Deck 11: Compensation Management

Question 1

Base pay,any add-ons,and incentive pay are known as ______ compensation.

A) salary
B) indirect
C) direct
D) equity

Answer 1

C

Question 2

Rewards must meet the demands of ______ to be useful in stimulating desired behavior.

A) employers
B) managers
C) employees
D) equity

Answer 2

C

Question 3

______ is now the top reason for job satisfaction,overtaking job security as the top driver of satisfaction back in 2013.

A) Pay
B) Equity
C) Expectancy
D) Overtime

Answer 3

A

Question 4

Colton's salary is $40,000 per year.This part of his compensation is considered ______.

A) base pay
B) wage and salary add-on
C) incentive pay
D) benefits

Question 5

Expectancy theory is a ______ theory of motivation.

A) process
B) structure
C) culture
D) rate

Question 6

In expectancy theory,______ is the perception that a particular level of performance is likely to provide the individual with a desired reward.

A) reward
B) rate
C) pay
D) instrumentality

Question 7

If Auli'i reaches her sales goals for this quarter,she will receive a $2,000 bonus.This part of her compensation is considered ______.

A) base pay
B) a wage and salary add-on
C) incentive pay
D) benefits

Question 8

______ is the total of an employee's pay and benefits.

A) Expectancy
B) Compensation
C) Equity
D) Salary

Question 9

Jamaal is paid $11 an hour as a cafeteria attendant.Jamaal's pay is considered ______.

A) benefits
B) wages
C) salary
D) incentives

Question 10

Benefits are ______ compensation.

A) salary
B) wage
C) job
D) indirect

Question 11

All rewards that can be classified as monetary payments and in-kind payments constitute the ______ component of the compensation system.

A) compensation
B) noncompensation
C) equity
D) non-salary

Question 12

The ______ of an organization includes anything that an employee may value and that the employer is willing and able to offer.

A) expectancy
B) equity
C) rate
D) compensation system

Question 13

Casey's compensation includes health and dental insurance.These parts of her compensation are considered ______.

A) base pay
B) a wage and salary add-on
C) incentive pay
D) benefits

Question 14

Atandwa earns $12 per hour during regular shifts.However,when he has to work the night shift,his pay goes up to $14 per hour.This part of his compensation is considered ______.

A) base pay
B) a wage and salary add-on
C) incentive pay
D) benefits

Question 15

______ costs are frequently the largest part of total production costs at today's business organizations.

A) Waste
B) Equity
C) Expectancy
D) Compensation

Question 16

An organization designs and implements a(n)______ system to focus worker attention on the specific efforts the organization considers necessary to achieve its desired goals.

A) expectancy
B) equity
C) compensation
D) pay

Question 17

All rewards other than monetary and in-kind payments constitute the ______ component of the compensation system.

A) compensation
B) noncompensation
C) equity
D) non-salary

Question 18

______ theory proposes that employees are motivated when they believe they can accomplish a task and that the rewards for doing so are worth the effort.

A) Equity
B) Expectancy
C) Motivation
D) Reward

Question 19

In expectancy theory,______ is the person's perception of their ability to accomplish or probability of accomplishing an objective.

A) expectancy
B) equity
C) reward
D) motivation

Question 20

Julianna is paid $60,000 a year as a computer programmer.She gets paid regardless of how many hours she works.Julianna's pay is considered ______.

A) benefits
B) wages
C) salary
D) incentives

Question 21

Morgan is working on the compensation package for bank tellers.Bank customers like to see the same faces in the bank when they come in to talk about their money.Therefore,Morgan needs to find a way to reduce turnover among the tellers.Adopting a(n)______ organizational philosophy on compensation might be a good idea.

A) below-the-market
B) at-the-market
C) pay-for-longevity
D) pay-for-performance

Question 22

Aryn and Mary started at the organization on the same day.Both are hard workers and perceive that they are equitably rewarded for their efforts.According to equity theory,it is likely that both will ______.

A) request a raise
B) worker harder or longer
C) do less work
D) continue to put forth effort

Question 23

Megha is revising her organization's policy around annual raises and wondering whether to reward employees who have been with the company the longest or those who have closed the most sales.She is considering ______.

A) ability to pay
B) types of compensation
C) performance- or longevity-based pay
D) skill- or competency-based pay

Question 24

The result of ______ theory is that our employees will either be motivated by their outcomes,including compensation,or be demotivated by them.

A) instrumentality
B) equity
C) expectancy
D) valence

Question 25

According to ______,a comparison with relevant others leads to one of three conclusions: the employee is either underrewarded,overrewarded,or equitably rewarded.

A) equality theory
B) learning theory
C) expectancy theory
D) equity theory

Question 26

Ling's organization is in a very competitive industry and getting goods to market quickly is vital to the organization's survival.For Ling,adopting a(n)______ organizational philosophy on compensation might be a good idea.

A) at-the-market
B) below-the-market
C) pay-for-longevity
D) pay-for-performance

Question 27

In expectancy theory,______ refers to the value a person places on the outcome or reward,because not all people value the same reward.

A) rate
B) instrumentality
C) valence
D) equity

Question 28

In setting the base pay rate for new jobs at her organization,Alexis is doing an assessment of how much she can afford to pay.She is considering ______.

A) ability to pay
B) types of compensation
C) performance- or longevity-based pay
D) skill- or competency-based pay

Question 29

Martha was promised a 10% raise if she wins a contract with the city government.Martha could use the money to pay off some debts.However,she happens to know that another company is very close to securing the contract.There is a slim chance that she could win the contract away from the other organization,but she does not believe she can do it.According to expectancy theory,Martha is unmotivated to try to win the contract because she lacks ______.

A) valence
B) instrumentality
C) expectancy
D) significance

Question 30

According to equity theory,people will be ______ if they feel (perceive)that they are not fairly compensated.

A) rated
B) motivated
C) demotivated
D) expectant

Question 31

______ theory proposes that employees are motivated when the ratio of their perceived outcomes to inputs is at least roughly equal to that of other referent individuals.

A) Motivation
B) Referent
C) Expectancy
D) Equity

Question 32

According to ______ theory,people compare their inputs,financial rewards,and intangible outcomes to those of relevant others.

A) referent
B) valence
C) equity
D) expectancy

Question 33

Vladimir's organization gives raises for completing certain tasks,not just showing up and being loyal to the firm.Vladimir's organization pays more for ______.

A) performance
B) competence
C) compression
D) structure

Question 34

An organization must complete an assessment of estimated ______ from business operations and determine what percentage of revenues can or should realistically go toward compensation costs.

A) equity
B) costs
C) revenues
D) growth

Question 35

Organizations must decide if they are going to have a ______ philosophy or a longevity philosophy.

A) evaluation
B) assessment
C) performance
D) seniority

Question 36

Mimi is redesigning the compensation mix at her organization to include more family-friendly benefits such as child and elder care.Mimi is considering ______.

A) ability to pay
B) types of compensation
C) wage compression
D) skill- or competency-based pay

Question 37

Jacob's manager asks him to organize a blood drive for the organization.The manager tells Jacob that if he accepts the assignment,he will be awarded Employee of the Month.Jacob has organized blood drives in the past and knows how much work is involved.He does not doubt that his manager can deliver on the promise of the award.However,Jacob has always thought that the award was silly.According to expectancy theory,Jacob is unmotivated to accept the assignment because ______ is lacking.

A) valence
B) instrumentality
C) expectancy
D) significance

Question 38

Yashar has received steady pay increases over the years for his solid sales performance.This year,the organization merged with another organization and money has become tight.Yashar doubts there's any money available for raises.Therefore,he has not been motivated to work as hard.According to expectancy theory,Yashar is unmotivated because ______ is lacking.

A) valence
B) instrumentality
C) expectancy
D) significance

Question 39

In expectancy theory,______ is based on the individual employee's perception of fairness.

A) valence
B) expectancy
C) instrumentality
D) equity

Question 40

According to equity theory,a ______ other could be a coworker or a group of employees from the same or different organizations.

A) referring
B) relevant
C) motivating
D) valent

Question 41

The ______ is the lowest hourly rate of pay generally permissible by federal law.

A) pay rate
B) minimum wage
C) wage compression
D) overtime

Question 42

______ is higher than minimum,federally mandated wage,required for nonexempt employees if they work more than a certain number of hours in a week.

A) Wage compression
B) Pay rate
C) Overtime
D) Minimum wage

Question 43

The major provisions of the ______ cover minimum wage,overtime issues,and child labor rules.

A) Fair Pay Act
B) Wage and Rule Act
C) Equal Pay Act
D) Fair Labor Standards Act

Question 44

______ occurs when new employees require higher starting pay than the historical norm,causing narrowing of the pay gap between experienced and new employees.

A) Wage compression
B) Rate range
C) Competency-based pay
D) Pay secrecy

Question 45

Teens aged 14 or 15 may work ______ school hours for no more than 3 hours on a school day,18 hours in a school week,8 hours on a nonschool day,and 40 hours in a nonschool week.

A) outside
B) inside
C) during
D) any

Question 46

Employers are usually unaware that ______ exists until problems surface.

A) pay compression
B) dissatisfaction
C) satisfaction
D) equity

Question 47

If two jobs are similar but not the same,then an organization should pay a(n)______ wage but not necessarily exactly the same wage.

A) lower
B) extra
C) dissimilar
D) similar

Question 48

When Stefania compares the work required in her job to the work required in Heather's job,she finds that the two jobs are similar.While the work in the jobs is different,the jobs involve similar responsibility,skills,and working conditions.However,Heather is paid $2 an hour more than Stefania is paid.Stefania's findings appear to reveal a violation of ______.

A) pay secrecy
B) comparable worth
C) equal pay
D) market rates

Question 49

Mallory would like to attract better workers and enhance her organization's employment brand.Adopting a(n)______ organizational philosophy on compensation could help her achieve her goals.

A) at-market
B) above-market
C) pay for longevity
D) pay secrecy

Question 50

Halle plans to pay her workers the lowest hourly rate of pay generally allowed under the Fair Labor Standards Act.In other words,Halle will pay her workers ______.

A) skill-based pay
B) overtime wages
C) at-market wages
D) minimum wage

Question 51

A(n)______ approach to pay determination uses job evaluation.

A) external
B) internal
C) pay
D) structure

Question 52

Aasia's organization uses a differentiation strategy.To encourage worker to bring knowledge,skills,and abilities to the job that can allow them to analyze problems and come up with creative solutions,the organization might adopt a(n)______ philosophy on compensation.

A) skill-based pay
B) above-market
C) at-market
D) competency-based pay

Question 53

______ legislation has been proposed as a solution to the problem of persistent gender inequity in pay.

A) Expectancy theory
B) Pay structure
C) Comparable worth
D) Equity theory

Question 54

According to the U.S.Senate,women earn an average of ______ for every dollar that men earn.

A) 50 cents
B) 95 cents
C) 90 cents
D) 79 cents

Question 55

______ is the principle that when jobs are distinctly different but entail similar levels of ability,responsibility,skills,and working conditions,they are of equal value and should have the same pay scale.

A) Equity theory
B) Comparable worth
C) Expectancy theory
D) Pay structure

Question 56

A(n)______ approach to pay determination involves finding out what other organizations pay for the same or similar jobs through available pay surveys,and it sets pay levels based on market pricing.

A) lateral
B) internal
C) external
D) vertical

Question 57

______ wage theory says that if a company pays higher wages,it can generally hire better people who will in turn be more productive.

A) Competency
B) Compression
C) Efficiency
D) Rate

Question 58

Wage compression can weaken the desired link between pay and performance,creating significant ______ on the part of long-term employees.

A) equity
B) satisfaction
C) dissatisfaction
D) compression

Question 59

The vast majority of organizations use a(n)______ approach to identifying pay levels.

A) internal
B) external
C) rate
D) range

Question 60

Katrina's organization is hiring for low-skilled jobs in an industry where unemployment is high and it is easy to find replacement workers.Adopting a(n)______ organizational philosophy on compensation could allow her to hire plenty of workers.

A) wage compression
B) below-market
C) pay for longevity
D) skill-based pay

Question 61

______ is simply the process of putting jobs in order from lowest to highest,or vice versa,in terms of value to the company.

A) Wage compression
B) Job evaluation
C) Job ranking
D) Job hierarchy

Question 62

Maria is conducting a job evaluation in her organization by breaking each job down into component skills or abilities.After she completes that task,she will assign points to each skill or ability based on its difficulty.Maria is using the ______ method of job evaluation.

A) job ranking
B) point-factor
C) factor comparison
D) job hierarchy

Question 63

______ is the process of changing the company structure to get rid of some of the vertical hierarchy (reporting levels)in an organization.

A) Delayering
B) Layering
C) Banding
D) Broadbanding

Question 64

Gugu is conducting a job evaluation in her organization.Her first step is to identify a group of benchmark jobs.Gugu is using the ______ method of job evaluation.

A) job ranking
B) point-factor
C) factor comparison
D) job hierarchy

Question 65

______ methods of job evaluation break a job down into components like particular skills or abilities,and then they assign a number of points to each component based on its difficulty.

A) Rate range
B) Pay structure
C) Point-factor
D) Equity theory

Question 66

Kristine is conducting a job evaluation.She has identified benchmark jobs,analyzed and rank-ordered them.Next,she will compare all other jobs in the organization to the benchmark jobs to determine where each one fits in the rankings.Kristine is using the ______ method of job evaluation.

A) job ranking
B) point-factor
C) factor comparison
D) job hierarchy

Question 67

______ is the easiest and fastest method of job evaluation.

A) Job ranking
B) Wage compression
C) Job evaluation
D) Job hierarchy

Question 68

Kelli is working to lower the number of pay levels at Acme Global.There are currently 20 pay levels and Kelli is working to combine multiple pay levels until there are only five pay levels at Acme Global.What Kelli is doing is called ______.

A) banding
B) broadbanding
C) layering
D) delayering

Question 69

The ______ comparison method of job evaluation combines the job ranking and point-factor methods to provide a more thorough form of job evaluation.

A) rate
B) factor
C) point
D) pay

Question 70

The components in point-factor method of job evaluation are usually referred to as ______ factors.

A) compensable
B) noncompensable
C) pay
D) rate

Question 71

A ______ provides the maximum,minimum,and midpoint of pay for a certain group of jobs.

A) rate range
B) pay structure
C) wage compression
D) minimum wage

Question 72

Mia is conducting a job evaluation for her organization.First,Mia identified several benchmark jobs.Next,she analyzed those jobs based on the skills and abilities required to do the jobs.Finally,she ranked the jobs in order and compared them to all other jobs in the organization.Mia is using the ______ method of job evaluation.

A) job ranking
B) point-factor
C) factor comparison
D) job hierarchy

Question 73

A ______ is composed of both a job structure and pay levels.

A) pay structure
B) rate range
C) point factor
D) wage compression

Question 74

______ is a hierarchy of jobs and their rates of pay within the organization.

A) Rate range
B) Wage compression
C) Pay structure
D) Overtime

Question 75

The ______ comparison method of job evaluation is more time consuming because it is tailored to the individual organization and to the jobs within the organization.

A) pay
B) rate
C) point
D) custom factor

Question 76

Tamar is conducting a job evaluation by putting each job in the organization in order from lowest to highest in terms of value to the organization.Tamar is using the ______ method of job evaluation.

A) job ranking
B) point-factor
C) factor comparison
D) job hierarchy

Question 77

______ methods of job evaluation attempt to be completely objective in form.

A) Equity theory
B) Pay structure
C) Point-factor
D) Rate range

Question 78

______ competition is labor supply versus demand for labor.

A) Compensation
B) Performance
C) Training
D) Labor market

Question 79

______ is the process of determining the worth of each position relative to the other positions within the organization.

A) Job evaluation
B) Pay structure
C) Rate range
D) Minimum wage

Question 80

Judi is looking at each job in her organization and comparing its value relative to every other job in the organization.When she completes this exercise,she will have done a ______.

A) job evaluation
B) wage compression
C) pay structure
D) rate range