Compensation Final
Steve has a small company with 12 employees. One of his employees, Larry, has been laid off because his work has been outsourced. Larry had health coverage through Steve's company and he wants to continue that coverage after being laid off. According to C.O.B.R.A. how long can Larry continue his coverage through Steve's Company?
0 months
Variable pay as a percent of payroll is __ percent. A. 5 B. 12 C. 17 D. 21
12
In 1959, benefits were approximately _____ percent of payroll and in 2010, the percent was _____.
25,30
The total cost of employee benefits in the U. S. is _____ dollars.
4 trillion
or 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 workforce is covered under the pension plan coverage by their employers.
49
Data from WellPoint shows that __ percent of its customers' accounts for over 60 percent of its medical costs.
7
Approximately ____ percent of social security benefits go to retirees and their dependents
70
In which of the following incentive pay plans does the wage rate not increase for production above the standard? A. Standard hour plan B. Rowan plan C. Taylor plan D. Merrick plan
A
Which of the following is not true of lump-sum bonuses? A. They help maintain competitive pay position relative to competitors. B. They are less expensive than merit pay. C. Employees dislike them. D. They are a more visible reward than merit pay.
A
C
A business has a centralized structure and a compensation system that rewards sales volume. However, sales volumes are low compared to competitors who respond more quickly to changes in consumer demand. Which of the following is the most likely source of the low sales performance? A. A poorly designed compensation program B. An ineffective recruitment and selection program C. An inappropriate organization design D. A poorly designed performance management program
Which of the following is NOT true about individual spot awards?
A majority of companies do not feel that these awards are effective.
Compensation security is highest for workers who fail to complete tasks within the standard time under the _____ plan? A. Halsey 50-50 B. Gantt C. Taylor D. Rowan
B
If you had repair work done on your car, the compensation system the shop uses to pay the mechanics is most likely the ________ plan. A. Bedeaux B. standard hour C. Halsey 50-50 D. straight piece-work
B
The most frequently used incentive system is the: A. standard hour plan. B. straight piecework. C. Halsey 50-50 plan. D. Taylor differential piece-rate plan
B
A penalty for poor performance rather than reward for good is an example of: A. benchmarking. B. a reengineering plan. C. a Rowan plan. D. a reverse incentive plan.
D
An incentive system with three piecework rates is the _____ plan. A. Taylor B. Gantt C. Halsey 50-50 D. Merrick
D
Standard hour plan is to Rowan plan as straight piecework is to ______________ plan. A. Halsey 50-50 B. Gantt C. Bedeaux D. Taylor or Merrick plan
D
Which of the following does not use the time period per unit of production to determine the rate? A. Gantt plan B. Rowan plan C. Halsey 50-50 method D. Merrick system
D
Which of the following is not a disadvantage of flexible benefit programs?
New benefits are more difficult to introduce.
All of the following are advantages of flexible benefits except:
administrative expenses increase.
compensation should reinforce which behaviors
attracting and hiring good employees, encourage skill development, and motivate job performance
when an organizations performance has regular and large swings and individual performance is unclear and hard to measure the most effective compensation mix is to offer is
base pay with low incentives and variety of rewards
Which of the following is not a benefit administration issue?
benefit adequacy
_____ is/are the primary reason why businesses adopt flexible benefit programs.
cost savings
A major approach to increasing employee awareness of health care choices and cost
customer driven healthcare
Tiered networks, managed competition and health savings accounts are all examples of choices for _____________
customer driven healthcare
ability motivation and enviornment
desired employee behaviors are influenced by
All of the following are ways to control unemployment taxes except:
dismiss employees "for just cause" rather than layoffs
Which of the following is not a major benefits planning and design issue?
diversity compliance
All of the following factors are reasons for the growth of benefits except
foreign competition
Which of the following benefits are not mandated by state or federal legislation?
pensions
A recent survey shows that the majority of employers are responding to increased benefit costs by______
requiring people to pay higher deductibles and co pay
Which of the following benefits is a federally administers program
social security
The common feature to all types of incentive plans is: A. a standard of performance to determine magnitude of incentive pay. B. a sharing formula between worker and employer. C. penalties for poor performance. D. limits on magnitude of incentive pay.
A
Usually _____ are awarded for exceptional performance, often on special projects or for performance that so exceeds expectations as to be deserving of an add-on bonus. A. variable pay awards B. individual spot awards C. lump-sum bonuses D. merit pay
B
A comparison of employee benefits for private and state and local government reveals that:
Both wages and benefits are higher in the state and local governements
A _____ plan divides a task into simple actions and determines the time an average worker takes to complete each action. A. standard hour B. Rowan C. Bedeaux D. Merrick
C
Advantages of individual incentive plans include all of the following except: A. lowered production costs. B. less direct supervision. C. greater trust between workers and management. D. higher productivity.
C
Paying a dime for every bottle collected and turned into a collection center is an example of: A. a commission based work. B. a standard hour based work. C. straight piecework. D. a Rowan plan.
C
Which of the following statements about merit pay is NOT true?
Removal of merit pay lowers satisfaction but not performance.
Jennifer is hurt at work while driving a forklift. Her employer claims that she was driving too fast and therefore she is responsible for her own injury and is not eligible for workers' compensation. What will be the outcome of the employer's challenge to her workers' compensation claim?
She will like receive workers' compensation benefits
cafeteria style compensation
The key ingredient in ____ is careful cost analys is to make sure the dollar cost of the package an employee selects meets employer budgetary limits
The authors argue that for merit pay to live up to its potential, all of the following should be done EXCEPT _____.
Use more peer than supervisor raters
motivation
___ involves identifying what is important to a person and offering it to them in exchange for some desired behavior
an acceptable apprasal system
a key factor in increasing top management is
Which of the following best supports a culture of flexibility and innovation?
a strong commitment to job security
When employee performance measures are ambiguous and vary from time to time, but the organization's performance is fairly stable over time, the most effective type of compensation is to offer _____.
a variety of rewards with significant incentive pay
A study of the factors affecting MBA students' job choice showed _____ was ranked as least important
employee benefits
Advantages of employer sponsored life and health insurance include all of the following except:
employees can choose coverage levels
Experts attribute the decline in dollar cost of workers compensation cost after 2005 to:
employer saftey programs
Unemployment insurance is usually financed by:
employer taxes paid to both federal and state funds
Which of the following types of workers are generally not covered by workers' compensation?
farm workers
A type of benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called _____ plan
flexible benefit
Which of the following acts has caused HR and information technology staff considerable difficulty regarding compliance and privacy?
hippa
_____ was designed to reduce an employer's ability to deny coverage to an employee based upon a preexisting condition.
hippa
The rising costs of Social Security have been covered by:
increases in the maximum earnings base and the tax rate at which it is taxed
The typical employee can recall _____ percent of the benefits they receive.
less than 15
Across five studies ranking preference for benefits,_________ had the lowest average rating.
long term disability
When developing a flexible compensation system, which theory or theories would be most useful? A. Expectancy theory B. Equity theory and agency theory C. Maslow's theory and Herzberg's theory D. Goal setting
mallows theory and herzbergs theory
Which theories would support a higher minimum wage? A. Reinforcement and agency B. Goal setting and equity C. Maslow and Herzberg's two-factor D. Expectancy and agency
maslow and herzbergs two factor
In _____ theory, incentive pay is motivating if it helps an employee gain a sense of achievement, recognition or approval. A. Herzberg's two-factor B. equity C. Maslow's D. Reinforcement
maslows
All of the following are benefits under Social Security except:
medical expenses for work-related injuries
Surveys show that the most highly valued benefit is
medical insurance
when an organization's performance is easily measured and the performance is stable over time the most effective type of compensation is
monetary rewards with large incentives
The time of benefit provided by the largest percent of both large and small firms is
paid time off
Which of the following is not a benefit that is required by statutory law?
pension and retirement
____ relieve an employer's liability when a pre-employment injury combines with a work-related injury to produce a disability greater than that caused by the latter alone.
second injury funds
Surveys show the most popular type of variable pay plans are _____.
special recognition
In the _____ benefit package, a package is designed with the average employee in mind.
standard
Research shows that all of the following except ______ are in the top three aspects of pay systems desired by workers. A. team-based pay B. changes in cost of living C. pay at market rate D. seniority
team based pay
selection
the ability triangle includes
cuculture
the motivation triangle includes
expectancy
the theory that argues line of sigh is a critical part of performance systems
It is observed that ____ is commanding a larger share of the total compensation for employee groups
variable pay
mallows and herzenberg two factor
which theories support higher minimum wage
Herzberg's Two-Factor Theory
which theory contends that success-sharing plans will be motivating but at risk plans will be dismotivating
The first issue in setting up a benefits package is
who should be protected and benefitted
____ had been described as a major cost of doing business.
workers compensation
