Compensation Quizzes

$16,000

Among employers that provide health insurance, the cost to provide family coverage per year per employee is approximately _____. $9,000 $16,000 $22,000 $4,000

Job description > Job evaluation > Job structure

In the context of internal alignment, which of the following is the correct sequence? Pay structure > Job description > Job evaluation > Job analysis Job description > Pay structure > Job evaluation Job description > Job evaluation > Job structure Job evaluation > Job description > Job structure

compensable factors

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 compensable factors competitive skills core competencies benchmark factors

x

In the regression equation, y = a + bx, job evaluation points are denoted by _____. x y b a

transactional work

Routine work is also termed _____. transactional work tacit work hygiene work system work

false

Skill-based plans become increasingly economical as the majority of employees become certified at the highest pay levels. True False

medium

The _____ minimizes the distortion of the central tendency caused by outliers mean median standard deviation weighted mean

market pricing

The _____ pay strategy emphasizes external competitiveness and deemphasizes internal alignment broad banding job structure reference rate market pricing

point at which supply and demand lines cross

The market pay rate is the difference between use value and surplus value minimum wage rate set by the Department of Labor point at which supply and demand lines cross pay rate at which applicants will deny a job offer

lead policy

The pay-level policy that is most likely to reduce pay dissatisfaction is a(n) _____. lag policy lead policy match policy employer of choice policy

team dynamics

The scheme used in the text for classifying competencies consists of three groups. Which of the following is NOT one of them? Personal characteristics Organization specific Team dynamics Visionary

map the strategy

The second step of developing a total compensation strategy is to: implement the strategy map the strategy assess total compensation implications estimate the cost of the strategy

Incentive

Which form of pay does not permanently increase labor costs? Base pay Cost-of-living adjustments Merit pay Incentive

HR alignment

Which of the following is NOT included in a strategy map? External competitiveness HR alignment Employee contributions Management

The extent of external competitiveness and equity

Common bases for modern pay structures include all BUT which of the following? The skills and knowledge required to perform the work The content of the work The extent of external competitiveness and equity The work's relative value for achieving organizational objectives

False

Distributive justice is more important than procedural justice for employee acceptance of their pay. True False

innovator

A compensation system using market-based pay is most likely to be part of a(n) _____ strategy cost leadership cost-cutter innovator customer-focused

job

A set of identical positions makes a _____. task title job procedure

The productivity will reduce

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? The productivity will remain the same There is not enough information to determine productivity The productivity will increase The productivity will reduce

modify the format of their job descriptions to specifically call out the essential elements

ADA has directly led many employers to _____. a) only use the PAQ method for job analysis b) modify the format of their job descriptions to specifically call out the essential elements c) modify special benefits so that allowances can be made for people with disabilities as required by the law d) only use the task inventory method for job analysis

the ability to pay

All of the following are important factors in defining a market for compensation purposes EXCEPT the ability to pay the skill or knowledge required geography product and/or labor market competitors

egalitarian pay structure

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): hierarchical pay structure highly inequitable pay structure egalitarian pay structure highly layered pay structure

ranking method

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 _____. ranking method point method classification method Hay plan

true

Managers often regard external market data as more objective than internal job evaluation True False

Mike should conduct an interview with George to get an overview of the job

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 George to get an overview of the job 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 Hayley as she is in a better position to understand how the different tasks fit in the big picture d) Mike should review existing documents in order to develop an initial familiarity with the job

many small employers are much less likely than larger employers to offer health insurance to their employees

One of the reasons why 8 in 10 of the uninsured in the United States are from working families is that _____. a) many small employers are much less likely than larger employers to offer health insurance to their employees b )many larger employers do not offer health insurance as it does not guarantee an increase in productivity levels c) health insurance is more costly for larger employers d) most workers decline health insurance when offered by their employers

economic pressures

Organization factors that shape internal pay structures include all BUT which of the following? Cost implications HR policy Technology Economic pressures

d) reflect the differences in performance or experience that an employer wishes to recognize with pay

Pay ranges: a) are flexible enough to deal with differences in quality but not with the productivity or value of these quality variations b) cause employees to believe that their compensation cannot increase in the same job c) usually lead to an increase in employee turnover d) reflect the differences in performance or experience that an employer wishes to recognize with pay

Flatcake, a website that allows buyers to negotiate the prices with the sellers of handmade goods

Which of the following is an example of a bourse market? a) Needlefarm, a store that sells premium furniture at discounted rates b) Neurofort, a website that sells surgical equipment in bulk at fixed prices c) Hardknox, a hardware store that sells all its products at 10 percent above the maximum retail price d) Flatcake, a website that allows buyers to negotiate the prices with the sellers of handmade goods

employment security

Which of the following is an example of a relational return? Income protection Long-term incentives Short-term incentives Employment security

job structure

Which of the following is an ordering of jobs based on their content or relative value? Job structure Job description Job analysis Job evaluation

They are expensive in the long run as the majority of employees become certified at the highest pay levels

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 are expensive in the long run as the majority of employees become certified at the highest pay levels c) They dampen employee versatility d) They discourage adaptability of employees to changing production needs

a) The position of Senior Director of Future Vision Services that was filled by a software engineer with e-commerce, marketing, and theater experience

Which of the following jobs would most likely fall into a fuzzy market? a) The position of Senior Director of Future Vision Services that was filled by a software engineer with e-commerce, marketing, and theater experience b) The position of Sound Engineer that was filled by a graduate with a degree in audio engineering c) The position of Vice-President of a marketing firm that was filled by a marketing manager with 15 years of experience in the marketing field d) The position of English professor that was filled by a Ph.D. holder in English Language and Literature with five years of teaching experience

Troubled Asset Relief Program

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"? Corporate Welfare Program Corporate Liability Relief Program Troubled Asset Relief Program Employee Welfare Program

Pay level is directly proportional to labor costs

Which of the following statements is true of pay level a) The higher the pay level relative to what competitors pay, the lower the relative costs to provide similar products or services b) Pay level is independent of the number of employees in an organization c) Pay level is the same across all organizations for the same job d) Pay level is directly proportional to labor costs

They foster cross-functional growth

Which of the following statements is true regarding broad bands? They support recognition via titles or career progression They increase the hierarchical nature of organizations They foster cross-functional growth They remove limits on total salary budgets

Allowing employees their choice is easy for competitor companies to imitate

Which of the following statements regarding allowing employees a choice in their pay mix is NOT true? Providing unlimited choices for employees to choose from is difficult to design Allowing employees their choice is difficult to manage Allowing employees their choice is easy for competitor companies to imitate Providing too many choices can confuse people

The design of the certification process

_____ is a crucial factor that affects the perception of fairness of a skill-based plan The number of weights and factor degrees The extent of alignment with an organization's strategy The number of compensable factors The design of the certification process

job evaluation

_____ is the process of systematically determining the relative worth of jobs for the purpose of creating an organization's job structure Job restructuring Performance evaluation Job evaluation Point factor evaluation