who agree never to disclose or transfer their​ employees' health information

C. Companies with fewer than 20​ employees, church​ plans, and plans maintained by the U.S. government

Compensation professionals must be aware of certain characteristics of compensation surveys. Which statement about compensation surveys is​ FALSE? A. Compensation surveys are loaded with information. B. Compensation survey data requires statistical analysis. C. Compensation surveys represent​ real-time data. D. Compensation surveys become outdated quickly. E. Compensation surveys contain a wide range of pay rates across companies.

C. Compensation surveys represent​ real-time data.

Which of the following would contain detailed information on the compensation of a​ firm's CEO and Named Executive​ Officers? A. EDGAR B. Clawback provision C. Definitive Proxy Statement D. Golden parachute E. Separation agreement

C. Definitive Proxy Statement

Which of the following describes the agency​ problem? A. Board members delegate authority to company executives. B. Company shareholders make decisions that benefit other shareholders. C. Executives make decisions in their own​ self-interests. D. Union leaders create pay equity between executive and nonexecutive employees in a company. E. Company employees look out for themselves by doing the minimum amount of work.

C. Executives make decisions in their own​ self-interests.

Which statement about the annual base pay for an executive is​ true? A. The IRS does not limit the amount of an​ executive's annual pay that can be categorized as a business expense. B. It is very easy to set the annual base pay for a CEO because of the predictability of internal and external factors. C. For most​ executives, annual base pay represents a small part of their total compensation. D. A target plan bonus ties cash bonuses to the executive attaining specific performance criteria. E. It takes a short amount of time before the strategic decisions taken by a CEO pay​ off, thus justifying the​ CEO's salary.

C. For most​ executives, annual base pay represents a small part of their total compensation.

What is a key difference between a health reimbursement account​ (HRA) and a flexible spending account​ (FSA)? A. Employees contribute to HRA​ accounts, but not to FSA accounts. B. FSAs allow employees to carry over unused​ amounts, but HRAs do not. C. For​ HRAs, employers make the​ contributions, but in FSAs they do not. D. Employees partially fund their​ FSAs, but they are required to fully fund HRA accounts. E. HRAs require employees to forfeit the leftover amount within the account at the end of the​ year, but in an FSA account the amount can be rolled over.

C. For​ HRAs, employers make the​ contributions, but in FSAs they do not.

How did providing subsistence payments to those who were unemployed or injured help boost the U.S.​ economy, especially after the Great​ Depression? A. Subsistence payments went into funding programs that would help unemployed individuals find work. B. Subsistence payments gave subsidies to employers to keep the economy strong and growing. C. Subsistence payments gave unemployed individuals consumption ability to keep the economy afloat. D. Subsistence payments helped the unemployed become retrained to find work. E. Subsistence payments helped unemployed workers start establishing their own businesses with the money they received.

C. Subsistence payments gave unemployed individuals consumption ability to keep the economy afloat.

What is one of the reasons that companies began offering discretionary benefits to employees even though they were not required to do​ so? A. To meet employee demands for extra benefits B. To comply with government requirements regarding worker benefits C. To increase worker productivity and encourage good management D. To make employees feel valued E. To compensate for the low wages offered in many industries

C. To increase worker productivity and encourage good management

Before investing time and money into compensation​ surveys, which question is most important for compensation professionals to​ consider? A. How long will it take to conduct the​ survey? B. How long will the survey be​ valid? C. What does the company want to gain from the​ survey? D. Should company employees be involved in constructing the​ survey? E. How should we design the​ survey?

C. What does the company want to gain from the​ survey?

Under noncontributory financing for benefits​ programs, ________. A. the federal government covers the benefits program B. a firm and its employees share the costs C. a firm assumes total costs for each discretionary benefit D. the state government and the firm share the costs of each discretionary benefit E. employers do not contribute to the financing of discretionary benefits

C. a firm assumes total costs for each discretionary benefit

When companies strive to achieve the lowest cost of production or product differentiation, they are mainly trying to ________. A. keep up with production demands B. beat inflation C. achieve competitive advantage D. please the customer E. strive for the lowest cost possible

C. achieve competitive advantage

When an HR specialist continues to take courses and acquire additional experience in the benefits​ area, that specialist is​ ________. A. restricting the​ specialist's career progression B. acquiring fewer competencies in the HR area C. acquiring depth of skills D. acquiring horizontal skills E. acquiring vertical skills

C. acquiring depth of skills

In a pay-effort bargain, the basis for employee compensation is ________. A. an employer's perception of what a job is worth B. an employee's ability, skill, and knowledge C. an employee's job performance level D. the organizational culture regarding wages E. labor market compensation studies

C. an employee's job performance level

According to the Americans with Disabilities​ Act, employees​ ________. A. with only mental disabilities are protected from being discriminated at work B. are protected from discrimination based on a​ disability, with the Supreme Court overseeing the enforcement of this law C. are protected from discrimination based on a​ disability, if they are​ qualified, with the employer providing reasonable accommodation D. are protected from discrimination based on a​ disability, if the employer has less than 10 employees E. are protected from discrimination based on a​ disability, only when initially hired for a job

C. are protected from discrimination based on a​ disability, if they are​ qualified, with the employer providing reasonable accommodation

Pay rates that fall along the market pay line represent​ ________. A. minimum wage rates as determined by the government B. incentive pay historically paid by the company C. competitive pay rates based on relevant labor market D. labor uniondashdetermined pay rates negotiated and agreed upon by the company E. bonus pay awarded to workers on a random basis

C. competitive pay rates based on relevant labor market

Corporate strategy formulation is typically based on​ ________, which help determine threats and opportunities. A. market forces B. historical insights C. environmental scanning activities D. competing businesses E. financial outlooks

C. environmental scanning activities

Within the HR​ profession, a(n)​ ________ is a​ top-level manager who reports directly to the​ corporation's CEO or to the head of a major division. A. vice president B. HR specialist C. executive D. generalist E. specialist

C. executive

Jane works for a private employer that does not follow the seniority pay​ system, but​ Alex, her​ friend, works for the federal​ government, which awards seniority pay. Alex has an advantage over Jane because​ ________. A. he is male and will always receive better raises than Jane B. the federal government is known for taking care of its employees C. he knows that he will be treated fairly because seniority pay will be based on objective​ standards, rather than subjective standards D. he knows that he will get seniority pay as well as a​ cost-of-living adjustment E. he can expect much larger pay raises

C. he knows that he will be treated fairly because seniority pay will be based on objective​ standards, rather than subjective standards

correct, Chapter Quiz 2.3.1 When workers in Los​ Angeles, California, make​ 20% more than workers​ nationwide, this is an example of​ ________. A. pay rate differential B. regional-based pay differential C. relative pay differential D. geographical rate differential E. national rate differential

C. relative pay differential

Martina is a sales manager in a major department store. Two independent job analysts have listed​ Martina's duties, which match the sales manager job description. This approach is known as the​ ________. A. valid job analysis method B. interview method C. reliable job analysis method D. observation method E. data collection method

C. reliable job analysis method

Utility companies generally pay higher wages than companies in other industries because​ ________. A. utility companies need highly educated workers B. everyone needs electricity C. utility companies have high barriers to​ entry, no foreign​ competition, and high profits D. utility companies are forced by federal regulations to pay higher wages E. utility companies have low barriers to entry and high profits

C. utility companies have high barriers to​ entry, no foreign​ competition, and high profits

Which law established criteria for determining whether employees should be paid hourly or by​ salary? A.Equal Pay Act of 1963 B.National Labor Standards Act C.Fair Labor Standards Act D.Davis-Bacon Act of 1931 E.Social Security Act

C.Fair Labor Standards Act

Which statement about designing and planning benefits programs is​ true? A. Employee benefits programs first must be approved by employees before being officially offered to them. B. All​ companies' benefits programs must meet the objective outline in the protection​ programs, paid​ time-off, and services functions. C. Employee input is required in the development of a​ company's benefits program. D. Companies and union​ representatives, when​ appropriate, should determine which benefits are most important for employees. E. Employee benefits programs must include at least two of these three​ functions: protection​ programs, paid​ time-off, and services.

D. Companies and union​ representatives, when​ appropriate, should determine which benefits are most important for employees.

Which of the following is a true statement about compensation? A. Compensation offers only subjective rewards. B. Compensation offers only intrinsic rewards. C. Compensation offers only monetary rewards. D. Compensation offers both intrinsic and extrinsic rewards. E. Compensation offers only extrinsic rewards.

D. Compensation offers both intrinsic and extrinsic rewards.

Maria and Jill have been employed for three years at an accounting firm. In the last​ quarter, both received the same merit​ raise, although Maria has been a star performer and has not missed any​ deadlines, while Jill has missed deadlines on multiple occasions. On which aspect of the​ pay-for-performance link should the supervisor focus in this scenario so that this situation does not occur in the​ future? A. Empower both Mary and Jill. B. Communicate the way the merit pay was determined. C. Establish effective appraisal. D. Differentiate among performers. E. Conduct a job analysis.

D. Differentiate among performers.

What change occurred with the passing of the​ PPACA? A. There are now limits to benefits for health insurance plans. B. Coinsurance for employees is no longer an option. C. Employers can now purchase cheaper insurance plans with lower maximum benefits limits. D. Employers are no longer able to purchase insurance plans with lower maximum benefits at a lower cost. E. Employers are required to​ self-fund the insurance plans they provide.

D. Employers are no longer able to purchase insurance plans with lower maximum benefits at a lower cost.

Which of the following is a stipulation for​ fee-for-service plans? A. Fee-for-service plans require that insured employees are of a certain age. B.Fee-for-service plans require employers to pay 100 percent of covered expenses. C. Fee-for-service plans require the employer to pay all costs up front for employees. D. Fee-for-service plans have no​ pre-existing condition clauses. E. Fee-for-service plans do not have a set deductible for all insurance plans.

D. Fee-for-service plans have no​ pre-existing condition clauses.

Which statement about​ job-based pay and​ person-focused pay is​ true? A. Job-based pay promotes workers based on their past​ proficiency, but​ person-focused pay promotes based on seniority. B. A​ person-focused pay system is easier to administer than a​ job-based pay system. C. In a​ job-based pay​ system, an​ employee's pay is determined by the market value of their skills. D. In a​ person-focused pay​ system, employees tend to have more job variety and job enrichment than in a​ job-based system. E. Job-based pay considers key​ skills, but​ person-focused pay considers the market value of the job itself.

D. In a​ person-focused pay​ system, employees tend to have more job variety and job enrichment than in a​ job-based system.

What are the three key laws that have influenced discretionary​ benefits? A. National Labor Relations​ Act, Fair Labor Standards​ Act, and Internal Revenue Code B. National Labor Relations​ Act, Fair Labor Standards​ Act, and Civil Rights Act of 1964 C. Internal Revenue​ Code, National Labor Relations​ Act, and ERISA D. Internal Revenue​ Code, ERISA, and Pension Protection Act of 2006 E. ERISA, Internal Revenue​ Code, and Fair Labor Standards Act

D. Internal Revenue​ Code, ERISA, and Pension Protection Act of 2006

What can employers do to contain unemployment insurance​ costs? A. Hire workers based on conditional contracts and stipulations B. Make it a point to lay off workers when they do not need them C. Only employ​ part-time hourly employees D. Monitor their reasons for terminating employees E. Only hire highly skilled and​ well-educated employees

D. Monitor their reasons for terminating employees

​________ group jobs based on similar compensable factors for the purpose of pay policy application. A. Pay compressions B. Compa-ratios C. Red circle rates D. Pay grades E. Green circle rates

D. Pay grades

Which of the following statements is​ true? A. Job-based pay and​ person-focused pay combine well together. B. Incentive pay and merit pay combine together well. C. Incentive pay and​ person-focused pay combine together very well. D. Person-focused pay and incentive pay do not mesh well together. E. Merit pay and​ person-focused pay mesh together very well.

D. Person-focused pay and incentive pay do not mesh well together.

In which type of selling situation will salary represent a significant pay​ component? A. Cosmetic sales B. Furniture store C. Home electronics sales D. Pharmaceutical sales E. Auto sales

D. Pharmaceutical sales

If employees do not sign on to receive insurance from their​ employers, what are they required to do per the PPACA of​ 2010? A. Pay as they go for their health coverage without having an insurance plan B. Sign up with a health insurance industrial pool created for all employees in the given industry C. Pay a fine and reimburse the employer for any fines levied on the employer D. Purchase their own insurance E. Work additional hours at a lower wage rate

D. Purchase their own insurance

Which is true when comparing​ non-U.S. CEOs with U.S.​ CEOs? A. The range of pay and composition of pay among​ non-U.S. CEOs is not very wide. B. U.S. CEOs when compared with their​ non-U.S. counterparts have a huge gap in pay. C. There is no variation in pay when comparing​ non-U.S. CEOs and U.S. CEOs. D. U.S. CEOs make 300 percent more than​ non-U.S. CEOs. E. Countries globally provide detailed data on total compensations of​ CEOs, which makes comparison with U.S. executive pay easier.

D. U.S. CEOs make 300 percent more than​ non-U.S. CEOs.

How are welfare practices​ defined? A. Anything for the professional development of an employee to increase wage earning potential B. A person or​ group's health,​ happiness, and old age retirement C. Monetary support given to people in need D. Voluntary benefits paid by the employer that are for the intellectual or social development of the employees E. Lawful procedures or social efforts designed to stimulate the basic physical and material​ well-being of people in need

D. Voluntary benefits paid by the employer that are for the intellectual or social development of the employees

Which of the following statements about coverage for disability benefits is​ FALSE? A. Young workers need fewer quarters of coverage because they have had fewer years to accumulate them. B. Fully insured individuals can receive benefits as early as age 62. C. Disability is based on the inability to do the original work assigned or any type of new work because of the medical condition of the disabled worker. D. Younger workers need more quarters of coverage because of their young age and inexperience. E. Becoming disabled at 29 would mean needing credit for four years of employment.

D. Younger workers need more quarters of coverage because of their young age and inexperience.

​Long-term disability plans usually state that​ _______. A. employees are eligible only if they did not have a​ pre-existing condition at the start of the plan B. an employer should cover the employee even before the sick leave or​ short-term benefits run out C. there should be no waiting period for an employee before the employee can apply for​ long-term disability income D. an employee has to wait three to six months before disability payments are made following an illness or injury E. an employee should have a waiting period of three months after the expiration of​ short-term benefits

D. an employee has to wait three to six months before disability payments are made following an illness or injury

Compensation consultants determine executive pay based on a strategic analysis of internal and external factors of an organization. The most important internal factor in determining executive compensation is the​ ________. A. number of employees in the company B. amount of total compensation for nonexecutive employees in the company C. strength of the labor union in the company D. financial condition of the company E. total revenue from the product or service provided by the company

D. financial condition of the company

In a​ ________, employees earn a higher rate of commission for all sales made in a given period if the sales level exceeds a predetermined level. A. graduated commission plan B. salary-only plan C.commission-only plan D. multiple-tiered commission plan E. draw-only plan

D. multiple-tiered commission plan

In a merit pay​ program, there must be explicit​ ________ that specify the procedures or outcome against which​ employees' job performance can be clearly evaluated. A. job qualifications B. specifications C. job descriptions D. performance standards E. outcome assessments

D. performance standards

The difference between relative pay differential and pay rate differential is that​ ________. A. relative pay is based on the wage​ rate, and pay rate is based on the geographic region B. cost-of-living expenses factor into pay rate​ differentials, but not into relative pay differentials C. pay rate differential takes into account whether a worker is​ unionized, but the relative pay differential does not D. relative pay is based on the comparison of a geographic region to the United​ States, and pay rate is based on the occupation in a geographic region E. compensation professionals are concerned with relative pay differentials but not with pay rate differentials

D. relative pay is based on the comparison of a geographic region to the United​ States, and pay rate is based on the occupation in a geographic region

Most​ short-term disability plans pay employees​ ________. A. 100 percent of​ employees' pretax salary with a total limit of​ $30,000 on an annual basis B. 100 percent of​ employees' pretax salary on a monthly or weekly basis C.60-70 percent of​ employees' pretax salary with a total limit of​ $50,000 on an annual basis D. 50 percent of​ employees' pretax salary on a monthly or weekly basis E. 60-70 percent of​ employees' pretax salary on a monthly or weekly basis

E. 60-70 percent of​ employees' pretax salary on a monthly or weekly basis

Which of the following organizations will most likely utilize a longevity pay program 10 years from​ now? A. A​ small, locally owned coffee shop B. A privately owned flower shop C. A​ yo-yo manufacturer D. A mechanical engineering organization E. A public elementary school

E. A public elementary school

Which statement is​ correct? A. Administration of merit pay programs depends solely on the skills of the​ supervisor, not necessarily on the design and implementation of merit pay programs. B. Supervisors are generally very objective when awarding merit pay. C. When employees get continual and ongoing​ feedback, they learn to dread performance appraisals. D. The frequency with which employees are provided feedback on their performance is not very critical. E. Accurate and effective performance appraisals are key for effective merit pay programs.

E. Accurate and effective performance appraisals are key for effective merit pay programs.

Which of the following statements is true of an​ occupation? A. An occupation is a group of jobs found in only one company. B. An occupation is a group of unrelated tasks found in more than one company. C. An occupation is a group of related duties found in only one company. D. An occupation is a group of unrelated jobs found in only one company. E. An occupation is a group of jobs found at more than one company.

E. An occupation is a group of jobs found at more than one company.

Which of the following is NOT a step that compensation professionals use to begin plans for setting the merit pay​ grid? A. Gather data on employee positions in the pay range B. Determine if the projected merit increase totals are within the budgeted amount C. Ask managers for the performance distribution of their employees D. Calculate the expected number of employees who will fall into each cell E. Ask managers for the names of employees receiving merit pay increases

E. Ask managers for the names of employees receiving merit pay increases

What is the first step in the job evaluation​ process? A. Training employees to conduct job evaluations B. Choosing the job evaluation committee C. Documenting the job evaluation plan D. Setting up the appeals process E. Determining single versus multiple job evaluation techniques

E. Determining single versus multiple job evaluation techniques

How do executives receive an income tax benefit by participating in incentive stock option​ plans? A. Any taxes owed on stock options are covered by the board of​ directors, under a special arrangement on behalf of the executive. B. Executives pay taxes up front when they purchase the stock at a discounted price. C. Executives pay taxes at a flat rate of 2 percent on any profits made when they sell their stock. D. Executives do not pay any taxes on their profits from selling stock. E. Executives do not pay any taxes until they sell their​ stock, and when they do​ sell, the tax rates are lower than their income tax.

E. Executives do not pay any taxes until they sell their​ stock, and when they do​ sell, the tax rates are lower than their income tax.

When referring to executive​ compensation, what is mean by the term ​pay-for-failure​? A. Ironically, executives are better compensated when they fail to make employees work harder. B. Executives receive lucrative compensation for taking innovative risks even though they might fail. C. Executives perpetuate an overall culture in the company that rewards failure rather than success. D. Compensation consultants recommend higher executive pay even when the company fails to achieve a higher ranking in the industry. E. Executives receive pay for nonperformance and are given generous amounts to leave the company.

E. Executives receive pay for nonperformance and are given generous amounts to leave the company.

Which statement about flexible spending accounts​ (FSAs) is​ true? A. FSAs can be funded on an​ after-tax basis only. B. FSAs have no dollar limits per year. C. FSAs are matched dollar for dollar by employers. D. FSAs allow unused funds to be rolled over to another year. E. FSAs allow certain benefits​ (like child​ care) to be paid with pretax dollars.

E. FSAs allow certain benefits​ (like child​ care) to be paid with pretax dollars.

What was a common occurrence during the early twentieth century that led to​ workers' compensation​ insurance? A. Workers being required to handle harmful​ chemicals, which caused many health concerns B. Industrial hygiene not being a concern for many​ employers, which caused​ work-related illnesses C. Employers demanding long working​ hours, which caused health issues for workers D. Many employers not allowing regular work​ breaks, which caused workers to have​ fatigue-related illnesses E. Industrial accidents and occupational illnesses among workers

E. Industrial accidents and occupational illnesses among workers

​________ is when companies make corrections for differences between their jobs and external benchmark jobs. A. Objective correction B. Subjective correction C. Occupational classification D. Point factor leveling E. Job leveling

E. Job leveling

Which statement about​ person-focused pay systems is​ FALSE? A. Person-focused systems often lead to enhanced job motivation. B. Person-focused systems lead to higher job commitment from employees. C. Person-focused pay systems offer job enrichment. D. Person-focused systems create staffing flexibility. E. Person-focused pay systems create the need for more workers.

E. Person-focused pay systems create the need for more workers.

Dee Ann and her supervisor Andy both attend the same church and share similar points of view on many issues. It is possible for Andy to commit which type of error when judging Dee​ Ann's performance? A. Positive or negative halo effect bias error B. Contrast error C. First-impression effect bias error D. Error of central tendency E. Similar-to-me bias error

E. Similar-to-me bias error

Which would be an example of an employee receiving merit pay in an appropriate and typical​ manner? A. The employer adjusts the​ worker's base pay to account for inflation and then awards the worker an additional​ 2.5% increase based on a positive objective evaluation. B. The employer reviews the number of units of production for each employee and bases pay increases on each​ worker's production rate. C. The employer reduces the​ worker's base pay by​ 5% and then conducts an extensive subjective review of the​ employee's performance before deciding on an appropriate pay raise. D. The employer adjusts the​ worker's base pay to account for inflation and then reviews the​ worker's number of years of service to determine the​ worker's appropriate pay. E. The employer adjusts the​ worker's base pay to account for inflation and then awards the worker an additional​ 2.5% increase based on a positive subjective evaluation.

E. The employer adjusts the​ worker's base pay to account for inflation and then awards the worker an additional​ 2.5% increase based on a positive subjective evaluation.

Why do businesses use integrated paid​ time-off policies, which group together​ holidays, vacation, sick​ leave, and personal leave into a single paid​ time-off policy? A. To meet increased union demands B. To expand employee assistance programs C. To provide incentives for workers in lieu of pay raises D. To comply with new government legislation E. To reduce the number of unscheduled employee absences

E. To reduce the number of unscheduled employee absences

Internally consistent compensation systems facilitate the use of lowest cost strategy for companies because​ ________. A. jobs are placed on a​ hierarchy, with most jobs placed on the​ lower-paid levels B. merit pay is not part of the compensation C. jobs are valued​ numerically, with most jobs being assigned lower points D. job descriptions are broadly defined and focus on quality E. job duties and responsibilities are clearly defined with a focus on efficiency

E. job duties and responsibilities are clearly defined with a focus on efficiency

Seniority​ pay, merit​ pay, and incentive pay are forms of​ ________. A. person-focused pay B. training costs C. skill-based pay D. pay-for-knowledge E. job-based pay

E. job-based pay

All of the following are effective goals and objectives for sales professionals EXCEPT​ ________. A. acquiring new direct customers B. expanding overall sales C. achieving customer objectives D. improving sales productivity E. keeping current distribution channels

E. keeping current distribution channels

The data collected on compensation by professional and industry association members tends to be accurate because​ ________. A. it is valuable​ information, and therefore goes through several cycles of accuracy checks B. members are proficient in statistical techniques C. it is extremely expensive to purchase the data D. it takes a very long time to compile the data E. members themselves stand to benefit from the data

E. members themselves stand to benefit from the data

The largest percentage of total compensation costs incurred by companies currently is due to​ ________. A. a lack of growth in the amount of funds available to support compensation B. employers wanting to provide more benefits to improve employee productivity C. employees demanding increasingly more compensation from their employers D. paying insurance premiums for legal protection from​ compensation-related lawsuits E. rising health care costs and a lack of growth in the amount of funds available to support compensation programs

E. rising health care costs and a lack of growth in the amount of funds available to support compensation programs