HRM Chap 9-11
15. What type of jobs do companies normally use to collect wage survey data? a. key jobs b. low-rated jobs c. high-rated jobs d. strategic jobs
a. key jobs
Which of the following pay plans can be plagued by the "free rider" effect? a. piece rates b. team incentives c. base pay d. retirement plans
b. team incentives
Which of the following is an advantage of merit increases on a lump-sum basis? a. They do not contribute to escalating base salary levels. b. They add a permanent sum to the base salary. c. They are done in conjunction with promotions. d. They reflect annual adjustments in base salary.
a. They do not contribute to escalating base salary levels.
7. Tiffany works as an IT specialist at Nortel. She is compensated based on such skills as programming and service to clients. It is likely that she is paid under which of the following pay plans? a. a competency-based pay plan b. a performance-based pay plan c. a merit-based pay plan d. a seniority-based pay plan
a. a competency-based pay plan
All of following are reasons for earning a merit raise, EXCEPT which one? a. a profit merit decision b. successfully performing the job c. achieving an objective performance standard d. a superior's subjective evaluation
a. a profit merit decision
Scenario 10.1 Bob works in an electronic store where he is paid only if he sells merchandise. Refer to Scenario 10.1. What type of compensation plan is Bob's company utilizing for its salespeople? a. a straight commission plan b. a straight salary plan c. a combination salary and commission plan d. a sales plus bonus plan
a. a straight commission plan
ABC Corporation has a sales compensation plan that requires salespeople to be paid for performing various duties not reflected in their sales volume. What type of pay plan does this exemplify? a. a straight salary plan b. a merit plan c. lump-sum merit pay d. a standard hour plan
a. a straight salary plan
Scenario 11.2 Bradshaw, Petrilli & Blake Inc. (BPBI) is a Canadian financial planning firm that provides financial advice for companies across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly "Generation Y" employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and work-life balance). While they understand the demands of the job, they often get caught between the needs of the organization's clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs. Refer to Scenario 11.2. Which of the following is NOT a family-friendly benefit that will help BPBI develop and maintain work-life balance? a. allowing employees to work from home b. allowing flexible scheduling of work hours c. facilitating employer-paid on-site or near-site childcare facilities d. allowing time off for children's school activities
a. allowing employees to work from home
14. Some organizations can choose a strategy to pay higher than market wages and salaries. Which of the following will this likely help them do? a. be more selective in their employee hiring b. reduce their direct labour costs c. reduce their indirect labour costs d. achieve pay equity between men and women
a. be more selective in their employee hiring
Which type of pension plan with fixed payouts is experiencing a decline in its use in Canada? a. defined-benefit plan b. defined-contribution plan c. contributory plan d. registered retirement savings plan (RRSP)
a. defined-benefit plan
Who contributes financially to the Employment Insurance Fund that is used to support unemployment insurance claims? a. employers and employees b. the government and employees c. unions and employees d. the government and employers
a. employers and employees
9. ABC Corporation is a furniture firm based in Ontario that supplies its products to the federal government. What laws would apply to ABC Corporation? a. federal and provincial laws b. federal laws only c. provincial laws only d. international laws only
a. federal and provincial laws
Scenario 10.2 Meritas Financial Ltd. is a financial advisory firm located in downtown Toronto. Most of the firm's senior employees (referred to as partners) are paid top dollar for bringing in huge accounts regardless of whether these accounts bring in the appropriate amount of business to justify the incentives paid. The partners are compensated on the net worth of the companies that sign on to use Meritas as their financial advisor. The owner is now concerned about this pay arrangement and wants to make changes to the way he compensates his employees. However, he is worried that with a potential reduction of salary and short-term incentives, he might lose some of his most valuable employees and the accounts that they brought on board. 6. Refer to Scenario 10.2. Meritas wants to keep these employees happy and motivated. Which of the following is NOT a positive impact of implementing profit sharing? a. having an adverse effect on productivity and employee morale b. helping stimulate employees to think and feel more like partners c. encouraging a total commitment from employees d. contributing to the growth of the organization's profit
a. having an adverse effect on productivity and employee morale
ABC Corporation uses the services of professional benefits vendors to administer their benefits. What is this practice a form of? a. outsourcing b. shared services c. freelancing d. delegation
a. outsourcing
12. What do we call payment rates above the maximum of a pay range? a. red circle rates b. unfair pay rates c. pay for talent d. broadband rates
a. red circle rates
Scenario 11.1 Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost nonexistent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients. Refer to Scenario 11.1. Canadian Fasteners must ensure that the benefits it offers employees are fulfilling the legal requirements. Which of the following is not legally required? a. survivor benefits b. employer contributions to the Canada and Quebec pension plans c. employment insurance d. workers' compensation insurance
a. survivor benefits
When is piecework most appropriate? a. when the job is fairly standardized b. when quality is more important than quantity c. when performance measures are difficult to define d. when technology changes are frequent
a. when the job is fairly standardized
Which of the following statements is most applicable to the benefits costs to employers in Canada and the United States? a. Benefits costs are higher in Canada. b. Benefits costs are higher in the United States. c. Benefits costs are the same in Canada and the United States. d. Benefits costs are both negligible in Canada and the United States.
b. Benefits costs are higher in the United States.
It was revealed in the press that the former CEO of a Fortune 100 firm enjoyed special use of the company plane and a country club membership as a part of his reward package. Which of the following best describes these benefits? a. They are illegal, but executives usually get away without being caught. b. They are known as perquisites. c. They are known as golden parachutes. d. They are unusual for top executives.
b. They are known as perquisites.
18. Accounting clerks, pay clerks, and junior secretaries are all classed in Grade 2 at Metroland Inc. Which of the following should apply to all these jobs? a. They should all receive the same wage rate in order to achieve equality. b. They should be paid within the same pay range. c. They should be paid similar to Grade 2 jobs at McDonald's. d. They should be paid at different wage rates because the worth of these jobs to the organization may differ
b. They should be paid within the same pay range.
Mark recently received an incentive for a special contribution not directly tied to a performance standard. What is this incentive called? a. a piece rate plan b. a spot bonus c. a special incentive d. a differential piece rate
b. a spot bonus
1. Vi works at PC Shoes and is paid for time she works in the store. How would you classify Vi? a. a salaried employee b. an hourly employee c. an exploited employee d. a white-collar employee
b. an hourly employee
Scenario 11.2 Bradshaw, Petrilli & Blake Inc. (BPBI) is a Canadian financial planning firm that provides financial advice for companies across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly "Generation Y" employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and work-life balance). While they understand the demands of the job, they often get caught between the needs of the organization's clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs. Refer to Scenario 11.2. BPBI would like to also set up an employee assistance program (EAP) to help employees solve their personal problems, or at least prevent those problems from turning into crises that are likely to affect their ability to work productively. Which of the following are programs offered by EAPs in today's organizations? a. seminars and workshops to help prepare for retirement b. counselling and referral services for alcohol or drug problems, emotional problems, or financial or family crises c. increased pension benefits or cash bonuses d. salary continuance programs, sick leave credits, and weekly indemnity plans
b. counselling and referral services for alcohol or drug problems, emotional problems, or financial or family crises
2. Which of the following is an example of nonfinancial compensation? a. bonuses b. employee recognition programs c. health insurance d. Incentives
b. employee recognition programs
Which of the following benefits must be provided by employers in Canada because it is legally required? a. dental benefits b. employment insurance c. vision care d. out-of-country medical assistance
b. employment insurance
17. Which of the following clauses are found in some labour agreements that periodically adjust compensation rates to reflect increases in cost of living? a. maintenance clauses b. escalator clauses c. roll-up clauses d. guarantee clauses
b. escalator clauses
Scenario 10.1 BioMetrics Imaging Ltd. is a small Saskatoon-based firm that designs and produces one-of-a-kind machines that are capable of capturing medical imaging similar to that of MRI machines but with a higher percentage of accuracy. So far, the company has been able to sell various units to privately owned medical clinics and a few hospitals in the United States. The problem currently facing BioMetrics Imaging is finding salespeople with the appropriate experience who not only understand the equipment but are also trustworthy and willing to work extremely hard to bring the product to the marketplace. It takes roughly six months to convince potential clients to purchase the machines. Sales agents receive a hefty paycheque when a unit is sold based on a percentage of the unit price, and all travel expenses are covered. Still, the company is not able to retain its employees because the time lag between beginning to sell machines and getting paid is too long. Refer to Scenario 10.1. One way to address the turnover problem that is driven by the frequency of payout would be to have some form of guaranteed pay. Which pay method for sales employees addresses this issue? a. straight commission b. salary and commission c. bonuses d. gainsharing
b. salary and commission
Scenario 11.1 Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost nonexistent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients. Refer to Scenario 11.1. Canadian Fasteners wants to take into consideration changes in the diversity and lifestyles of its workforce. Which of the following would be the best option for the company? a. implementing a defined-benefit program b. tailoring its benefits programs to be family friendly c. paying employees money in lieu of benefits d. continuing with the way it is currently doing things
b. tailoring its benefits programs to be family friendly
What is the purpose of a profit-sharing plan? a. to allow workers to contribute ideas and suggestions b. to motivate a total commitment to the organization as a whole c. to enable workers to share in labour cost savings d. to instil commitment to the employee's immediate work group
b. to motivate a total commitment to the organization as a whole
Calendar "R" Us Ltd. is a small firm that manufactures yearly calendars with a specific focus on middle and high schools in Alberta. They started operations back in 2006 with just 12 employees, two machines, and a small warehouse that served as an office and production and storage facilities. Today, Calendar "R" Us has roughly 60 employees and supplies its calendars to most middle and high schools in Alberta. When employees join they are paid based on their relationship with the owners. Given the rapid growth in its staff complement, and the arbitrary way in which it normally compensates employees, payroll has proven to be quite a challenge for the company as management looks to expand into other provinces. 13. Refer to Scenario 9.2. Which of the following is a useful and cost-effective way for Calendar 'R" Us to find information on wage and salary trends in similar industries? a. develop in-house surveys b. use surveys done by provincial governments and boards of trade c. purchase surveys done with global organizations d. set wages based on ability to pay only
b. use surveys done by provincial governments and boards of trade
Canada's workforce is becoming increasingly diverse. How is this having an impact on benefits programs? a. Greater pension contributions are required by employers. b. There are lower out-of-pocket costs for employees. c. Benefit programs are becoming more family-friendly. d. Benefits packages now cover part-time as well as full-time employees.
c. Benefit programs are becoming more family-friendly.
Which of the following is the most widely used sales incentive program? a. straight salary b. straight commission c. combined salary and commission d. commission plus bonus
c. combined salary and commission
Aren received a $500 pay bonus as a result of his job performance last year; however, this extra money was not added to his base pay. This is an example of which of the following? a. annual merit raise b. group incentive plan c. lump-sum merit pay d. percentage wage increase
c. lump-sum merit pay
What are holiday pay, sick leave, and vacation pay examples of? a. categories of health care benefits b. benefits required by law c. payment for time not worked d. unearned benefits
c. payment for time not worked
Scenario 10.1 BioMetrics Imaging Ltd. is a small Saskatoon-based firm that designs and produces one-of-a-kind machines that are capable of capturing medical imaging similar to that of MRI machines but with a higher percentage of accuracy. So far, the company has been able to sell various units to privately owned medical clinics and a few hospitals in the United States. The problem currently facing BioMetrics Imaging is finding salespeople with the appropriate experience who not only understand the equipment but are also trustworthy and willing to work extremely hard to bring the product to the marketplace. It takes roughly six months to convince potential clients to purchase the machines. Sales agents receive a hefty paycheque when a unit is sold based on a percentage of the unit price, and all travel expenses are covered. Still, the company is not able to retain its employees because the time lag between beginning to sell machines and getting paid is too long. Refer to Scenario 10.1. Which of the following factors is least likely to affect sales for this equipment? a. economic and seasonal fluctuations b. sales competition and changes in demand c. producing the machines in a timely manner d. the nature of the sales territory
c. producing the machines in a timely manner
What are the two critical factors considered when What are the two critical factors considered when determining the amount of employment insurance to be paid to unemployed applicants? a. their education and experience b. the number of hours worked and their education c. the number of hours worked in the past year and regional unemployment rates d. the size of the firm and the salary of the employee
c. the number of hours worked in the past year and regional unemployment rates
Amelia received a stellar performance appraisal in 2014, which translated to a 10 percent pay raise for 2015. Her 2014 base pay was $50 000. Which of the following applies to 2015? a. Her employer would give her a bonus of $5000. b. Her pay would remain $50 000 but she would most likely get a promotion. c. Her employer would add 10 percent to all her 2014 compensation components—base pay, incentives, benefits, and perks. d. $5000 would be added to her 2014 base pay.
d. $5000 would be added to her 2014 base pay.
Bob Jones was recently permanently laid off. His company, ACME Manufacturing, has issued Bob a cheque that represents one month's pay for every year Bob worked at ACME. What does this cheque represent? a. Bob's unused vacation pay b. Bob's unused benefits c. Bob's unused sick leave d. Bob's severance pay
d. Bob's severance pay
6. What is a key implication of expectancy theory when applied to pay systems? a. Employees must get pay raises to cover increased living costs. b. Employees expect their managers to be competent. c. Employers expect their employees to be competent. d. Rewards must be valuable for motivation to occur
d. Rewards must be valuable for motivation to occur
Which of the following is an advantage of piece rate pay systems? a. They allow for teamwork. b. They allow employees to break down their work piece by piece. c. They help to groom high performance managers. d. They have a direct link to performance.
d. They have a direct link to performance.
20. What do we call jobs that are selected to be included in salary surveys? a. higher-pay jobs b. equity jobs c. comparison jobs d. benchmark jobs
d. benchmark jobs
8. Using the point manual, how is the relative worth of a job determined? a. by benchmarking jobs contained in the point manual b. through the wage mix c. by the number of steps within the pay grade d. by the total points that have been assigned to that job
d. by the total points that have been assigned to that job
10. Which of the following is NOT a method of comparison used in job evaluation? a. point system b. job ranking system c. job classification system d. comparable worth system
d. comparable worth system
When employees receive a higher rate of pay for all of their work if production exceeds a standard level of output, what type of incentive plan is the employer using? a. higher piece rate b. standard piece rate c. exception bonus rate d. differential piece rate
d. differential piece rate
What is an important factor in determining the effectiveness of benefits programs in organizations? a. level of competition b. employee motivation c. state of the broader economy d. effective administration
d. effective administration
5. Both Sam and Samantha work as cashiers at Modelo Hot Dogs. They do work of equal value to the firm, yet Sam receives less pay than Samantha. Sam is not happy because he perceives the system as being unfair to him. Which theory can you use to explain Sam's perceptions? a. reverse discrimination theory b. pay equity theory c. expectancy theory d. equity theory
d. equity theory
16. Which of the following is job classification often used to help determine pay for? a. merit bonuses b. the company's CEO c. classified university professors' jobs d. government jobs
d. government jobs
11. According to the textbook, what is the predominant approach to employee compensation in Canada? a. competency-based pay b. pay-for-performance c. individual contract d. job-based pay
d. job-based pay
3. MJ, Rob, and Jim's compensation packages are calculated and paid on the basis of weekly periods. How would you classify these employees? a. white-collar employees b. part-time employees c. hourly employees d. salaried employees
d. salaried employees
Lana works as a salesperson at Fashion Galore. She is paid on a percentage of her sales only. What type of pay plan is this? a. straight ratio plan b. straight salary plan c. straight bonus plan d. straight commission plan
d. straight commission plan
4. Which of the following is a firm's internal factor that can influence the rates at which employees are paid? a. labour market conditions b. collective bargaining c. the cost of living d. the employer's strategy
d. the employer's strategy
Which of the following is a major concern about executive compensation? a. the timing of the stock awards b. the lack of objective performance data c. the lack of perquisites d. the growing gap between leaders and the company's lowest-paid employees
d. the growing gap between leaders and the company's lowest-paid employees
19. Which of the following is a relatively new job evaluation system? a. job classification system b. job ranking c. the point system d. work evaluation
d. work evaluation
Which of the following is based on the perspective that work-related accidents and illnesses should be considered a cost of doing business and that employees should not bear the costs of their treatment? a. unpaid leave b. medical care benefits c. paid sick time d. workers' compensation insurance
d. workers' compensation insurance