Question 1

An advantage of the point method of job evaluation is that one organization can utilize another organization's point method, thus saving time and money.

Accepted Answer

A) True 
 B)False

Question 2

Which job evaluation method considers the entire job rather than its individual components?

Accepted Answer

A) factor comparison method 
B) classification method 
C) point method 
D) compensable factor method 
A) factor comparison method 
B) classification method 
C) point method 
D) compensable factor method

Question 3

Compensation practices are simplified as organizations shift to using work teams because everyone on a team is paid the same amount.

Accepted Answer

A) True 
 B)False

Question 4

Addressing the concept of pay equity involves determining the value of a job based on levels of certain key factors. Which of the following lists these factors?

Accepted Answer

A) skill, knowledge, effort, and working conditions 
B) effort, knowledge, responsibility, and working conditions 
C) skill, effort, responsibility, and working conditions 
D) knowledge, skill, responsibility, and working conditions 
A) skill, knowledge, effort, and working conditions 
B) effort, knowledge, responsibility, and working conditions 
C) skill, effort, responsibility, and working conditions 
D) knowledge, skill, responsibility, and working conditions

Question 5

A company views sending employees to different countries for differing lengths of time to fulfill assignments as a continual fact of organizational life. Which approach to international compensation is the most appropriate for this company to use?

Accepted Answer

A) global market 
B) tax equalization 
C) supply and demand 
D) balance-sheet 
A) global market 
B) tax equalization 
C) supply and demand 
D) balance-sheet

Question 6

On what does much of the accuracy of the market pricing method of job evaluation depend?

Accepted Answer

A) the quality of the pay surveys used 
B) the depth and appropriateness of the computerized bank of compensable factors used 
C) the ability to eliminate "political correctness" from the system 
D) the industry in which the organization operates 
A) the quality of the pay surveys used 
B) the depth and appropriateness of the computerized bank of compensable factors used 
C) the ability to eliminate "political correctness" from the system 
D) the industry in which the organization operates

Question 7

In the point method of job evaluation, a type of factor is used to identify a job value commonly present throughout a group of jobs. Which of the following best describes it?

Accepted Answer

A) KSA 
B) functional 
C) compensable 
D) value-creating 
A) KSA 
B) functional 
C) compensable 
D) value-creating

Question 8

Brian, the director of compensation, has been asked by the board of directors to present the "employee cost factor" at the next board meeting. Which of the following calculations does Brian need to do?

Accepted Answer

A) revenue minus operating expense minus pay and benefits equal adjusted profit divided by pay and benefits 
B) total pay and benefits expenditures 
C) revenue minus operating expense minus pay and benefits equal adjusted profits divided by FTEs 
D) total compensation and benefits divided by FTEs 
A) revenue minus operating expense minus pay and benefits equal adjusted profit divided by pay and benefits 
B) total pay and benefits expenditures 
C) revenue minus operating expense minus pay and benefits equal adjusted profits divided by FTEs 
D) total compensation and benefits divided by FTEs

Question 9

Simon is a compensation specialist for Amber Waves, Inc. He is collecting data on compensation rates for workers performing similar jobs at other organizations. Which of the following is Simon conducting?

Accepted Answer

A) a pay survey 
B) a competitive evaluation 
C) a market review 
D) a wage benchmarking study 
A) a pay survey 
B) a competitive evaluation 
C) a market review 
D) a wage benchmarking study

Question 10

Marie has been offered work as an employee trainer for AgriEnterprise. Her job is to implement the company's training plans. Marie must meet the company's timeline for completing the training sessions because training is integral to this business. Marie has been promised that she will have work with the company as long as her performance is satisfactory. The company is paying Marie as an independent contractor. Which of the following statements best describes Marie's status as an independent contractor?

Accepted Answer

A) Marie is an independent contractor because the terms of her employment meet the appropriate tests. 
B) Marie is an employee, but she is a contingent employee rather than a regular employee. 
C) Marie is an independent contractor with one client. 
D) Marie is an employee because the conditions of her employment fail to meet the tests for an independent contractor. 
A) Marie is an independent contractor because the terms of her employment meet the appropriate tests. 
B) Marie is an employee, but she is a contingent employee rather than a regular employee. 
C) Marie is an independent contractor with one client. 
D) Marie is an employee because the conditions of her employment fail to meet the tests for an independent contractor.

Question 11

Which of the following is an advantage of a lump-sum increase (LSI) plan?

Accepted Answer

A) The plan involves less administrative work. 
B) Employees' awareness of what their performance merited is heightened. 
C) Unions support this concept of merit bonuses. 
D) An LSI plan increases the compounding effect of succeeding raises. 
A) The plan involves less administrative work. 
B) Employees' awareness of what their performance merited is heightened. 
C) Unions support this concept of merit bonuses. 
D) An LSI plan increases the compounding effect of succeeding raises.

Question 12

Which of the following describes the type of compensation the employer provides when it pays for medical insurance?

Accepted Answer

A) intrinsic 
B) intangible 
C) indirect 
D) direct 
A) intrinsic 
B) intangible 
C) indirect 
D) direct

Question 13

In a division of compensation responsibilities, who typically makes sure that job evaluations and wage surveys are conducted?

Accepted Answer

A) operating managers 
B) senior management 
C) outside consultants 
D) HR specialists 
A) operating managers 
B) senior management 
C) outside consultants 
D) HR specialists

Question 14

Of the following methods of job evaluation, which is the most subjective?

Accepted Answer

A) classification 
B) factor-comparison 
C) Hay system 
D) point 
A) classification 
B) factor-comparison 
C) Hay system 
D) point

Question 15

Which of these options does NOT provide an example of indirect compensation?

Accepted Answer

A) health/medical insurance 
B) stock options 
C) paid time off 
D) pension plans 
A) health/medical insurance 
B) stock options 
C) paid time off 
D) pension plans

Question 16

In a job evaluation, which of the following is being assessed?

Accepted Answer

A) the relative worth of the job to the organization 
B) the job's level in the organizational hierarchy 
C) the value of employees holding the job 
D) the educational qualifications needed for employment 
A) the relative worth of the job to the organization 
B) the job's level in the organizational hierarchy 
C) the value of employees holding the job 
D) the educational qualifications needed for employment

Question 17

In a typical division of compensation responsibilities, the HR unit is responsible for evaluating employee performance for compensation purposes.

Accepted Answer

A) True 
 B)False

Question 18

A plan for expatriates equalizes the cost differences between the international assignment and the same assignment in the home country of the individual or the corporation. Which of the following names this compensation approach?

Accepted Answer

A) balance-sheet 
B) cost equalization 
C) total rewards 
D) global market 
A) balance-sheet 
B) cost equalization 
C) total rewards 
D) global market

Question 19

Jacob, the director of compensation for Golightly Jewelry. He is redesigning the compensation system to retain top performers and to be more flexible when the economy goes up or down (the company is sensitive to changes in the economy). Of the options below, which offers the approach to compensation that would work best for Golightly Jewelry?

Accepted Answer

A) total rewards 
B) entitlement 
C) traditional compensation 
D) lag-the-market 
A) total rewards 
B) entitlement 
C) traditional compensation 
D) lag-the-market

Question 20

In which type of organization are bonuses determined paternalistically?

Accepted Answer

A) entrepreneurial 
B) entitlement-oriented 
C) performance-oriented 
D) quartile-based 
A) entrepreneurial 
B) entitlement-oriented 
C) performance-oriented 
D) quartile-based

An advantage of the point method of job evaluation is that one organization can utilize another organization's point method, thus saving time and money.

Which job evaluation method considers the entire job rather than its individual components?

Compensation practices are simplified as organizations shift to using work teams because everyone on a team is paid the same amount.

Addressing the concept of pay equity involves determining the value of a job based on levels of certain key factors. Which of the following lists these factors?

A company views sending employees to different countries for differing lengths of time to fulfill assignments as a continual fact of organizational life. Which approach to international compensation is the most appropriate for this company to use?

On what does much of the accuracy of the market pricing method of job evaluation depend?

In the point method of job evaluation, a type of factor is used to identify a job value commonly present throughout a group of jobs. Which of the following best describes it?

Brian, the director of compensation, has been asked by the board of directors to present the "employee cost factor" at the next board meeting. Which of the following calculations does Brian need to do?

Simon is a compensation specialist for Amber Waves, Inc. He is collecting data on compensation rates for workers performing similar jobs at other organizations. Which of the following is Simon conducting?

Which of the following is an advantage of a lump-sum increase (LSI) plan?

Which of the following describes the type of compensation the employer provides when it pays for medical insurance?

In a division of compensation responsibilities, who typically makes sure that job evaluations and wage surveys are conducted?

Of the following methods of job evaluation, which is the most subjective?

Which of these options does NOT provide an example of indirect compensation?

In a job evaluation, which of the following is being assessed?

In a typical division of compensation responsibilities, the HR unit is responsible for evaluating employee performance for compensation purposes.

A plan for expatriates equalizes the cost differences between the international assignment and the same assignment in the home country of the individual or the corporation. Which of the following names this compensation approach?

In which type of organization are bonuses determined paternalistically?

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

An advantage of the point method of job evaluation is that one organization can utilize another organization's point method, thus saving time and money.

Which job evaluation method considers the entire job rather than its individual components?

Compensation practices are simplified as organizations shift to using work teams because everyone on a team is paid the same amount.

Addressing the concept of pay equity involves determining the value of a job based on levels of certain key factors. Which of the following lists these factors?

A company views sending employees to different countries for differing lengths of time to fulfill assignments as a continual fact of organizational life. Which approach to international compensation is the most appropriate for this company to use?

On what does much of the accuracy of the market pricing method of job evaluation depend?

In the point method of job evaluation, a type of factor is used to identify a job value commonly present throughout a group of jobs. Which of the following best describes it?

Brian, the director of compensation, has been asked by the board of directors to present the "employee cost factor" at the next board meeting. Which of the following calculations does Brian need to do?

Simon is a compensation specialist for Amber Waves, Inc. He is collecting data on compensation rates for workers performing similar jobs at other organizations. Which of the following is Simon conducting?

Which of the following is an advantage of a lump-sum increase (LSI) plan?

Which of the following describes the type of compensation the employer provides when it pays for medical insurance?

In a division of compensation responsibilities, who typically makes sure that job evaluations and wage surveys are conducted?

Of the following methods of job evaluation, which is the most subjective?

Which of these options does NOT provide an example of indirect compensation?

In a job evaluation, which of the following is being assessed?

In a typical division of compensation responsibilities, the HR unit is responsible for evaluating employee performance for compensation purposes.

A plan for expatriates equalizes the cost differences between the international assignment and the same assignment in the home country of the individual or the corporation. Which of the following names this compensation approach?

In which type of organization are bonuses determined paternalistically?

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