Question 1

The perceived fairness of an employee's pay relative to what other employees are being paid for the same labor describes the concept of internal equity.

Accepted Answer

A) True 
 B)False

Question 2

A(n)________ is a pay plan in which different compensation systems are established for employees or groups at different organizational levels.

Accepted Answer

The answer of A(n)________ is a pay plan in which...

Question 3

Azzi recently went through company training on using a new computer system, and she has recently received her Associates of Arts degree in Accounting. Her company is raising her salary in response to her new abilities and is giving her new, related responsibilities. The company probably uses a job-based pay system.

Accepted Answer

A) True 
 B)False

Question 4

________ is the perceived fairness of individual pay decisions.

Accepted Answer

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

Question 5

When a work force is highly unionized:

Accepted Answer

A) compensation decisions are based only on performance. 
B) managers have more control in compensation decisions. 
C) workers are likely to disagree with internal and external equity. 
D) pay is typically subject to negotiation and bargaining requirements. 
A) compensation decisions are based only on performance. 
B) managers have more control in compensation decisions. 
C) workers are likely to disagree with internal and external equity. 
D) pay is typically subject to negotiation and bargaining requirements.

Question 6

A job hierarchy in a compensation plan is primarily built on:

Accepted Answer

A) job specifications, descriptions, and ratings. 
B) job classifications by pay grade. 
C) corporate pay policies. 
D) market surveys. 
A) job specifications, descriptions, and ratings. 
B) job classifications by pay grade. 
C) corporate pay policies. 
D) market surveys.

Question 7

Most professional, administrative, executive, and outside sales jobs fall into the category of ________.

Accepted Answer

The answer of Most professional, administrative, executive, and outside sales...

Question 8

Elitist compensation systems are most likely:

Accepted Answer

A) beneficial to firms trying to expand market share. 
B) implemented by newer, smaller businesses. 
C) established in very competitive environments. 
D) used by older firms with mature products. 
A) beneficial to firms trying to expand market share. 
B) implemented by newer, smaller businesses. 
C) established in very competitive environments. 
D) used by older firms with mature products.

Question 9

A job hierarchy lists jobs in order of their importance to an organization.

Accepted Answer

A) True 
 B)False

Question 10

The relative emphasis placed on performance versus membership depends largely on the organization's culture and beliefs of top management.

Accepted Answer

A) True 
 B)False

Question 11

Variable compensation systems work best:

Accepted Answer

A) with smaller, less well-established firms with younger employees. 
B) in difficult economies with high rates of inflation. 
C) when the job market is flooded with qualified workers. 
D) in larger, established companies that need significant productivity improvement. 
A) with smaller, less well-established firms with younger employees. 
B) in difficult economies with high rates of inflation. 
C) when the job market is flooded with qualified workers. 
D) in larger, established companies that need significant productivity improvement.

Question 12

Perquisites, also called "perks" are best described as:

Accepted Answer

A) special benefits reserved for upper-level managers. 
B) stock options available to long-term employees. 
C) indirect compensation, such as vacation. 
D) fixed pay rewarded regularly. 
A) special benefits reserved for upper-level managers. 
B) stock options available to long-term employees. 
C) indirect compensation, such as vacation. 
D) fixed pay rewarded regularly.

Question 13

The MAA gives the highest possible points to which compensable factor?

Accepted Answer

A) Problem solving 
B) Accountability 
C) Experience 
D) Skill 
A) Problem solving 
B) Accountability 
C) Experience 
D) Skill

Question 14

As an employee's base pay increases, it is likely that the percentage of variable pay that he or she receives will decrease.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is the most common compensation practice among small firms?

Accepted Answer

A) Paying below-market rates to technical workers 
B) Offering stock options instead of base salaries 
C) Paying bonuses based on company performance 
D) Offering sign-on bonuses to attractive recruits 
A) Paying below-market rates to technical workers 
B) Offering stock options instead of base salaries 
C) Paying bonuses based on company performance 
D) Offering sign-on bonuses to attractive recruits

Question 16

The design of job-based compensation pay plans begins with:

Accepted Answer

A) writing job descriptions. 
B) creating a job hierarchy. 
C) conducting a job analysis. 
D) writing job specifications. 
A) writing job descriptions. 
B) creating a job hierarchy. 
C) conducting a job analysis. 
D) writing job specifications.

Question 17

Which of the following affects most pay structures in the United States?

Accepted Answer

A) Executive Order 11246 
B) Fair Labor Standards Act 
C) Civil Rights Act of 1991 
D) Equal Pay Act 
A) Executive Order 11246 
B) Fair Labor Standards Act 
C) Civil Rights Act of 1991 
D) Equal Pay Act

Question 18

Additional Case 10.1
Brighton Manufacturing is reviewing its compensation system. The CEO wants employees to be paid wages and benefits comparable to Brighton's competitors. He wants a system that allows for maximum flexibility in reassigning workers to different jobs without requiring compensation adjustments each time. The Finance VP suggests that the company link compensation costs more closely to productivity and profit. When profits are down, compensation costs should be reduced as well. The Finance VP also believes that employees should be paid for what they produce, not for their time, and the compensation program should apply to all employees equally. The VP of HR suggests that the key to the company's success is their employees and advocates an individual-based compensation plan. People should be paid for their skills or knowledge, not just because they are fulfilling certain jobs. The VP of HR also feels that it would be simpler to implement a compensation system by level rather than by job.
-Refer to Additional Case 10.1. The Finance VP would most likely favor a(n):

Accepted Answer

A) variable pay system. 
B) membership-based system. 
C) individual-centered system. 
D) egalitarian compensation system. 
A) variable pay system. 
B) membership-based system. 
C) individual-centered system. 
D) egalitarian compensation system.

Question 19

A compensation system that assumes that the tasks being performed and the contribution of those tasks to the company are the best criteria for setting the wage is a(n)________-centered compensation system.

Accepted Answer

A) performance 
B) individual 
C) equity 
D) job 
A) performance 
B) individual 
C) equity 
D) job

Question 20

A skill-based approach to compensation is built on which of the following characteristics?

Accepted Answer

A) Workers are paid for performing well-defined jobs using vertical skills. 
B) The greater the variety of job-related skills a worker possesses, the more he/she should be paid. 
C) Each job must be very clearly described with highly defined tasks and skill requirements. 
D) The primary objective is to allocate pay so that the most important jobs command the highest pay. 
A) Workers are paid for performing well-defined jobs using vertical skills. 
B) The greater the variety of job-related skills a worker possesses, the more he/she should be paid. 
C) Each job must be very clearly described with highly defined tasks and skill requirements. 
D) The primary objective is to allocate pay so that the most important jobs command the highest pay.

The perceived fairness of an employee's pay relative to what other employees are being paid for the same labor describes the concept of internal equity.

A(n)________ is a pay plan in which different compensation systems are established for employees or groups at different organizational levels.

________ is the perceived fairness of individual pay decisions.

When a work force is highly unionized:

A job hierarchy in a compensation plan is primarily built on:

Most professional, administrative, executive, and outside sales jobs fall into the category of ________.

Elitist compensation systems are most likely:

A job hierarchy lists jobs in order of their importance to an organization.

The relative emphasis placed on performance versus membership depends largely on the organization's culture and beliefs of top management.

Variable compensation systems work best:

Perquisites, also called "perks" are best described as:

The MAA gives the highest possible points to which compensable factor?

As an employee's base pay increases, it is likely that the percentage of variable pay that he or she receives will decrease.

Which of the following is the most common compensation practice among small firms?

The design of job-based compensation pay plans begins with:

Which of the following affects most pay structures in the United States?

A compensation system that assumes that the tasks being performed and the contribution of those tasks to the company are the best criteria for setting the wage is a(n)________-centered compensation system.

A skill-based approach to compensation is built on which of the following characteristics?

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

The perceived fairness of an employee's pay relative to what other employees are being paid for the same labor describes the concept of internal equity.

A(n)________ is a pay plan in which different compensation systems are established for employees or groups at different organizational levels.

________ is the perceived fairness of individual pay decisions.

When a work force is highly unionized:

A job hierarchy in a compensation plan is primarily built on:

Most professional, administrative, executive, and outside sales jobs fall into the category of ________.

Elitist compensation systems are most likely:

A job hierarchy lists jobs in order of their importance to an organization.

The relative emphasis placed on performance versus membership depends largely on the organization's culture and beliefs of top management.

Variable compensation systems work best:

Perquisites, also called "perks" are best described as:

The MAA gives the highest possible points to which compensable factor?

As an employee's base pay increases, it is likely that the percentage of variable pay that he or she receives will decrease.

Which of the following is the most common compensation practice among small firms?

The design of job-based compensation pay plans begins with:

Which of the following affects most pay structures in the United States?

A compensation system that assumes that the tasks being performed and the contribution of those tasks to the company are the best criteria for setting the wage is a(n)________-centered compensation system.

A skill-based approach to compensation is built on which of the following characteristics?

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