Compensation Admin Test 3 quiz questions

________ is movement through the wage ranges where seniority is specified as the basis of the movement. a.Automatic progression b.A merit differential c.Length-of-stay progression d.A performance differential

a.Automatic progression

This type of defined contribution plan involves a company making a tax-deductible contribution of stock shares to cash to a trust which then allocates payments to employees based on earnings. a.A cash balance plan b.An ESOP c.A profit-sharing plan d.A 401(k) plan

b.An ESOP

Which of the following involves periodic adjustments based typically on changes in the consumer price index? a.An annual improvement adjustment b.A reopener clause c.A COLA clause d.A deferred wage increase

c.A COLA clause

Which of the following issues most commonly reach arbitration? a.Transfers b.Discharge and disciplinary issues c.Layoffs d.Complexity of work assignments

b.Discharge and disciplinary issues

The ________ Act extends the prevailing-wage concept to manufacturers or suppliers of goods for government contracts. a.Sarbanes-Oxley b.Fair Labor Standards c.Walsh-Healey Public Contracts d.Davis-Bacon

c.Walsh-Healey Public Contracts

Which of the following statements is true of employee benefits? a.Group insurance has relatively easy qualification standards. b.Employers can substitute insurance benefits for job security. c.Most employee benefits are taxable. d.Many group-based benefits are obtained at a higher rate than could be obtained by employees acting on their own.

a.Group insurance has relatively easy qualification standards.

Which of the following is a factor to control in order to manage labor costs in a simple labor cost model? a.Ethics b.Employment c.Communication d.Behavior

b.Employment

Which of the following best describes the impact of the Maintenance Act (1973) on employee benefits? a.It mandated 12 weeks of leave for all workers at companies that employed 50 or more people. b.It required employers to offer alternative health coverage options to employees. c.It ensured that benefits were administered in a manner that did not discriminate against protected groups. d.It created time-and-a-half overtime pay.

b.It required employers to offer alternative health coverage options to employees.

The CEO of BoardCom, Inc., James, negotiates a new union contract with the union leader. If James wants to reduce expenses and keep the union happy, which of the following suggestions is most likely to be helpful? a.Introduce a gain-sharing plan that substitutes wages. b.Provide lump-sum awards in exchange for merit pay increases. c.Introduce merit increases based on individual-based performance. d.Provide a 20 percent increase to base wages.

b.Provide lump-sum awards in exchange for merit pay increases.

In recent years, a stable ________ of all major collective bargaining agreements in the private sector have contained a provision for lump-sum payouts. a.one-half b.one-quarter c.one-third d.three-fourths

c.one-third

A major advantage of a ________ is that it reduces benefits costs, something that the other cost-cutting options ordinarily do not achieve. a.pay cut b.reduction in work hours c.reduction in force d.furlough

c.reduction in force

The ________ is designed to lessen an employer's ability to deny coverage to an employee for a preexisting condition. a.Contract with America Advancement Act b.Consolidated Omnibus Budget Reconciliation Act c.Family and Medical Leave Act d.Health Insurance Portability and Accountability Act

d.Health Insurance Portability and Accountability Act

Which of the following is one of the basic steps in establishing a comparable-worth pay plan? a.Basing the wage-to-job evaluation point ratio on the wages paid for female-dominated jobs b.Paying jobs with different evaluation results with different wage rates c.Adopting multiple gender neutral point job evaluation plans for all jobs within a unit d.Identifying the percentages of male and female employees in each job group

d.Identifying the percentages of male and female employees in each job group

Since 1983, in the private sector, the number of workers in unions has dropped as well as the membership rate. Which of the following is not an explanation offered for this decline? a.Workers do not view unions as a solution to their problems. b.Organization efforts have declined. c.Growing industries are less unionized. d.The structure of American industry is stagnate.

d.The structure of American industry is stagnate.

Which of the following benefits is NOT mandated by either the state or federal government? a.Social security b.Workers' compensation c.Unemployment insurance d.Work/life balance

d.Work/life balance

The phenomenon where nonunion management continues to enjoy the freedom from union "interference" in decision making and the workers receive the rewards already obtained by their unionized counterparts is known as a.the equal mirror effect. b.automatic progression. c.an experience differential. d.the spillover effect.

d.the spillover effect.

In a(n) ________ pay plan, a contract is negotiated that specifies that employees hired after a given target date will receive lower wages than their higher-seniority peers working on the same or similar jobs. a.two-tier b.one-tier c.efficiency-based d.skill-based

a.two-tier

________, designed for employees or managers, explain compensation policies and practices, answer frequently asked questions, and explain how these systems affect their pay a.Cafeteria plans b.Enterprise resource planning systems c.Communication portals d.Content delivery networks

c.Communication portals

In the majority of states, unemployment insurance is financed exclusively by: a.employers that pay federal and state unemployment insurance. b.federal, state, and employee contributions. c.joint contributions by employee unions. d.the philanthropy of coworkers.

a.employers that pay federal and state unemployment insurance.

________ is defined by the Department of Labor as experience, training, education, and ability as measured by the performance requirements of a particular job. a.Effort b.Skill c.Responsibility d.Working condition

b.Skill

A key provision of the ________ allows employees in publicly traded companies the freedom to sell off any employer stock purchased through deferrals or after-tax contributions. a.Employee Retirement Income Security Act b.Affordable Care Act c.Pension Protection Act d.Consolidated Omnibus Budget Reconciliation Act

c.Pension Protection Act

In the context of benefits communication methods, which of the following is mostly true about an information portal? a.It essentially requires coordination and planning. b.It primarily allows for personalized communication methods. c.It fosters open communication. d.It requires ongoing maintenance and an intuitive user interface.

d.It requires ongoing maintenance and an intuitive user interface.

Which of the following is true of the Age Discrimination in Employment Act? a.It protects employees aged 30 and over against age discrimination. b.It mandates employers with 50 or more employees to provide qualifying health insurance coverage or face financial penalties. c.It formed the Securities and Exchange Commission, which ensures that companies having more than $10 million in assets report information periodically. d.It was amended in 1990 to include the Older Workers Benefit Protection Act.

d.It was amended in 1990 to include the Older Workers Benefit Protection Act.

________ are one-time cash payments to employees that are not added to an employee's base wages. a.Cost-of-living increases b.Relational returns c.Merit increases d.Lump-sum awards

d.Lump-sum awards

Which of the following is a reason for unions opposing gain-sharing plans? a.Decreased feeling of achievement or contributing to the organization b.Decreased peer pressure to perform c.Reduced job security d.Reduced need for jobs due to increased productivity

d.Reduced need for jobs due to increased productivity

Bottom-up budgeting includes the process of distributing forecasting instructions and worksheets where: a.managers are trained in the concepts of a sound pay-for-performance policy. b.each manager's forecast is examined and changes based on noted inequities are recommended. c.managers are presented statistical summaries of the forecasting data by each department. d.firms furnish managers with the forms and instructions necessary to preplan increases.

d.firms furnish managers with the forms and instructions necessary to preplan increases.

In 1940, the ratio of social security covered workers (those paying into the fund) to beneficiaries was 159.4 to 1, and now it is: a.under 2.0 to 1. b.3.4 to 1. c.under 3.0 to 1. d.5.1 to 1.

c.under 3.0 to 1.

DrenchFort Corp. is a small company that pays high wages. As its wages are high, it does not provide any benefits. Recently, it has noticed that its employee turnover has increased, so it decides to provide benefits to retain employees. Which of the following benefits is most likely to reduce turnover? a.Medical coverage b.A profit-sharing plan c.An early retirement plan d.Counseling services

a.Medical coverage