Question 1

Explain the basic compensation objectives of pay systems.

Accepted Answer

The basic objectives include efficiency, fairness, ethics, and compliance with laws and regulations.i.Efficiency can be stated more specifically: (1) improving performance, increasing quality, delighting customers and stockholders, and (2) controlling labor costs.ii.The fairness objective calls for fair treatment for all employees by recognizing both employee contributions (e.g., higher pay for greater performance, experience, or training) and employee needs (e.g., a fair wage as well as fair procedures).iii.Ethics means the organization cares about how its results are achieved.Because it is so important, it is inevitable that managing pay sometimes creates ethical dilemmas.iv.Compliance as a pay objective means conforming to federal and state compensation laws and regulations.If laws change, pay systems may need to change, too, to ensure continued compliance.As companies go global, they must comply with the laws of all the countries in which they operate.

Question 2

Hourly compensation costs for production workers in manufacturing are higher in _____ than in the United States.

Accepted Answer

A) Germany 
B) Czech Republic 
C) Mexico 
D) China 
A) Germany 
B) Czech Republic 
C) Mexico 
D) China A

Question 3

_____ refers to comparisons among jobs or skills inside a single organization.

Accepted Answer

A) External competitiveness 
B) Internal alignment 
C) Compliance 
D) Merit increase 
A) External competitiveness 
B) Internal alignment 
C) Compliance 
D) Merit increase B

Question 4

GreenRain Corp.faces an increase in employee turnover rate.The CEO calls for a board meeting with the senior executives to discuss the issue.Who among the following suggests increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?

Accepted Answer

A) Tom suggests increasing the decision-making authorities given to the employees to make work more challenging. 
B) Deena suggests providing more work/life balance for the employees by increasing the number of paid leaves. 
C) Syed suggests increasing the medical insurance coverage offered to the employees. 
D) Liam suggests increasing merit bonuses. 
A) Tom suggests increasing the decision-making authorities given to the employees to make work more challenging. 
B) Deena suggests providing more work/life balance for the employees by increasing the number of paid leaves. 
C) Syed suggests increasing the medical insurance coverage offered to the employees. 
D) Liam suggests increasing merit bonuses.

Question 5

Which form of pay does not permanently increase labor costs?

Accepted Answer

A) Incentive 
B) Merit pay 
C) Cost-of-living adjustments 
D) Base pay 
A) Incentive 
B) Merit pay 
C) Cost-of-living adjustments 
D) Base pay

Question 6

Incentives and merit guidelines are techniques of the _____ policy of the pay model.

Accepted Answer

A) internal alignment 
B) external competitiveness 
C) employee contributions 
D) management of the pay system 
A) internal alignment 
B) external competitiveness 
C) employee contributions 
D) management of the pay system

Question 7

Since HR research contains information useful to managers, most managers read research in HR management, and compensation journals.

Accepted Answer

A) True 
 B)False

Question 8

Recent surveys show that, on average, an outstanding performer receives a _____ merit increase, an average performer a _____ merit increase, and a poor performer a 0.4% merit increase.

Accepted Answer

A) 10.5%; 7% 
B) 8.4%; 5.2% 
C) 6.7%; 4.2% 
D)  4.4%; 2.8% 
A) 10.5%; 7% 
B) 8.4%; 5.2% 
C) 6.7%; 4.2% 
D)  4.4%; 2.8%

Question 9

If the objective is to increase customer satisfaction, then incentive programs and merit pay might be used to pay for performance.

Accepted Answer

A) True 
 B)False

Question 10

Causality is one of the most difficult questions to answer and continues to be an important and sometimes perplexing problem for researchers.

Accepted Answer

A) True 
 B)False

Question 11

Variable pay may also be called _____.

Accepted Answer

A) relational returns 
B) pensions 
C) stock options 
D) incentives 
A) relational returns 
B) pensions 
C) stock options 
D) incentives

Question 12

Which of the following is NOT a question to ask for determining if research has value?

Accepted Answer

A) Is the research useful? 
B) Can alternative explanations be ruled out? 
C) Was the research conducted by PhD researchers? 
D) Is correlation separated from causation? 
A) Is the research useful? 
B) Can alternative explanations be ruled out? 
C) Was the research conducted by PhD researchers? 
D) Is correlation separated from causation?

Question 13

Base wage is the overtime pay given to employees who are exempt from regulations of the Fair Labor Standards Act.

Accepted Answer

A) True 
 B)False

Question 14

A study of IBM showed that its long-standing policy of no layoffs was the major cause of its strong profits.

Accepted Answer

A) True 
 B)False

Question 15

Objectives guide the design of pay systems and provide the standards for evaluating their effectiveness.

Accepted Answer

A) True 
 B)False

Question 16

You are an HR manager, and your boss has told you to find the best way to raise job performance.After some research, you find that _____ have the greatest instrumental value.

Accepted Answer

A) job responsibilities 
B) training and skill development programs 
C) goal setting and job enrichment 
D) monetary incentives 
A) job responsibilities 
B) training and skill development programs 
C) goal setting and job enrichment 
D) monetary incentives

Question 17

In the context of pay relationships, which of the following is illegal in the United States?

Accepted Answer

A) Paying on the basis of the nature of jobs 
B) Paying on the basis of pay comparisons with competitors 
C) Paying on the basis of one's age 
D) Paying on the basis of one's skill level 
A) Paying on the basis of the nature of jobs 
B) Paying on the basis of pay comparisons with competitors 
C) Paying on the basis of one's age 
D) Paying on the basis of one's skill level

Question 18

Managers seek internal alignment within their organization by:

Accepted Answer

A) matching the competitors' pay rates. 
B) following FLSA guidelines. 
C) using fair merit increases. 
D) paying on the basis of similarities among jobs. 
A) matching the competitors' pay rates. 
B) following FLSA guidelines. 
C) using fair merit increases. 
D) paying on the basis of similarities among jobs.

Question 19

Management and HR research has conclusively shown that goal setting and job enrichment produce the largest and most reliable increases in job performance.

Accepted Answer

A) True 
 B)False

Question 20

Describe the perspective of stockholders on compensation.

Accepted Answer

Stockholders are interested in how emplo

Explain the basic compensation objectives of pay systems.

Hourly compensation costs for production workers in manufacturing are higher in _____ than in the United States.

_____ refers to comparisons among jobs or skills inside a single organization.

GreenRain Corp.faces an increase in employee turnover rate.The CEO calls for a board meeting with the senior executives to discuss the issue.Who among the following suggests increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?

Which form of pay does not permanently increase labor costs?

Incentives and merit guidelines are techniques of the _____ policy of the pay model.

Since HR research contains information useful to managers, most managers read research in HR management, and compensation journals.

Recent surveys show that, on average, an outstanding performer receives a _ merit increase, an average performer a _ merit increase, and a poor performer a 0.4% merit increase.

If the objective is to increase customer satisfaction, then incentive programs and merit pay might be used to pay for performance.

Causality is one of the most difficult questions to answer and continues to be an important and sometimes perplexing problem for researchers.

Variable pay may also be called _____.

Which of the following is NOT a question to ask for determining if research has value?

Base wage is the overtime pay given to employees who are exempt from regulations of the Fair Labor Standards Act.

A study of IBM showed that its long-standing policy of no layoffs was the major cause of its strong profits.

Objectives guide the design of pay systems and provide the standards for evaluating their effectiveness.

You are an HR manager, and your boss has told you to find the best way to raise job performance.After some research, you find that _____ have the greatest instrumental value.

In the context of pay relationships, which of the following is illegal in the United States?

Managers seek internal alignment within their organization by:

Management and HR research has conclusively shown that goal setting and job enrichment produce the largest and most reliable increases in job performance.

Describe the perspective of stockholders on compensation.

Strategy: The Totality of Decisions

Defining Internal Alignment

R: Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

Exam 1: Pay-For-Performance: The Evidence

Explain the basic compensation objectives of pay systems.

Hourly compensation costs for production workers in manufacturing are higher in _____ than in the United States.

_____ refers to comparisons among jobs or skills inside a single organization.

GreenRain Corp.faces an increase in employee turnover rate.The CEO calls for a board meeting with the senior executives to discuss the issue.Who among the following suggests increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?

Which form of pay does not permanently increase labor costs?

Incentives and merit guidelines are techniques of the _____ policy of the pay model.

Since HR research contains information useful to managers, most managers read research in HR management, and compensation journals.

Recent surveys show that, on average, an outstanding performer receives a _____ merit increase, an average performer a _____ merit increase, and a poor performer a 0.4% merit increase.

If the objective is to increase customer satisfaction, then incentive programs and merit pay might be used to pay for performance.

Causality is one of the most difficult questions to answer and continues to be an important and sometimes perplexing problem for researchers.

Variable pay may also be called _____.

Which of the following is NOT a question to ask for determining if research has value?

Base wage is the overtime pay given to employees who are exempt from regulations of the Fair Labor Standards Act.

A study of IBM showed that its long-standing policy of no layoffs was the major cause of its strong profits.

Objectives guide the design of pay systems and provide the standards for evaluating their effectiveness.

You are an HR manager, and your boss has told you to find the best way to raise job performance.After some research, you find that _____ have the greatest instrumental value.

In the context of pay relationships, which of the following is illegal in the United States?

Managers seek internal alignment within their organization by:

Management and HR research has conclusively shown that goal setting and job enrichment produce the largest and most reliable increases in job performance.

Describe the perspective of stockholders on compensation.

Strategy: The Totality of Decisions

Defining Internal Alignment

R: Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

Recent surveys show that, on average, an outstanding performer receives a _ merit increase, an average performer a _ merit increase, and a poor performer a 0.4% merit increase.