COMPENSATION MIDTERM
Organization factors that shape internal pay structures include all BUT which of the following? A.Strategy B.Human capital C.Cultures and customs D.Employee acceptance
C
Leadership, customer orientation, and functional expertise are examples of which group of competencies? A.Personal characteristics B.Visionary C.Organization specific D.Team dynamics
C
The _____ method of job evaluation is the most commonly used method in the United States and Europe. A.ranking B.factor comparison C.classification D.point
D
The certification processes in skill-based pay is analogous to the _____ in a job-based analysis. A.classes B.compensable factors C.regression analysis D.factor degrees and weights
D
The exchange value of a job is its _____. A.content value B.performance value C.internal market value D.external market value
D
The job evaluation method that most resembles a bookcase with many shelves is: A.ranking. B.the Hay plan. C.the point method. D.classification.
D
The list of tasks, duties, and responsibilities that make up a job is known as a _____. A.job search B.job control C.job specification D.job description
D
The market pay rate is the: A.minimum wage rate set by the Department of Labor. B.pay rate at which applicants will deny a job offer. C.difference between use value and surplus value. D.point at which supply and demand lines cross.
D
The most common pay policy is a(n) _____. A.lead policy B.lag policy C.hybrid policy D.match policy
D
MXB Inc. is a carwash service provider. It orders the jobs in the company on the basis of the least important job to the most important job. In this case, MXB is most likely using a(n): A.alternation-ranking method. B.paired-comparison method. C.classification method. D.point method.
A
Marginal productivity theory argues that employers pay _____. A.use value B.exchange value C.surplus value D.differential value
A
The well-defined jobs at McDonald's and their small differences in pay are an example of a(n) _____ internal pay structure. A.closely tailored B.loosely coupled C.very competitive D.egalitarian
A
The degree to which pay influences individual and aggregate motivation among employees at any point in time is referred to as a(n): A.sorting effect. B.incentive effect. C.turnover effect. D.directional effect.
B
A specific statement of what a worker does on a job is known as a(n) _____. A.appraisal B.task C.position D.job structure
B
A study of graduating college students found they sought jobs with all of the following pay characteristics EXCEPT _____. A.individual-based pay B.variable pay C.flexible benefits D.job-based pay
B
The job analysis method that uses information input, mental processes, work output, job context, other job characteristics, relationships with other persons, and general dimensions is _____. A.task inventories method B.the PAQ C.essential elements questionnaire D.job tasks and elements inventory
B
The majority of applications of skill-based pay have been in: A.education industries. B.manufacturing industries. C.health-care industries. D.service industries.
B
_____ is the process of systematically determining the relative worth of jobs for the purpose of creating an organization's job structure. A.Performance evaluation B.Job restructuring C.Job evaluation D.Point factor evaluation
C
24. A study of 400 compensation specialists revealed that: A.job evaluation data had a larger effect on pay decisions than market data. B.current pay data had a larger effect on pay decisions than market data. C.job titles had a larger effect on pay decisions than job evaluation data. D.market data had a substantially larger effect on pay decisions than job evaluation data.
D
A job description is compared to class descriptions in the _____ of job evaluation. A.Position Analysis Questionnaire method B.point method C.Hay Group Guide Chart—Profile MethodSM D.classification method
D
A set of identical positions makes a _____. A.procedure B.task C.title D.job
D
In a hiring situation, considering that other potential costs will not change in the short run, the level of demand that maximizes profits is that level at which the _____ of the last hire is equal to the _____ for that hire. A.demand factor; supply factor B.marginal output; market price C.incremental output; marginal output D.marginal revenue; wage rate
D
In the context of internal alignment, which of the following is the correct sequence? A.Job description > Pay structure > Job evaluation B.Job evaluation > Job description > Job structure C.Pay structure > Job description > Job evaluation > Job analysis D.Job description > Job evaluation > Job structure
D
_____ are the observable behaviors that indicate the level of competency. A.Competency sets B.Core competencies C.Competency indicators D.Behavior scale points
C
Which of the following is a fundamental objective, and NOT a policy, in the pay model? A.Fairness B.Competitiveness C.Contributions D.Alignment
A
A compensation system using market-based pay is most likely to be part of a(n) _____ strategy. A.innovator B.cost-cutter C.cost leadership D.customer-focused
A
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.
A
A group of tasks performed by one person makes up a(n) _____. A.position B.job title C.appraisal D.incumbency
A
A small lawn care company has two mowers and four employees. If it hires another employee and the factors of production remain the same, how will the productivity of the fifth employee compare to that of the current four employees? A.The productivity will reduce. B.The productivity will increase. C.The productivity will remain the same. D.There is not enough information to determine productivity.
A
According to the government's procedures of the job analysis process, the first interview should be conducted with the _____. A.first-level supervisor B.chief executive officer C.HR manager D.incumbent's co-workers
A
All of the following are advantages of the ranking method of job evaluation EXCEPT that: A.rankings are easy to defend and justify. B.the evaluation process is fast. C.the evaluation process is inexpensive. D.the evaluation process is not complex.
A
All of the following statements regarding offshoring are true EXCEPT that _____. A.offshoring is limited to low-skill jobs B.art director and animal scientist jobs are low in susceptibility to offshoring C.medial transcriptionists and proofreaders are high in susceptibility to offshoring D.labor costs and proximity to customers affect offshoring decisions
A
Common characteristics of the point method include all of the following EXCEPT: A.benchmark factor classes. B.numerically scaled factor degrees. C.factor weights. D.compensable factors.
A
Competencies are derived from the _____ beliefs about the organization and its strategic intent. A.executive leadership's B.stakeholders' C.competitors' D.customers'
A
Conventional methods of collecting job information are _____. A. open to bias and favoritism B. reliable and objective C. not well-suited to small organizations D. relatively less time consuming
A
Flexible-generic job descriptions would most likely be used with a(n) _____ strategy. A.innovator B.customer-focused C.differentiated D.cost-cutter
A
GreenRain Corp. faces an increase in employee turnover rate. The CEO calls for a board meeting with the senior executives to discuss the issue. Who among the following suggests increasing the relational returns that employees receive to reduce the turnover rate at GreenRain? A.Tom suggests increasing the decision-making authorities given to the employees to make work more challenging. B.Deena suggests providing more work/life balance for the employees by increasing the number of paid leaves. C.Syed suggests increasing the medical insurance coverage offered to the employees. D.Liam suggests increasing merit bonuses.
A
Hourly compensation costs for production workers in manufacturing are higher in _____ than in the United States. A.Germany B.Czech Republic C.Mexico D.China
A
If Company A raises its pay rate by one dollar per hour to hire additional workers and competitors immediately match the increase, what will be the most likely result? A.The labor costs for Company A will increase, but it will be unable to hire additional workers. B.Company A will hire the needed workers at a higher wage rate. C.Competitors of Company A will lose employees to Company A. D.Company A will hire higher quality workers.
A
In mapping a total compensation strategy, the question of how important compensation is in the overall HR strategy is part of _____. A.objectives B.internal alignment C.external competitiveness D.corporate responsibility
A
Inclusion of essential elements in job descriptions for jobs covered by the legislation is required by the A.Americans With Disabilities Act. B.Civil Rights Act. C.Fair Labor Standards Act. D.Equal Pay Act.
A
Jacob works at PrimeClean Corp., a carwash company. He is asked to follow a set of instructions in a predetermined order to wash a car. All the details including the amount of washing liquid to use for each type of car are clearly specified. In this case, Jacob's company is most likely to use a: A.closely tailored pay structure. B.loosely coupled pay structure. C.pay structure with large differences in pay among jobs. D.pay structure that is highly flexible.
A
James says, "I don't trust the way the company determines pay rates in my department." If James feels this way despite being happy with his current salary, he is most likely concerned about _____. A.procedural justice B.distributive justice C.internal equity D.external equity
A
Jane works as a copy editor at TreeTime Inc. She receives an e-mail from the human resources department with a link to a questionnaire that asks her to rate the necessary attributes required for her job. In this scenario, the approach used by TreeTime is characterized as: A.quantitative job analysis. B.objective job analysis. C.conventional job analysis. D.paired-comparison job analysis.
A
Job analysis is important for both managers and employees because it is A.the basis for a work-related rationale for pay differences. B.an important result of the job evaluation process. C.required under the Fair Labor Standards Act. D.required for increasing employee turnover rates.
A
Mich Inc., a hardware store, has a rating system in place that rates employees on their friendliness, usefulness, and product knowledge. Based on the ratings an employee receives, he or she gets an incentive. The compensation strategy followed by Mich is most closely described as a: A.customer-focused strategy. B.cost-cutter strategy. C.innovator strategy. D.differentiation strategy.
A
Most unions prefer which of the following? A.Small pay differences among jobs and seniority-based promotions B.Large pay differences among jobs and seniority-based promotions C.Large pay differences among jobs and performance-based promotions D.Equal pay raises for employees
A
Pay for temporary workers is based upon A.the internal structure of their home employer. B.the internal structure of the temporary workplace. C.the strict requirements set by an international workers union. D.education only.
A
Reliability of job evaluation techniques is measured by: A.determining if different evaluators produce the same results. B.asking the question "What does the evaluation measure?" C.determining hit rates. D.surveying employee attitudes about the evaluation.
A
Research investigating high-performance workplaces found that performance-based pay _____ when combined with other high-performance practices. A.Improves attitudes and behaviors B.increases the number of middle men required C.reduces labor costs D.has little effect on quality
A
Research shows that skills, one of the compensable factors, accounts for _____ percent or more of the variance in job evaluation results. A.90 B.70 C.55 D.42
A
Routine work is also termed _____. A.transactional work B.hygiene work C.tacit work D.system work
A
The _____ theory is the most influential in explaining pay-level differences. A.human capital B.marginal productivity C.efficiency-wage D.signaling
A
The advantage of using questionnaires in job analysis is that the involvement of employees _____. A.increases their understanding of the process B.lowers the use value of the goods produced by an organization C.reduces the subjectivity of employment decisions D.increases the exchange value that is agreed upon by employees and employers
A
The best way to establish _____ is to account for competing explanations, either statistically or through control groups. A.causation B.profitability C.correlation coefficient D.internal alignment
A
The final step in designing a point plan involves _____. A.developing online software support B.selecting compensable factors C.communicating the plan and training users D.scaling the factors
A
The most common bases for determining internal structures are: A.work content and its value B.seniority and experience C.use value and exchange value D.pay surveys and job evaluation
A
The most widely used point method job evaluation is the: A.Hay plan. B.Equal Pay Act generic plan. C.factor comparison plan. D.Position Analysis Questionnaire plan.
A
The pay-level policy that is most likely to reduce pay dissatisfaction is a(n) _____. A.lead policy B.employer of choice policy C.lag policy D.match policy
A
The pay-mix policy alternative in which the percentage of benefits is likely to be the highest is known as _____. A.work/life balance policy B.security policy C.performance-driven policy D.market match policy
A
The problem that is most likely to be faced by organizations using an egalitarian pay structure is _____. A.the difficulty in external recruitment B.in maintaining cooperation among employees C.the perception of excessive CEO pay D.the difficulty in performing teamwork
A
The process of identifying competencies in person-based structures resembles identifying _____ as part of job evaluation in job-based structures. A.compensable factors B.job description C.employee requirement D.work flow outlay
A
The role non-HR managers play in making pay decisions is called _____. A.ownership B.transparency C.technology D.decentralized decision-making
A
The roots of job-based pay structures is traced to _____. A.Frederick Taylor B.Karl Marx C.Adam Smith D.Ronald McFreyer
A
Wages tend to be the lowest in which of the following industries? A.Education and health care B.Technology-intensive industries C.Professional services D.Pharmaceuticals
A
When a statistical process is used to duplicate an existing pay structure, it is called: A.policy capturing. B.committee a priori judgment approach. C.factor analysis. D.regression analysis.
A
When job analysis shows that managers and employees disagree on parts of a job, the best answer is to A.collect more data. B.use quantitative job analysis. C.refer the problem to the compensation committee. D.use an experienced compensation consultant.
A
Which form of pay does not permanently increase labor costs? A.Incentive B.Merit pay C.Cost-of-living adjustments D.Base pay
A
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
Which of the following is NOT true of the relationship between employer size and its ability to pay? A.Talented individuals have a lower marginal value in a larger organization. B.Talented people can influence more people and decisions. C.Influence of talented people leads to more profits. D.Talented people prefer to work in larger organizations.
A
Which of the following is the reason why skill-based pay plans have maximum flexibility? A.They pay employees for the highest level of skill they have achieved regardless of the work they perform. B.They focus on placing the right people in the right job. C.They only pay as much as the work performed is worth, regardless of any greater skills the employee may possess. D.They encourage employees to focus on how to get promoted rather than on how to get the required competencies.
A
Which of the following is the underlying assumption in the assessment of job content? A.Content has intrinsic value outside external market. B.Content has no artistic value. C.Stakeholders are the best judge for assessing the quality of content. D.Content can be determined with or without external market.
A
Which of the following methods requires evaluators to agree on which jobs are the most and least valuable, then the next most and least valued, and so on until all the jobs have been ordered? A.Alternation-ranking method B.Classification method C.Point method D.Paired-comparison method
A
Which of the following policy decisions directly affects employees' attitudes and work behaviors? A.Employee contributions B.Internal alignment C.External competitiveness D.Management
A
Which of the following statements is true of a job evaluation plan? A.It is developed using benchmark jobs and then applied to nonbenchmark jobs. B.It excludes the pay decisions made by a company. C.It provides the impetus to increase job levels and titles. D.It is always carried out separately for major domains of work.
A
Which of the following tests of competitive advantage is probably the easiest test to pass? A.Alignment test B.Differentiation test C.Integration test D.Value-addition test
A
Which theory predicts that individual performance will be maximized when the pay differentials between job levels is large? A.Tournament theory B.Equity theory C.Marginal productivity theory D.Reinforcement theory
A
Who among the following is examining the validity of a job evaluation? A.Keira, who is measuring the degree to which the job evaluation plan matches an agreed-upon pay structure for benchmark jobs B.Laila, who is measuring the effectiveness of a formal appeals process C.Keith, who is surveying employee attitudes about the job evaluation plan D.Rita, who is requesting the management for a reanalysis and a reevaluation of the required skills as she feels her job is evaluated incorrectly
A
_____ is a crucial factor that affects the perception of fairness of a skill-based plan. A.The design of the certification process B.The number of compensable factors C.The extent of alignment with an organization's strategy D.The number of weights and factor degrees
A
_____ refers to openness and communication about pay. A.Transparency B.Ownership C.Prominence D.Centrality
A
Which of the following is often the largest component in an executive pay package? A.Base pay B.Stock options C.Merit pay D.Perks
B
According to a WorldatWork survey, the primary method of job evaluation is _____. A.ranking B.market pricing C.the point method D.the classification method
B
According to the text, which of the following decisions should be made jointly? A.Internal alignment and management decisions B.External competitiveness and employee contribution decisions C.Employee contribution and internal alignment decisions D.Management and external competitiveness decisions
B
All of the following are advantages of a lead pay-level policy EXCEPT _____. A.reduced vacancy rates B.higher turnover rates C.reduced absenteeism D.better-quality employees
B
Among pay-mix alternatives, the percentage of base pay is highest in _____. A.work-life balance policy B.security or commitment policy C.performance-driven policy D.market match policy
B
Career growth, hierarchy, and flexible design are most closely associated with the _____ aspect of mapping a total compensation strategy. A.objectives B.internal alignment C.external competitiveness D.employee contributions
B
Comparisons on the forms of compensation used by other companies are part of _____. A.internal alignment B.external competitiveness C.employee contributions D.corporate responsibility
B
Compensation policy choices that affect the pay level relative to other companies are most closely associated with the _____ aspect of the pay model. A.internal alignment B.external competitiveness C.employee contributions D.pay system management
B
Content refers to the A.worth of the work. B.work performed in a job and how it gets done. C.relative contribution of the work to the organization objectives. D.different pay level policies.
B
Engineering, sales, and maintenance are examples of _____. A.tasks B.job families C.job dimensions D.appraisals
B
Evidence shows that in manufacturing, _____ is positively correlated with hourly wage level. A.turnover B.productivity C.job description D.total cost
B
Hierarchical pay structures have all BUT which of the following characteristics? A.Support a close fit with the organization B.Prefer team performance over individual performance C.Many levels D.Based upon the job or person
B
If several incumbents, supervisors, and peers respond in similar ways to job analysis questionnaires, it suggests that the results are most likely to be _____. A.useful B.valid C.invalid D.unreliable
B
In the context of the point method of job evaluation, _____ are those characteristics in the work that an organization values; that help it pursue its strategy and achieve its objectives. A.competitive skills B.compensable factors C.core competencies D.benchmark factors
B
In the formula predicting performance, the component most closely related to compensation is _____. A.a B.m C.o D.c
B
In the strategic approach to pay, internal alignment is the _____ issue to be decided. A.first B.second C.third D.fourth
B
Issues of transparency, technology, and choice are most closely associated with the _____ aspect of mapping a total compensation strategy. A.objectives B.management C.employee contributions D.internal alignment
B
Most factor scales have _____ degrees. A.6-9 B.4-8 C.3-7 D.2-4
B
Pay level decisions have a significant impact on expenses. Other things being equal, the higher the pay level, the higher the: A.profit margins. B.labor costs. C.return on investments. D.revenues.
B
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.
B
The most common way to collect job information is _____. A. to interview incumbents B. to ask incumbents to fill out a questionnaire C. to ask supervisors to fill out a questionnaire D. to observe the person at work and take notes when on what is being done
B
The process of collecting information that identifies the similarities and differences among jobs is known as _____. A.job performance B.job analysis C.use value evaluation D.exchange value analysis
B
The scheme used in the text for classifying competencies consists of three groups. Which of the following is NOT one of them? A.Personal characteristics B.Team dynamics C.Visionary D.Organization specific
B
The verification step of the government's job analysis method is always conducted with _____. A.only the HR manager B.all the interviewees together C.either the supervisor or the manager D.only the high-performing employees
B
Trying to measure an ROI for any compensation strategy implies that A.it is possible to align and differentiate and still fail to add value. B.people are "human capital," similar to other factors of production. C.adding value is the most difficult test. D.value created as a result of costs is difficult to specify.
B
When cooperation is important for successful organization performance, which of the following pay structures is most suitable? A.A tournament theory-based pay structure B.An egalitarian pay structure C.An hierarchical pay structure D.A layered pay structure
B
When organization performance declines A.a virtuous circle may be created. B.performance-based pay plans do not pay off. C.managers must avoid changing the pay practices. D.employee attrition rate declines considerably.
B
Which of the following is NOT a reason a company might pay base wages above market? A.To increase employee productivity B.To increase turnover rates C.To increase wage satisfaction D.To attract more job applicants
B
Which of the following is NOT a test of whether a pay strategy is a source of competitive advantage? A.Alignment test B.Cost-effectiveness test C.Differentiation test D.Value-addition test
B
Which of the following is a disadvantage of the point method? A.It can leave too much room for manipulation. B.It can become bureaucratic and rule-bound. C.It does not allow for comparisons. D.It does not communicate what is valued.
B
Which of the following is a policy, and NOT an objective, in the pay model? A.Ethics B.Competitiveness C.Efficiency D.Fairness
B
Which of the following is an advantage of skill-based pay plans? A.They guarantee a low rate of employee turnover. B.They aid in deploying workers in a way that better matches the work flow. C.They are less expensive than job-based plans. D.They are viewed more favorably by courts than any other type of pay plans.
B
Which of the following is an example of a relational return? A.Short-term incentives B.Employment security C.Long-term incentives D.Income protection
B
Which of the following is least likely to be used in establishing skill-based certification methods? A.Tests B.College degree C.Peer review D.On-the-job demonstration
B
Which of the following is the correct order of the steps in formulating a total compensation strategy? A.Assess the strategy, implement the strategy, map the strategy, and reassess the strategy. B.Assess the strategy, map the strategy, implement the strategy, and reassess the strategy. C.Map the strategy, implement the strategy, assess the strategy, and reassess the strategy. D.Map the strategy, assess the strategy, implement the strategy, and reassess the strategy.
B
Which of the following statements regarding allowing employees a choice in their pay mix is NOT true? A.Allowing employees their choice is difficult to manage B.Allowing employees their choice is easy for competitor companies to imitate C.Providing unlimited choices for employees to choose from is difficult to design D.Providing too many choices can confuse people
B
_____ are more likely to conduct job evaluations of senior management jobs. A.Compensation analysts B.Compensation managers C.Peers D.Junior incumbents
B
_____ are related to greater performance when the work flow depends on individual contributors. A.More egalitarian structures B.More hierarchical structures C.More delayered structures D.More even-handed structures
B
_____ is an example of a bourse. A.The stated starting wage of a job in an ad B.The total compensation for a top athlete C.The price of a product on Amazon D.The price of a box of cereal at a grocery store
B
_____ is the additional output associated with the employment of one additional person, with other production factors held constant. A.Productivity B.The marginal product of labor C.Incremental productivity D.The marginal revenue of labor
B
_____ is the measure of how important total compensation is in the overall HR strategy. A.Competitiveness B.Prominence C.Centrality D.Ownership
B
_____ puts a lid on the maximum pay level an employer can set. A.Government legislation B.The product market C.The labor market D.Labor market competition
B
_____ refers to comparisons among jobs or skills inside a single organization. A.External competitiveness B.Internal alignment C.Compliance D.Merit increase
B
KayDen Corp., a small organization with 15 employees, conducts job evaluation using the least expensive method for the first time. In this case, KayDen is most likely to have used the _____. A.classification method B.point method C.ranking method D.Hay plan
C
28. Which of the following is NOT a question to ask for determining if research has value? A.Is the research useful? B.Can alternative explanations be ruled out? C.Was the research conducted by PhD researchers? D.Is correlation separated from causation?
C
A _____ approach controls costs by paying only as much as the work performed is worth, regardless of any greater skills the employee may possess. A.performance-based B.competency-based C.job-based D.skill-based
C
A camper is an employee who _____ in a skill-based pay system. A.tops out B.is a jack-of-all-trades C.does not want to rotate jobs D.moves too quickly from job to job
C
A compensation system focusing on system control and work specifications is most closely associated with a(n) _____ strategy. A.innovator B.customer-focused C.cost-cutter D.differentiated
C
A compensation system that focuses on competitor's labor costs is most closely associated with a(n) _____ strategy. A.innovator B.customer-focused C.cost-cutter D.differentiated
C
A major decision in job evaluation is to: A.choose which stakeholders to eliminate in the process. B.figure out how to eliminate the use of multiple plans. C.choose among alternative approaches. D.figure out how to eliminate the use single plans.
C
A measure of how changes in one variable are related to changes in another variable is the: A.standard deviation B.analysis of variance C.correlation coefficient D.mean deviation
C
According to the Hudson survey, _____ is the single thing that would make 41 percent of the U.S. workers happier. A.more personal days B.flexible work schedule C.more money D.better health insurance
C
All of the following EXCEPT _____ are bases for judging job analysis. A.currency B.acceptability C.cost D.usefulness
C
All of the following are important factors in defining a market for compensation purposes EXCEPT: A.the skill or knowledge required. B.geography. C.the ability to pay. D.product and/or labor market competitors.
C
Among employers that provide health insurance, the cost to provide family coverage per year per employee is approximately _____. A.$4,000 B.$9,000 C.$16,000 D.$22,000
C
Based on the opinions of 10,000 U.S. workers, Hudson found that when given their choice of unconventional benefits, most employees would select _____. A.more supplemental insurance B.more job training C.a more flexible work schedule D.more personal days and family leave
C
Common bases for modern pay structures include all BUT which of the following? A.The content of the work B.The skills and knowledge required to perform the work C.The extent of external competitiveness and equity D.The work's relative value for achieving organizational objectives
C
Compensable factors, skill blocks, and competency sets are used for: A.assessing relative value. B.collecting work content information. C.determining what to value. D.completely different purposes.
C
Employers continue to hire until the marginal revenue of the last hire equals his or her wage rate. This is based on the first labor market theory assumption that: A.markets are competitive. B.pay rates reflect all costs of employment. C.employers seek to maximize profits. D.workers are homogeneous and interchangeable.
C
In firefighting and rescue squads and global software design teams, a(n) _____ structure is most closely associated with higher performance. A.hierarchical B.pyramidal C.egalitarian D.layered
C
In the context of pay relationships, which of the following is illegal in the United States? A.Paying on the basis of the nature of jobs B.Paying on the basis of pay comparisons with competitors C.Paying on the basis of one's age D.Paying on the basis of one's skill level
C
In the point method, the second step in designing a plan is to: A.conduct job analysis. B.scale the factors. C.determine the compensable factors. D.prepare a job evaluation manual.
C
In today's organizations, in order to increase competitiveness and success, work is analyzed by separating transactional work from: A.core work. B.hygiene work. C.tacit work. D.system work.
C
In which of the following conditions would product market competitors' data be given more weight than data from labor market competitors? A.Labor costs are a small share of total costs. B.Employee skills are generic across all product markets. C.Product demand is responsive to price changes. D.The supply of labor is not responsive to changes in pay.
C
Incentives and merit guidelines are techniques of the _____ policy of the pay model. A.internal alignment B.external competitiveness C.employee contributions D.management of the pay system
C
Mike, a job analyst, is in the process of conducting a job analysis. He is given an initial tour of the work site by George, a first-level supervisor, and by Haley, a new recruit. According to the conventional job analysis procedures developed by the U.S. federal government, which of the following steps should Mike perform next? A.Mike should conduct an interview with Hayley as she is in a better position to understand how the different tasks fit in the big picture. B.Mike should prepare a preliminary list of duties that will serve as a framework for conducting interviews with Hayley and George. C.Mike should conduct an interview with George to get an overview of the job. D.Mike should review existing documents in order to develop an initial familiarity with the job.
C
Most job structures are best described as A.job-based structures. B.person-based structures. C.both person- and job-based structures. D.competency-based structures.
C
Nina is a high-performing individual who works best alone. Which of the following companies is the most appropriate for her? A.A company that uses an egalitarian pay structure B.A company that pays its employees based on their seniority rather than their performance C.A company that uses a hierarchical pay structure to pay its employees based on performance D.A company that pays all its employees the same amount of money
C
One of the more readily accessible sources for generic job descriptions is the _____. A.Bureau of National Affairs B.Department of Labor C.O*NET D.Dictionary of Occupational Titles
C
One of the reasons why 8 in 10 of the uninsured in the United States are from working families is that _____. A.many larger employers do not offer health insurance as it does not guarantee an increase in productivity levels B.health insurance is more costly for larger employers C.many small employers are much less likely than larger employers to offer health insurance to their employees D.most workers decline health insurance when offered by their employers
C
Organizations in a turbulent and unpredictable environment requiring flexibility in jobs and work processes are likely to be more successful with a(n) _____ internal pay structure. A.egalitarian B.bureaucratic C.loosely coupled D.closely tailored
C
Research shows that _____ factor(s) account(s) for 98 to 99 percent of the variance in job evaluation plans. A.one B.two C.three D.four
C
The _____ method of job evaluation uses compensable factors. A.Classification B.Position Analysis Questionnaire C.point D.ranking
C
The alignment test A.is difficult to imitate. B.is the most difficult test. C.helps ensure passing the differentiation test. D.becomes difficult if the differentiation test is not clear.
C
The assumption of the upward sloping supply curve that offers of higher pay will increase supply will most likely NOT hold when _____. A.absenteeism is high B.turnover is low C.unemployment is low D.unemployment is high
C
The decisions to implement pay for performance, flat rate pay, and profit sharing are examples of _____ policy decisions. A.internal alignment B.efficiency C.employee contributions D.management
C
The government's job analysis procedures recommend interviewing A.the best performing employees. B.the long-tenure employees. C.the typical employee. D.workers just completing the probationary period.
C
The pay policy that is most closely associated with the decreased ability to attract employees is a(n) _____ policy. A.lead B.match C.lag D.employer of choice
C
Today, job analysis is typically performed by _____. A.experienced job incumbents B.new employees C.HR generalists and supervisors D.experienced workers
C
TreeWind Inc. is a bookstore that uses skill and responsibility as its compensable factors. It assigns 20 percent weight to responsibility and 80 percent weight to skill. If the responsibility factor scores a 60 after multiplying the subfactors with their corresponding weights, and if the skill factor has two subfactors that are rated as 4 and 5, what is the total weightage given to the job? A.40 B.120 C.420 D.990
C
Union preferences are a major factor in _____ a total compensation strategy. A.implementing B.reassessing C.assessing D.mapping
C
Which of the following is NOT a characteristic of a benchmark job? A.It is not unique to a particular employer. B.A reasonable proportion of the work force is employed in this job. C.The pay level is the best in the industry. D.The content of the job is relatively stable over time.
C
Which of the following is NOT a factor in defining equal work according to the Equal Pay Act? A.Equal skill B.Equal effort C.Equal experience D.Equal responsibility
C
Which of the following is NOT included in a strategy map? A.External competitiveness B.Management C.HR alignment D.Employee contributions
C
Which of the following is NOT one of the factors that define an internal pay structure? A.The pay differentials between the levels B.The criteria used to determine pay differentials C.The number of times the pay structure has been changed D.The number of levels of work
C
Which of the following is NOT true? A.Greater pay dispersion is related to higher turnover among executives. B.Egalitarian structures are a better fit for executive groups that need to work closely as a team. C.Large raises with a promotion decreases effort and increases absenteeism. D.Employees judge the fairness of their pay structure by making multiple pay comparisons.
C
Which of the following is an example of the demand side of labor? A.Level of pay applicants will accept B.Qualifications of applicants C.Pay level offered by an employer D.Locations of potential employees
C
Which of the following is an ordering of jobs based on their content or relative value? A.Job analysis B.Job description C.Job structure D.Job evaluation
C
Which of the following is given as an increment to the base pay in recognition of past work behavior? A.Base pay B.Long-term incentive C.Merit pay D.Short-term incentive
C
Which of the following is most likely to be a disadvantage of skill-based pay plans? A.They are generally not favored by employees as it is difficult to see the connection between the plan, the work, and the size of the paycheck. B.They discourage adaptability of employees to changing production needs. C.They are expensive in the long run as the majority of employees become certified at the highest pay levels. D.They dampen employee versatility.
C
Which of the following pay structure procedures would NOT increase perceptions of pay fairness? A.Consistently applying pay procedures to all employees B.Using accurate data C.Hiring consultants to develop the pay structure D.Including appeals procedures
C
Which of the following programs introduced by Congress includes restrictions on executive pay that are designed to discourage executives from taking "unnecessary and excessive risks"? A.Corporate Welfare Program B.Employee Welfare Program C.Troubled Asset Relief Program D.Corporate Liability Relief Program
C
Which of the following reasons makes competencies a risky foundation for a pay system? A.Number of stakeholders and the lack of a global standard B.Openness and non-quantifiable nature C.Vagueness and subjectivity D.Lack of motivation and objectivity
C
Which of the following statements about reliability of job analysis is true? A.It is a measure of the practicality of the information collected. B.It reflects whether there is a convergence of results among sources of data and methods. C.It is a necessary condition for validity. D.It is a sufficient condition for validity.
C
Which of the following statements is NOT true? A.The effect of performance incentives depends on the context. B.Embedding compensation strategy in HR strategy affects results. C.Focusing only on one dimension of the pay strategy is a best practice. D.The effect of paying more than competitors depends on the context.
C
Which of the following statements is true of pay level? A.Pay level is the same across all organizations for the same job. B.The higher the pay level relative to what competitors pay, the lower the relative costs to provide similar products or services. C.Pay level is directly proportional to labor costs. D.Pay level is independent of the number of employees in an organization.
C
Which of the following statements regarding reliability of job analysis is NOT true? A.Reliability is higher when analysts are professionals. B.Differences in performance across incumbents affect reliability. C.Gender and race of analysts affect reliability. D.Reliability is higher for specific tasks than for general ones.
C
ADA has directly led many employers to _____. A.only use the task inventory method for job analysis B.only use the PAQ method for job analysis C.modify special benefits so that allowances can be made for people with disabilities as required by the law D.modify the format of their job descriptions to specifically call out the essential elements
D
All of the following EXCEPT _____ are compensation systems associated with a cost-cutter strategy. A.focus on competitor's labor costs B.focus on system control and work specifications C.increase in variable pay D.customer satisfaction incentives
D
Apart from being reliable, a job analysis is also considered valid if: A.the results of the job analysis are consistent among various analysts. B.the results of the job analysis are consistent among various methods. C.the job analysis is found to be acceptable. D.the results converge among various sources of data and methods.
D
Druk Inc. is a consulting firm with 10 employees. Each new client generates $10,000 in revenue. If the company hires another employee who brings in five new clients and all other factors of production are constant, which of the following statements is true? A.Druk will break even if it hires a twelfth employee for a wage of $50,000. B.Druk needs to pay $10,000 as wage to the eleventh employee to break even. C.Druk will break even if it hires a thirteenth employee for a wage of $10,000. D.Druk needs to pay $50,000 as wage to the eleventh employee to break even.
D
Egalitarian pay structures have all BUT which of the following characteristics? A.Few levels B.Small differentials C.Support equal treatment D.Prefer individual performance over team performance
D
Employees in a multiskill system earn pay increases: A.by increasing their productivity. B.based on job content. C.based on job assignments. D.by acquiring new knowledge.
D
External factors are dominant influences on jobs filled via: A.demotions. B.promotions. C.transferring employees. D.hiring graduates.
D
Gina announces that she would lose her job as her company is considering to offshore her job to another country. In this case, Gina is most likely to be working in a job that requires her to: A. devise advertising campaigns for his or her company. B. curate art pieces in a museum. C. promote the image of his company to the public. D. manually fix typos in a document.
D
Incentives do not permanently increase labor costs because: A.they rely on a subjective rating of performance. B.they are given based on the past performances of the employees. C.they increase the base wage. D.they are one-time payments.
D
Joshua believes that treating employees equally will improve their job satisfaction, which in turn will increase their work productivity and performance. In accordance to his beliefs, he wants to reduce the number of job levels and the pay differentials between the levels. In this case, he is most likely to use a(n): A.highly layered pay structure. B.hierarchical pay structure. C.highly inequitable pay structure. D.egalitarian pay structure.
D
Lisa is a manager at Trell Inc. When she hires her employees, she focuses on finding the right job for the right person. Which of the following pay plans is her employer most likely using? A.Skill-based pay plan B.Competency-based pay plan C.Aptitude-based pay plan D.Job-based pay plan
D
Managers seek internal alignment within their organization by: A.matching the competitors' pay rates. B.following FLSA guidelines. C.using fair merit increases. D.paying on the basis of similarities among jobs.
D
Managers whose employers use _____ plans focus on placing the right people in the right job. A.person-based B.skill-based C.competency-based D.job-based
D
Most studies report that when different people rank-order jobs, the correlations are between: A..15 and .36 B..35 and .46 C..55 and .66 D..85 and .96
D
Organization factors that shape internal pay structures include all BUT which of the following? A.Technology B.Cost implications C.HR policy D.Economic pressures
D
Recent surveys show that, on average, an outstanding performer receives a _____ merit increase, an average performer a _____ merit increase, and a poor performer a 0.4% merit increase. A. 10.5%; 7% B. 8.4%; 5.2% C. 6.7%; 4.2% D. 4.4%; 2.8%
D
Research shows that _____ will effectively shift an organization in a downward performance spiral to an upward one. A.reinforcing performance-based pay B.implementing team-based pay C.improving work-life balance D.it is unclear what compensation practices
D
Skill-based plans tend to work best in organizations using a(n) _____ strategy. A.innovator B.defender C.laissez-faire D.cost-cutter
D
The parable of the vineyard owner and the compensation paid to the laborers illustrated: A.the payment to the laborers according to their productivity. B.the payment to the laborers based upon the content of the job. C.the payment to the laborers based upon the hours of work. D.the ignorance of the owner toward the content of work.
D
The second step of developing a total compensation strategy is to: A.implement the strategy. B.assess total compensation implications. C.estimate the cost of the strategy. D.map the strategy.
D
Variable pay may also be called _____. A.relational returns B.pensions C.stock options D.incentives
D
Which of the following is NOT a characteristic of aligned pay structures? A.They support the way the work gets done. B.They fit an organization's business strategy. C.They are fair to employees. D.They are designed to increase the turnover rate.
D
Which of the following is NOT true of the usage of multiple plans versus single job evaluation plans? A.Employers rarely evaluate all jobs in the organization at one time. B.Many employers design different evaluation plans for different types of work. C.Typically, a related group of jobs is used for evaluation. D.A single universal plan is acceptable to employees if the work covered is highly diverse.
D
Which of the following is a major decision in job evaluation? A.Choosing the stakeholders to eliminate in the process B.Choosing the method of eliminating multiple plans C.Establishing standards that solely use a single plan D.Establishing the purpose of evaluation
D
Which of the following is an example of a bourse market? A.Neurofort, a website that sells surgical equipment in bulk at fixed prices B.Hardknox, a hardware store that sells all its products at 10 percent above the maximum retail price C.Needlefarm, a store that sells premium furniture at discounted rates D.Flatcake, a website that allows buyers to negotiate the prices with the sellers of handmade goods
D
Which of the following is an example of a quoted-price market? A.Streetcash, a website that allows buyers to negotiate product prices with the sellers B.Vidwom, a website that allows buyers to bid for items sold by other users C.Gramspot, a website where cars are auctioned by sellers for charity D.Nile, a website that allows sellers to sell their products for a fixed price
D
Which of the following sentences regarding skill-based structure is FALSE? A.Employees have control over their own development. B.Training is a source of complaints. C.Less supervision is required in comparison to all other pay plans. D.Training costs are the lowest in comparison to all other pay plans.
D
Who among the following is most likely to be working for a company that uses a competency-based pay plan? A.Julia, who focuses on getting promoted to get a pay increase B.Faiza, a manager, who focuses on choosing the employees best suited for job roles C.Juan, a manager, who focuses on controlling costs through budgets and work assignments D.Carlos, who focuses on obtaining certifications in her field to get a pay increase
D
Whole Foods' shared-fate philosophy of limiting executive salaries to no more than 19 times the average pay of full-time employees is an example of which strategic pay decision? A.External competitiveness B.Employee contributions C.Corporate responsibility D.Internal alignment
D
You are an HR manager, and your boss has told you to find the best way to raise job performance. After some research, you find that _____ have the greatest instrumental value. A.job responsibilities B.training and skill development programs C.goal setting and job enrichment D.monetary incentives
D
_____ looks at how an organization does its work: activities pursued to accomplish specific objectives for specific customers. A.Job analysis B.Market analysis C.Job structure D.Supply chain analysis
D
_____ refers to the average of the array of rates inside an organization. A.Revenue margin B.Remuneration C.Compensation D.Pay level
D
_____ translate each core competency into action. A.Competency indicators B.Multifunctional skills C.Skill-based structures D.Competency sets
D
