Question 1

What does base pay reflect?

Accepted Answer

Base pay tends to reflect the value of the work or skills and generally ignores differences attributable to individual employees.

Question 2

Explain the two major categories of total rewards.

Accepted Answer

The two major categories of total rewards are relational returns and total compensation. The relational returns (development opportunities, status, opportunity to belong, challenging work, and so on)are the psychological returns people believe they receive in the workplace.
Total compensation is more transactional and includes pay received directly as cash (e.g., base, merit increases, incentives, cost-of-living adjustments)and indirectly as benefits (e.g., pensions, medical insurance, programs to help balance work and life demands).

Question 3

refer to one-time payments for meeting previously established performance objectives.

Accepted Answer

A) Relational returns 
B) Cost-of-living adjustments 
C) Incentives 
D) Allowances 
E) Merit increments 
A) Relational returns 
B) Cost-of-living adjustments 
C) Incentives 
D) Allowances 
E) Merit increments C

Question 4

While external competitiveness directly affects efficiency, it does not affect fairness.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following best describes relational returns?

Accepted Answer

A) programs that help employees better integrate their work and life responsibilities 
B) one-time payments for meeting previously established performance objectives 
C) the psychological returns people believe they receive in the workplace 
D) all forms of financial returns and tangible services that employees receive as part of an employment 
E) all rewards received by employees, including cash compensation, benefits, and psychological returns 
A) programs that help employees better integrate their work and life responsibilities 
B) one-time payments for meeting previously established performance objectives 
C) the psychological returns people believe they receive in the workplace 
D) all forms of financial returns and tangible services that employees receive as part of an employment 
E) all rewards received by employees, including cash compensation, benefits, and psychological returns

Question 6

Which of the following is true of internal alignment?

Accepted Answer

A) It places greater emphasis on performance than the other policies. 
B) It compares pay between jobs inside a single organization. 
C) It uses incentive programs as a technique to implement the policy. 
D) It relates to comparison of compensation with that of competitors. 
E) It does not influence the company's compensation objectives. 
A) It places greater emphasis on performance than the other policies. 
B) It compares pay between jobs inside a single organization. 
C) It uses incentive programs as a technique to implement the policy. 
D) It relates to comparison of compensation with that of competitors. 
E) It does not influence the company's compensation objectives.

Question 7

External competitiveness refers to pay comparisons between different skill levels in an organization.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a form of relational return?

Accepted Answer

A) allowances 
B) life Insurance 
C) recognition and status 
D) benefits 
E) monitory incentives 
A) allowances 
B) life Insurance 
C) recognition and status 
D) benefits 
E) monitory incentives

Question 9

Why is compensation important to managers?

Accepted Answer

a manager uses it as a way to

Question 10

Why is executive pay in Canada of special interest to stockholders?

Accepted Answer

In Canada, pay for executives should sup

Question 11

Which of the following statements is true about the forms of pay?

Accepted Answer

A) Relational returns are more transactional than total compensation. 
B) Base pay tends to reflect the value of the work or skills and generally ignores differences attributable to individual employees. 
C) Merit increases refer to the same percentage increase that everyone receives regardless of performance in order to maintain pay levels relative to increases in the cost of living. 
D) Unlike relational returns, total compensation typically refers to the psychological returns people believe they receive in the workplace. 
E) Base pay, incentives, and cost-of-living adjustments are the typical relational returns. 
A) Relational returns are more transactional than total compensation. 
B) Base pay tends to reflect the value of the work or skills and generally ignores differences attributable to individual employees. 
C) Merit increases refer to the same percentage increase that everyone receives regardless of performance in order to maintain pay levels relative to increases in the cost of living. 
D) Unlike relational returns, total compensation typically refers to the psychological returns people believe they receive in the workplace. 
E) Base pay, incentives, and cost-of-living adjustments are the typical relational returns.

Question 12

Making contributions to Workers' Compensation is at discretion of the employer.

Accepted Answer

A) True 
 B)False

Question 13

Cost-of-living adjustment refers to percentage increment to base pay provided to employees based on their performance.

Accepted Answer

A) True 
 B)False

Question 14

A merit increase is best described as:

Accepted Answer

A) percentage increment to base pay provided to all employees regardless of performance. 
B) a one-time reward for past performance that does not increase base pay. 
C) an increment to base pay that recognizes past work behaviour. 
D) psychological returns employees believe they receive in the workplace. 
E) compensation given to provide for items that are in short supply. 
A) percentage increment to base pay provided to all employees regardless of performance. 
B) a one-time reward for past performance that does not increase base pay. 
C) an increment to base pay that recognizes past work behaviour. 
D) psychological returns employees believe they receive in the workplace. 
E) compensation given to provide for items that are in short supply.

Question 15

What are the two major categories of total rewards?

Accepted Answer

Total comp

Question 16

What is base pay? Distinguish between a wage and a salary.

Accepted Answer

Base pay is the cash compensation an emp

Question 17

List the three basic objectives of a compensation system.

Accepted Answer

Efficiency, fairness

Question 18

Total compensation only includes salary and incentives; not benefits.

Accepted Answer

A) True 
 B)False

Question 19

External competitiveness refers to:

Accepted Answer

A) comparison of product prices with that of competitors 
B) comparison of compensation with that of competitors 
C) competitiveness between different departments in a company 
D) inflationary pressure caused by external market factors 
E) the relative importance of jobs within a company 
A) comparison of product prices with that of competitors 
B) comparison of compensation with that of competitors 
C) competitiveness between different departments in a company 
D) inflationary pressure caused by external market factors 
E) the relative importance of jobs within a company

Question 20

Merit pay is a one-time payment for meeting previously established performance objectives.

Accepted Answer

A) True 
 B)False

What does base pay reflect?

Explain the two major categories of total rewards.

refer to one-time payments for meeting previously established performance objectives.

While external competitiveness directly affects efficiency, it does not affect fairness.

Which of the following best describes relational returns?

Which of the following is true of internal alignment?

External competitiveness refers to pay comparisons between different skill levels in an organization.

Which of the following is a form of relational return?

Why is compensation important to managers?

Why is executive pay in Canada of special interest to stockholders?

Which of the following statements is true about the forms of pay?

Making contributions to Workers' Compensation is at discretion of the employer.

Cost-of-living adjustment refers to percentage increment to base pay provided to employees based on their performance.

A merit increase is best described as:

What are the two major categories of total rewards?

What is base pay? Distinguish between a wage and a salary.

List the three basic objectives of a compensation system.

Total compensation only includes salary and incentives; not benefits.

External competitiveness refers to:

Merit pay is a one-time payment for meeting previously established performance objectives.

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Defining Competitiveness

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters

Exam 1: The Pay Model

What does base pay reflect?

Explain the two major categories of total rewards.

refer to one-time payments for meeting previously established performance objectives.

While external competitiveness directly affects efficiency, it does not affect fairness.

Which of the following best describes relational returns?

Which of the following is true of internal alignment?

External competitiveness refers to pay comparisons between different skill levels in an organization.

Which of the following is a form of relational return?

Why is compensation important to managers?

Why is executive pay in Canada of special interest to stockholders?

Which of the following statements is true about the forms of pay?

Making contributions to Workers' Compensation is at discretion of the employer.

Cost-of-living adjustment refers to percentage increment to base pay provided to employees based on their performance.

A merit increase is best described as:

What are the two major categories of total rewards?

What is base pay? Distinguish between a wage and a salary.

List the three basic objectives of a compensation system.

Total compensation only includes salary and incentives; not benefits.

External competitiveness refers to:

Merit pay is a one-time payment for meeting previously established performance objectives.

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Defining Competitiveness

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters