Question 11 pts

Merit payments are relatively small gifts given to employees for outstanding work or effort during a brief period of time.

True

False

 

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Question 21 pts

Which performance-based pay system assumes that employees who know more are more valuable to the firm and deserve to be rewarded for their efforts in acquiring new skills?

variable pay

merit pay

lump sum pay

skill-based pay

 

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Question 31 pts

Which of the following would NOT be an exempt employee under the Fair Labor Standards Act?

production manager

machine operator

senior statistician

outside salesperson

 

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Question 41 pts

What is the LEAST likely reason that a firm would use job evaluation?

eliminating pay inequities

identifying the organization's job structure

estimating the average market pay rate

developing a hierarchy of job value for creating a pay structure

 

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Question 51 pts

Clawback contract provisions are required for companies to recover any incentive compensation paid to top executives that was based on inaccurate financial data.

True

False

 

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Question 61 pts

Interindustry differentials can be attributed to a number of factors, including the industry's product market, the degree of capital intensity, the profitability of the industry, unionization, and gender mix of the workforce.

True

False

 

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Question 71 pts

What creates the basis for a simpler compensation system that de-emphasizes structure and places greater importance on flexible decision making?

organic structures

broadbanding

gainsharing

clustering

 

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Question 81 pts

Which term refers to the face value of pay?

direct compensation

nominal compensation

real compensation

market-competitive pay

 

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Question 91 pts

What gainsharing plan embodies management-labor cooperation, collaborative problem-solving, teamwork, trust, open-book management and servant leadership?

deferred plan

Scanlon plan

Roth plan

current plan

 

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Question 101 pts

John works at a company that uses a variety of heavy machines. John knows how to operate three of the machines, and if he learns how to use another one, his pay will increase. Which type of compensation plan is most likely used by John's employer?

variable pay

invariable pay

lump sum pay

skill-based pay

 

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Question 111 pts

Which of the following is the main reason companies include deferred compensation in executive compensation packages?

aligning the interests of the executive with the company shareholders over the long term

aligning the interests of the executive with the company shareholders over the short term

mainly for increasing the total compensation of executives

mainly to avoid scrutiny from the Securities and Exchange Commission.

 

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Question 121 pts

Omar works in the HR department at a large manufacturing firm. Omar needs a simple method for conducting a job evaluation. Which method would be most appropriate for Omar?

factor comparison

classification

ranking

point method

 

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Question 131 pts

Which of the following provides general guidelines for making compensation decisions?

pay leaders

market rates

compensation policies

compensation packages

 

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Question 141 pts

Nicole, an HR professional, needs to develop a job evaluation for a data analyst position at her firm. Nicole's manager wants a quantitative job evaluation that will be useful for a long time. Which method would be most appropriate?

point

profile

classification

ranking

 

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Question 151 pts

Pay for similar jobs do not vary across different labor markets.

True

False

 

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Question 161 pts

Eric, an HR manager, is using a job evaluation method in which he assigns numerical values to specific job factors before calculating the sum of the values. Which method is Eric most likely using?

factor comparison

classification

ranking

point method

 

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Question 171 pts

In general gainsharing plans are intended to link employees to organizational productivity by focusing on cost-efficiency.

True

False

 

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Question 181 pts

The market lag policy is one of three pay mix policy choices.

True

False

 

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Question 191 pts

Firms typically prefer single pay rates rather than pay ranges because of the simplicity and preciseness the system offers.

True

False

 

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Question 201 pts

The Scanlon plan provides a financial reward to employees for savings in labor costs that result from their suggestions and serves as a type of participative management program.

True

False

 

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Question 211 pts

A compensation plan that results in the distribution of a predetermined percentage of the firm's profits to employees is referred to as ________.

team sharing

piecework

profit sharing

broadbanding

 

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Question 221 pts

What is the process that determines the relative value of one job in relation to another?

job specification

job description

job evaluation

job analysis

 

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Question 231 pts

Which job evaluation method involves defining a number of grades to describe a group of jobs?

ranking

classification

factor comparison

point

 

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Question 241 pts

As an HR manager, what tool would you most likely use to determine if internal equity exists at your firm?

job analysis

job evaluation

compensation survey

behavioral methods study

 

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Question 251 pts

Compensation policy choices pertain to pay level and compliance with legislation.

True

False

 

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Question 261 pts

As an HR manager at an electronics firm, you learn that the position of Technician I at your firm is underpaid. What would be the best way to handle this situation?

notify the affected workers and their union representatives

immediately increase the pay for workers in that job to at least the minimum pay level

give workers in that job a bonus at the end of the year

wait until the next broadbanding opportunity

 

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Question 271 pts

The fitting of plotted points to create a smooth progression between pay grades is known as a ________.

job cluster

wage curve

wage range

pay range

 

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Question 281 pts

Which of the following is NOT an exception for paying women less than men for performing equal work?

seniority-based pay

merit-based pay

any factor other than the sex of an employee

any factor, including the sex of an employee

 

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Question 291 pts

Which of the following is true about the percentage of access contingent workers have to benefits compared to workers who are not classified as contingent workers?

a smaller percentage of full-time workers have access to employee benefits than part-time workers

a smaller percentage of part-time workers have access to employee benefits than full-time workers

both groups have approximately equal access

this relationship is unimportant to companies

 

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Question 301 pts

Management relies on all of the following to help determine the relative worth of a job, EXCEPT ________.

job analysis

job enumeration

job descriptions

job evaluation

 

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Question 311 pts

Labor unions tend to favor ________ as the basis for compensation changes.

performance

experience

seniority

skill

 

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Question 321 pts

PetFair, a national chain of pet supply stores, employs nearly 1,000 workers. In the past two years, the firm's market share has dropped and employee turnover has increased. The vice president of human resources at PetFair suggests implementing a new compensation policy to improve the firm's performance and retain quality workers. Currently, PetFair employees receive compensation primarily based on years with the firm and job level. Which of the following, if true, best supports the argument that PetFair should implement a competency-based pay system?

PetFair uses the classification method to price management jobs.

PetFair sales representatives earn straight commissions.

PetFair managers experience variable work assignments.

PetFair offers a profit-sharing plan to top executives.

 

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Question 331 pts

Which of the following is a gainsharing plan that provides a financial reward to employees for labor cost savings resulting from their suggestions?

deferred plan

Scanlon plan

current plan

Rucker plan

 

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Question 341 pts

Pay grades and pay ranges are frequently used in the job-pricing process.

True

False

 

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Question 351 pts

As an HR manager, you learn that an employee is being overpaid. What would be the best way to handle this situation?

promote the employee, if qualified, to a job in a higher pay grade

bring the job rate and employee into line with a pay cut

freeze the rate until cost-of-living increases bring it into line

redesign the job by quantifying it with the factor comparison method

 

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Question 361 pts

Special benefits provided by a firm to a small group of key executives are known as ________.

incentive bonuses

golden parachutes

stock options

perquisites

 

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Question 371 pts

Unions' gains often influence nonunion companies' compensation practices. Many nonunion companies offered similar compensation to their employees.

True

False

 

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Question 381 pts

Which type of profit sharing plan provides payment to employees in cash or stock as soon as profits have been determined?

deferred plan

current plan

performance plan

gainsharing plan

 

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Question 391 pts

Cost-of-living allowances are becoming increasingly popular in nonunion settings.

True

False

 

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Question 401 pts

Historically, some variation of which job evaluation plan has been the most popular option?

ranking

classification

factor comparison

point method