Question 1

Which of the following is a potential disadvantage of pay for knowledge?

Accepted Answer

A)  Employees are usually paid more than under job-based pay. 
B)  Administering intelligence tests is difficult. 
C)  The market does not support pay for knowledge. 
D)  Pay for knowledge fits only classical management styles. 
A)  Employees are usually paid more than under job-based pay. 
B)  Administering intelligence tests is difficult. 
C)  The market does not support pay for knowledge. 
D)  Pay for knowledge fits only classical management styles.

Question 2

One major advantage of job evaluation programs is that they require the use of comprehensive job descriptions.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following are methods used to establish base pay?

Accepted Answer

A)  Market pricing, job evaluation, and pay for knowledge 
B)  Job analysis, competency testing and demographics 
C)  tenure, job preview, and performance appraisal 
D)  knowledge, education, and skill assessment 
A)  Market pricing, job evaluation, and pay for knowledge 
B)  Job analysis, competency testing and demographics 
C)  tenure, job preview, and performance appraisal 
D)  knowledge, education, and skill assessment

Question 4

Which of the following best explains why medical and dental coverage can be purchased more cheaply by the employer than the employee?

Accepted Answer

A)  Indexation 
B)  Economies of scale 
C)  Utility 
D)  Dividends 
A)  Indexation 
B)  Economies of scale 
C)  Utility 
D)  Dividends

Question 5

Which of the base pay methods is most likely to undervalue the work performed by women?

Accepted Answer

A)  Job evaluation 
B)  Competency-based 
C)  Market pricing 
D)  Skill-based 
A)  Job evaluation 
B)  Competency-based 
C)  Market pricing 
D)  Skill-based

Question 6

Child care,elder care,and flexible work schedules are examples of which type of benefits?

Accepted Answer

A)  Mandatory 
B)  Long-term income protection 
C)  Family-friendly 
D)  Shared-cost 
A)  Mandatory 
B)  Long-term income protection 
C)  Family-friendly 
D)  Shared-cost

Question 7

Which pay type usually makes up a small proportion of total compensation,and may not be used at all by some employers?

Accepted Answer

A)  Mandatory benefits 
B)  Wages 
C)  Merit pay 
D)  Salaries 
A)  Mandatory benefits 
B)  Wages 
C)  Merit pay 
D)  Salaries

Question 8

Which of the following would be an example of mandatory benefits?

Accepted Answer

A)  Employment insurance 
B)  Company pension plan 
C)  Psychological counseling 
D)  Supplemental medical coverage 
A)  Employment insurance 
B)  Company pension plan 
C)  Psychological counseling 
D)  Supplemental medical coverage

Question 9

Which of the following variable pay alternatives would be included in an organizational performance pay plan?

Accepted Answer

A)  Merit pay 
B)  Gain-sharing 
C)  Profit-sharing 
D)  Targeted incentives 
A)  Merit pay 
B)  Gain-sharing 
C)  Profit-sharing 
D)  Targeted incentives

Question 10

Which of the following is not a key issue in competency-based pay systems?

Accepted Answer

A)  Identifying competencies that demonstrably affect performance 
B)  Devising methods to measure achievement of each competency 
C)  Providing learning opportunities 
D)  Developing the merit pay grid 
A)  Identifying competencies that demonstrably affect performance 
B)  Devising methods to measure achievement of each competency 
C)  Providing learning opportunities 
D)  Developing the merit pay grid

Question 11

Which of the following steps is not considered part of formulating the compensation strategy?

Accepted Answer

A)  Determining actual dollar values for jobs and individual employees 
B)  Determining the total level of compensation to provide 
C)  Determining how each of the mix choices should be structured 
D)  Determining the mix of compensation components 
A)  Determining actual dollar values for jobs and individual employees 
B)  Determining the total level of compensation to provide 
C)  Determining how each of the mix choices should be structured 
D)  Determining the mix of compensation components

Question 12

Pay for knowledge systems are beneficial for organizations in which the production or service process peak and ebb at different times.

Accepted Answer

A) True 
 B)False

Question 13

As the owner of a large hotel,you expect your employees to be flexible,learn a variety of skills,and shift around from one job to another as needed. Which of the following plans will best fit your needs?

Accepted Answer

A)  Competency-based pay 
B)  Skill-based pay 
C)  Team-based pay 
D)  Piece rates 
A)  Competency-based pay 
B)  Skill-based pay 
C)  Team-based pay 
D)  Piece rates

Question 14

As an employer you believe it is always a good idea to pay people for their contributions to organizational results.Which of the following pay plans should you consider implementing?

Accepted Answer

A)  Indirect pay 
B)  Base pay 
C)  Pay for knowledge 
D)  Performance pay 
A)  Indirect pay 
B)  Base pay 
C)  Pay for knowledge 
D)  Performance pay

Question 15

Which of the following compensation options typically makes up the largest proportion of an employee's pay package?

Accepted Answer

A)  Benefits 
B)  Performance pay 
C)  Indirect pay 
D)  Base pay 
A)  Benefits 
B)  Performance pay 
C)  Indirect pay 
D)  Base pay

Question 16

Which of the following base pay methods best supports behaviours needed by high involvement firms?

Accepted Answer

A)  Market pricing 
B)  Pay for knowledge 
C)  Job evaluation 
D)  Broad-banding 
A)  Market pricing 
B)  Pay for knowledge 
C)  Job evaluation 
D)  Broad-banding

Question 17

Which of the following conditions make it impractical to use output-related pay?

Accepted Answer

A)  Output is easy to measure. 
B)  Output is very stable. 
C)  Output cannot be controlled by the individual employee. 
D)  Output is easy to price in terms of its value to the employer. 
A)  Output is easy to measure. 
B)  Output is very stable. 
C)  Output cannot be controlled by the individual employee. 
D)  Output is easy to price in terms of its value to the employer.

Question 18

Which of the following is not an example of indirect pay?

Accepted Answer

A)  Mandatory benefits 
B)  Employee services 
C)  Life and health benefits 
D)  Gain sharing plans 
A)  Mandatory benefits 
B)  Employee services 
C)  Life and health benefits 
D)  Gain sharing plans

Question 19

The two key questions that must be addressed in designing any compensation system are: a)what role should each of the three compensation components play in the compensation mix and b)what total level of compensation should be provided?

Accepted Answer

A) True 
 B)False

Question 20

A flexible benefits system with cost-sharing on individual benefits is a good fit for which type of firm?

Accepted Answer

A)  Human relations firm 
B)  High-involvement firm 
C)  Classical firm 
D)  Firm with no managerial strategy 
A)  Human relations firm 
B)  High-involvement firm 
C)  Classical firm 
D)  Firm with no managerial strategy

Which of the following is a potential disadvantage of pay for knowledge?

One major advantage of job evaluation programs is that they require the use of comprehensive job descriptions.

Which of the following are methods used to establish base pay?

Which of the following best explains why medical and dental coverage can be purchased more cheaply by the employer than the employee?

Which of the base pay methods is most likely to undervalue the work performed by women?

Child care,elder care,and flexible work schedules are examples of which type of benefits?

Which pay type usually makes up a small proportion of total compensation,and may not be used at all by some employers?

Which of the following would be an example of mandatory benefits?

Which of the following variable pay alternatives would be included in an organizational performance pay plan?

Which of the following is not a key issue in competency-based pay systems?

Which of the following steps is not considered part of formulating the compensation strategy?

Pay for knowledge systems are beneficial for organizations in which the production or service process peak and ebb at different times.

As the owner of a large hotel,you expect your employees to be flexible,learn a variety of skills,and shift around from one job to another as needed. Which of the following plans will best fit your needs?

As an employer you believe it is always a good idea to pay people for their contributions to organizational results.Which of the following pay plans should you consider implementing?

Which of the following compensation options typically makes up the largest proportion of an employee's pay package?

Which of the following base pay methods best supports behaviours needed by high involvement firms?

Which of the following conditions make it impractical to use output-related pay?

Which of the following is not an example of indirect pay?

The two key questions that must be addressed in designing any compensation system are: a)what role should each of the three compensation components play in the compensation mix and b)what total level of compensation should be provided?

A flexible benefits system with cost-sharing on individual benefits is a good fit for which type of firm?

A Road Map to Effective Communication

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters

Exam 4: Components of Compensation Strategy

Which of the following is a potential disadvantage of pay for knowledge?

One major advantage of job evaluation programs is that they require the use of comprehensive job descriptions.

Which of the following are methods used to establish base pay?

Which of the following best explains why medical and dental coverage can be purchased more cheaply by the employer than the employee?

Which of the base pay methods is most likely to undervalue the work performed by women?

Child care,elder care,and flexible work schedules are examples of which type of benefits?

Which pay type usually makes up a small proportion of total compensation,and may not be used at all by some employers?

Which of the following would be an example of mandatory benefits?

Which of the following variable pay alternatives would be included in an organizational performance pay plan?

Which of the following is not a key issue in competency-based pay systems?

Which of the following steps is not considered part of formulating the compensation strategy?

Pay for knowledge systems are beneficial for organizations in which the production or service process peak and ebb at different times.

As the owner of a large hotel,you expect your employees to be flexible,learn a variety of skills,and shift around from one job to another as needed. Which of the following plans will best fit your needs?

As an employer you believe it is always a good idea to pay people for their contributions to organizational results.Which of the following pay plans should you consider implementing?

Which of the following compensation options typically makes up the largest proportion of an employee's pay package?

Which of the following base pay methods best supports behaviours needed by high involvement firms?

Which of the following conditions make it impractical to use output-related pay?

Which of the following is not an example of indirect pay?

The two key questions that must be addressed in designing any compensation system are: a)what role should each of the three compensation components play in the compensation mix and b)what total level of compensation should be provided?

A flexible benefits system with cost-sharing on individual benefits is a good fit for which type of firm?

A Road Map to Effective Communication

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters