Question 1

What is the most common level of market pay policy?

Accepted Answer

Match the competition

Question 2

Pete Miller is from Texas. He has been asked by his American-owned employer to manage a bank branch office in Hong Kong for three years. Miller will be paid:

Accepted Answer

A)  what a manager at the same pay grade in Hong Kong would be paid without regard to nationality 
B)  what he was paid to perform the same job in the U.S. 
C)  a standard rate that is paid to all the expatriate employees of this company 
D)  a pay level comparable to his colleagues plus compensation for the cost of international service 
E)  what a manager in the banking industry at the same pay grade in Hong Kong would be paid 
A)  what a manager at the same pay grade in Hong Kong would be paid without regard to nationality 
B)  what he was paid to perform the same job in the U.S. 
C)  a standard rate that is paid to all the expatriate employees of this company 
D)  a pay level comparable to his colleagues plus compensation for the cost of international service 
E)  what a manager in the banking industry at the same pay grade in Hong Kong would be paid D

Question 3

Which of the following statements is not true of the job classification method?

Accepted Answer

A)  It requires accurate job descriptions. 
B)  Several jobs can be collected under one pay grade. 
C)  Classification standards reflect mainly employee competencies. 
D)  Classification systems can be used in both small and large firms. 
E)  All of the above are true. 
A)  It requires accurate job descriptions. 
B)  Several jobs can be collected under one pay grade. 
C)  Classification standards reflect mainly employee competencies. 
D)  Classification systems can be used in both small and large firms. 
E)  All of the above are true. C

Question 4

The job market for accounting professors has suddenly strengthened. Newly-graduated accounting Ph.Ds are being offered over $100,000 per year. Many current accounting professors are making significantly less and university salary budgets are tight. In addition, many accounting professors are reaching retirement age. As an HR professional with an understanding of compensation, which of the following situations will probably NOT occur?

Accepted Answer

A)  current accounting professors will start looking for new jobs 
B)  retiring professors may not be replaced with as many new hires 
C)  universities that don't offer market pay for new hires will not have many qualified applicants 
D)  universities will begin offering more accounting classes on-line 
E)  all of the above are likely outcomes 
A)  current accounting professors will start looking for new jobs 
B)  retiring professors may not be replaced with as many new hires 
C)  universities that don't offer market pay for new hires will not have many qualified applicants 
D)  universities will begin offering more accounting classes on-line 
E)  all of the above are likely outcomes

Question 5

The total points allocated to each job description resulting from the point rating method indicates:

Accepted Answer

A)  the worth of this job related to the worth of every other rated job in the organization 
B)  the worth of this job related to the worth of every other rated job in the economy 
C)  the worth of this job related to the worth of every other job in the same occupation 
D)  the worth of this individual employee holding this job compared to the worth of individuals holding other jobs in the organization 
E)  none of the above 
A)  the worth of this job related to the worth of every other rated job in the organization 
B)  the worth of this job related to the worth of every other rated job in the economy 
C)  the worth of this job related to the worth of every other job in the same occupation 
D)  the worth of this individual employee holding this job compared to the worth of individuals holding other jobs in the organization 
E)  none of the above

Question 6

The _____ method of job evaluation establishes pay grade categories and then groups job descriptions within these broad categories.

Accepted Answer

A)  benchmarking 
B)  job classification 
C)  point rating 
D)  ranking 
E)  factor analysis 
A)  benchmarking 
B)  job classification 
C)  point rating 
D)  ranking 
E)  factor analysis

Question 7

A company can defend itself from claims of wage discrimination if pay differences are the result of a seniority system.

Accepted Answer

A) True 
 B)False

Question 8

Job evaluations are typically done when a new job is created, when an existing job is significantly changed, and when requested by management.

Accepted Answer

A) True 
 B)False

Question 9

The Fair Labor Standards Act:

Accepted Answer

A)  mandates a minimum wage for all workers 
B)  requires that all workers be paid overtime 
C)  prohibits minors under the age of 18 from working in hazardous occupations 
D)  contains a definition of comparable worth 
E)  does all of the above 
A)  mandates a minimum wage for all workers 
B)  requires that all workers be paid overtime 
C)  prohibits minors under the age of 18 from working in hazardous occupations 
D)  contains a definition of comparable worth 
E)  does all of the above

Question 10

Comparable worth laws

Accepted Answer

A)  have been shown to be effective in reducing the male-female wage gap. 
B)  are a way to eliminate race, ethnicity and gender as wage determinants 
C)  use a more rigorous standard of fairness than required under the Equal Pay Act 
D)  only answers a and b are true 
E)  all of the above are true 
A)  have been shown to be effective in reducing the male-female wage gap. 
B)  are a way to eliminate race, ethnicity and gender as wage determinants 
C)  use a more rigorous standard of fairness than required under the Equal Pay Act 
D)  only answers a and b are true 
E)  all of the above are true

Question 11

Benchmark jobs:

Accepted Answer

A)  are used to establish market pay policy 
B)  are jobs that are common across a number of different employers 
C)  have relatively similar job descriptions across employers 
D)  are necessary for interpreting pay survey data 
E)  are accurately described by all of the above 
A)  are used to establish market pay policy 
B)  are jobs that are common across a number of different employers 
C)  have relatively similar job descriptions across employers 
D)  are necessary for interpreting pay survey data 
E)  are accurately described by all of the above

Question 12

Among the factors affecting worker retention, __________ had the lowest percentage of workers indicating it as a factor that was "very important."

Accepted Answer

A)  benefits 
B)  financial compensation 
C)  management climate 
D)  time and flexibility 
E)  supervisor relationship 
A)  benefits 
B)  financial compensation 
C)  management climate 
D)  time and flexibility 
E)  supervisor relationship

Question 13

Monetary compensation includes direct payments such as salary, wages, and bonuses, and indirect payments such as payments to cover benefits and services

Accepted Answer

A) True 
 B)False

Question 14

The point factor method may appear to be a very objective approach to valuing jobs, but like other job evaluation methods, it relies heavily on _____________.

Accepted Answer

A)  projective values 
B)  historical events 
C)  standardized scoring 
D)  subjective judgments 
E)  compensable experts 
A)  projective values 
B)  historical events 
C)  standardized scoring 
D)  subjective judgments 
E)  compensable experts

Question 15

Pay differentials

Accepted Answer

A)  occur when a compensation system is poorly designed 
B)  are questionable under the Equal Pay Act 
C)  are used on a long term basis to accommodate differences between market rates and internal job evaluation pay rates 
D)  can result from geographic location differences 
E)  none of the above are true 
A)  occur when a compensation system is poorly designed 
B)  are questionable under the Equal Pay Act 
C)  are used on a long term basis to accommodate differences between market rates and internal job evaluation pay rates 
D)  can result from geographic location differences 
E)  none of the above are true

Question 16

To conduct a compensation survey, a job evaluator must:

Accepted Answer

A)  hire a consulting firm to do the actual survey 
B)  define the relevant labor market 
C)  create a totally objective survey 
D)  ignore geographic boundaries in order to accurately benchmark all jobs 
E)  do all of the above 
A)  hire a consulting firm to do the actual survey 
B)  define the relevant labor market 
C)  create a totally objective survey 
D)  ignore geographic boundaries in order to accurately benchmark all jobs 
E)  do all of the above

Question 17

Local legislative attempts to raise minimum wage levels to a level that reflects actual cost of living in a particular area are called _____ laws.

Accepted Answer

A)  equal pay 
B)  fair and equitable 
C)  living wage 
D)  "homeless worker" 
E)  comparable worth 
A)  equal pay 
B)  fair and equitable 
C)  living wage 
D)  "homeless worker" 
E)  comparable worth

Question 18

Joe has been promoted from a pay grade three job making $3300 a month to a pay grade four job making $3300 a month. Why would Joe accept a promotion with no simultaneous increase in pay?

Accepted Answer

A)  Pay grade four jobs are easier. 
B)  He will have greater opportunity for higher pay in the future. 
C)  He was underpaid in his pay grade three job. 
D)  He will be overpaid in his pay grade four job. 
E)  None of these can be the reason. 
A)  Pay grade four jobs are easier. 
B)  He will have greater opportunity for higher pay in the future. 
C)  He was underpaid in his pay grade three job. 
D)  He will be overpaid in his pay grade four job. 
E)  None of these can be the reason.

Question 19

Factors that affect worker retention include all EXCEPT:

Accepted Answer

A)  financial compensation 
B)  benefits 
C)  management climate 
D)  coworker relationships 
E)  supervisor relationship 
A)  financial compensation 
B)  benefits 
C)  management climate 
D)  coworker relationships 
E)  supervisor relationship

Question 20

Which of the following statements about pay equity as a compensation policy is true?

Accepted Answer

A)  It is rarely used because the cost of eliminating pay inequities runs about 20 to 25% of annual payroll. 
B)  Eliminating pay inequities requires cutting the pay of some white male employees. 
C)  Unions are adamantly opposed to pay equity policies. 
D)  If a company has adhered to external market pay levels, it has automatically adjusted for pay inequities. 
E)  Employees should perceive that they are paid fairly compared to others in the same organization given the contributions that they and others make to the organization. 
A)  It is rarely used because the cost of eliminating pay inequities runs about 20 to 25% of annual payroll. 
B)  Eliminating pay inequities requires cutting the pay of some white male employees. 
C)  Unions are adamantly opposed to pay equity policies. 
D)  If a company has adhered to external market pay levels, it has automatically adjusted for pay inequities. 
E)  Employees should perceive that they are paid fairly compared to others in the same organization given the contributions that they and others make to the organization.

What is the most common level of market pay policy?

Pete Miller is from Texas. He has been asked by his American-owned employer to manage a bank branch office in Hong Kong for three years. Miller will be paid:

Which of the following statements is not true of the job classification method?

The total points allocated to each job description resulting from the point rating method indicates:

The _____ method of job evaluation establishes pay grade categories and then groups job descriptions within these broad categories.

A company can defend itself from claims of wage discrimination if pay differences are the result of a seniority system.

Job evaluations are typically done when a new job is created, when an existing job is significantly changed, and when requested by management.

The Fair Labor Standards Act:

Comparable worth laws

Benchmark jobs:

Among the factors affecting worker retention, __________ had the lowest percentage of workers indicating it as a factor that was "very important."

Monetary compensation includes direct payments such as salary, wages, and bonuses, and indirect payments such as payments to cover benefits and services

The point factor method may appear to be a very objective approach to valuing jobs, but like other job evaluation methods, it relies heavily on _____________.

Pay differentials

To conduct a compensation survey, a job evaluator must:

Local legislative attempts to raise minimum wage levels to a level that reflects actual cost of living in a particular area are called _____ laws.

Joe has been promoted from a pay grade three job making $3300 a month to a pay grade four job making $3300 a month. Why would Joe accept a promotion with no simultaneous increase in pay?

Factors that affect worker retention include all EXCEPT:

Which of the following statements about pay equity as a compensation policy is true?

Managing Human Resources

Understanding the External and Organizational Environments

Ensuring Fair Treatment and Legal Compliance

HR Planning for Alignment and Change

Using Job Analysis and Competency Modeling

Recruiting and Retaining Qualified Employees

Selecting Employees to Fit the Job and the Organization

Training and Developing a Competitive Workforce

Conducting Performance Management

Using Performance-Based Pay to Achieve Strategic Objectives

Providing Benefits and Services

Promoting Safety, Health, and Well-Being in the Workplace

Understanding Unionization and Collective Bargaining

Filters

Exam 10: Developing an Approach to Total Compensation

What is the most common level of market pay policy?

Pete Miller is from Texas. He has been asked by his American-owned employer to manage a bank branch office in Hong Kong for three years. Miller will be paid:

Which of the following statements is not true of the job classification method?

The total points allocated to each job description resulting from the point rating method indicates:

The _____ method of job evaluation establishes pay grade categories and then groups job descriptions within these broad categories.

A company can defend itself from claims of wage discrimination if pay differences are the result of a seniority system.

Job evaluations are typically done when a new job is created, when an existing job is significantly changed, and when requested by management.

The Fair Labor Standards Act:

Comparable worth laws

Benchmark jobs:

Among the factors affecting worker retention, __________ had the lowest percentage of workers indicating it as a factor that was "very important."

Monetary compensation includes direct payments such as salary, wages, and bonuses, and indirect payments such as payments to cover benefits and services

The point factor method may appear to be a very objective approach to valuing jobs, but like other job evaluation methods, it relies heavily on _____________.

Pay differentials

To conduct a compensation survey, a job evaluator must:

Local legislative attempts to raise minimum wage levels to a level that reflects actual cost of living in a particular area are called _____ laws.

Joe has been promoted from a pay grade three job making $3300 a month to a pay grade four job making $3300 a month. Why would Joe accept a promotion with no simultaneous increase in pay?

Factors that affect worker retention include all EXCEPT:

Which of the following statements about pay equity as a compensation policy is true?

Managing Human Resources

Understanding the External and Organizational Environments

Ensuring Fair Treatment and Legal Compliance

HR Planning for Alignment and Change

Using Job Analysis and Competency Modeling

Recruiting and Retaining Qualified Employees

Selecting Employees to Fit the Job and the Organization

Training and Developing a Competitive Workforce

Conducting Performance Management

Using Performance-Based Pay to Achieve Strategic Objectives

Providing Benefits and Services

Promoting Safety, Health, and Well-Being in the Workplace

Understanding Unionization and Collective Bargaining

Filters