Question 1

The business strategy a company uses can impact all of the following in regard to its compensation system EXCEPT:

Accepted Answer

A)  the wages it pays. 
B)  the pay mix it uses. 
C)  the technology used to collect wage data. 
D)  the internal value of its jobs. 
E)  both C and D. 
A)  the wages it pays. 
B)  the pay mix it uses. 
C)  the technology used to collect wage data. 
D)  the internal value of its jobs. 
E)  both C and D.

Question 2

To aid in determining what is compensable work time:

Accepted Answer

A)  managers need to verify the accuracy of time records submitted. 
B)  clear polices should be in place explaining what is considered compensable time. 
C)  consistently enforce a compensable time policy and discipline as appropriate. 
D)  A and B are correct. 
E)  All of the above 
A)  managers need to verify the accuracy of time records submitted. 
B)  clear polices should be in place explaining what is considered compensable time. 
C)  consistently enforce a compensable time policy and discipline as appropriate. 
D)  A and B are correct. 
E)  All of the above

Question 3

In a company culture where creativity is valued, such as a marketing or PR firm, compensation systems should be set up to reward new and innovative marketing ideas, such as bonuses for each new account an employee wins based on their creative ad designs.

Accepted Answer

A) True 
 B)False

Question 4

What is the difference between a pay range and a pay grade? Define the three different components of a pay range? What does overlap of pay ranges mean?

Accepted Answer

One pay range will contain many pay grad

Question 5

When an employee moves from an electrician's apprentice to master electrician and they receive a pay increase, this compensation system is known as ________ pay.

Accepted Answer

skill- or

Question 6

Which of the following statements describes what is meant by compensation mix?

Accepted Answer

A)  The number of perks, such as free parking, offered to an employee. 
B)  The amount of base pay versus variable pay offered to an employee. 
C)  Providing employees with a market leading benefits package. 
D)  The number of organizations included in a salary survey in order to get valid data. 
E)  The method of increasing an employee's base pay through merit increases. 
A)  The number of perks, such as free parking, offered to an employee. 
B)  The amount of base pay versus variable pay offered to an employee. 
C)  Providing employees with a market leading benefits package. 
D)  The number of organizations included in a salary survey in order to get valid data. 
E)  The method of increasing an employee's base pay through merit increases.

Question 7

All of the following statements are accurate in regard to using broadbanding EXCEPT:

Accepted Answer

A)  when using bands jobs that require similar education levels, years of experience and have similar levels of responsibility can be put in the same band. 
B)  using broadbanding increases the number of pay grades overall. 
C)  the spread of the bands can be well over 100%. 
D)  higher wages sometimes result thereby increasing salary expenses for an organization. 
E)  training needs to occur to teach managers how to determine start rates within the bands to eliminate subjectivity. 
A)  when using bands jobs that require similar education levels, years of experience and have similar levels of responsibility can be put in the same band. 
B)  using broadbanding increases the number of pay grades overall. 
C)  the spread of the bands can be well over 100%. 
D)  higher wages sometimes result thereby increasing salary expenses for an organization. 
E)  training needs to occur to teach managers how to determine start rates within the bands to eliminate subjectivity.

Question 8

When evaluating an individual's pay,:

Accepted Answer

A)  those with red-circled pay rates should be moved into a lower pay grade. 
B)  performance based pay systems are the least popular and organizations rely on across the board increases. 
C)  green-circled pay rates should be moved to the midpoint of the range. 
D)  if their pay rate is red-circled you may want to consider reviewing the job evaluation to be sure it was completed properly. 
E)  freezing the pay rate of those who are green-circled and allowing them to catch up with market is the best option in order to save money. 
A)  those with red-circled pay rates should be moved into a lower pay grade. 
B)  performance based pay systems are the least popular and organizations rely on across the board increases. 
C)  green-circled pay rates should be moved to the midpoint of the range. 
D)  if their pay rate is red-circled you may want to consider reviewing the job evaluation to be sure it was completed properly. 
E)  freezing the pay rate of those who are green-circled and allowing them to catch up with market is the best option in order to save money.

Question 9

The midpoint of a pay range represents the wage that an employee who is fully trained, qualified and functioning at an acceptable level would receive.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is most accurate regarding wage curves?

Accepted Answer

A)  It is used to plot current organization salaries against salaries from five years ago to determine the amount of increases that have occurred. 
B)  It will compare the difference in wages between benchmark jobs. 
C)  Both a market wage curve and an organizational wage curve can exist on the same graph. 
D)  The market wages are shown on one axis and the organization's wages are shown on the other axis of the graph in order to compare them accurately. 
E)  A wage curve is most often in the shape of a bell curve. 
A)  It is used to plot current organization salaries against salaries from five years ago to determine the amount of increases that have occurred. 
B)  It will compare the difference in wages between benchmark jobs. 
C)  Both a market wage curve and an organizational wage curve can exist on the same graph. 
D)  The market wages are shown on one axis and the organization's wages are shown on the other axis of the graph in order to compare them accurately. 
E)  A wage curve is most often in the shape of a bell curve.

Question 11

When trying to convey the total rewards your company provides to its regional salespeople you would include all of the following in your explanation EXCEPT:

Accepted Answer

A)  base salary. 
B)  Social Security. 
C)  company car. 
D)  health insurance . 
E)  pension plan. 
A)  base salary. 
B)  Social Security. 
C)  company car. 
D)  health insurance . 
E)  pension plan.

Question 12

All of the following are methods of job evaluation EXCEPT:

Accepted Answer

A)  factor comparison. 
B)  job ranking. 
C)  point factor. 
D)  job pricing. 
E)  job classification. 
A)  factor comparison. 
B)  job ranking. 
C)  point factor. 
D)  job pricing. 
E)  job classification.

Question 13

Public organization's must create closed pay systems in order to protect confidentiality and abide by legal requirements.

Accepted Answer

A) True 
 B)False

Question 14

Under child labor laws, minors who are 16 years old and older can work how many hours each day?

Accepted Answer

A)  3 hours a day on a school day 
B)  8 hours a day on a non-school day 
C)  10 hours a day between June 1 and Labor Day 
D)  5 hours a day on a non-school day 
E)  There is no work hour restriction. 
A)  3 hours a day on a school day 
B)  8 hours a day on a non-school day 
C)  10 hours a day between June 1 and Labor Day 
D)  5 hours a day on a non-school day 
E)  There is no work hour restriction.

Question 15

Andrew has mastered the shipping label machine so that it prints the labels at a faster output, thereby getting the boxes to the warehouse sooner and on the trucks in a more efficient way. His expertise with this piece of equipment and innovativeness in improving the labeling process earned him a pay increase. Andrew's organization follows:

Accepted Answer

A)  skill based pay. 
B)  competency based pay. 
C)  knowledge based pay. 
D)  direct market pricing. 
E)  both A and C. 
A)  skill based pay. 
B)  competency based pay. 
C)  knowledge based pay. 
D)  direct market pricing. 
E)  both A and C.

Question 16

When the labor market is loose employee pay preferences are a major concern for employers trying to recruit employees.

Accepted Answer

A) True 
 B)False

Question 17

When using market data to determine pay rates, which of the following describes the steps you would most likely take?

Accepted Answer

A)  Complete job pricing, determine wage curve, conduct salary a survey, plot market results for benchmark jobs. 
B)  Determine wage curve, complete job pricing, conduct a salary survey, plot market results for benchmark jobs. 
C)  Plot market results for benchmark jobs, complete job pricing, determine wage curve, conduct a salary survey. 
D)  Complete job pricing, conduct a salary survey, plot market results for benchmark jobs, determine wage curve. 
E)  Conduct a salary survey, complete job pricing, plot market results for benchmark jobs, determine wage curve. 
A)  Complete job pricing, determine wage curve, conduct salary a survey, plot market results for benchmark jobs. 
B)  Determine wage curve, complete job pricing, conduct a salary survey, plot market results for benchmark jobs. 
C)  Plot market results for benchmark jobs, complete job pricing, determine wage curve, conduct a salary survey. 
D)  Complete job pricing, conduct a salary survey, plot market results for benchmark jobs, determine wage curve. 
E)  Conduct a salary survey, complete job pricing, plot market results for benchmark jobs, determine wage curve.

Question 18

Which of the following statements about the spread, or width or narrowness, of pay ranges is most accurate?

Accepted Answer

A)  Pay ranges for entry level positions in an organization tend to be wider. 
B)  All pay ranges in an organization should have the same width. 
C)  Management level positions tend to have a more narrow range. 
D)  Pay ranges for higher level positions in an organization tend to be wider. 
E)  Professional level positions have a narrower range than clerical level positions. 
A)  Pay ranges for entry level positions in an organization tend to be wider. 
B)  All pay ranges in an organization should have the same width. 
C)  Management level positions tend to have a more narrow range. 
D)  Pay ranges for higher level positions in an organization tend to be wider. 
E)  Professional level positions have a narrower range than clerical level positions.

Question 19

As the HR Manager you have been asked to do a review of compensation rates in your organization as compared to the external market. What steps will you follow to determine if wages need to be adjusted to be more externally competitive?

Accepted Answer

Purchasing survey data may be one consid

Question 20

Explain the difference between internal alignment and external competitiveness. Why do organizations need both when designing their compensation system?

Accepted Answer

Internal alignment occurs when each job

The business strategy a company uses can impact all of the following in regard to its compensation system EXCEPT:

To aid in determining what is compensable work time:

In a company culture where creativity is valued, such as a marketing or PR firm, compensation systems should be set up to reward new and innovative marketing ideas, such as bonuses for each new account an employee wins based on their creative ad designs.

What is the difference between a pay range and a pay grade? Define the three different components of a pay range? What does overlap of pay ranges mean?

When an employee moves from an electrician's apprentice to master electrician and they receive a pay increase, this compensation system is known as ________ pay.

Which of the following statements describes what is meant by compensation mix?

All of the following statements are accurate in regard to using broadbanding EXCEPT:

When evaluating an individual's pay,:

The midpoint of a pay range represents the wage that an employee who is fully trained, qualified and functioning at an acceptable level would receive.

Which of the following statements is most accurate regarding wage curves?

When trying to convey the total rewards your company provides to its regional salespeople you would include all of the following in your explanation EXCEPT:

All of the following are methods of job evaluation EXCEPT:

Public organization's must create closed pay systems in order to protect confidentiality and abide by legal requirements.

Under child labor laws, minors who are 16 years old and older can work how many hours each day?

When the labor market is loose employee pay preferences are a major concern for employers trying to recruit employees.

When using market data to determine pay rates, which of the following describes the steps you would most likely take?

Which of the following statements about the spread, or width or narrowness, of pay ranges is most accurate?

As the HR Manager you have been asked to do a review of compensation rates in your organization as compared to the external market. What steps will you follow to determine if wages need to be adjusted to be more externally competitive?

Explain the difference between internal alignment and external competitiveness. Why do organizations need both when designing their compensation system?

Managing Employees for Competitive Advantage

Organizational Demands and Environmental Influences

Regulatory Issues

Job Design and Job Analysis

Workforce Planning

Recruitment

Selection

Training and Development

Performance Management

Incentives and Rewards

Employee Benefits and Safety Programs

Labor Unions and Employee Management

Creating High Performing Hr Systems

Filters

Exam 10: Compensating Employees

The business strategy a company uses can impact all of the following in regard to its compensation system EXCEPT:

To aid in determining what is compensable work time:

In a company culture where creativity is valued, such as a marketing or PR firm, compensation systems should be set up to reward new and innovative marketing ideas, such as bonuses for each new account an employee wins based on their creative ad designs.

What is the difference between a pay range and a pay grade? Define the three different components of a pay range? What does overlap of pay ranges mean?

When an employee moves from an electrician's apprentice to master electrician and they receive a pay increase, this compensation system is known as ________ pay.

Which of the following statements describes what is meant by compensation mix?

All of the following statements are accurate in regard to using broadbanding EXCEPT:

When evaluating an individual's pay,:

The midpoint of a pay range represents the wage that an employee who is fully trained, qualified and functioning at an acceptable level would receive.

Which of the following statements is most accurate regarding wage curves?

When trying to convey the total rewards your company provides to its regional salespeople you would include all of the following in your explanation EXCEPT:

All of the following are methods of job evaluation EXCEPT:

Public organization's must create closed pay systems in order to protect confidentiality and abide by legal requirements.

Under child labor laws, minors who are 16 years old and older can work how many hours each day?

When the labor market is loose employee pay preferences are a major concern for employers trying to recruit employees.

When using market data to determine pay rates, which of the following describes the steps you would most likely take?

Which of the following statements about the spread, or width or narrowness, of pay ranges is most accurate?

As the HR Manager you have been asked to do a review of compensation rates in your organization as compared to the external market. What steps will you follow to determine if wages need to be adjusted to be more externally competitive?

Explain the difference between internal alignment and external competitiveness. Why do organizations need both when designing their compensation system?

Managing Employees for Competitive Advantage

Organizational Demands and Environmental Influences

Regulatory Issues

Job Design and Job Analysis

Workforce Planning

Recruitment

Selection

Training and Development

Performance Management

Incentives and Rewards

Employee Benefits and Safety Programs

Labor Unions and Employee Management

Creating High Performing Hr Systems

Filters