MGT 308 Quiz #1

The best way to establish _____ is to account for competing explanations, either statistically or through control groups. a. Causation b. Profitability c. Correlation coefficient d. Internal alignment

a. Causation

Which of the following policy decisions directly affects employees' attitudes and work behaviors? a. Employee contributions b. Internal alignment c. External competitiveness d. Management

a. Employee contributions

Which of the following is a fundamental objective, and NOT a policy, in the pay model? a. Fairness b. Competitiveness c. Contributions d. Alignment

a. Fairness

In the context of pay relationships, which of the following is illegal in the United States? a. Paying on the basis of the nature of jobs b. Paying on the basis of pay comparisons with competitors c. Paying on the basis of one's age d. Paying on the basis of one's skill level

c. Paying on the basis of one's age

Variable pay may also be called _____. a. relational returns b. pensions c. stock options d. incentives

d. incentives

Which form of pay does not permanently increase labor costs? a. Incentive b. Merit pay c. Cost-of-living adjustments d. Base pay

a. Incentive

Which of the following companies is taking efforts to improve the work/life balance of its employees? a. MH Corp. increases the number of paid holidays given to its senior employees. b. Kay Corp. increases the transport allowance for its employees by 10 percent. c. Haywire Corp. allows its employees to buy company stocks at a reduced price of $30 per share. d. Halo Corp. increases the variable pay for its employees.

a. MH Corp. increases the number of paid holidays given to its senior employees.

GreenRain Corp. faces an increase in employee turnover rate. The CEO calls for a board meeting with the senior executives to discuss the issue. Who among the following suggests increasing the relational returns that employees receive to reduce the turnover rate at GreenRain? a. Tom suggests increasing the decision-making authorities given to the employees to make work more challenging. b. Deena suggests providing more work/life balance for the employees by increasing the number of paid leaves. c. Syed suggests increasing the medical insurance coverage offered to the employees. d. Liam suggests increasing merit bonuses.

a. Tom suggests increasing the decision-making authorities given to the employees to make work more challenging.

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

b. Employment security

According to the text, which of the following decisions should be made jointly? a. Internal alignment and management decisions b. External competitiveness and employee contribution decisions c. Employee contribution and internal alignment decisions d. Management and external competitiveness decisions

b. External competitiveness and employee contribution decisions

The degree to which pay influences individual and aggregate motivation among employees at any point in time is referred to as a(n): a. Sorting effect b. Incentive effect c. Turnover effect d. Directional effect

b. Incentive effect

________ refers to comparisons among jobs or skills inside a single organization. a. External competitiveness b. Internal alignment c. Compliance d. Merit increase

b. Internal alignment

Which of the following is often the largest component in an executive pay package? a. Base pay b. Stock options c. Merit pay d. Perks

b. Stock options

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

c. $16,000

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

c. Many small employers are much less likely than larger employers to offer health insurance to their employees

Which of the following is given as an increment to the base pay in recognition of past work behavior? a. Base pay b. Long-term incentive c. Merit pay d. Short-term incentive

c. Merit pay

Recent surveys show that, on average, an outstanding performer receives a _____ merit increase, an average performer a _____ merit increase, and a poor performer a 0.4% merit increase. a. 10.5%; 7% b. 8.4%; 5.2% c. 6.7%; 4.2% d. 4.4%; 2.8%

d. 4.4%; 2.8%

Incentives do not permanently increase labor costs because: a. They rely on a subjective rating of performance b. They are given based on the past performances of the employees c. They increase the base wage d. They are one-time payments

d. They are one-time payments

You are an HR manager, and your boss has told you to find the best way to raise job performance. After some research, you find that _____ have the greatest instrumental value. a. job responsibilities b. training and skill development programs c. goal setting and job enrichment d. monetary incentives

d. monetary incentives

Managers seek internal alignment within their organization by: a. matching the competitors' pay rates b. following FLSA guidelines c. using fair merit increases d. paying on the basis of similarities among jobs

d. paying on the basis of similarities among jobs