Question 1

A third-quartile approach is a/an ______________.

Accepted Answer

A) strategy in which the company pays more than the competition 
B) strategy to pay below market compensation 
C) useful strategy when lower-skilled employees are required 
D) team-based approach to compensation 
A) strategy in which the company pays more than the competition 
B) strategy to pay below market compensation 
C) useful strategy when lower-skilled employees are required 
D) team-based approach to compensation

Question 2

At the heart of most executive compensation plans is the idea that _______________.

Accepted Answer

A) base pay is not as important as the other benefits and perks 
B) executives should be rewarded if the organization grows in profitability and value over a period of years 
C) executives should be rewarded for their current performance 
D) outstanding executives are hard to keep unless they are well compensated 
A) base pay is not as important as the other benefits and perks 
B) executives should be rewarded if the organization grows in profitability and value over a period of years 
C) executives should be rewarded for their current performance 
D) outstanding executives are hard to keep unless they are well compensated

Question 3

Why do organizations use pay grades?

Accepted Answer

A) to group individual jobs having approximately the same job worth 
B) to insure against pay differentials based on sex or race 
C) to compare similar jobs across a variety of organizations 
D) to develop a pay structure that is based on market rates 
A) to group individual jobs having approximately the same job worth 
B) to insure against pay differentials based on sex or race 
C) to compare similar jobs across a variety of organizations 
D) to develop a pay structure that is based on market rates

Question 4

Which of the following is a true statement about the overtime provisions of the Fair Labor Standards Act?

Accepted Answer

A) A manufacturing firm with a 4-day/10-hour schedule still must pay overtime for the two hours above 8 each day. 
B) Overtime pay is set at one and one-half times the regular pay rate for all hours in excess of 40 per week. 
C) All employees are entitled to overtime payments for working over 40 hours a week. 
D) The work week is defined as 168 hours beginning at 12:01 Monday morning. 
A) A manufacturing firm with a 4-day/10-hour schedule still must pay overtime for the two hours above 8 each day. 
B) Overtime pay is set at one and one-half times the regular pay rate for all hours in excess of 40 per week. 
C) All employees are entitled to overtime payments for working over 40 hours a week. 
D) The work week is defined as 168 hours beginning at 12:01 Monday morning.

Question 5

A person's_______________ is that employee's current pay level divided by the midpoint of the pay range.

Accepted Answer

A) compa-ratio 
B) average pay rate 
C) mid-grade mark 
D) market price 
A) compa-ratio 
B) average pay rate 
C) mid-grade mark 
D) market price

Question 6

Because so many organizational funds are spent on compensation-related activities, it is crucial for top management and HR executives to match compensation practices with _______________.

Accepted Answer

A) affirmative action guidelines 
B) their quarterly budget 
C) what the organization is trying to accomplish 
D) organizational, unit and individual performance 
A) affirmative action guidelines 
B) their quarterly budget 
C) what the organization is trying to accomplish 
D) organizational, unit and individual performance

Question 7

What is the usual composition of the compensation committee?

Accepted Answer

A) a subgroup of the board of directors including officers of the firm 
B) a subgroup of the board of directors who are not officers of the firm 
C) executives from other companies 
D) compensation consultants without executive management involvement 
A) a subgroup of the board of directors including officers of the firm 
B) a subgroup of the board of directors who are not officers of the firm 
C) executives from other companies 
D) compensation consultants without executive management involvement

Question 8

A stock option gives an individual the right to buy stock in a company, usually at an advantageous price.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following would not be identified as a primary reason reducing the number of pay grades and expanding pay ranges through broadbanding?

Accepted Answer

A) to encourage competency development 
B) to emphasize career development 
C) to create a more structured organization 
D) to better fit with the flattening of organizational levels 
A) to encourage competency development 
B) to emphasize career development 
C) to create a more structured organization 
D) to better fit with the flattening of organizational levels

Question 10

A lump-sum increase is a one-time payment for an equity adjustment.

Accepted Answer

A) True 
 B)False

Question 11

Travel time is compensable only if it occurs during normal work hours on a normally scheduled day of work.

Accepted Answer

A) True 
 B)False

Question 12

A salaried non-exempt employee is covered by the overtime provisions under the Fair Labor Standards Act.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following measures is typically not used to evaluate executive performance?

Accepted Answer

A)  customer satisfaction 
B)  return on equity 
C)  headcount 
D)  net income before taxes 
A)  customer satisfaction 
B)  return on equity 
C)  headcount 
D)  net income before taxes

Question 14

If the federal minimum wage is set at $5.75 per hour, but the state minimum wage is set at $6.00, then employees should be paid $6.00/hour.

Accepted Answer

A) True 
 B)False

Question 15

________________are payments directly calculated on the amount of time worked.

Accepted Answer

A) Salaries 
B) Wages 
C) Incentives 
D) Bonuses 
A) Salaries 
B) Wages 
C) Incentives 
D) Bonuses

Question 16

Employers should use caution in gathering external pay data from the Internet because_______________.

Accepted Answer

A) the information may be inaccurate and may not fit the organization's jobs 
B) computer hackers can track an employer's Internet usage 
C) HR staff may lack computer literacy 
D) salary data bases are offered by subscription only 
A) the information may be inaccurate and may not fit the organization's jobs 
B) computer hackers can track an employer's Internet usage 
C) HR staff may lack computer literacy 
D) salary data bases are offered by subscription only

Question 17

Compensatory time-off can be given in the private sector if _______________.

Accepted Answer

A) it is given at the rate of one and one-half times the hours worked over a 40-hour week 
B) it is taken within 30 days of incurring the overtime 
C) the hourly wage is at least one and one-half times the minimum wage 
D) it is given at a rate equivalent to the number of overtime hours worked within the same pay period 
A) it is given at the rate of one and one-half times the hours worked over a 40-hour week 
B) it is taken within 30 days of incurring the overtime 
C) the hourly wage is at least one and one-half times the minimum wage 
D) it is given at a rate equivalent to the number of overtime hours worked within the same pay period

Question 18

A company that structures its compensation system so that half of its competitors pay their employees more than it does and half of its competitors pay less, is using a _______________ the market strategy.

Accepted Answer

A) lag 
B) meet 
C) lead 
D) follow 
A) lag 
B) meet 
C) lead 
D) follow

Question 19

Paul is an Accounting Manager for a large pharmaceutical company in New York. The salary range for the Accounting Manager position is $60,000 - $80,000. If Paul is paid $75,000 per year, then Paul's compa-ratio is _______________.

Accepted Answer

A) 125 
B) 107 
C) 100 
D) 93 
A) 125 
B) 107 
C) 100 
D) 93

Question 20

A job family is a grouping of all jobs falling under one business unit in an organization.

Accepted Answer

A) True 
 B)False

A third-quartile approach is a/an ______________.

At the heart of most executive compensation plans is the idea that _______________.

Why do organizations use pay grades?

Which of the following is a true statement about the overtime provisions of the Fair Labor Standards Act?

A person's_______________ is that employee's current pay level divided by the midpoint of the pay range.

Because so many organizational funds are spent on compensation-related activities, it is crucial for top management and HR executives to match compensation practices with _______________.

What is the usual composition of the compensation committee?

A stock option gives an individual the right to buy stock in a company, usually at an advantageous price.

Which of the following would not be identified as a primary reason reducing the number of pay grades and expanding pay ranges through broadbanding?

A lump-sum increase is a one-time payment for an equity adjustment.

Travel time is compensable only if it occurs during normal work hours on a normally scheduled day of work.

A salaried non-exempt employee is covered by the overtime provisions under the Fair Labor Standards Act.

Which of the following measures is typically not used to evaluate executive performance?

If the federal minimum wage is set at $5.75 per hour, but the state minimum wage is set at $6.00, then employees should be paid $6.00/hour.

________________are payments directly calculated on the amount of time worked.

Employers should use caution in gathering external pay data from the Internet because_______________.

Compensatory time-off can be given in the private sector if _______________.

A company that structures its compensation system so that half of its competitors pay their employees more than it does and half of its competitors pay less, is using a _______________ the market strategy.

Paul is an Accounting Manager for a large pharmaceutical company in New York. The salary range for the Accounting Manager position is $60,000 - $80,000. If Paul is paid $75,000 per year, then Paul's compa-ratio is _______________.

A job family is a grouping of all jobs falling under one business unit in an organization.

Human Resource Managements Role and Strategic Nature

Equal Employment Opportunity

Individualshr Planningjob Analysis

Staffing: Recruiting and Selection

Training and Talent Management

Performance Management and Appraisal

Variable Pay and Benefits

Risk Management and Employee Relations

Labor Relations

Filters

Exam 7: Total Rewards and Compensation

A third-quartile approach is a/an ______________.

At the heart of most executive compensation plans is the idea that _______________.

Why do organizations use pay grades?

Which of the following is a true statement about the overtime provisions of the Fair Labor Standards Act?

A person's_______________ is that employee's current pay level divided by the midpoint of the pay range.

Because so many organizational funds are spent on compensation-related activities, it is crucial for top management and HR executives to match compensation practices with _______________.

What is the usual composition of the compensation committee?

A stock option gives an individual the right to buy stock in a company, usually at an advantageous price.

Which of the following would not be identified as a primary reason reducing the number of pay grades and expanding pay ranges through broadbanding?

A lump-sum increase is a one-time payment for an equity adjustment.

Travel time is compensable only if it occurs during normal work hours on a normally scheduled day of work.

A salaried non-exempt employee is covered by the overtime provisions under the Fair Labor Standards Act.

Which of the following measures is typically not used to evaluate executive performance?

If the federal minimum wage is set at $5.75 per hour, but the state minimum wage is set at $6.00, then employees should be paid $6.00/hour.

________________are payments directly calculated on the amount of time worked.

Employers should use caution in gathering external pay data from the Internet because_______________.

Compensatory time-off can be given in the private sector if _______________.

A company that structures its compensation system so that half of its competitors pay their employees more than it does and half of its competitors pay less, is using a _______________ the market strategy.

Paul is an Accounting Manager for a large pharmaceutical company in New York. The salary range for the Accounting Manager position is $60,000 - $80,000. If Paul is paid $75,000 per year, then Paul's compa-ratio is _______________.

A job family is a grouping of all jobs falling under one business unit in an organization.

Human Resource Managements Role and Strategic Nature

Equal Employment Opportunity

Individualshr Planningjob Analysis

Staffing: Recruiting and Selection

Training and Talent Management

Performance Management and Appraisal

Variable Pay and Benefits

Risk Management and Employee Relations

Labor Relations

Filters