Question 1

Labour market conditions have little impact on wage rates paid to employees.

Accepted Answer

A) True 
 B)False

Question 2

Wage compression can be avoided by granting wage increases solely on the basis of the CPI.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following can pay secrecy NOT do?

Accepted Answer

A)  generate distrust in the compensation system 
B)  reduce employee motivation 
C)  inhibit organizational effectiveness 
D)  generate feelings of commitment 
A)  generate distrust in the compensation system 
B)  reduce employee motivation 
C)  inhibit organizational effectiveness 
D)  generate feelings of commitment

Question 4

Some organizations can choose a strategy to pay higher than market wages and salaries. Which of the following will this NOT help them do?

Accepted Answer

A)  be more selective in their employee hiring 
B)  reduce training costs 
C)  retain valuable employees 
D)  develop more advanced performance appraisals 
A)  be more selective in their employee hiring 
B)  reduce training costs 
C)  retain valuable employees 
D)  develop more advanced performance appraisals

Question 5

Strategic compensation is the compensation of employees in ways that enhance motivation and growth while concurrently aligning their efforts with the goals of the organization.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following types of equity do wage and salary surveys permit an organization to maintain?

Accepted Answer

A)  internal 
B)  distributive 
C)  external 
D)  salary 
A)  internal 
B)  distributive 
C)  external 
D)  salary

Question 7

Among the goals of strategic compensation policy are rewarding past performance, attracting new employees, and reducing turnover.

Accepted Answer

A) True 
 B)False

Question 8

Job evaluation is a non-systematic, qualitative process of determining the relative worth of jobs in order to establish a comparison with the prevailing market and regional value of a job within a job family.

Accepted Answer

A) True 
 B)False

Question 9

Pay levels are limited in part by profitability of the firm and productivity of employees.

Accepted Answer

A) True 
 B)False

Question 10

Employees who earn pay for hourly work are referred to as salaried employees.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a quantitative job evaluation procedure that determines a job's relative value on the basis of quantitative assessments of specific job elements?

Accepted Answer

A)  the point system 
B)  job ranking 
C)  the factor comparison method 
D)  the job grade system 
A)  the point system 
B)  job ranking 
C)  the factor comparison method 
D)  the job grade system

Question 12

York University has developed a merit-based pay system for its professors, in addition to other forms of pay. Which of the following terms refers to this type of merit-based pay?

Accepted Answer

A)  value-added compensation 
B)  pay-for-performance 
C)  pay equity 
D)  indirect compensation 
A)  value-added compensation 
B)  pay-for-performance 
C)  pay equity 
D)  indirect compensation

Question 13

The point system of job evaluation permits jobs to be evaluated quantitatively based on compensable factors.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is NOT a disadvantage of the job ranking system?

Accepted Answer

A)  It does not provide a very refined measure of the job's worth, since the comparisons are made on the basis of the whole job. 
B)  The final rankings of jobs do not indicate the relative importance of the jobs. 
C)  Its simplicity makes it suitable for smaller employers. 
D)  It should only be used with nonexempt jobs. 
A)  It does not provide a very refined measure of the job's worth, since the comparisons are made on the basis of the whole job. 
B)  The final rankings of jobs do not indicate the relative importance of the jobs. 
C)  Its simplicity makes it suitable for smaller employers. 
D)  It should only be used with nonexempt jobs.

Question 15

Pay secrecy is still prevalent in organizations despite its negative effect on motivation and employee trust.

Accepted Answer

A) True 
 B)False

Question 16

Desirée is a female receptionist employed by York University in Toronto. John is a male janitor with the same employer. Both jobs are evaluated as having 500 points, yet Desiree is paid less than John. She has decided to legally challenge the employer. Which of the following is relevant in this case?

Accepted Answer

A)  the Peter principle 
B)  market matching 
C)  equal pay for work of equal value 
D)  equal pay for equal work 
A)  the Peter principle 
B)  market matching 
C)  equal pay for work of equal value 
D)  equal pay for equal work

Question 17

Which of the following is a major challenge in designing a sound pay-for-performance system?

Accepted Answer

A)  getting the firm to agree to this pay system 
B)  generating revenues to compensate for the costs of the program 
C)  deciding how to measure performance 
D)  getting the government to agree to the pay system 
A)  getting the firm to agree to this pay system 
B)  generating revenues to compensate for the costs of the program 
C)  deciding how to measure performance 
D)  getting the government to agree to the pay system

Question 18

Briefly discuss the provisions of the Employment Standards Acts pertaining to employee compensation.

Accepted Answer

Each of the provinces and territories ha

Question 19

Both Sam and Samantha work as cashiers at Modelo Hot Dogs. They do work of equal value to the firm; yet, Sam receives less pay than Samantha. Sam is not happy because he perceives the system as being unfair to him. Which of the following theories can you use to explain Sam's perceptions?

Accepted Answer

A)  reverse discrimination theory 
B)  pay equity theory 
C)  expectancy theory 
D)  equity theory 
A)  reverse discrimination theory 
B)  pay equity theory 
C)  expectancy theory 
D)  equity theory

Question 20

The allocation of compensation sends a message to employees about what is important.

Accepted Answer

A) True 
 B)False

Labour market conditions have little impact on wage rates paid to employees.

Wage compression can be avoided by granting wage increases solely on the basis of the CPI.

Which of the following can pay secrecy NOT do?

Some organizations can choose a strategy to pay higher than market wages and salaries. Which of the following will this NOT help them do?

Strategic compensation is the compensation of employees in ways that enhance motivation and growth while concurrently aligning their efforts with the goals of the organization.

Which of the following types of equity do wage and salary surveys permit an organization to maintain?

Among the goals of strategic compensation policy are rewarding past performance, attracting new employees, and reducing turnover.

Job evaluation is a non-systematic, qualitative process of determining the relative worth of jobs in order to establish a comparison with the prevailing market and regional value of a job within a job family.

Pay levels are limited in part by profitability of the firm and productivity of employees.

Employees who earn pay for hourly work are referred to as salaried employees.

Which of the following is a quantitative job evaluation procedure that determines a job's relative value on the basis of quantitative assessments of specific job elements?

York University has developed a merit-based pay system for its professors, in addition to other forms of pay. Which of the following terms refers to this type of merit-based pay?

The point system of job evaluation permits jobs to be evaluated quantitatively based on compensable factors.

Which of the following is NOT a disadvantage of the job ranking system?

Pay secrecy is still prevalent in organizations despite its negative effect on motivation and employee trust.

Which of the following is a major challenge in designing a sound pay-for-performance system?

Briefly discuss the provisions of the Employment Standards Acts pertaining to employee compensation.

Both Sam and Samantha work as cashiers at Modelo Hot Dogs. They do work of equal value to the firm; yet, Sam receives less pay than Samantha. Sam is not happy because he perceives the system as being unfair to him. Which of the following theories can you use to explain Sam's perceptions?

The allocation of compensation sends a message to employees about what is important.

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis, Employee Involvement, and Flexible Work Schedules

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Appraising and Improving Performance

Pay For Performance: Incentive Rewards

Employee Benefits

Safety and Health

Employee Rights and Discipline

The Dynamics of Labour Relations

International Human Resources Management

Creating High Performance Work Systems

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Exam 9: Managing Compensation

Labour market conditions have little impact on wage rates paid to employees.

Wage compression can be avoided by granting wage increases solely on the basis of the CPI.

Which of the following can pay secrecy NOT do?

Some organizations can choose a strategy to pay higher than market wages and salaries. Which of the following will this NOT help them do?

Strategic compensation is the compensation of employees in ways that enhance motivation and growth while concurrently aligning their efforts with the goals of the organization.

Which of the following types of equity do wage and salary surveys permit an organization to maintain?

Among the goals of strategic compensation policy are rewarding past performance, attracting new employees, and reducing turnover.

Job evaluation is a non-systematic, qualitative process of determining the relative worth of jobs in order to establish a comparison with the prevailing market and regional value of a job within a job family.

Pay levels are limited in part by profitability of the firm and productivity of employees.

Employees who earn pay for hourly work are referred to as salaried employees.

Which of the following is a quantitative job evaluation procedure that determines a job's relative value on the basis of quantitative assessments of specific job elements?

York University has developed a merit-based pay system for its professors, in addition to other forms of pay. Which of the following terms refers to this type of merit-based pay?

The point system of job evaluation permits jobs to be evaluated quantitatively based on compensable factors.

Which of the following is NOT a disadvantage of the job ranking system?

Pay secrecy is still prevalent in organizations despite its negative effect on motivation and employee trust.

Which of the following is a major challenge in designing a sound pay-for-performance system?

Briefly discuss the provisions of the Employment Standards Acts pertaining to employee compensation.

Both Sam and Samantha work as cashiers at Modelo Hot Dogs. They do work of equal value to the firm; yet, Sam receives less pay than Samantha. Sam is not happy because he perceives the system as being unfair to him. Which of the following theories can you use to explain Sam's perceptions?

The allocation of compensation sends a message to employees about what is important.

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis, Employee Involvement, and Flexible Work Schedules

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Appraising and Improving Performance

Pay For Performance: Incentive Rewards

Employee Benefits

Safety and Health

Employee Rights and Discipline

The Dynamics of Labour Relations

International Human Resources Management

Creating High Performance Work Systems

Filters