Question 1

Which of the following would be an example of an intrinsic reward given by a manager to a subordinate?

Accepted Answer

A) additional medical insurance coverage 
B) a membership in a country club 
C) "You really pulled off a difficult project." 
D) a grant of stock options 
A) additional medical insurance coverage 
B) a membership in a country club 
C) "You really pulled off a difficult project." 
D) a grant of stock options

Question 2

Which of the following is an advantage associated with reducing the number of pay grades and broadening pay ranges?

Accepted Answer

A) reduces the organization's overall compensation expense 
B) increases employee opportunities for upward mobility 
C) enhances the distinctions between various jobs 
D) shows consistency with the flattening of organizational levels 
A) reduces the organization's overall compensation expense 
B) increases employee opportunities for upward mobility 
C) enhances the distinctions between various jobs 
D) shows consistency with the flattening of organizational levels

Question 3

Which of the following options represents an advantage of Internet-based pay surveys?

Accepted Answer

A) applicability to individual firms 
B) level of accuracy 
C) time savings 
D) completeness 
A) applicability to individual firms 
B) level of accuracy 
C) time savings 
D) completeness

Question 4

Some rewards, such as benefits, are given to employees just for being members of the organization.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is characteristic of an organization with a performance-oriented philosophy?

Accepted Answer

A) Seniority plays little role in whether an employee receives a raise. 
B) Marginal performers tend to be satisfied with their compensation. 
C) Bonuses are based on what other companies in the industries are paying. 
D) All employees can at least count on an annual cost-of-living adjustment to their salaries. 
A) Seniority plays little role in whether an employee receives a raise. 
B) Marginal performers tend to be satisfied with their compensation. 
C) Bonuses are based on what other companies in the industries are paying. 
D) All employees can at least count on an annual cost-of-living adjustment to their salaries.

Question 6

Which kind of legislation lacks a focus on equal pay?

Accepted Answer

A) human rights 
B) employment standards 
C) employment equity 
D) pay equity 
A) human rights 
B) employment standards 
C) employment equity 
D) pay equity

Question 7

When determining the minimum pay increase that will satisfy employee expectations of a raise, there is a concept employers should consider. Which of the following names the concept?

Accepted Answer

A) pay adjustment percentage 
B) noticeable change 
C) just noticeable difference 
D) merit increase difference 
A) pay adjustment percentage 
B) noticeable change 
C) just noticeable difference 
D) merit increase difference

Question 8

Tax equalization plans require expatriate employees to pay tax only in the foreign country in which they are working.

Accepted Answer

A) True 
 B)False

Question 9

At Ludlow Engineering, traditionally the employees receive a lavish Christmas luncheon catered by one of the best restaurants in town complete with a choir singing Christmas tunes. This year, the party was not scheduled, and each employee received a ham. Many employees were shocked and unhappy. Which of the following is the compensation philosophy that Ludlow Engineering is clearly moving away from?

Accepted Answer

A) performance 
B) entitlement 
C) third quartile 
D) merit-based 
A) performance 
B) entitlement 
C) third quartile 
D) merit-based

Question 10

On which of the following factors are the compensation levels of third-country nationals often based?

Accepted Answer

A) global wages 
B) home country of the individual 
C) regional market conditions 
D) local wages 
A) global wages 
B) home country of the individual 
C) regional market conditions 
D) local wages

Question 11

What is it called when jobs are grouped into pay grades based on similar market survey amounts?

Accepted Answer

A) benchmarking 
B) market banding 
C) broadbanding 
D) market lining 
A) benchmarking 
B) market banding 
C) broadbanding 
D) market lining

Question 12

Which of the following does NOT represent a valid compensation objective for an organization?

Accepted Answer

A) performance enhancement for the organization 
B) lowest total compensation cost in the industry 
C) internal, external, and individual equity for employees 
D) legal compliance with relevant laws and regulations 
A) performance enhancement for the organization 
B) lowest total compensation cost in the industry 
C) internal, external, and individual equity for employees 
D) legal compliance with relevant laws and regulations

Question 13

Explain the concept of pay equity and its main purpose.

Accepted Answer

Pay equity is the right to equal pay for

Question 14

Ambrose, the vice president of compensation for a large software company, has attended several conferences on compensation design. He has decided that the total rewards approach would work well given his company's strategy and philosophy. Which of these actions will Ambrose NOT recommend as part of his efforts to transform the company's compensation system?

Accepted Answer

A) rationalizing the multiple existing plans under one organization-wide pay plan 
B) providing flexible and portable benefits to employees 
C) implementing knowledge-/skill-based broadbands 
D) offering variable pay in addition to base pay 
A) rationalizing the multiple existing plans under one organization-wide pay plan 
B) providing flexible and portable benefits to employees 
C) implementing knowledge-/skill-based broadbands 
D) offering variable pay in addition to base pay

Question 15

Typically, clerical and professional jobs are classified in the same job family because they are both white-collar occupations.

Accepted Answer

A) True 
 B)False

Question 16

Where jobs are the same or basically the same, but are performed by people of opposite genders, they may be directly compared. Which of the following names that process?

Accepted Answer

A) equal pay for work of equal value 
B) compensation equity 
C) pay equity 
D) equal pay for equal work 
A) equal pay for work of equal value 
B) compensation equity 
C) pay equity 
D) equal pay for equal work

Question 17

Which of the following is NOT characteristic of the open pay system?

Accepted Answer

A) Each employee knows about company compensation policies. 
B) Each employee can see his/her pay level published on the company intranet. 
C) Each employee is given a general description of the compensation system. 
D) Each employee knows where his/her pay falls within the pay grade. 
A) Each employee knows about company compensation policies. 
B) Each employee can see his/her pay level published on the company intranet. 
C) Each employee is given a general description of the compensation system. 
D) Each employee knows where his/her pay falls within the pay grade.

Question 18

Job evaluation provides a formal, systematic basis for determining the relative worth of jobs within an organization.

Accepted Answer

A) True 
 B)False

Question 19

External benchmarking is a job evaluation method that uses market pay data to identify the value of jobs based on what other employers pay for similar jobs.

Accepted Answer

A) True 
 B)False

Question 20

There is an element that shows the relationship between job value as determined by job evaluation points and job value as determined by pay survey rates. Which of the followings terms is the best match?

Accepted Answer

A) market line 
B) isobar 
C) compa-ratio 
D) quartile 
A) market line 
B) isobar 
C) compa-ratio 
D) quartile

Which of the following would be an example of an intrinsic reward given by a manager to a subordinate?

Which of the following is an advantage associated with reducing the number of pay grades and broadening pay ranges?

Which of the following options represents an advantage of Internet-based pay surveys?

Some rewards, such as benefits, are given to employees just for being members of the organization.

Which of the following statements is characteristic of an organization with a performance-oriented philosophy?

Which kind of legislation lacks a focus on equal pay?

When determining the minimum pay increase that will satisfy employee expectations of a raise, there is a concept employers should consider. Which of the following names the concept?

Tax equalization plans require expatriate employees to pay tax only in the foreign country in which they are working.

On which of the following factors are the compensation levels of third-country nationals often based?

What is it called when jobs are grouped into pay grades based on similar market survey amounts?

Which of the following does NOT represent a valid compensation objective for an organization?

Explain the concept of pay equity and its main purpose.

Typically, clerical and professional jobs are classified in the same job family because they are both white-collar occupations.

Where jobs are the same or basically the same, but are performed by people of opposite genders, they may be directly compared. Which of the following names that process?

Which of the following is NOT characteristic of the open pay system?

Job evaluation provides a formal, systematic basis for determining the relative worth of jobs within an organization.

External benchmarking is a job evaluation method that uses market pay data to identify the value of jobs based on what other employers pay for similar jobs.

There is an element that shows the relationship between job value as determined by job evaluation points and job value as determined by pay survey rates. Which of the followings terms is the best match?

Changing Nature of Human Resources Management

Strategic HR Management and Planning

Legal Environment of Equal Employment and Diversity

Redefining Jobs and Job Analysis

Recruiting in Labour Markets

Selection of Human Resources

Training Human Resources

Talent Management and Development

Performance Management and Appraisal

Variable Pay and Executive Compensation

Managing Employee Benefits

Health, Safety, and Security and Risk Management

Employee Rights and Discipline

Unionmanagement Relations

Filters

Exam 10: Compensation Strategies and Practices

Which of the following would be an example of an intrinsic reward given by a manager to a subordinate?

Which of the following is an advantage associated with reducing the number of pay grades and broadening pay ranges?

Which of the following options represents an advantage of Internet-based pay surveys?

Some rewards, such as benefits, are given to employees just for being members of the organization.

Which of the following statements is characteristic of an organization with a performance-oriented philosophy?

Which kind of legislation lacks a focus on equal pay?

When determining the minimum pay increase that will satisfy employee expectations of a raise, there is a concept employers should consider. Which of the following names the concept?

Tax equalization plans require expatriate employees to pay tax only in the foreign country in which they are working.

On which of the following factors are the compensation levels of third-country nationals often based?

What is it called when jobs are grouped into pay grades based on similar market survey amounts?

Which of the following does NOT represent a valid compensation objective for an organization?

Explain the concept of pay equity and its main purpose.

Typically, clerical and professional jobs are classified in the same job family because they are both white-collar occupations.

Where jobs are the same or basically the same, but are performed by people of opposite genders, they may be directly compared. Which of the following names that process?

Which of the following is NOT characteristic of the open pay system?

Job evaluation provides a formal, systematic basis for determining the relative worth of jobs within an organization.

External benchmarking is a job evaluation method that uses market pay data to identify the value of jobs based on what other employers pay for similar jobs.

There is an element that shows the relationship between job value as determined by job evaluation points and job value as determined by pay survey rates. Which of the followings terms is the best match?

Changing Nature of Human Resources Management

Strategic HR Management and Planning

Legal Environment of Equal Employment and Diversity

Redefining Jobs and Job Analysis

Recruiting in Labour Markets

Selection of Human Resources

Training Human Resources

Talent Management and Development

Performance Management and Appraisal

Variable Pay and Executive Compensation

Managing Employee Benefits

Health, Safety, and Security and Risk Management

Employee Rights and Discipline

Unionmanagement Relations

Filters