Question 1

Once job specifications and descriptions are created, the next step in developing a compensation system is:

Accepted Answer

A) conducting a job analysis. 
B) creating a job hierarchy. 
C) rating the worth of jobs. 
D) assigning individual pay. 
A) conducting a job analysis. 
B) creating a job hierarchy. 
C) rating the worth of jobs. 
D) assigning individual pay.

Question 2

________ are work-related criteria that an organization considers most important in assessing the relative value of different jobs.

Accepted Answer

The answer of ________ are work-related criteria that an organization...

Question 3

Advocates of skill-based pay argue that it:

Accepted Answer

A) diminishes the need for changing technology. 
B) improves employee specialization. 
C) reduces absenteeism. 
D) enhances recruitment. 
A) diminishes the need for changing technology. 
B) improves employee specialization. 
C) reduces absenteeism. 
D) enhances recruitment.

Question 4

Skill-based pay plans pose some risks to the organization, such as:

Accepted Answer

A) increasing employees' frustration when they hit the top of the pay structure. 
B) being more subjective and arbitrary than job-based pay plans. 
C) leading to bias against women and minorities. 
D) not considering the nature of the business. 
A) increasing employees' frustration when they hit the top of the pay structure. 
B) being more subjective and arbitrary than job-based pay plans. 
C) leading to bias against women and minorities. 
D) not considering the nature of the business.

Question 5

The benefits portion of an employee's pay averages 42% of the total compensation package.

Accepted Answer

A) True 
 B)False

Question 6

Job-based compensation plans place strong consideration on the nature of the business.

Accepted Answer

A) True 
 B)False

Question 7

Both the MAA and the Hay Guide Chart Profile Method share:

Accepted Answer

A) the same compensable factors. 
B) the use of a scale of numbers and degrees. 
C) an emphasis on experience over other factors. 
D) the same job hierarchy. 
A) the same compensable factors. 
B) the use of a scale of numbers and degrees. 
C) an emphasis on experience over other factors. 
D) the same job hierarchy.

Question 8

The code of tax laws that affects how much of their earnings employees can keep and how benefits are treated for tax purposes, is called the ________.

Accepted Answer

Internal R

Question 9

On average, ________ of a U.S. employee's pay is variable.

Accepted Answer

A) 5% 
B) 10% 
C) 15% 
D) 20% 
A) 5% 
B) 10% 
C) 15% 
D) 20%

Question 10

In order to tie job evaluation data and external wage/salary data together, a company needs to:

Accepted Answer

A) establish a job hierarchy. 
B) have an open compensation system. 
C) identify benchmark jobs. 
D) use a skill-based compensation system. 
A) establish a job hierarchy. 
B) have an open compensation system. 
C) identify benchmark jobs. 
D) use a skill-based compensation system.

Question 11

________ is the perceived fairness of the pay structure within a firm.

Accepted Answer

The answer of ________ is the perceived fairness of the...

Question 12

Kora is reviewing her company's pay structure and sees, "Grade 3, Able to work independently and use WordPerfect software, $14.57 hr." Kora is most likely reviewing a:

Accepted Answer

A) job-based pay structure. 
B) skill-based pay structure. 
C) decentralized pay system. 
D) knowledge-based pay system. 
A) job-based pay structure. 
B) skill-based pay structure. 
C) decentralized pay system. 
D) knowledge-based pay system.

Question 13

An emphasis on monetary rewards will generally reward a company with:

Accepted Answer

A) more achievement and responsibility among employees. 
B) an internal climate of cooperation among employees. 
C) long-term employee commitment. 
D) increased employee diversity. 
A) more achievement and responsibility among employees. 
B) an internal climate of cooperation among employees. 
C) long-term employee commitment. 
D) increased employee diversity.

Question 14

According to your text, as employees' base pay increases, their:

Accepted Answer

A) variable pay decreases. 
B) overall compensation stabilizes. 
C) nonmonetary compensation decreases. 
D) overall compensation is more subject to risk. 
A) variable pay decreases. 
B) overall compensation stabilizes. 
C) nonmonetary compensation decreases. 
D) overall compensation is more subject to risk.

Question 15

A company designing a compensation plan needs to make several decisions. Explain a company's pay options in terms of: fixed versus variable pay, performance versus membership, and individual versus job-based system.

Accepted Answer

Summary of suggested answer -
•Fixed ver

Question 16

________ is a pay concept or doctrine that calls for comparable pay for jobs that require comparable skills, effort, and responsibility and have comparable working conditions, even if the job content is different.

Accepted Answer

The answer of ________ is a pay concept or doctrine...

Question 17

Employees' total compensation consists of which of the following?

Accepted Answer

A) Base compensation, personnel costs, payroll 
B) Benefits, pay incentives, personnel costs 
C) Base compensation, pay incentives, indirect compensation 
D) Payroll, pay incentives, base compensation 
A) Base compensation, personnel costs, payroll 
B) Benefits, pay incentives, personnel costs 
C) Base compensation, pay incentives, indirect compensation 
D) Payroll, pay incentives, base compensation

Question 18

Indirect compensation in a pay mix typically includes:

Accepted Answer

A) hourly wages for overtime. 
B) health insurance and vacation time. 
C) special perks based on status in the company. 
D) incentives and bonuses periodically paid to an employee. 
A) hourly wages for overtime. 
B) health insurance and vacation time. 
C) special perks based on status in the company. 
D) incentives and bonuses periodically paid to an employee.

Question 19

Additional Case 10.2
O'Donnell International is updating its job-based compensation system with a primary goal of achieving internal equity. Sean is responsible for gathering and organizing information concerning the tasks and duties of specific jobs. Susie is to determine the prerequisites for the successful accomplishment of each job analyzed. Jeff will work with three line managers to determine the compensable factors for specific lower-level jobs. The HR director, the president, and two VPs will review the information on management jobs in order to determine the compensable factors in each before putting all jobs at the firm into a job hierarchy.
-Refer to Additional Case 10.2. Which of the following methods would Sean LEAST likely use?

Accepted Answer

A) Interviewing employees 
B) Using a point factor system 
C) Analyzing equipment costs 
D) Distributing questionnaires to managers 
A) Interviewing employees 
B) Using a point factor system 
C) Analyzing equipment costs 
D) Distributing questionnaires to managers

Question 20

An employee who is covered by the provisions of the FLSA is referred to as a(n)________.

Accepted Answer

The answer of An employee who is covered by the...

Once job specifications and descriptions are created, the next step in developing a compensation system is:

________ are work-related criteria that an organization considers most important in assessing the relative value of different jobs.

Advocates of skill-based pay argue that it:

Skill-based pay plans pose some risks to the organization, such as:

The benefits portion of an employee's pay averages 42% of the total compensation package.

Job-based compensation plans place strong consideration on the nature of the business.

Both the MAA and the Hay Guide Chart Profile Method share:

The code of tax laws that affects how much of their earnings employees can keep and how benefits are treated for tax purposes, is called the ________.

On average, ________ of a U.S. employee's pay is variable.

In order to tie job evaluation data and external wage/salary data together, a company needs to:

________ is the perceived fairness of the pay structure within a firm.

Kora is reviewing her company's pay structure and sees, "Grade 3, Able to work independently and use WordPerfect software, $14.57 hr." Kora is most likely reviewing a:

An emphasis on monetary rewards will generally reward a company with:

According to your text, as employees' base pay increases, their:

A company designing a compensation plan needs to make several decisions. Explain a company's pay options in terms of: fixed versus variable pay, performance versus membership, and individual versus job-based system.

________ is a pay concept or doctrine that calls for comparable pay for jobs that require comparable skills, effort, and responsibility and have comparable working conditions, even if the job content is different.

Employees' total compensation consists of which of the following?

Indirect compensation in a pay mix typically includes:

An employee who is covered by the provisions of the FLSA is referred to as a(n)________.

Meeting Present and Emerging Strategic Human Resource Challenges

Managing Work Flows and Conducting Job Analysis

Understanding Equal Opportunity and the Legal Environment

Managing Diversity

Recruiting and Selecting Employees

Managing Employee Separations, Downsizing, and Outplacement

Appraising and Managing Performance

Training the Workforce

Developing Careers

Rewarding Performance

Designing and Administering Benefits

Developing Employee Relations

Respecting Employee Rights and Managing Discipline

Working With Organized Labor

Managing Workplace Safety and Health

International HRM Challenge

Filters

Exam 10: Managing Compensation

Once job specifications and descriptions are created, the next step in developing a compensation system is:

________ are work-related criteria that an organization considers most important in assessing the relative value of different jobs.

Advocates of skill-based pay argue that it:

Skill-based pay plans pose some risks to the organization, such as:

The benefits portion of an employee's pay averages 42% of the total compensation package.

Job-based compensation plans place strong consideration on the nature of the business.

Both the MAA and the Hay Guide Chart Profile Method share:

The code of tax laws that affects how much of their earnings employees can keep and how benefits are treated for tax purposes, is called the ________.

On average, ________ of a U.S. employee's pay is variable.

In order to tie job evaluation data and external wage/salary data together, a company needs to:

________ is the perceived fairness of the pay structure within a firm.

Kora is reviewing her company's pay structure and sees, "Grade 3, Able to work independently and use WordPerfect software, $14.57 hr." Kora is most likely reviewing a:

An emphasis on monetary rewards will generally reward a company with:

According to your text, as employees' base pay increases, their:

A company designing a compensation plan needs to make several decisions. Explain a company's pay options in terms of: fixed versus variable pay, performance versus membership, and individual versus job-based system.

________ is a pay concept or doctrine that calls for comparable pay for jobs that require comparable skills, effort, and responsibility and have comparable working conditions, even if the job content is different.

Employees' total compensation consists of which of the following?

Indirect compensation in a pay mix typically includes:

An employee who is covered by the provisions of the FLSA is referred to as a(n)________.

Meeting Present and Emerging Strategic Human Resource Challenges

Managing Work Flows and Conducting Job Analysis

Understanding Equal Opportunity and the Legal Environment

Managing Diversity

Recruiting and Selecting Employees

Managing Employee Separations, Downsizing, and Outplacement

Appraising and Managing Performance

Training the Workforce

Developing Careers

Rewarding Performance

Designing and Administering Benefits

Developing Employee Relations

Respecting Employee Rights and Managing Discipline

Working With Organized Labor

Managing Workplace Safety and Health

International HRM Challenge

Filters