Question 1

The differential between supervisors' base pay and their highest paid subordinate is typically _____ percent.

Accepted Answer

A)  0 to 5 
B)  5 to 30 
C)  30 to 50 
D)  50 to 90 
A)  0 to 5 
B)  5 to 30 
C)  30 to 50 
D)  50 to 90 B

Question 2

Who are special groups? What are the characteristics that special groups share?

Accepted Answer

Special treatment,either in the form of add-on packages not received by other employees or in the form of compensation components entirely unique in the organization,tends to focus on a few specific groups.The text argues that special groups share two characteristics.First,special groups tend to be strategically important to the company.If they don't succeed at their jobs,success for the whole organization is in jeopardy.Second,their positions tend to have built-in conflict,conflict that arises because different factions place incompatible demands on members of the group.

Question 3

Nonqualified stock options require _____.

Accepted Answer

A)  purchase of stock at a stipulated price,not conforming with the Internal Revenue Code 
B)  cash or stock award to be determined by an increase in stock price at a fixed future date 
C)  cash or stock award to be determined by an increase in stock price during any time chosen in the option period 
D)  grant of stock at a reduced price with the condition that it may not be sold before a specified date 
A)  purchase of stock at a stipulated price,not conforming with the Internal Revenue Code 
B)  cash or stock award to be determined by an increase in stock price at a fixed future date 
C)  cash or stock award to be determined by an increase in stock price during any time chosen in the option period 
D)  grant of stock at a reduced price with the condition that it may not be sold before a specified date A

Question 4

If improved account retention became a major focus of attention,the performance measure stressed would be _____.

Accepted Answer

A)  gross margin on sales or price per unit 
B)  percentage account erosion 
C)  a volume measure 
D)  a customer satisfaction index 
A)  gross margin on sales or price per unit 
B)  percentage account erosion 
C)  a volume measure 
D)  a customer satisfaction index

Question 5

A trend in sales force compensation is linking sales force compensation to customer satisfaction measures.

Accepted Answer

A) True 
 B)False

Question 6

Annual bonuses often play a major role in executive compensation and are primarily designed to _____.

Accepted Answer

A)  motivate better short-term performance 
B)  reduce overtime pay 
C)  decrease pay differentials between supervisors and subordinates 
D)  increase employee turnover 
A)  motivate better short-term performance 
B)  reduce overtime pay 
C)  decrease pay differentials between supervisors and subordinates 
D)  increase employee turnover

Question 7

Contingent workers are usually considered candidates for special compensation.

Accepted Answer

A) True 
 B)False

Question 8

A useful tool for determining the true worth of an entire executive compensation package is _____.

Accepted Answer

A)  the program evaluation and review technique (PERT) 
B)  a tally sheet 
C)  a Gantt chart 
D)  the graphical evaluation and review technique (GERT) 
A)  the program evaluation and review technique (PERT) 
B)  a tally sheet 
C)  a Gantt chart 
D)  the graphical evaluation and review technique (GERT)

Question 9

At the time it is granted,which of the following has no tax implications for an executive?

Accepted Answer

A)  Phantom stock plans 
B)  Incentive stock options 
C)  Stock appreciation rights 
D)  Performance share/unit plans 
A)  Phantom stock plans 
B)  Incentive stock options 
C)  Stock appreciation rights 
D)  Performance share/unit plans

Question 10

In maturing markets,companies focus both on performance-based pay tied to customer satisfaction and on greater.

Accepted Answer

A) True 
 B)False

Question 11

Organizations rely very heavily on external market data in pricing scientists' and engineers' base pay.

Accepted Answer

A) True 
 B)False

Question 12

Compensation packages for salespeople must be competitive because salespeople tend to compare their pay with competitors.

Accepted Answer

A) True 
 B)False

Question 13

Executives,supervisors,and sales staff often receive special compensation treatment because _____.

Accepted Answer

A)  these jobs face conflicting demands 
B)  these jobs are exempt under FLSA 
C)  recruitment and retention are always difficult for these jobs 
D)  these jobs are covered under the Sarbanes-Oxley Act 
A)  these jobs face conflicting demands 
B)  these jobs are exempt under FLSA 
C)  recruitment and retention are always difficult for these jobs 
D)  these jobs are covered under the Sarbanes-Oxley Act

Question 14

Working through a temporary-help agency usually means:

Accepted Answer

A)  high recognition for the work done. 
B)  lower work stress in comparison to permanent employees. 
C)  higher benefits in comparison to permanent employees. 
D)  low pay in administrative or day labor positions. 
A)  high recognition for the work done. 
B)  lower work stress in comparison to permanent employees. 
C)  higher benefits in comparison to permanent employees. 
D)  low pay in administrative or day labor positions.

Question 15

Members of boards of directors are not categorized as candidates for special compensation.

Accepted Answer

A) True 
 B)False

Question 16

Describe how executives ensure themselves high compensation.

Accepted Answer

Agency theory incorporates the political

Question 17

Independent contractors generally are less expensive for employers as they receive no benefits.

Accepted Answer

A) True 
 B)False

Question 18

A(n)_____ awards cash or stock that is determined by an increase in stock price at a fixed future date.

Accepted Answer

A)  phantom stock plan 
B)  incentive stock option 
C)  restricted stock plan 
D)  nonqualified stock option 
A)  phantom stock plan 
B)  incentive stock option 
C)  restricted stock plan 
D)  nonqualified stock option

Question 19

In a recession environment,companies need to react to the decreasing level of sales by rewarding top-level performers that achieve high levels of sales despite the economic downturn.

Accepted Answer

A) True 
 B)False

Question 20

In which of the following situations would the engineering jobs be most likely treated as a special compensation group?

Accepted Answer

A)  Mechanical engineers employed by a large city corporation 
B)  Computer engineers employed at a software firm 
C)  Biomolecular engineers employed at a farm equipment manufacturer 
D)  Acoustical engineers at a waste disposal company 
A)  Mechanical engineers employed by a large city corporation 
B)  Computer engineers employed at a software firm 
C)  Biomolecular engineers employed at a farm equipment manufacturer 
D)  Acoustical engineers at a waste disposal company

The differential between supervisors' base pay and their highest paid subordinate is typically _____ percent.

Who are special groups? What are the characteristics that special groups share?

Nonqualified stock options require _____.

If improved account retention became a major focus of attention,the performance measure stressed would be _____.

A trend in sales force compensation is linking sales force compensation to customer satisfaction measures.

Annual bonuses often play a major role in executive compensation and are primarily designed to _____.

Contingent workers are usually considered candidates for special compensation.

A useful tool for determining the true worth of an entire executive compensation package is _____.

At the time it is granted,which of the following has no tax implications for an executive?

In maturing markets,companies focus both on performance-based pay tied to customer satisfaction and on greater.

Organizations rely very heavily on external market data in pricing scientists' and engineers' base pay.

Compensation packages for salespeople must be competitive because salespeople tend to compare their pay with competitors.

Executives,supervisors,and sales staff often receive special compensation treatment because _____.

Working through a temporary-help agency usually means:

Members of boards of directors are not categorized as candidates for special compensation.

Describe how executives ensure themselves high compensation.

Independent contractors generally are less expensive for employers as they receive no benefits.

A(n)_____ awards cash or stock that is determined by an increase in stock price at a fixed future date.

In a recession environment,companies need to react to the decreasing level of sales by rewarding top-level performers that achieve high levels of sales despite the economic downturn.

In which of the following situations would the engineering jobs be most likely treated as a special compensation group?

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

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

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

Exam 14: Compensation of Special Groups

The differential between supervisors' base pay and their highest paid subordinate is typically _____ percent.

Who are special groups? What are the characteristics that special groups share?

Nonqualified stock options require _____.

If improved account retention became a major focus of attention,the performance measure stressed would be _____.

A trend in sales force compensation is linking sales force compensation to customer satisfaction measures.

Annual bonuses often play a major role in executive compensation and are primarily designed to _____.

Contingent workers are usually considered candidates for special compensation.

A useful tool for determining the true worth of an entire executive compensation package is _____.

At the time it is granted,which of the following has no tax implications for an executive?

In maturing markets,companies focus both on performance-based pay tied to customer satisfaction and on greater.

Organizations rely very heavily on external market data in pricing scientists' and engineers' base pay.

Compensation packages for salespeople must be competitive because salespeople tend to compare their pay with competitors.

Executives,supervisors,and sales staff often receive special compensation treatment because _____.

Working through a temporary-help agency usually means:

Members of boards of directors are not categorized as candidates for special compensation.

Describe how executives ensure themselves high compensation.

Independent contractors generally are less expensive for employers as they receive no benefits.

A(n)_____ awards cash or stock that is determined by an increase in stock price at a fixed future date.

In a recession environment,companies need to react to the decreasing level of sales by rewarding top-level performers that achieve high levels of sales despite the economic downturn.

In which of the following situations would the engineering jobs be most likely treated as a special compensation group?

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

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

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters