Question 1

Which of the following statements is true of the host-country-based approach?

Accepted Answer

A)  Compensation is adjusted to maintain the expatriate's standard of living in the country where the expatriate is sent from the headquarters. 
B)  Compensation is adjusted to maintain the expatriate's standard of living in the country where the MNE is headquartered. 
C)  Compensation is adjusted to maintain the expatriate's standard of living in the country that has the lowest cost of living index. 
D)  Compensation is adjusted to maintain the expatriate's standard of living in the third country. 
A)  Compensation is adjusted to maintain the expatriate's standard of living in the country where the expatriate is sent from the headquarters. 
B)  Compensation is adjusted to maintain the expatriate's standard of living in the country where the MNE is headquartered. 
C)  Compensation is adjusted to maintain the expatriate's standard of living in the country that has the lowest cost of living index. 
D)  Compensation is adjusted to maintain the expatriate's standard of living in the third country.

Question 2

Compa-ratio = _____.

Accepted Answer

A)  total pay divided by the total number of employees 
B)  individual's pay rate divided by the midpoint of the pay range 
C)  total pay divided by the midpoint of the pay range 
D)  individual's pay rate divided by the total number of employees 
A)  total pay divided by the total number of employees 
B)  individual's pay rate divided by the midpoint of the pay range 
C)  total pay divided by the midpoint of the pay range 
D)  individual's pay rate divided by the total number of employees

Question 3

The _____ prohibits companies from using different wage scales for men and women performing substantially the same jobs.

Accepted Answer

A)  Fair Employment Act 
B)  Employment Non-Discrimination Act 
C)  Civil Rights Act 
D)  Equal Pay Act 
A)  Fair Employment Act 
B)  Employment Non-Discrimination Act 
C)  Civil Rights Act 
D)  Equal Pay Act

Question 4

The expectancy theory says that an employee's motivation is based on several linked concepts.

Accepted Answer

A) True 
 B)False

Question 5

The _____ uses external pay data to identify the relative value of jobs based on what other employers pay for similar jobs.

Accepted Answer

A)  factor-comparison method 
B)  ranking method 
C)  point factor method 
D)  market pricing method 
A)  factor-comparison method 
B)  ranking method 
C)  point factor method 
D)  market pricing method

Question 6

Which of the following is true of an employer who uses the first-quartile strategy of compensation?

Accepted Answer

A)  The employer pays the employees above market levels. 
B)  The employers determine the pay independent of the market scenario. 
C)  The employer pays the employees below market levels. 
D)  The employer pays the employees on par with the market levels. 
A)  The employer pays the employees above market levels. 
B)  The employers determine the pay independent of the market scenario. 
C)  The employer pays the employees below market levels. 
D)  The employer pays the employees on par with the market levels.

Question 7

Which of the following is classified as an input in the equity theory?

Accepted Answer

A)  Job security 
B)  Praise 
C)  Loyalty 
D)  Recognition 
A)  Job security 
B)  Praise 
C)  Loyalty 
D)  Recognition

Question 8

Define base pay.

Accepted Answer

The basic compensation that an

Question 9

A _____ is a report based on research of compensation rates for workers performing similar jobs in other organizations.

Accepted Answer

A)  pay survey 
B)  pay analysis 
C)  pay scale 
D)  pay grade 
A)  pay survey 
B)  pay analysis 
C)  pay scale 
D)  pay grade

Question 10

Define compensable factor.

Accepted Answer

A compensable factor identifie

Question 11

Integrating performance appraisal ratings with pay changes can be done through the development of a merit-based performance matrix.

Accepted Answer

A) True 
 B)False

Question 12

Not having to pay social security, unemployment, or workers' compensation costs to independent contractors offers major advantages to the employer.

Accepted Answer

A) True 
 B)False

Question 13

The compa-ratio is calculated by dividing the individual's pay rate by the lowest point in
the pay range.

Accepted Answer

A) True 
 B)False

Question 14

Differentiate between exempt employees and nonexempt employees.

Accepted Answer

Under the Fair Labor Standards Act, empl

Question 15

Which of the following is classified as an outcome in the equity theory?

Accepted Answer

A)  Loyalty 
B)  Time 
C)  Effort 
D)  Job security 
A)  Loyalty 
B)  Time 
C)  Effort 
D)  Job security

Question 16

Market banding groups jobs into pay grades based on similar market survey amounts.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is true of the expectancy theory?

Accepted Answer

A)  This theory emphasizes the importance of finding valued rewards for the employee. 
B)  This theory of motivation was first introduced by John Stacey Adams in 1963. 
C)  This theory states that individuals judge fairness in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others. 
D)  This theory is applicable only to flat organizations with little or no formal structure. 
A)  This theory emphasizes the importance of finding valued rewards for the employee. 
B)  This theory of motivation was first introduced by John Stacey Adams in 1963. 
C)  This theory states that individuals judge fairness in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others. 
D)  This theory is applicable only to flat organizations with little or no formal structure.

Question 18

Describe the Fair Labor Standards Act and the major areas it focuses on.

Accepted Answer

The primary federal law affecting compen

Question 19

The most common indirect compensation is employee benefits.

Accepted Answer

A) True 
 B)False

Question 20

The Equal Pay Act of 1963 prohibits companies from using different wage scales for men and women performing substantially the same jobs.

Accepted Answer

A) True 
 B)False

Which of the following statements is true of the host-country-based approach?

Compa-ratio = _____.

The _____ prohibits companies from using different wage scales for men and women performing substantially the same jobs.

The expectancy theory says that an employee's motivation is based on several linked concepts.

The _____ uses external pay data to identify the relative value of jobs based on what other employers pay for similar jobs.

Which of the following is true of an employer who uses the first-quartile strategy of compensation?

Which of the following is classified as an input in the equity theory?

Define base pay.

A _____ is a report based on research of compensation rates for workers performing similar jobs in other organizations.

Define compensable factor.

Integrating performance appraisal ratings with pay changes can be done through the development of a merit-based performance matrix.

Not having to pay social security, unemployment, or workers' compensation costs to independent contractors offers major advantages to the employer.

The compa-ratio is calculated by dividing the individual's pay rate by the lowest point in the pay range.

Differentiate between exempt employees and nonexempt employees.

Which of the following is classified as an outcome in the equity theory?

Market banding groups jobs into pay grades based on similar market survey amounts.

Which of the following statements is true of the expectancy theory?

Describe the Fair Labor Standards Act and the major areas it focuses on.

The most common indirect compensation is employee benefits.

The Equal Pay Act of 1963 prohibits companies from using different wage scales for men and women performing substantially the same jobs.

HRS Role, Strategy, and Planning

Equal Employment Opportunity and Discrimination

Workforce, Jobs, and Retention

Staffing: Recruiting and Selection

Talent Management, Training, and Development

Performance Management and Appraisal

Variable Pay, Executive Compensation, and Benefits

Risk Management, Worker Protection, and Employee Relations

Unionmanagement Relations and Grievances

Filters

Exam 7: Total Rewards and Compensation

Which of the following statements is true of the host-country-based approach?

Compa-ratio = _____.

The _____ prohibits companies from using different wage scales for men and women performing substantially the same jobs.

The expectancy theory says that an employee's motivation is based on several linked concepts.

The _____ uses external pay data to identify the relative value of jobs based on what other employers pay for similar jobs.

Which of the following is true of an employer who uses the first-quartile strategy of compensation?

Which of the following is classified as an input in the equity theory?

Define base pay.

A _____ is a report based on research of compensation rates for workers performing similar jobs in other organizations.

Define compensable factor.

Integrating performance appraisal ratings with pay changes can be done through the development of a merit-based performance matrix.

Not having to pay social security, unemployment, or workers' compensation costs to independent contractors offers major advantages to the employer.

The compa-ratio is calculated by dividing the individual's pay rate by the lowest point in the pay range.

Differentiate between exempt employees and nonexempt employees.

Which of the following is classified as an outcome in the equity theory?

Market banding groups jobs into pay grades based on similar market survey amounts.

Which of the following statements is true of the expectancy theory?

Describe the Fair Labor Standards Act and the major areas it focuses on.

The most common indirect compensation is employee benefits.

The Equal Pay Act of 1963 prohibits companies from using different wage scales for men and women performing substantially the same jobs.

HRS Role, Strategy, and Planning

Equal Employment Opportunity and Discrimination

Workforce, Jobs, and Retention

Staffing: Recruiting and Selection

Talent Management, Training, and Development

Performance Management and Appraisal

Variable Pay, Executive Compensation, and Benefits

Risk Management, Worker Protection, and Employee Relations

Unionmanagement Relations and Grievances

Filters