mgmt 494 chapter 1

Which of the following three elements support the compensation building​ blocks? A. Job​ structures, pay​ structures, and structures that recognize employee contributions B. Pay​ structures, internally consistent communication​ structures, and structures that recognize employee contributions C. Job​ structures, market-cost​ structures, and structures that recognize employee contribution D. Pay​ structures, job​ structures, and structures that recognize incentive pay levels E. Job​ structures, pay​ structures, and structures that support organizational charts

A. Job​ structures, pay​ structures, and structures that recognize employee contributions

One of the efficient ways to contain compensation costs and to change the expectation of high pay rates by U.S. workers is by​ ________. A. offering incentive pay B. offering small pay raises C. providing medical benefits D. not giving any pay raises E. laying off workers

A. offering incentive pay

Why is the U.S. government considered a stakeholder in​ compensation? A. Although considered a​ stakeholder, the U.S. government has very little​ "stake" in compensation policies. B. Compensation professionals are responsible for compliance with all U.S. government employment legislation. C. The U.S. government demands to be named as a stakeholder. D. The only concern of the U.S. government relates to legislation under the Civil Rights Act of 1991 dealing with discriminatory practices. E. The U.S. government represents all consumers.

B. Compensation professionals are responsible for compliance with all U.S. government employment legislation.

Which statement about stakeholders is​ FALSE? A. The success of an HR department depends on how well it serves the stakeholder groups within the compensation system. B. Every stakeholder within the compensation system has the same expectations. C. Stakeholder groups within the compensation system include​ employees, unions, and the federal government. D. Each stakeholder group within the compensation system has its own standards for effective performance. E. Stakeholders within the compensation system often compete for the attention of the personnel department.

B. Every stakeholder within the compensation system has the same expectations.

Which of the following would NOT be considered a function of​ HR? A. Performance appraisal B. Setting production goals C. Training D. Labor-management relations E. Recruiting

B. Setting production goals

In their roles as strategic business​ partners, HR and compensation professionals should focus on​ ________. A. managing pay rates B. achieving organizational results C. reducing work hours for employees D. monitoring legislative changes E. offering attractive benefits to employees

B. achieving organizational results

Three examples of core compensation are​ ________. A. education expense​ reimbursement, childcare, and providing uniforms B. annual​ salary, merit​ pay, and​ cost-of-living adjustments C. public transportation​ passes, pay-for-knowledge, and pension plans D. paid​ vacation, sick time​ benefits, and health insurance E. merit​ pay, pension​ plans, and paid vacation time

B. annual​ salary, merit​ pay, and​ cost-of-living adjustments

When companies differentiate their products or services to create​ brand-loyal customers, they are generally expecting that these customers will​ ________. A. be sensitive to price decreases B. be less sensitive to price increases C. switch to a rival product D. buy their products temporarily E. become​ price-conscious

B. be less sensitive to price increases

Strategic compensation is designed by compensation professionals in the context of an​ organization's ________. A. business strategy and compensation strategy B. competitive business strategy and human resource strategy C. human resource strategy and general tactical decisions D. competitive business strategy and specific tactical HR decisions E. human resource strategy and differentiation strategy

B. competitive business strategy and human resource strategy

Compensation professionals must educate employees about available training options because​ ________. A. employees demand to know about training options B. employees will not necessarily recognize these opportunities unless they are clearly communicated C. it is ethical to train employees D. CEOs demand that employees be trained E. it is required by law

B. employees will not necessarily recognize these opportunities unless they are clearly communicated

A​ firm's compensation professionals can most likely help the CEO and CFO understand the importance of​ ________. A. production quotas and targets B. employees within their business processes C. accurate accounting records D. financial capital E. equipment capital

B. employees within their business processes

John is a salesperson for Big​ Pharma, and Lindy is an accountant. In HR​ terms, John would be classified as a​ ________ employee, and Lindy would be classified as a​ ________ employee. A. ​support; line B. ​line; staff C. ​line; line D. staff; staff E. ​staff; line

B. ​line; staff

Which important skill for career success includes​ listening? A. Data literacy B. Collaboration C. Communication D. Knowledge application E. Critical thinking

C. Communication

Of the seven skills that are important to develop and​ practice, which of them represents involves a purposeful and​ goal-directed skills used to define and solve problems and to make decisions or form​ judgments? A. Collaboration B. Business ethics and social responsibility C. Critical thinking D. Data literacy E. Information technology and computing skills

C. Critical thinking

Which of the following questions is most important for compensation professional to ask when seeking to provide a strategic contribution to the​ company? A. Does the implementation of compensation practices towards desired employee behaviors support environmental scanning​ activities? B. Do the choice and design of compensation practices match the union​ leader's vision? C. Does the compensation strategy fit well with the objectives of the competitive business and HR​ strategies? D. Does the implementation of compensation practices towards desired employee behavior support the​ employees' expectations? E. Does the compensation strategy fit well with the objectives of the​ employees?

C. Does the compensation strategy fit well with the objectives of the competitive business and HR​ strategies?

​Ryanair, an airline based in​ Ireland, offers only one toilet on each of its airplanes and requires passengers to carry their luggage to the airplanes to reduce service costs. Ryanair is following which of the following​ strategies? A. Ryanair's strategy B. Competitive strategy C. Lowest-cost strategy D. Price leadership strategy E. ​Efficient-scale strategy

C. Lowest-cost strategy

Which of the following is not a job function of an HR​ specialist? A. Working on a special area of compensation practice B. Building job structures C. Reporting directly and frequently to the CEO D. Designing merit pay structures E. Designing​ market-competitive pay systems

C. Reporting directly and frequently to the CEO

The rationale behind seniority pay comes from​ ________. A. U.S. legislation B. the popularity of particular employees C. human capital theory D. completing a predetermined work objective E. the entitlement mentality of workers

C. human capital theory

Bosch employs doctoral candidates in the​ firm's research facilities on a​ limited-term basis to work on their dissertations and to help Bosch research scientists with scientific projects. This is an example of the​ ________. A. ​self-interest of Bosch B. use of capital C. use of discretionary benefits D. strategic nature of HR E. importance of doctoral programs

C. use of discretionary benefits

Which of the following is NOT one of the ways to adjust base pay over​ time? A. Incentive pay B. Merit pay C. ​Industry-based pay D. ​Cost-of-living adjustment E. Seniority pay

C. ​Industry-based pay

Which statement about​ cost-of-living adjustments​ (COLAs) is​ correct? A. COLAs are not related to compensation. B. A COLA is an example of an intrinsic reward. C. COLAs are used as a basis for merit increases. D. COLAs are​ cost-of-living adjustments represent base pay increases based on the Consumer Price Index​ (CPI). E. COLAs are part of a pension plan and are not a part of core compensation.

D. COLAs are​ cost-of-living adjustments represent base pay increases based on the Consumer Price Index​ (CPI).

​Andrea's job requires her to analyze quantitative data to facilitate problem solving. Which skills is she​ using? A. Data literacy B. Knowledge application C. Communication D. Critical thinking E. Collaboration

D. Critical thinking

Which of the following is the ability to​ access, assess,​ interpret, manipulate and translate quantitative information in order to use it in the employment​ context? A. Collaboration B. Critical thinking C. Knowledge application D. Data literacy E. Communication

D. Data literacy

Which of the following is NOT an stakeholder of the compensation​ system? A. Line managers B. Collective bargaining unit C. Employees D. U.S. government E. Executives

D. U.S. government

Chipotle has been doing much better in the fast food industry than​ McDonald's in recent years. In terms of environmental scanning​ activities, what​ McDonald's is currently facing would best be termed as​ ________. A. an opportunity for​ McDonald's B. a temporary decline in sales for​ McDonald's C. a lack of innovation D. a threat to​ McDonald's E. a preference for Hispanic food

D. a threat to​ McDonald's

Competitive business strategy choices mainly focus on​ ________. A. providing the best service possible B. building​ efficient-scale facilities C. achieving brand recognition D. achieving lowest cost or product differentiation E. competition within different divisions of the company

D. achieving lowest cost or product differentiation

The two categories of core compensation are​ ________. A. base pay and incentive pay B. base pay and salary C. hourly pay and base pay D. base pay and base pay adjustments over time E. hourly wage and salary

D. base pay and base pay adjustments over time

As long as employees continue to remain​ employed, the only type of compensation that can be guaranteed is​ ________. A. tuition reimbursement B. a set base pay amount regardless of effort and responsibility C. incentive pay D. base pay in the form of wages and salaries E. generous allowances for vacation days

D. base pay in the form of wages and salaries

Juan has just been employed by XYZ Company because of his expertise in international trade. An economist would describe​ Juan's expertise partially as​ ________. A. capital B. a strategic trade skill set C. technical skills D. human capital E. financial capital

D. human capital

Organizational development professionals promote intrinsic compensation by​ ________. A. offering both monetary and non monetary rewards B. making employees realize that their work matters to them only C. providing employee benefits D. incorporating effective job design E. offering higher pay

D. incorporating effective job design

Compensation professionals establish monetary compensation programs to​ ________. A. establish effective job design B. reward job performance levels and striving for monetary rewards C. offer increasing pay rates D. reward job performance levels and​ job-related knowledge and skills E. offer non monetary rewards

D. reward job performance levels and​ job-related knowledge and skills

Human resource professionals are considered​ ________. A. line employees B. contract employees C. service employees D. staff employees E. the same as production employees

D. staff employees

Which of the following are the main stakeholder groups of a compensation​ system? A. ​Employees line​ managers, other​ competitors, and foreign governments B. ​Owners, shareholders, labor union​ representatives, suppliers, and local government officials C. ​Part-time employees, line​ employees, staff​ supervisors, staff​ employees, and administrative managers D. ​Employees, line​ managers, executives,​ unions, and the federal government E. Corporate executives

D. ​Employees, line​ managers, executives,​ unions, and the federal government

There are seven skills that are important to develop and practice that will be important to career development in compensation or other careers Of the​ following, which is NOT one of those​ skills? A. Collaboration B. Information technology and computing skills C. Business ethics and social responsibility D. Critical thinking E. Financial analysis

E. Financial analysis

Which of the following best describe corporate​ sustainability? A. The ability to hire and promote a qualified workforce. B. The ability to learn a concept and apply that knowledge in another setting. C. The assessment and manipulation of information to avoid ethical dilemmas. D. The process of constructing meaning and knowledge as a group through dialogue and negotiation. E. The focus of the corporation on possible future impacts on​ society, the​ economy, and the environment.

E. The focus of the corporation on possible future impacts on​ society, the​ economy, and the environment.

In leveraging specific facets of​ HR, companies try to get the most qualified candidates interested in working for them by​ ________. A. recruiting aggressively B. emphasizing the size of the company C. communicating the​ firm's superior benefits D. discussing what the firm produces E. communicating the positive features of the core compensation and benefits programs

E. communicating the positive features of the core compensation and benefits programs

The planned use of company resources to maintain an edge in the market is called​ ________. A. compensation strategy B. strategic decisions C. competitive advantage D. human resources strategy E. competitive business strategy

E. competitive business strategy

All of the following are examples of​ non-monetary compensation EXCEPT​ ________. A. employer-provided day care centers B. vacation days C. on-site gyms D. medical insurance E. incentive pay

E. incentive pay

Compensation professionals use merit pay programs to​ ________. A. build group and team morale B. keep up with inflation C. treat everyone the same regardless of performance D. promote worker safety E. reward performance results

E. reward performance results

Signing bonuses are useful to companies when​ ________. A. companies are trying to downsize B. the supply for qualified candidates exceeds the demand C. the demand and supply for qualified candidates are equal D. there are plenty of qualified candidates E. the demand for qualified candidates exceeds supply

E. the demand for qualified candidates exceeds supply

The Equal Pay Act of 1963 stipulates that​ ________. A. pay should be equal to the quality of work produced by 1963 standards B. CEOs decide how pay should be divided equally C. everyone should be compensated at the exact same rate D. pay should be divided in equal ratios across all employee ranks E. there should be no sex discrimination in pay for employees performing equal work

E. there should be no sex discrimination in pay for employees performing equal work