Question 1

An individual's ____ is that employee's current pay level divided by the midpoint of the pay range.

Accepted Answer

A)  compa-ratio 
B)  market ratio 
C)  target ratio 
D)  matrix ratio

Question 2

A competency-based pay system rewards employees who are versatile and have continued to develop their skills.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is the typical structure of team-based compensation?

Accepted Answer

A)  individual pay-for-performance based on team member input 
B)  skill-based pay plus a percentage of base pay 
C)  equal pay for each team member based on team performance 
D)  team-based variable pay on top of individual base pay

Question 4

Jerry is a non-exempt employee who has been sent for training in using a new software package.Jerry must be paid his regular wages for all the time he spends in the training sessions,all of which are held during regular working hours.

Accepted Answer

A) True 
 B)False

Question 5

In a typical division of compensation responsibilities,one of the manager's main responsibility in the compensation system is to evaluate employee performance and recommend pay increases.

Accepted Answer

A) True 
 B)False

Question 6

An organization which has a compensation system with significant internal inequities is likely to have a "closed" system which prohibits employees from discussing their pay with co-workers.

Accepted Answer

A) True 
 B)False

Question 7

____ is the amount estimated to allow an individual to meet his/her basic needs of food,clothing and shelter.

Accepted Answer

A)  An honest wage 
B)  A fair wage 
C)  The minimum wage 
D)  The living wage

Question 8

The state in which YellowCraft Boat is located has passed a "super-minimum" wage that is fifty cents higher per hour than the federal minimum wage.YellowCraft Boat must pay its workers at least this super-minimum wage,even though it is engaged in interstate commerce.

Accepted Answer

A) True 
 B)False

Question 9

Marie has been offered work as an employee trainer for AgriEnterprise.In this job,Marie will use the employer's training materials,and she will train employees at AgriEnterprise's three locations at the times that the company determines.Marie has been promised that the company will continue to use her services as long as her performance is satisfactory.Marie has agreed not to work as a trainer for any other company while she is working for AgriEnterprise.The company is paying Marie as an independent contractor and not contributing to Social Security or providing benefits.Which of the following statements is correct?

Accepted Answer

A)  Marie is an independent contractor. 
B)  Marie is really an employee of AgriEnterprise. 
C)  Marie is an independent contractor with only one client. 
D)  Marie would properly be classified as a learned professional employee and non-exempt.

Question 10

If employees feel their pay is unfair,they are likely to do or feel all the following EXCEPT

Accepted Answer

A)  quit. 
B)  be dissatisfied with their jobs. 
C)  lose self-esteem. 
D)  change their job performance.

Question 11

Pay secrecy systems have been consistently upheld as legal in the courts.

Accepted Answer

A) True 
 B)False

Question 12

The ranking method typically ranks jobs in value to the organization based on three or four compensable factors.

Accepted Answer

A) True 
 B)False

Question 13

The CEO of BizMark Equipment wants to know what return the firm is getting on the money it is spending on its employees.As the director of HR,you know this is considered return on human capital.You will calculate this as

Accepted Answer

A)  Total Compensation and Benefits / FTEs 
B)  Revenue - Operating Expense -Pay and Benefits = Adjusted Profit / Pay and Benefits 
C)  Revenue - Operating Expense - Pay and Benefits + Adjusted Profit / FTEs 
D)  Total Pay and Benefits Expenditures / Operating Expense

Question 14

Organizations use pay grades to

Accepted Answer

A)  group individual jobs having approximately the same job worth. 
B)  guard against pay differentials based on sex or race. 
C)  compare similar jobs across a variety of organizations. 
D)  offset the effects of pay compression by giving managers a range of pay for each specific job and individual.

Question 15

Collette received a $2,500 lump-sum increase for her performance last year.This increased her base pay by $2,500.

Accepted Answer

A) True 
 B)False

Question 16

Simon is outraged that his co-worker Missy was given a raise.Simon believes Missy got the raise because she married the chairman of the board's son.Simon's sense of ____ has been violated.

Accepted Answer

A)  compensatory equity 
B)  distributive justice 
C)  external equity 
D)  procedural justice

Question 17

As a young employee who consistently meets (but does not exceed)performance expectations,which type of pay increase system would most likely be to your personal financial benefit considering that you expect to stay with the company another 10 years?

Accepted Answer

A)  broadbanding 
B)  lump sum increases 
C)  across-the-board raises 
D)  second quartile approach

Question 18

A____ is a group of jobs having common organizational characteristics.

Accepted Answer

A)  market band 
B)  occupational category 
C)  benchmark group 
D)  job family

Question 19

You are chief operating officer of a small,start-up firm and you must handle HR duties.Right now,the organization has 11 employees,although more employees will be hired about two years from now.In setting up a base pay system you need something simple,quick and inexpensive.It would be most appropriate to use a _______ for evaluating jobs.

Accepted Answer

A)  factor-comparison method 
B)  Hay system point method 
C)  classification method adapted from the public sector 
D)  ranking method

Question 20

Which of the following is a benefit of reducing the number of pay grades and broadening pay ranges?

Accepted Answer

A)  It reduces the organization's overall compensation expense. 
B)  It encourages employees to take horizontal job moves. 
C)  It allows employees to have higher raises. 
D)  It increases employee opportunities for upward mobility.

Exam 11: Total Rewards and Compensation

An individual's ____ is that employee's current pay level divided by the midpoint of the pay range.

A competency-based pay system rewards employees who are versatile and have continued to develop their skills.

Which of the following is the typical structure of team-based compensation?

Jerry is a non-exempt employee who has been sent for training in using a new software package.Jerry must be paid his regular wages for all the time he spends in the training sessions,all of which are held during regular working hours.

In a typical division of compensation responsibilities,one of the manager's main responsibility in the compensation system is to evaluate employee performance and recommend pay increases.

An organization which has a compensation system with significant internal inequities is likely to have a "closed" system which prohibits employees from discussing their pay with co-workers.

____ is the amount estimated to allow an individual to meet his/her basic needs of food,clothing and shelter.

The state in which YellowCraft Boat is located has passed a "super-minimum" wage that is fifty cents higher per hour than the federal minimum wage.YellowCraft Boat must pay its workers at least this super-minimum wage,even though it is engaged in interstate commerce.

If employees feel their pay is unfair,they are likely to do or feel all the following EXCEPT

Pay secrecy systems have been consistently upheld as legal in the courts.

The ranking method typically ranks jobs in value to the organization based on three or four compensable factors.

The CEO of BizMark Equipment wants to know what return the firm is getting on the money it is spending on its employees.As the director of HR,you know this is considered return on human capital.You will calculate this as

Organizations use pay grades to

Collette received a $2,500 lump-sum increase for her performance last year.This increased her base pay by $2,500.

Simon is outraged that his co-worker Missy was given a raise.Simon believes Missy got the raise because she married the chairman of the board's son.Simon's sense of ____ has been violated.

As a young employee who consistently meets (but does not exceed) performance expectations,which type of pay increase system would most likely be to your personal financial benefit considering that you expect to stay with the company another 10 years?

A____ is a group of jobs having common organizational characteristics.

Which of the following is a benefit of reducing the number of pay grades and broadening pay ranges?