Question 1

The practice of using fewer pay grades with much broader ranges than in traditional compensation systems is called broadbanding.

Accepted Answer

A) True 
 B)False

Question 2

An employer using the first-quartile strategy chooses to "lag the market."

Accepted Answer

A) True 
 B)False

Question 3

Match-the-market strategy is also called third-quartile strategy.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true of red-circled employees?

Accepted Answer

A)  They are paid above the range set for a job. 
B)  They are paid below the range set for a job. 
C)  They are paid on par with the range set for the job. 
D)  Their pay is not determined by the ranges set for a job. 
A)  They are paid above the range set for a job. 
B)  They are paid below the range set for a job. 
C)  They are paid on par with the range set for the job. 
D)  Their pay is not determined by the ranges set for a job.

Question 5

Which of the following statements is true of the home-country-based approach?

Accepted Answer

A)  Compensation is adjusted to maintain the expatriate's standard of living in the country where the expatriate is sent from the headquarters. 
B)  Compensation is adjusted to maintain the expatriate's standard of living in the country where the MNE is headquartered. 
C)  Compensation is adjusted to maintain the expatriate's standard of living in the country that has the lowest cost of living index. 
D)  Compensation is adjusted to maintain the expatriate's standard of living in the third country. 
A)  Compensation is adjusted to maintain the expatriate's standard of living in the country where the expatriate is sent from the headquarters. 
B)  Compensation is adjusted to maintain the expatriate's standard of living in the country where the MNE is headquartered. 
C)  Compensation is adjusted to maintain the expatriate's standard of living in the country that has the lowest cost of living index. 
D)  Compensation is adjusted to maintain the expatriate's standard of living in the third country.

Question 6

The most common indirect compensation is employee benefits.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is typical of the performance philosophy of compensation?

Accepted Answer

A)  Pay and raises based on length of service 
B)  No raises for poor-performing employees 
C)  Across-the-board raises 
D)  Pay scales increased annually 
A)  Pay and raises based on length of service 
B)  No raises for poor-performing employees 
C)  Across-the-board raises 
D)  Pay scales increased annually

Question 8

Average comparative ratio = _____.

Accepted Answer

A)  the average of the comparative ratio for each employee divided by the number of employees 
B)  the total of the comparative ratio of all employees divided by the number of employees 
C)  the number of employees divided by the average of the comparative ratio for each employee 
D)  the number of employees divided by the total of the comparative ratio for each employee 
A)  the average of the comparative ratio for each employee divided by the number of employees 
B)  the total of the comparative ratio of all employees divided by the number of employees 
C)  the number of employees divided by the average of the comparative ratio for each employee 
D)  the number of employees divided by the total of the comparative ratio for each employee

Question 9

The expectancy theory says that an employee's motivation is based on several linked concepts.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is typically the first step in the compensation administration process?

Accepted Answer

A)  Job analysis 
B)  Job evaluation 
C)  Compensation philosophy 
D)  External focus 
A)  Job analysis 
B)  Job evaluation 
C)  Compensation philosophy 
D)  External focus

Question 11

Intangible rewards can be measured and it is possible to calculate the value of each reward.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true of green-circled employees?

Accepted Answer

A)  They are paid above the range set for a job. 
B)  They are paid below the range set for a job. 
C)  They are paid on par with the range set for the job. 
D)  Their pay is not determined by the ranges set for a job. 
A)  They are paid above the range set for a job. 
B)  They are paid below the range set for a job. 
C)  They are paid on par with the range set for the job. 
D)  Their pay is not determined by the ranges set for a job.

Question 13

Describe performance-based pay increases.

Accepted Answer

Targeting high performers focuses on pro

Question 14

The _____ restricts the right of employers to terminate employees whose pay is subject to a single garnishment order.

Accepted Answer

A)  Davis-Bacon Act 
B)  Walsh-Healy Public Contracts Act 
C)  McNamara-O'Hara Service Contract Act 
D)  Consumer Credit Protection Act 
A)  Davis-Bacon Act 
B)  Walsh-Healy Public Contracts Act 
C)  McNamara-O'Hara Service Contract Act 
D)  Consumer Credit Protection Act

Question 15

Discuss individual pay.

Accepted Answer

Once pay grades and pay ranges have been

Question 16

A pay survey is a report based on research of compensation rates for workers performing similar jobs in other organizations.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true of an employer who uses the first-quartile strategy of compensation?

Accepted Answer

A)  The employer pays the employees above market levels. 
B)  The employers determine the pay independent of the market scenario. 
C)  The employer pays the employees below market levels. 
D)  The employer pays the employees on par with the market levels. 
A)  The employer pays the employees above market levels. 
B)  The employers determine the pay independent of the market scenario. 
C)  The employer pays the employees below market levels. 
D)  The employer pays the employees on par with the market levels.

Question 18

Define competency-based pay.

Accepted Answer

Competency-based pay rewards individuals

Question 19

Which of the following is typically the immediate next step after job analysis in the compensation administration process?

Accepted Answer

A)  Compensation philosophy 
B)  Job evaluation 
C)  Internal focus 
D)  External focus 
A)  Compensation philosophy 
B)  Job evaluation 
C)  Internal focus 
D)  External focus

Question 20

Define base pay.

Accepted Answer

The basic compensation that an

The practice of using fewer pay grades with much broader ranges than in traditional compensation systems is called broadbanding.

An employer using the first-quartile strategy chooses to "lag the market."

Match-the-market strategy is also called third-quartile strategy.

Which of the following is true of red-circled employees?

Which of the following statements is true of the home-country-based approach?

The most common indirect compensation is employee benefits.

Which of the following is typical of the performance philosophy of compensation?

Average comparative ratio = _____.

The expectancy theory says that an employee's motivation is based on several linked concepts.

Which of the following is typically the first step in the compensation administration process?

Intangible rewards can be measured and it is possible to calculate the value of each reward.

Which of the following is true of green-circled employees?

Describe performance-based pay increases.

The _____ restricts the right of employers to terminate employees whose pay is subject to a single garnishment order.

Discuss individual pay.

A pay survey is a report based on research of compensation rates for workers performing similar jobs in other organizations.

Which of the following is true of an employer who uses the first-quartile strategy of compensation?

Define competency-based pay.

Which of the following is typically the immediate next step after job analysis in the compensation administration process?

Define base pay.

Human Resource Management in Organizations

Human Resources Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individual/Organization Relations and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Variable Pay and Executive Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Union/Management Relations

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Exam 11: Total Rewards and Compensation

The practice of using fewer pay grades with much broader ranges than in traditional compensation systems is called broadbanding.

An employer using the first-quartile strategy chooses to "lag the market."

Match-the-market strategy is also called third-quartile strategy.

Which of the following is true of red-circled employees?

Which of the following statements is true of the home-country-based approach?

The most common indirect compensation is employee benefits.

Which of the following is typical of the performance philosophy of compensation?

Average comparative ratio = _____.

The expectancy theory says that an employee's motivation is based on several linked concepts.

Which of the following is typically the first step in the compensation administration process?

Intangible rewards can be measured and it is possible to calculate the value of each reward.

Which of the following is true of green-circled employees?

Describe performance-based pay increases.

The _____ restricts the right of employers to terminate employees whose pay is subject to a single garnishment order.

Discuss individual pay.

A pay survey is a report based on research of compensation rates for workers performing similar jobs in other organizations.

Which of the following is true of an employer who uses the first-quartile strategy of compensation?

Define competency-based pay.

Which of the following is typically the immediate next step after job analysis in the compensation administration process?

Define base pay.

Human Resource Management in Organizations

Human Resources Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individual/Organization Relations and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Variable Pay and Executive Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Union/Management Relations

Filters