OLS-47600-22971
HoldDesk Inc. has an annual labor cost of $3,000,000. It has a turnover rate of 10 percent and a planned average increase of 5 percent. The turnover effect is _____.
$15,000
In 1959, benefits were approximately _____ percent of payroll and in 2014 it was approximately _____ percent of payroll.
25;32
For an employee to gain lifetime coverage under Social Security, they must have worked for _____ quarters during which they were covered by the Act.
40
Today, _____ percent of the workers participate in the pension plan coverage provided by their employers.
53
Nina is a high-performing individual who works best alone. Which of the following companies is the most appropriate for her?
A company that uses a hierarchical pay structure to pay its employees based on performance
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?
Alternation-ranking method
Which of the following is an example of the sorting effect in action?
An employee leaving a high-paying job for one that provides more work/life balance
Who among the following is most likely to be working for a company that uses a competency-based pay plan?
Carlos, who focuses on obtaining certifications in her field to get a pay increase
In which of the following types of cases is the focus on the discriminatory consequences rather than the intent to discriminate?
Disparate impact
_____, a software package, allows workers to make health-care choices, allocate savings to 401(k)s or other savings vehicles, and access vacation schedules.
Employee self-service
_____ prohibits discrimination on the basis of race, color, religion, sex, or national origin.
Executive Order 11246
The roots of job-based pay structures is traced to _____.
Frederick Taylor
Which of the following is a disadvantage of the point method?
It can become bureaucratic and rule-bound.
Which of the following is an advantage of providing stock ownership options as variable pay to employees?
It defers a portion of taxes to employees.It defers a portion of taxes to employees.
Which of the following is statements is true of leniency errors?
It is the error of consistently rating someone higher than is deserved.
Louie received the highest performance rating and is in the second quartile of his pay range. He received a pay increase of 8 percent. Bart also received the highest performance rating and is in the fourth quartile. Given the way most merit increase grids work, what size of pay increase would you expect Bart to receive?
Less than 8 percent
The agency that conducts reviews and seeks remedies where insufficient compliance to Executive Order 11246 is found is the _____.
OFCCP
In the context of pay relationships, which of the following is illegal in the United States?
Paying on the basis of one's age
Hierarchical pay structures have all BUT which of the following characteristics?
Prefer team performance over individual performance
Most unions prefer which of the following?
Small pay differences among jobs and seniority-based promotions
According to research, which of the following is NOT one of the most important factors for employees influencing their pay systems?
Team-based pay
Susan works in a sterile laboratory that requires her to scrub and put on protective clothing. Which of the following acts determines whether she should be paid for this time?
The Portal-to-Portal Act
Which of the following is a test that must be met to qualify for the administrative employee exemption?
The employee must be compensated on a salary or fee basis at a rate not less than $455 per week.
_____ puts a lid on the maximum pay level an employer can set.
The product market
Which of the following is an advantage of flexible benefit plans?
They increase the involvement of employees in choosing benefit plans.
Which of the following is the reason why skill-based pay plans have maximum flexibility?
They pay employees for the highest level of skill they have achieved regardless of the work they perform.
Which of the following is NOT a question to ask for determining if research has value?
Was the research conducted by PhD researchers?
The Web page for the compensation society is _____.
WorldatWork
The most obvious sorting factor is _____.
ability
Which of the following is the best appraisal format in terms of legal defensibility?
bars
Employees in a multiskill system earn pay increases:
by acquiring new knowledge.
The job evaluation method that most resembles a bookcase with many shelves is:
classification
The process of identifying competencies in person-based structures resembles identifying _____ as part of job evaluation in job-based structures.
compensable factors
Reliability of job evaluation techniques is measured by:
determining if different evaluators produce the same results.
The final step in designing a point plan involves _____
developing online software support
A horn error occurs when an employee is:
downgraded across all performance dimensions because of poor performance on one dimension.
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):
egalitarian pay structure.
The decisions to implement pay for performance, flat rate pay, and profit sharing are examples of _____ policy decisions.
employee contributions
Experts attribute the decline in dollar cost of workers' compensation after 2005 relates to:
employer safety programs.
At the corporate level, the fundamental strategic decision involves defining the role of the HR in compensation strategies.
false
Each compensable factor degree should be equidistant from the adjacent degrees.
false
Flexible benefit plans eliminate the involvement of employees.
false
Subordinate ratings are more accurate when they are not anonymous.
false
The two types of discrimination recognized by law are valuation discrimination and access discrimination.
false
External factors are dominant influences on jobs filled via:
hiring graduates.
The major potential advantage of outsourcing is _____.
increased cost savings
The process of collecting information that identifies the similarities and differences among jobs is known as _____.
job analysis
The determination of pay discrimination on jobs of dissimilar content requires a standard that allows jobs of dissimilar content to be declared comparable and that allows pay differences for jobs that are not comparable. This standard is _____.
job evaluation
In gain-sharing plan formulas, _____ are in the numerator and _____ are in the denominator.
labor inputs; productivity outcomes
The pay policy that is most closely associated with the decreased ability to attract employees is a(n) _____ policy.
lag
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.
loosely coupled
A company using a skill-based pay system prices the job of lead assembler between $10 and $22 per hour. Survey data showed that the job of assembler averaged $10 per hour and the job of assembly supervisor averaged $22 per hour. The company is using the _____ method of job matching.
low-high
The most common form of outcomes-based appraisal is:
mbo
Which of the following is given as an increment to the base pay in recognition of past work behavior?
merit pay
According to the Hudson survey, _____ is the single thing that would make 41 percent of the U.S. workers happier.
more money
The biggest cost-containment strategy in recent years is the movement to:
outsourcing.
Managers seek internal alignment within their organization by:
paying on the basis of similarities among jobs.
If Philadelphia has a CPI of 165 and Houston has a CPI of 145, and if both cities started with bases of 100, it means that _____.
prices have risen faster in Philadelphia since the base year than in Houston
If financially troubled employers have NOT been able to maintain competitive market positions, the conventional response has been to _____.
reduce employment
The compa-ratio reflects the _____.
relationship of the average actual salary in each range to the midpoint of the range
The Davis-Bacon Act _____.
requires that mechanics and laborers on public construction projects be paid the prevailing wage in an area
A recent survey shows employees ranking employee benefits _____ in explaining job satisfaction.
second
In the strategic approach to pay, internal alignment is the _____ issue to be decided.
second
Size of pay differentials between grades should _____.
support career movement through the pay structure
A specific statement of what a worker does on a job is known as a(n) _____.
task
The problem that is most likely to be faced by organizations using an egalitarian pay structure is _____.
the difficulty in external recruitment
The most common way to collect job information is _____.
to ask incumbents to fill out a questionnaire
Many employers use market surveys to validate their own job evaluation results.
tru
A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases.
true
Content refers to the
work performed in a job and how it gets done.
According to ADA regulations, essential functions refers to the fundamental job duties of the employment position the individual with a disability holds or desires.
true
Aging the market data to a point halfway through the plan year is called lead/lag.
true
An individual retirement account is a tax-favored retirement savings plan that individuals can establish themselves.
true
Benchmarking and copying best practices does not lead to competitive advantage.
true
Compensation systems focusing on competitors' labor costs typically follow a cost-cutter strategy.
true
Employees who are dissatisfied with performance appraisals are less satisfied with their pay.
true
High performance ratings are nearly always statistically related to high merit increases.
true
Identifying pay survey participants by company name is considered price fixing under the Sherman Act.
true
If red circle rates become common throughout an organization, then the design of the ranges and the evaluation of the jobs should be reexamined.
true
In a labor market, the demand side focuses on the actions of the employers.
true
In a totally decentralized pay system, employees are likely to be treated unequally and unfairly.
true
Individual incentives yield higher productivity gains than group incentives.
true
Keeping a performance diary can help employers defend against discrimination charges stemming from performance ratings.
true
Many employers achieve flexibility and control employment costs by utilizing contingent workers rather than expanding and contracting the core workforce.
true
Maslow's theory suggests that performance-based pay can be demotivating if it impinges upon employees' capacity to meet daily living needs.
true
One approach to both improving and measuring the level of acceptance of job evaluation is to establish a formal appeals process.
true
Performance plans typically feature corporate performance objectives for a time three years in the future.
true
Prevailing wages protect foreign workers working as registered nurses.
true
Providing unlimited compensation choices to employees would meet with disapproval from the U.S. Internal Revenue Service.
true
Skill-based pay plans can focus on both the depth and breadth of work.
true
The main appeal of competencies is the direct link to the organization's strategy.
true
The three factors usually used to determine the relevant labor markets are the occupation, geography, and competitors.
true
When pay raises are based on events over which employees lack significant control, they are likely to regard the system as unfair.
true
Employers in highly competitive markets are more able to raise prices without loss of revenues.
false
