Deck 1: A Road Map to Effective Communication

Question 1

Which of the following best explains extrinsic rewards?

A) They provide everything employees value.
B) They focus on quality of life at work.
C) They are derived from factors in the job context.
D) They provide development and career opportunities.

Answer 1

C

Question 2

A reward strategy is the plan for the mix of rewards to be provided to organization members along with the means through which they will be provided.

Answer 2

True

Question 3

A compensation system must be viewed in the context of the total reward system because it is the total pattern of financial and non-financial rewards that motivate employee behaviour.

Answer 3

True

Question 4

The main similarity between extrinsic rewards and intrinsic rewards is that they both flow from job content.

Question 5

Which of the following statements is false?

A) Canadian firms spend 20 to 40% of their operating budgets on compensation.
B) Some compensation systems serve to promote unproductive behaviour.
C) Reward systems need to be continually evaluated.
D) Some firms spend too little on their compensation systems.

Question 6

Three of the key criteria for evaluating a compensation system are whether it promotes achievement of organizational goals,whether it is seen as equitable,and whether it has lower salary costs than competitors.

Question 7

Which of the following items is not considered part of a compensation system?

A) base pay
B) company parking pass
C) union dues
D) work/life programs

Question 8

The two key aspects of a compensation strategy are the amount of direct pay (cash)compensation to be paid and the amount of indirect compensation (non-cash services and benefits)to be provided.

Question 9

There is no single best compensation system that applies to all firms.

Question 10

Which of the following best explains intrinsic rewards?

A) Intrinsic rewards focus on increasing an employee's financial position.
B) Intrinsic rewards are provided by job content.
C) Intrinsic rewards provide security and employee services.
D) Intrinsic rewards relate to bonuses based on performance.

Question 11

The fundamental purpose of a compensation system is to help create a willingness among qualified persons to join the organization and to perform the tasks needed by the organization.

Question 12

Which statement best describes the difference between the terms "rewards" and "incentives"?

A) Rewards are given to satisfy basic human needs while incentives are used to satisfy higher-order human needs.
B) Rewards serve to recognize valued behaviour while incentives are intended to produce valued behaviour.
C) Rewards are job context related while incentives are job content related.
D) Rewards are used to influence future performance and incentives are given to recognize past work behaviour.

Question 13

According to the "Road Map to Effective Compensation," the first step is formulating your reward and compensation strategy.

Question 14

Which statement best describes the term "reward strategy"?

A) The means through which performance bonuses are paid.
B) The mix of rewards provided to organization members.
C) The means for recognizing outstanding achievement.
D) Identifies the key contextual variables for an organization.

Question 15

Which of the following statements most accurately describes extrinsic rewards?

A) They focus on factors inherent in the work itself - the job content.
B) They satisfy higher-order human needs.
C) They include monetary and nonmonetary rewards and come from the job context.
D) They involve skill variety, task identify, task significance, autonomy, and feedback.

Question 16

The main difference between a reward system and a compensation system is that a reward system rewards only good performance while a compensation system provides pay to all employees.

Question 17

An effective compensation system is important to most organizations because it can mean the difference between company success and failure.

Question 18

The compensation system typically refers to which aspect of the reward system?

A) The mix of intrinsic and extrinsic rewards
B) The economic or monetary part
C) The entire spectrum of rewards
D) Incentives

Question 19

As a small business owner committed to the total rewards approach to compensation what do you need to establish before you start to develop your compensation system?

A) a reward system
B) an incentive program
C) a compensation strategy
D) a reward strategy

Question 20

As an employer you want to implement a total rewards approach to compensation. Which of the following practices would not support this concept?

A) Offering recognition programs.
B) Providing flexible work arrangements.
C) Providing challenging and interesting jobs with the opportunity for advancement.
D) Paying fixed salaries to minimize costs.

Question 21

Which of the following is not considered a goal of a reward and compensation system?

A) Desired task behaviour is reinforced.
B) The system needs to comply with government regulations and laws.
C) Lower salary costs are achieved.
D) Qualified individuals are attracted and retained.

Question 22

You have offered to your sales associate an all expenses paid trip for two to Australia if she doubles her annual sales volume from last year.What concept are you applying?

A) Intrinsic rewards
B) Extrinsic rewards
C) Incentives
D) Job enrichment

Question 23

Compensation specialists are typically responsible for which aspect of the reward system?

A) Corporate strategy
B) Extrinsic rewards
C) Intrinsic rewards
D) Organizational development

Question 24

Which of the following statements best describes the context of compensation management within a firm?

A) All organizations need a Human Resources Department to deal with compensation issues.
B) The larger the firm the greater the need for compensation specialists.
C) In smaller organizations compensation consulting firms are responsible for compensation strategy.
D) Within a large firm all managers require extensive knowledge of compensation.

Question 25

A group of unionized employees negotiating a new contract is holding out for a better indirect pay plan.What should management offer the group in order to reach an agreement?

A) Better services and benefits
B) Better training and development opportunities
C) Pay-for-performance
D) A more competitive base pay

Question 26

Which of the following statements is most accurate regarding the reward strategy?

A) The reward system is the blueprint for creating the reward strategy.
B) Intrinsic awards alone will not motivate the needed behaviour.
C) Determining the mix of rewards to be provided is an easy process.
D) Various combinations of intrinsic and extrinsic rewards need to be considered for developing the optimal reward strategy.

Question 27

As a job analyst you are responsible for which of the following functional areas?

A) Designing and implementing compensation policies
B) Formulating compensation strategy
C) Evaluating market data
D) Developing job descriptions and conducting job evaluations

Question 28

Which of the following items is not a component of the compensation strategy?

A) Employee benefits
B) Employment security
C) Base pay
D) Performance pay

Question 29

What philosophy is the total rewards approach to compensation based on?

A) Proper incentives can change employee behaviour.
B) Intrinsic rewards are more important to people than other rewards.
C) There are many awards associated with the work environment that have value.
D) Pay is still what matters most.

Question 30

In a large organization who is typically responsible for formulating the compensation strategy?

A) Head of HR
B) The board of directors
C) Manager of compensation
D) Compensation consultants

Question 31

What does a firm's compensation strategy identify?

A) All of the financial and nonfinancial rewards of work.
B) The total amount of cash compensation employees will receive.
C) The mix of intrinsic rewards.
D) The mix and total amount of base, performance, and indirect pay.

Question 32

Which statement best describes current compensation practices and expectations related to the key criteria for evaluating the success of a compensation system.

A) It is realistic to expect that a reward system will achieve all eight of the effectiveness criteria.
B) Continuing evaluation of the effectiveness of the reward and compensation system is crucial for most organizations.
C) Successful organizations all have equitable reward systems.
D) Most firms have found the right answers to the compensation puzzle.

Question 33

As a compensation consultant what is the best advice you can give to a small business owner wanting to develop the optimal reward strategy?

A) The various combinations of intrinsic and extrinsic rewards need to be considered.
B) The optimal strategy is the cheapest one.
C) Most companies adopt a total rewards approach to compensation.
D) The plan for creating the compensation system is the most important aspect of the strategy.

Question 34

Which of the following statements most accurately describes the optimal reward system?

A) It adds the most value to the organization after considering all its costs.
B) It maximizes opportunities for learning and development.
C) It identifies best practices.
D) It provides whatever will satisfy the employee's needs.

Question 35

Which of the following would be the best choice for a compensation system?

A) A competitive base pay and incentives are offered.
B) Employees share in the organization's profits.
C) Compensation is linked to knowledge.
D) The system is cost effective and achieves company goals.

Question 36

As head of the human resources department for a new company you have been asked to formulate a compensation strategy.What do you need to determine first?

A) The role that compensation will play in the reward system.
B) The mix across the compensation components.
C) The total amount of compensation to be provided.
D) The organizational culture.

Question 37

You have been given the responsibility to develop an effective compensation strategy for your company. Which of the following activities is not a required step in the process?.

A) Understand your organization and your people.
B) Formulate your sustainability plans.
C) Design your performance pay and indirect pay plans.
D) Implement, manage, evaluate, and adapt the system.

Question 38

Your company is experiencing high turn over and poor work quality. Which of the following actions will increase intrinsic rewards?

A) Providing a pension option and offering a retirement planning service.
B) Introducing pay-for-performance plans.
C) Trying to enrich the jobs to make them more interesting.
D) Offering dental and medical coverage.

Question 39

What is the first step to effective compensation according to the "Road Map to Effective Compensation"?

A) Develop new job descriptions.
B) Understand your organization and your employees.
C) Determine your compensation values.
D) Cost out the plan.

Question 40

Which of the following would be an example of an intrinsic reward?

A) Interesting and meaningful work
B) Pay for performance
C) Fair policies and procedures
D) Good management

Question 41

Explain the difference between a "reward strategy" and a "compensation strategy".

Question 42

What is the goal of an organization's reward and compensation system?

Question 43

Identify the steps in developing an effective compensation strategy.

Question 44

Explain the difference between "extrinsic" and "intrinsic" rewards. Provide examples for each type of reward.

Question 45

Explain the ways in which "direct" and "indirect" pay are similar and different to each other.