Reward Systems Management Final (CH 1-6)

Ross wants to be transferred to a new team because he is frustrated that some of his team members put in less effort than others. Which of the following terms best describes this? A. social loafing B. cloning effect C. slacker effect D. group dynamics

A. social loafing

Market-based job evaluation uses which method to collect data to determine prevailing pay rates? A. surveys B. observations C. interviews D. gossip

A. surveys

Which of the following are the two main reasons given for adopting pay-for-knowledge programs? A. technological innovations and increased global competition B. smaller labor markets and strategic outlines C. market monopolies and lower labor costs D. market monopolies and company turnover

A. technological innovations and increased global competition

What is the most common type of life insurance policy offered by companies? A. term life insurance B. group life insurance C. whole life insurance D. universal insurance

A. term life insurance

This act strengthened the Equal Pay Act of 1963 by requiring employers to show that pay disparities are job related rather than sex-based. This act also prohibits employers from retaliating against employees who share their salary information. A. the paycheck fairness act B. the civil rights act of 1964 C. the age discrimination in employment act of 1967 D. the davis act

A. the paycheck fairness act

Which of the following is a feature of short-term disability plans? A. inclusion provision B. preexisting conditions C. partial disabilities inclusion D. waiting period

B. preexisting conditions

Which of the following is NOT a condition manifesting short-term disability? A. pregnancy B. recovery from illness C. recovery from surgery D. recovery from major injuries

B. recovery from illness

Discretionary benefits are generally divided into which three categories? A. health benefits, intellectual enhancements, paid time-off B. services, paid time-off, protection programs C. pension benefits, protection programs, health benefits D. intellectual enhancements, health benefits, services

B. services, paid time-off, protection programs

This is a systematic process for gathering, documenting, and analyzing information in order to describe jobs. A. job analysis B. job characterization C. job description D. job evaluation

A. job analysis

_________ plans use market data to determine differences in job worth. A. market-based evaluation B. competition-based evaluation C. job-content evaluation D. point method evaluation

A. market-based evaluation

Which pay plan generally rewards employees for acquiring job-related competencies, knowledge, or skills rather than for demonstrating successful job performance? A. person-focused B. incentive C. knowledge-based D. merit

A. person-focused

Which of the following is NOT a protected characteristic by Title VII of the Civil Rights Act of 1964? A. sexual orientation B. race C. national origin D. gender

A. sexual orientation

Which is a disadvantage associated with longevity pay? A. Seniority is an objective measure of performance. B. The incentive to pursue excellence in work is diminished. C. Seniority is not based on supervisory judgment. D. all of the above

B. the incentive to pursue excellence in work is diminished

An employee has a regular hourly rate equal to $12. According to FLSA, how much should her/his employer pay this employee for each additional hour worked beyond the regular 40 hours within a period of 7 consecutive days? A. $12 B. $14 C. $16 D. $18

D. $18

Which of the following is true regarding group incentive plans as opposed to individual incentive plans? A. There are more groups in a company than individuals to measure. B. Individual group members usually work more efficiently alone than in cohesive groups. C. It is easier to develop performance measures for individual incentive plans than group incentive plans. D. It is easier to develop performance measures for group incentive plans than individual incentive plans.

D. It is easier to develop performance measures for group incentive plans than individual incentive plans.

Which of the following is an advantage of seniority pay systems? A. They reward exemplary performance B. They encourage employees to continue to increase their skillsets C. They help to promote product quality D. They reward employees on an objective basis

D. They reward employees on an objective basis

In the SweetRidz Corp. passenger car manufacturing plant, assembly line station team leaders are allowed to stop the assembly line by pulling a cord available at each station whenever they notice a serious quality problem in the assembly process. This is an example of which of the following? A. task identity B. skill variety C. feedback D. autonomy

D. autonomy

Among the various performance appraisal techniques, this appraisal system is the most defensible in court because it is based on actual observable job performance behaviors. A. 360 degree performance appraisals B. paired comparison C. forced distribution D. behaviorally anchored rating scale

D. behaviorally anchored rating scale

Of the compensable factors identified, it is decided that skill level will be valued at 50% of the final evaluation. Which step in the point method is taking place? A. determine the ranking of each compensable factor B. determine the values for each compensable factor C. verify factor degrees and point values D. determine the weight of each compensable factor

D. determine the weight of each compensable factor

What are the revised guidelines introduced in 2004 for determining whether jobs are exempt from FLSA overtime pay provisions called? A. glass ceiling act B. Overtime nonexempt rules C. Bennett Amendment D. Fair pay rules

D. fair pay rules

Rachel works for a nursing home. As the administrator she receives a bonus for every month the facility has no safety violations. Which category of incentive pay is being offered? A. company-wide B. group C. executive D. individual

D. individual

Compensation professionals use _________ to systematically recognize differences in the relative worth among a set of jobs and establish pay differentials accordingly. A. job analysis B. job strategy C. job based interviews D. job evaluations

D. job evaluations

What source is generally able to provide the most extensive and detailed information about how job duties are performed? A. job analysis B. supervisors C. Benchmark jobs D. job incumbents

D. job incumbents

_________ pay programs assume that employees' compensation over time should be determined, at least in part, by differences in job performance. A. longevity B. piecework C. seniory D. merit

D. merit

Individual incentive plans help to promote the relationship between pay and ________ A. seniority B. longevity C. quality D. performance

D. performance

Which of the following conditions is a mental or physical disability for which medical advice, diagnosis, care, or treatment was received during a designated period preceding the beginning of disability insurance coverage? A. pre eligibility condition B. exclusive condition C. eliminating condition D. preexisting condition

D. preexisting condition

In this person-focused pay model, employees are rewarded for increasing their skills within a single job family, even if the skills do NOT build on each other. A. stair-step B. cross-departmental C. job-point accrual D. skill blocks

D. skill blocks

The main disadvantage of group incentive compensation is employee ________. A. absenteeism B. cost C. motivation D. turnover

D. turnover

This program grants income to workers who are unable to work due to injuries sustained while on the job. A. sick leave B. FMLA C. workforce restitution D. workers' compensation

D. workers compensation

Which of the following are the four "universal compensable factors"? A. skill, effort, responsibility, working conditions B. cognitive ability, effort, responsibility, working conditions C. cognitive ability, effort, skill, responsibility D. skill, effort, cognitive ability, working conditions

A. skill, effort, responsibility, working conditions

You broke your neck at work. The company called to inform you that they had to switch your benefits from the short-term disability account to the long-term disability account. Based on this decision, how long have you been off work? A. 6 months B. 12 months C. 1 month D. 18 months

A. 6 months

Which of the following is a characteristic of job-based pay? A. It compensates employees for the jobs they are currently performing. B. It rewards employees on their promise to make positive contributions to the work place. C. It compensates employees for the number of jobs in which they possess the skills to perform D. A reward is based on the successful acquisition of work-related skills or knowledge

A. It compensates employees for the jobs they are currently performing.

What are two disadvantages associates with profit sharing? A. They can undermine the economic security of employees and they can fail to motivate employees B. They can fail to motivate employees and they reduce the company's financial flexibility C. They can undermine the economic security of employees and they reduce the company's financial flexibility D. They can undermine the economic security of employees and they have negative tax consequences for the company

A. They can undermine the economic security of employees and they can fail to motivate employees

Which of the following is true concerning incentive pay? A. Awards are usually granted in one-time payouts. B. The award is earned only when the predetermined work objective is totally completed C. Motivates employees to be more productive, but does little to control payroll costs D. Incentive levels are generally subjective in nature

A. awards are usually granted in one-time payouts

Which two factors should compensation professionals consider before endorsing the use of merit pay systems? A. commitment from top management and job design B. supervisor's rating bias and stock price C. job design and supervisor's rating bias D. job analysis and stock price

A. commitment from top management and job design

Pay-for-knowledge and skill-based pay are two types of person-focused pay programs that fall under which pay category? A. competency-based B. service based C. stair-step D. innovation-based

A. competency-based

This term refers to the level of specialization or expertise an employee possesses in a particular job. A. depth of skills B. vertical skills C. breadth of skills D. horizontal skills

A. depth of skills

PSL, LLC provides a program for its employees who need help dealing with the effects of domestic violence. PSL, LLC can offer this kind of service through which of the following programs? A. employee assistance program B. family assistance program C. wellness program D. employer assistance program

A. employee assistance program

There are 15 animal keepers working for the XYZ Company. Their supervisor is required to rate the performance of these workers based on the following criteria: 30% of the animal keepers will be rated as below-average, 40% of the animal keepers will be rated as average, and 30% of the animal keepers will be rated as above average. What type of performance appraisal is used? A. forced distribution B. paired comparison C. critical incident technique D. behavioral observation scale

A. forced distribution

Unscheduled absenteeism has climbed to its highest levels in Pearson, Spector, Litt, LLC last month. In order to reduce the costs associated with unscheduled absenteeism, HR professionals decided to change their paid time off policy. This company used to grant each employee 10 vacation days, 5 paid days for sick leave, and 4 days for personal leave. With the new policy, this company combines vacation, sick leave, and personal leave policies into one single paid time off policy (i.e., 19 days). The management decided to keep funeral leave as a stand-alone policy. What is PSL, LLC's new policy called? A. integrated paid time off B. combined paid time off C. sabbatical leave D. volunteer leave

A. integrated paid time off

The Family Medical Leave Act guarantees ___ weeks of unpaid leave for workers who qualify. A. 8 B. 12 C. 2 D. 4

B. 12

XYZ Movers, a professional relocation company, has 3-person teams for their moving services. The company asks customers to complete a satisfaction survey regarding their recent move. For an employee's performance appraisal, customer satisfaction surveys are also considered in addition to his/her supervisor and team member ratings. Which of the following best describes this situation? A. paired comparison B. 360 degree performance appraisals C. positive halo effect D. first-impressions effect

B. 360 degree performance appraisals

Which would be an example of a company using incentive pay to further business objectives? A. A toy store manager decides to give her employees a holiday bonus on the first day of the year because of the scheduling flexibility they showed during the busy holiday season B. A lawn care service owner pays his two salesmen a salary of 25k per year. The employees also can earn a 2k bonus for every 15 new clients they sign C. After a particularly slow year, a restaurant owner decides to provide her customers an incentive to visit more often. She slashes prices on the menu by and average of 15% and offers a loyalty card. D. A pizza shop owner raises his employees' hourly wage by fifty cents.

B. A lawn care service owner pays his two salesmen a salary of 25k per year. The employees also can earn a 2k bonus for every 15 new clients they sign

When supervisors rate all employees close to average, they commit errors of ________. A. halo B. central tendency C. bias D. strictness

B. central tendency

Valid and reliable job evaluations result from which two conditions? A. The results are consistent; using multiple collection methods B. data from multiple sources; using multiple collection methods C. The results are consistent; data was taken under similar conditions D. data from multiple sources; data was taken under similar conditions

B. data from multiple sources; using multiple collection methods

A policy that applies to all company employees, but unintentionally hurts a protected group disproportionately, would be what form of discrimination? A. disparate treatment B. disparate impact C. disparate causality D. situational discrimination

B. disparate impact

What type of incentive plan involves a group of employees being rewarded for productivity gains? A. profit-sharing plans B. gain-sharing plans C. effort incentive plans D. merit incentive plans

B. gain-sharing plans

Which of the following describes job duties, tasks, and relevant factors needed to perform a job adequately? A. job structure B. job content C. job summary D. job context

B. job content

Which pay system is most widely used in America today? A. skill based pay B. merit pay C. longevity pay D. seniority pay

B. merit pay

Based upon the FLSA child labor provisions, what is the minimum age that a child must be in order to be legally employed? A. 10 B. 12 C. 14 D. 19

C. 14

Which of the following is a main reason for the increased costs associated with person-focused pay programs? A. higher payroll costs B. higher training costs C. Both A and B D. none of the above

C. Both A and B

Which of the following is a characteristic of integrated paid time off policies? A. Such policies distinguish among reasons for absence. B. Individuals have to justify reason for taking time off. C. Holiday, vacation, sick leave, and personal leave are combined. D. Can lead to increased unscheduled absences.

C. Holiday, vacation, sick leave, and personal leave are combined

Which of the following examples is NOT considered a compensable work activity? A. a fireman who plays checkers while waiting for an alarm B. an employee attends an employer-mandated training C. an employee travels from home before the regular workday and returns to his/her home at the end of the workday D. an employee takes a 15-minute rest during work time

C. an employee travels from home before the regular workday and returns to his/her home at the end of the workday

XYZ Company ranks its employees from the best performer to the poorest performer, and the employee with the best performance receives the highest ranking. What type of performance appraisal method is used by this company? A. trait system B. behavioral system C. comparison system D. goal-oriented system

C. comparison system

Self-inflicted wounds and drug dependency are generally considered as what in most short-term disability insurance plans? A. partial disability provisions B. elimination provisions C. exclusion provisions D. preexisting conditions

C. exclusion provisions

Which of the following is NOT addressed by the Fair Labor Standards Act of 1938? A. minimum wage B. overtime pay C. executive compensation D. child labor laws

C. executive compensation

In addition to the guaranteed hourly pay rate, Monica receives incentives for every item produced over the designated production standard. What kind of incentive plan is used in this situation? A. management incentive plans B. referral plans C. piecework plans D. behavioral encouragement plans

C. piecework plans

A human resource manager of a company decides to change the current job-content valuation technique by using a quantitative methodology. He thinks that the old approach fails to balance internal and external considerations while evaluating jobs. What type of job evaluation technique do you suggest for this HR manager? A. job-content evaluation B. market-based evaluation C. point method D. simple ranking plan

C. point method

In this team, members learn scheduling, coordinating, training, leadership. Which of the following describes this type of work team? A. supervisory work team B. management team C. self-regulating work group D. non-supervised work team

C. self-regulating work group

In a TV set manufacturing facility, there are different assembly lines in which workers focus on certain aspects of production. Senior line workers are capable of producing the TV sets from start to finish. This capability of doing the entire operation from start to finish is an example of which following term? A. vertical skills B. feedback C. task identity D. autonomy

C. task identity