Rewards Management Final Exam Review
* __________ is a systematic process for gathering, documenting, and analyzing information in order to describe jobs.
job analysis
*Compensation professionals use _________ to systematically recognize differences in the relative worth among a set of jobs and establish pay differentials accordingly.
job evaluation
*What source is generally able to provide the most extensive and detailed information about how job duties are performed
job incumbents
Valid and reliable job evaluations result from which two conditions?
data from multiple sources; using multiple collection methods
An employee has a regular hourly rate equal to $12. According to FLSA, how much should her/his employer pay this employee for each additional hour worked beyond the regular 40 hours within a period of 7 consecutive days?
$18
*The Family Medical Leave Act guarantees ____ weeks of unpaid leave for workers who qualify.
12
Based upon the FLSA child labor provisions, what is the minimum age that a child must be in order to be legally employed?
14
The SEC requires compensation information on the CEO and how many of the highest paid executives? 10 7 4 2
4
*MomPop's General Store can avoid paying workers' compensation taxes if it keeps its staff to less than how many employees? A) 12 B) 50 C) 100 D) 25
A) 12
According to the safe harbor rules, leased employees can make up no more than what percentage of your company's total workforce? A) 20% B) 10% C) 25% D) 33%
A) 20%
The IRS considers Sylvia to be a highly compensated employee for Beautiful Pictures, Inc., which means she has at least one of which of the following qualifications in the preceding year? A) 5% owner in the top paid employee group B) 1% owner in the top paid employee group C) made less than $50,000 D) made less than $75,000
A) 5% owner in the top paid employee group
*You broke your neck at work. The company called to inform you that they had to switch your benefits from the short-term disability account to the long-term disability account. Based on this decision, how long have you been off work? A) 6 months B) 12 months C) 1 month D) 18 months
A) 6 months
Under SEC rules, which of the following is true? A) Board of director members may be subject to personal liability for paying excessive executive compensation. B) Shareholders may be subject to personal liability for paying excessive executive compensation. C) Publicly held corporations must disclose executive compensation information to shareholders, but not the public. D) Board of director members can sue a corporation for excessive executive compensation.
A) Board of director members may be subject to personal liability for paying excessive executive compensation.
*Which is true of a defined contribution plan? A) Employers invest the funds on behalf of the employees B) Employees have no choice in the investments the employer makes C) Only employers contribute to these plans annually. D) A formula is used to determine the employees' retirement benefit.
A) Employers invest the funds on behalf of the employees
Which of the following is NOT one of the top three largest economies in Asia as of 2010? A) Philippines B) China C) India D) Japan
A) Philippines
Richard's job has a compa-ratio of 0.85. What does this ratio tell about Richard's pay rate? A) Richard's pay is not competitive with the market. B) Richard's pay is highly competitive with the market. C) There is no way to judge the competitiveness of Richard's pay. D) You need more information to be able to judge Richard's pay.
A) Richard's pay is not competitive with the market.
Due to the recession Diana is under paid for her duties but can't find a job paying higher. As a result she keeps her job but feels no desire to work hard or go above and beyond the duties assigned to her. This is an example of A) The compensation-productivity gap B) The great recession C) Social loafing D) Employee laziness
A) The compensation-productivity gap
If the company adopts a market lead policy, how will that company's pay range midpoint compare to the market average? A) The midpoint will be higher than the market average. B) The midpoint will be the same as the market average. C) not enough information to determine D) The midpoint will be lower than the market average.
A) The midpoint will be higher than the market average.
Which of the following is a condition in which a for-profit company can hire an unpaid intern? A) When the internship is similar to training which would be given in an educational environment B) When the intern will displace regular employees C) When the intern will be guaranteed a job upon completion of the internship D) When the internship provide immediate benefit, in terms of the interns productivity to the employer
A) When the internship is similar to training which would be given in an educational environment
*What type of retirement plan is a 401(k)? A) defined contribution B) defined benefit C) qualified benefit D) nonqualified benefit
A) defined contribution
*An insurance company's board of directors decided to promise Katherine 10,000 company shares at lower than market value. What type of compensation arrangement did the board of directors promise? A) discount stock option plans B) incentive stock options C) golden parachutes D) phantom stock
A) discount stock option plans
*________ refers to a general slowdown in economic activity. A) economic recession B) economic slowdown C) economic paycuts D) great recession
A) economic recession
PSL, LLC provides a program for its employees who need help dealing with the effects of domestic violence. PSL, LLC can offer this kind of service through which of the following programs? A) employee assistance program B) family assistance program C) wellness program D) employer assistance program
A) employee assistance program
*AT&T plans on sending R.J. to Peru to work for at least 3 years. They will probably use which method to set his base pay? A) host-country-based B) home-country-based C) headquarters-based D) third-country based
A) host-country-based
Unscheduled absenteeism has climbed to its highest levels in Pearson, Spector, Litt, LLC last month. In order to reduce the costs associated with unscheduled absenteeism, HR professionals decided to change their paid time off policy. This company used to grant each employee 10 vacation days, 5 paid days for sick leave, and 4 days for personal leave. With the new policy, this company combines vacation, sick leave, and personal leave policies into one single paid time off policy (i.e., 19 days). The management decided to keep funeral leave as a stand-alone policy. What is PSL, LLC's new policy called? A) integrated paid time off B) combined paid time off C) sabbatical leave D) volunteer leave
A) integrated paid time off
*Which of the following is a typical benefit preferred by employees with children (male or female, coupled or uncoupled)? A) life insurance B) insurance with prescription drug benefits C) generous vacation allowances D) physical fitness programs
A) life insurance
What represents the relationship between a company's valuation of jobs based on job evaluation and the valuation of jobs within the external market as assessed by compensation surveys? A) market-competitive pay structure B) pay grade C) market pay line D) pay range
A) market-competitive pay structure
This type of pay rate applies to an employee who is demoted but is paid more than the maximum rate for the pay grade he is now in. A) red circle B) yellow circle C) green circle D) multi-tier pay
A) red circle
*If Sheila's stock options are awarded by the company at a discounted price and must be returned if Sheila leaves the company early, she is receiving _______ stocks. A) restricted B) non-statutory C) phantom D) future
A) restricted
*If a company wanted to hire contingent workers as a way to screen workers for possible full-time employment, which type of worker would the company likely employ? A) temporary B) consultants C) freelance D) leased
A) temporary
*What is the most common type of life insurance policy offered by companies? A) term life insurance B) group life insurance C) whole life insurance D) universal insurance
A) term life insurance
*Which of the following is true concerning incentive pay? A. Awards are usually granted in one-time payouts. B. The award is earned only when the predetermined work objective is totally completed C. Motivates employees to be more productive, but does little to control payroll costs D. Incentive levels are generally subjective in nature
A. Awards are usually granted in one-time payouts.
*Which of the following is a characteristic of job-based pay? A. It compensates employees for the jobs they are currently performing. B. It rewards employees on their promise to make positive contributions to the work place. C. It compensates employees for the number of jobs in which they possess the skills to perform D. A reward is based on the successful acquisition of work-related skills or knowledge
A. It compensates employees for the jobs they are currently performing.
*What are two disadvantages associated with profit sharing? A. They can undermine the economic security of employees and they can fail to motivate employees B. They can fail to motivate employees and they reduce the company's financial flexibility C. They can undermine the economic security of employees and they reduce the company's financial flexibility D. They can undermine the economic security of employees and they have negative tax consequences for the company
A. They can undermine the economic security of employees and they can fail to motivate employees
Ross wants to be transferred to a new team because he is frustrated that some of his team members put in less effort than others. Which of the following terms best describes this? A. Social Loafing B. Cloning effect C. Slacker effect D. Group Dynamics
A. Social Loafing
Which two factors should compensation professionals consider before endorsing the use of merit pay systems? A. commitment from top management and job design B. supervisor's rating bias and stock price C. job design and supervisor's rating bias D. job analysis and stock price
A. commitment from top management and job design
*Pay-for-knowledge and skill-based pay are two types of person-focused pay programs that fall under which pay category? A. competency-based B. service based C. stair-step D. innovation-based
A. competency-based
This term refers to the level of specialization or expertise an employee possesses in a particular job. A. depth of skills B. vertical skills C. breadth of skills D. horizontal skills
A. depth of skills
There are 15 animal keepers working for the XYZ Company. Their supervisor is required to rate the performance of these workers based on the following criteria: 30% of the animal keepers will be rated as below-average, 40% of the animal keepers will be rated as average, and 30% of the animal keepers will be rated as above average. What type of performance appraisal is used? A. forced distribution B. paired comparison C. critical incident technique D. behavioral observation scale
A. forced distribution
*Which pay plan generally rewards employees for acquiring job-related competencies, knowledge, or skills rather than for demonstrating successful job performance? A. person-focused B. incentive C. knowledge-based D. merit
A. person-focused
*Which of the following is NOT a protected characteristic by Title VII of the Civil Rights Act of 1964? A. sexual orientation B. race C. national origin D. gender
A. sexual orientation
*Which of the following are the four "universal compensable factors"? A. skill, effort, responsibility, working conditions B. cognitive ability, effort, responsibility, working conditions C. cognitive ability, effort, skill, responsibility D. skill, effort, cognitive ability, working conditions
A. skill, effort, responsibility, working conditions
*Market-based job evaluation uses which method to collect data to determine prevailing pay rates? A. Surveys B. Observations C. Interviews D. Gossip
A. surveys
Which of the following are the two main reasons given for adopting pay-for-knowledge programs? A. technological innovations and increased global competition B. smaller labor markets and strategic outlines C. market monopolies and lower labor costs D. market monopolies and company turnover
A. technological innovations and increased global competition
If an employee wants to apply for unemployment benefits, how much will she/he have to have earned in the last four quarters to qualify? A) $100 total B) $1,000 total C) $5,000 total D) $10,000 total
B) $1,000 total
*Under the Family and Medical Leave Act, how many hours would Pierre have had to work in the previous 12 months in order for him to take time off to care for his wife and new child? A) 1,000 B) 1,250 C) 1,600 D) 800
B) 1,250
*To receive OASDI disability benefits, Sung Lee's disability would have to be expected to last at least how long? A) 6 months B) 12 months C) 3 months D) 18 months
B) 12 months
If the CEO of a new company asked you how much per employee she will be taxed by Federal Unemployment Tax Act, what would you tell her? A) 3.5% of the first $7,000 B) 6.2% of the first $7,000 C) 6.2% of the first $10,000 D) 3.5% of the first $10,000
B) 6.2% of the first $7,000
Jack works for the Common Wealth of Pennsylvania. In an effort to limit congestion in and out of the capital city of Harrisburg, employees are given the option of working a 5-day schedule of 8 am - 4pm or 9am - 5pm. What type of flexible work schedule are they employing A) Compressed Workweek B) Flextime C) Comp time D) Flexplace
B) Flextime
The NAFTA trade bloc includes all of the following countries except: A) United States B) Japan C) Mexico D) Canada
B) Japan
Which one of the following is NOT true about labor participation rate? A) Labor participation rate for younger workers is expected to decline. B) Labor Participation rate for men is expected to increase slightly. C) Labor participation rate for older workers is expected to rise. D) Labor participation rate for women is expected to increase slightly.
B) Labor participation rate for men is expected to increase slightly.
*What is the key characteristic of a defined benefit plan? A) It is paid out in a lump sum. B) The plan guarantees retirement benefits specified in the plan document C) You cannot receive any benefit until a specified retirement age D) Employees are allowed to choose their investment and investment risk.
B) The plan guarantees retirement benefits specified in the plan document
*This is the difference between the stock price at the time of purchase and the lower stock price at the time an executive receives the stock option. A) disposition value B) capital gains C) discounted value D) fair market value
B) capital gains
*Your company asked you to come up with a contribution plan that invests the contributions in company securities and distributes the payouts in stock instead of cash. Which plan would you suggest they use? A) 401(k)s B) employee stock option plan (ESOP) C) profit sharing plan D) point-of-service plan (POS)
B) employee stock option plan (ESOP)
Jose invested $2,500 in pre-tax income into this healthcare plan but lost the $780 left in it at the end of the year because he didn't use it. What type of plan was it? A) health savings account B) flexible spending account C) health reimbursement arrangement D) fee-for service plan
B) flexible spending account
Which of the following is NOT a typical benefit preferred by older workers? A) insurance with prescription drug benefits B) flexible work schedules C) generous sick-leave allowances D) disability insurance
B) flexible work schedules
*After the recent merger of ABC and XYZ Airlines, the former CFO of XYZ Airlines, John, lost his employment in the newly merged airline. Which compensation agreement extends pay and benefits for John? A) discount stock option plans B) golden parachutes C) incentive stock options D) phantom stock
B) golden parachutes
*Which of the following titles are international employees categorized? A) expatriates, third country national, headquarter national B) host country national, third country national, expatriates C) repatriates, host country national, third country nationals D) headquarter national, expatriates, home country nationals
B) host country national, third country national, expatriates
*John is offered to be an adjunct faculty for a semester to teach a statistics class in place of a professor, who is on a sabbatical leave. This example represents which of the following? A) on-call arrangement B) independent contractor C) job sharing D) leased employee
B) independent contractor
*Which type of contingent worker would work for a company on a long-term basis, presumably on an indefinite basis? A) part-time employees B) leased employees C) temporary employees D) independent contractors
B) leased employees
*Jane holds a bachelor's degree in sociology and works as a part-time taxi driver. This situation is an example of which of the following? A) overstaffing B) malemployment C) discrimination D) unemployment
B) malemployment
*Midpoint, minimum, and maximum are values used to define which of the following? A) pay grades B) pay ranges C) pay structures D) pay levels
B) pay ranges
This type of executive bonus plan is similar to the appraisal system used to determine merit increases for non-executive employees. A) performance-incentive B) performance-contingent C) target D) performance-allocation
B) performance-contingent
*Which of the following is a feature of short-term disability plans? A) inclusion provisions B) preexisting conditions C) partial disabilities inclusion D) waiting period
B) preexisting conditions
*Which of the following is NOT a condition manifesting short-term disability? A) pregnancy B) recovery from illness C) recovery from surgery D) recovery from major injuries
B) recovery from illness
*XYZ Movers, a professional relocation company, has 3-person teams for their moving services. The company asks customers to complete a satisfaction survey regarding their recent move. For an employee's performance appraisal, customer satisfaction surveys are also considered in addition to his/her supervisor and team member ratings. Which of the following best describes this situation? A. paired comparisons B. 360 degree performance appraisals C. positive halo effect D. first-impression effect
B. 360 degree performance appraisals
*Which would be an example of a company using incentive pay to further business objectives? A. A toy store manager decides to give her employees a holiday bonus on the first day of the year because of the scheduling flexibility they showed during the busy holiday season B. A lawn care service owner pays his two salesmen a salary of 25k per year. The employees also can earn a 2k bonus for every 15 new clients they sign C. After a particularly slow year, a restaurant owner decides to provide her customers an incentive to visit more often. She slashes prices on the menu by and average of 15% and offers a loyalty card. D. A pizza shop owner raises his employees' hourly wage by fifty cents.
B. A lawn care service owner pays his two salesmen a salary of 25k per year. The employees also can earn a 2k bonus for every 15 new clients they sign
When supervisors rate all employees close to average, they commit errors of ________. A. Halo B. Central tendency C. Bias D. Strictness
B. Central tendency
Which is a disadvantage associated with longevity pay? A. Seniority is an objective measure of performance. B. The incentive to pursue excellence in work is diminished. C. Seniority is not based on supervisory judgment. D. All of the above
B. The incentive to pursue excellence in work is diminished.
*A policy that applies to all company employees, but unintentionally hurts a protected group disproportionately, would be what form of discrimination? A. disparate treatment B. disparate impact C. disparate causality D. situational discrimination
B. disparate impact
*What type of incentive plan involves a group of employees being rewarded for productivity gains? A. profit-sharing plans B. gain-sharing plans C. effort incentive plans D. merit incentive plans
B. gain-sharing plans
Which of the following describes job duties, tasks, and relevant factors needed to perform a job adequately? A. job structure B. job content C. job summary D. job context
B. job content
*Which pay system is most widely used in America today? A. skill based pay B. merit pay C. longevity pay D. seniority pay
B. merit pay
Discretionary benefits are generally divided into which three categories? A. health benefits, intellectual enhancements, paid time-off B. services, paid time-off, protection programs C. pension benefits, protection programs, health benefits D. intellectual enhancements, health benefits, services
B. services, paid time-off, protection programs
Which of the following country has the strongest economy in South America? A) Chile B) Argentina C) Brazil D) Columbia
C) Brazil
In terms of total financial compensation, what savings are enjoyed by those workers with a compressed workweek schedule? A) By working from home, some employees are given computers and other equipment to use of business purposes B) By working only during core hours, some employees have more time to pursue other sources of income. C) By working fewer days per week, workers can reduce their commuting cost. D) By working on a part-time basis, workers reduce their commuting costs
C) By working fewer days per week, workers can reduce their commuting cost.
*Which of the following is associated with 401(k) plans? A) Employees pay taxes on their contribution. B) Investment gains are taxed. C) Employees do not pay taxes on their contributions. D) Employees cannot deduct their contributions from taxable income.
C) Employees do not pay taxes on their contributions.
Which of the following is a characteristic of integrated paid time off policies? A) Such policies distinguish among reasons for absence. B) Individuals have to justify reason for taking time off. C) Holiday, vacation, sick leave, and personal leave are combined. D) Can lead to increased unscheduled absences.
C) Holiday, vacation, sick leave, and personal leave are combined.
The recently appointed CEO of XYZ Inc. uses a luxury summerhouse owned by the company for rest and relaxation with his family as well as a place to invite important clients before a lucrative business deal. XYZ Inc. also provides a membership to an exclusive country club to its CEO. These kinds of benefits offered to CEOs are called A) discretionary bonuses. B) golden parachutes. C) Perquisites (perks). D) clawback provisions.
C) Perquisites (perks).
Which one of the following is a wrong belief regarding the Social Security System in the United States? A) The viability of Social Security programs has been a subject of heated debates between Democrats and Republicans across the country. B) The Social Security taxes paid by today's workers and their employers are used to pay the benefits for today's retirees and other beneficiaries. C) Social Security taxes paid by employees and their employers are held in interest-bearing accounts set aside by the federal government to meet their own future retirement income needs. D) The Social Security System is a pay-as-you-go system.
C) Social Security taxes paid by employees and their employers are held in interest-bearing accounts set aside by the federal government to meet their own future retirement income needs.
*A local department store adds about 25 part-time sales associates for the 12 weeks leading up to Christmas. After the season is over, the staff returns to its typical size. What type of contingent workers does the store hire? A) Independent Contractors B) Leased Employees C) Temporary Employees D) Involuntary part-time employees
C) Temporary Employees
What is the only state where employers are not required to fund workers' compensation programs? A) Michigan B) New York C) Texas D) Oregon
C) Texas
Which is a demographic trend that affects business and government planning A) The Asian population is declining as a percentage of the US population B) Employees in the millennial generation are undereducated and under skilled compared to the current workforce C) The labor force is substantially aging D) The average educational level in the US is declining
C) The labor force is substantially aging
*What does the term repatriation refer to? A) sending an expatriate's family to the foreign country with him B) an expatriate going back to an overseas assignment she had been to before C) an expatriate returning home to work after completing an overseas assignment D) teaching an expatriate about the customers and culture of a foreign country
C) an expatriate returning home to work after completing an overseas assignment
*These represent a series of payments for the life of the participant and beneficiary. A) collateral payments B) periodic payments C) annuities D) lump sum distributions
C) annuities
*Self-inflicted wounds and drug dependency are generally considered as what in most short-term disability insurance plans? A) partial disability provisions B) elimination provisions C) exclusion provisions D) preexisting conditions
C) exclusion provisions
*Your company is sending Sheila on a six-month assignment to Sweden. Which method should you use to determine her base pay? A) headquarters-based B) host country-based C) home-country based D) foreign country-based
C) home country-based
*For the purpose of applying pay policies, this term refers to the groupings of jobs based on compensable factors. A) market lines B) market-competitive pay structures C) pay grades D) pay ranges
C) pay grades
Which term is used to describe the situation where the pay spread between newly hired employees and more qualified job incumbents is small? A) pay structures B) red circle pay rates C) pay/wage compression D) green circle pay rates
C) pay/wage compression
According to the provisions in her health insurance plan with Get Well Insurance, Ursula's coinsurance payment would be $50 if she goes to Dr. Kitt but will only be $25 if she goes to Dr. Matthew. She probably belongs to what type of insurance plan? A) fee-for-service plan B) point-of-service plan (POS) C) preferred provider organization (PPO) D) health maintenance organization (HMO)
C) preferred provider organization (PPO)
*Which of the following is a main reason for the increased costs associated with person-focused pay programs? A. higher payroll costs B. higher training costs C. Both A and B D. None of the Above
C. Both A and B: higher payroll costs & higher training costs
*Which of the following examples is NOT considered a compensable work activity? A. a fireman who plays checkers while waiting for an alarm B. an employee attends an employer-mandated training C. an employee travels from home before the regular workday and returns to his/her home at the end of the workday D. an employee takes a 15-minute rest during work time
C. an employee travels from home before the regular workday and returns to his/her home at the end of the workday
XYZ Company ranks its employees from the best performer to the poorest performer, and the employee with the best performance receives the highest ranking. What type of performance appraisal method is used by this company? A. trait system B. behavioral system C. comparison system D. goal-oriented system
C. comparison system
*In addition to the guaranteed hourly pay rate, Monica receives incentives for every item produced over the designated production standard. What kind of incentive plan is used in this situation? A. management incentive plans B. referral plans C. piecework plans D. behavioral encouragement plans
C. piecework plans
A human resource manager of a company decides to change the current job-content valuation technique by using a quantitative methodology. He thinks that the old approach fails to balance internal and external considerations while evaluating jobs. What type of job evaluation technique do you suggest for this HR manager? A. job-content evaluation B. market-based evaluation C. point method D. simple ranking plan
C. point method
In this team, members learn scheduling, coordinating, training, leadership. Which of the following describes this type of work team? A. supervisory work team B. management team C. self-regulating work group D. non-supervised work team
C. self-regulating work group
In a TV set manufacturing facility, there are different assembly lines in which workers focus on certain aspects of production. Senior line workers are capable of producing the TV sets from start to finish. This capability of doing the entire operation from start to finish is an example of which following term? A. vertical skills B. feedback C. task identity D. autonomy
C. task identity
*An international assignment is considered long-term when it lasts at least how long? A) 3 months B) 6 months C) 2 years D) 1 year
D) 1 year
India's labor force has over how many people based on 2012 estimates? A) 118 million B) 273 million C) 388 million D) 498 million
D) 498 million
If Fred signs up for Medicare Part B, what percent of his medical services and supplies will be covered after he has paid his annual deductible? A) 25% B) 33% C) 60% D) 80%
D) 80%
Carlos works at Broncho Innovations Inc. as a computer scientist. Currently Carlos works 10 hour days Monday through Thursday. In addition, Carlos works 4-hour shifts Friday -Sunday at a nearby grocery store to earn extra income because he wants to add hours that fit his schedule. What type contingent schedule is Carlos on? A) Compressed workweek B) Involuntary part time C) Compressed workweek and involuntary part time D) Compressed workweek and voluntary part time
D) Compressed workweek and voluntary part time
*Some pension plans are referred to as "qualified plans" and others as "nonqualified." Which of the following is a condition that must be met for a plan to be considered "qualified? A) It must have been after ERISA legislation took effect in 1975. B) Employee contributions must be matched dollar per dollar by the employer. C) Employees must be limited to a contribution level of 5% of their income. D) Employees must always be vested in their contributions to the plan.
D) Employees must always be vested in their contributions to the plan.
What is the major implication of the increasingly diverse workforce in terms of its impact on worker benefits? A) Employee-sponsored systems will no longer be a viable option in the future B) Due to the cost of benefits, offering one standard plan will become crucial C) Millennials' will require more benefits D) Flexible benefit offerings will be needed due to employees differences
D) Flexible benefit offerings will be needed due to employees differences
Which of the following is a major provision of the PPACA? A) The new legislation will require most employers with over 50 full time employees to match healthcare contributions chosen by their employees on a dollar for dollar basis B) The new legislation will require most employers with over 50 full time employees to offer healthcare insurance purchased through the federal government C) The new legislation will require most employees with over 50 full time employees to pay for healthcare coverage for their employees D) The new legislation will require most employers with over 50 full time employees to provide health care insurance to employees or face significant financial penalties
D) The new legislation will require most employers with over 50 full time employees to provide health care insurance to employees or face significant financial penalties
*Which one of the following is NOT considered a long-term implication of underemployment? A) Underemployment may slow down the economic recovery from recession. B) Underemployment will most likely lead to a reduced consumption of goods and services. C) Underemployment will usually result in reduced business production. D) Underemployment will likely lead to higher spending by companies.
D) Underemployment will likely lead to higher spending by companies.
Which of the following are the two main components of current core compensation? A) base pay and legally required benefits B) bonuses and legally required benefits C) base pay and discretionary benefits D) base pay and bonuses
D) base pay and bonuses
Mary works at a pharmaceutical company as a customer service representative. Her employer allows her to choose the set of benefits she will receive on top of preestablished sets of benefits, such as medical insurance and term life insurance. The company gave her credits equal to 6% of her salary with which she decided to purchase dental and vision insurance. This pharmaceutical company uses what kind of benefits plan? A) cafeteria plan B) flexible benefits plan C) employee-financed plan D) core plus option plan
D) core plus option plan
How are compa-ratios calculated? A) dividing the green circle rates midpoint by the normal pay range B) dividing the employee's pay rate by the market line rate C) dividing the red circle rates by the normal pay range D) dividing an employee's pay rate by the pay range midpoint
D) dividing an employee's pay rate by the pay range midpoint
Medicare Part C is based on what type of health care option? A) preferred provider plan B) medical savings account C) managed care plan D) fee-for-service
D) fee-for-service
John is just hired by a software company as a programmer. He is also a part-time student at the local college and needs just a few credits to graduate from this college. A college degree is required in order to work as a programmer in this software company. Therefore, John receives below-minimum pay rate until he graduates from college. What type of pay rate does John receive? A) red circle rate B) midpoint pay rate C) two-tier pay rate D) green circle rates
D) green circle rates
Former under-developed countries of the world are experiencing which of these conditions, thus eliciting greater interconnections with U.S. employers? A) stagnant trade B) economic downturn C) labor shortages D) improved standard of living
D) improved standard of living
*What is it called when Jack and Jill both work part-time to complete the duties of one full-time position? A) freelancing B) dual staffing C) safe harboring D) job sharing
D) job sharing
*Which of the following conditions is a mental or physical disability for which medical advice, diagnosis, care, or treatment was received during a designated period preceding the beginning of disability insurance coverage? A) preeligibility condition B) exclusive condition C) eliminating condition D) preexisting condition
D) preexisting condition
What is another name for health maintenance organizations (HMOs)? A) outpatient medical services B) inpatient medical services C) on-call medical services D) prepaid medical services
D) prepaid medical services
With which sales compensation plan does the level of pay not vary when sales volume does? A) commission-only plan B) salary (base pay)-plus-bonus plan C) salary (base pay)-plus-commission plan D) salary-only (base pay) plan
D) salary-only (base pay) plan
Of the compensable factors identified, it is decided that skill level will be valued at 50% of the final evaluation. Which step in the point method is taking place? A. Determine the ranking of each compensable factor B. Determine the values for each compensable factor C. Verify factor degrees and point values D. Determine the weight of each compensable factor
D. Determine the weight of each compensable factor
*Which of the following is true regarding group incentive plans as opposed to individual incentive plans? A. There are more groups in a company than individuals to measure. B. Individual group members usually work more efficiently alone than in cohesive groups. C. It is easier to develop performance measures for individual incentive plans than group incentive plans. D. It is easier to develop performance measures for group incentive plans than individual incentive plans.
D. It is easier to develop performance measures for group incentive plans than individual incentive plans.
*_________ pay programs assume that employees' compensation over time should be determined, at least in part, by differences in job performance. A. Longevity B. Piecework C. Seniority D. Merit
D. Merit
*Individual incentive plans help to promote the relationship between pay and ________ A. Seniority B. Longevity C. Quality D. Performance
D. Performance
*Which of the following is an advantage of seniority pay systems? A. They reward exemplary performance B. They encourage employees to continue to increase their skillsets C. They help to promote product quality D. They reward employees on an objective basis
D. They reward employees on an objective basis
*The main disadvantage of group incentive compensation is employee ________. A. Absenteeism B. Cost C. Motivation D. Turnover
D. Turnover
In this person-focused pay model, employees are rewarded for increasing their skills within a single job family, even if the skills do NOT build on each other. A. stair-step B. cross-departmental C. job-point accrual D. skill blocks
D. skill blocks
In the SweetRidz Corp. passenger car manufacturing plant, assembly line station team leaders are allowed to stop the assembly line by pulling a cord available at each station whenever they notice a serious quality problem in the assembly process. This is an example of which of the following? A. task identity B. skill variety C. feedback D. autonomy
D. autonomy
*Among the various performance appraisal techniques, this appraisal system is the most defensible in court because it is based on actual observable job performance behaviors. A. 360 degree performance appraisals B. paired comparison C. forced distribution D. behaviorally anchored rating scale
D. behaviorally anchored rating scale
*Rachel works for a nursing home. As the administrator she receives a bonus for every month the facility has no safety violations. Which category of incentive pay is being offered? A. company-wide B. group C. executive D. individual
D. individual
What are the revised guidelines introduced in 2004 for determining whether jobs are exempt from FLSA overtime pay provisions called?
Fair Pay Rules
_________ plans use market data to determine differences in job worth.
Market-based evaluation
This act strengthened the Equal Pay Act of 1963 by requiring employers to show that pay disparities are job related rather than sex-based. This act also prohibits employers from retaliating against employees who share their salary information.
The Paycheck Fairness Act
*What is a common problem associated with compensation survey data? a. Compensation survey data can often be outdated because of the lag time between collection and implementation of data. b. There are few statistical methods available that can help with the effective analysis of compensation survey data c. There are few reliable sources of compensation survey data d. Compensation survey data is always very costly to obtain.
a. Compensation survey data can often be outdated because of the lag time between collection and implementation of data.
*These are used as reference points for setting pay levels. a. benchmark jobs b. mean pay c. median pay d. market-competitive pay
a. benchmark jobs
*Compensation surveys are typically focused on which two factors? a. competitors' wage and salary practices b. competitors' promotion and advancement opportunities c. internal promotion and advancement opportunities d. internal wage and salary practices
a. competitors' wage and salary practices
Dwight Schrute is a compensation specialist for a mid-sized paper company. His boss is considering moving toward a market competitive compensation system and has assigned him the task of conducting a compensation survey. Which BEST outlines the proper course of action for Dwight to pursue? a. Conduct two separate surveys within the organization. One survey to determine managements opinion about the planned change and one targeting production worker opinions b. Conduct a survey involving the collection and subsequent analysis of competitive compensation data. c. Conduct two separate surveys. One to all company employee's to determine internal consistency and one to employee's that work for my competitor's d. Send a survey to all company employees' focusing on their satisfaction with current pay levels.
b. Conduct a survey involving the collection and subsequent analysis of competitive compensation data.
*What is a key goal of a well-designed market competitive compensation system? a. To improve productivity and efficiency by procuring employees at the lowest possible price. b. To encourage a stronger competitive position by avoiding excessive pay levels. c. To ensure diversity amount workers in an effort to encourage pay fairness. d. To improve relations with employee unions and reduce the probability of worker strikes.
b. To encourage a stronger competitive position by avoiding excessive pay levels.
The CPI is calculated for two groups. What group is thought to be the most important strategically because it represents the spending habits of 80% of the US population? a. CPI-E b. CPI-W c. CPI-U d. CPI-P
c. CPI-U
Sixty percent of Pam's compensation is tied to her base wage, thirty percent is tied to benefits, and ten percent is tied to incentive pay. When describing Pam's compensation, which term applied a. Pay merit policy b. Wage and Benefits policy c. Pay mix policy d. Total compensation policy
c. Pay mix policy
*When using compensation survey data, statistical analyses are used to integrate ____________ with the external market, in order to determine pay rates. a. internal pay scales b. nominal pay rates c. internal job structures d. internal pay benchmarks
c. internal job structures
*Which of the following are the three measures of dispersion? a. percentile standard, deviation, arithmetic mean b. quartile, arithmetic mean, standard deviation c. standard deviation, quartile, percentile d. arithmetic mean, percentile, quartile
c. standard deviation, quartile, percentile
*Regression analysis finds the best fitting line between two variables. When compensation specialists apply the method to establish market competitive compensation, which term applies? a. Line of best fit line b. Median line c. Regression line d. Market Pay line
d. Market Pay line
Which of the following is NOT addressed by the Fair Labor Standards Act of 1938?
executive compensation
*This program grants income to workers who are unable to work due to injuries sustained while on the job.
workers' compensation