Question 1

List the basic elements of the pay model.

Accepted Answer

The pay model contains three basic building blocks:
i.the compensation objective,
ii.the policies that form the foundation of the compensation system,and
iii.the techniques that make up the compensation system.

Question 2

Which form of pay does not permanently increase labor costs?

Accepted Answer

A)  Incentive 
B)  Merit pay 
C)  Cost-of-living adjustments 
D)  Base pay 
A)  Incentive 
B)  Merit pay 
C)  Cost-of-living adjustments 
D)  Base pay A

Question 3

A measure of how changes in one variable are related to changes in another variable is the:

Accepted Answer

A)  standard deviation 
B)  analysis of variance 
C)  correlation coefficient 
D)  mean deviation 
A)  standard deviation 
B)  analysis of variance 
C)  correlation coefficient 
D)  mean deviation C

Question 4

Explain the basic compensation objectives of pay systems.

Accepted Answer

The basic objectives include efficiency,

Question 5

A difference between incentives and merit increases is that incentives:

Accepted Answer

A)  do not increase the base wage,whereas merit increases the base wage. 
B)  cannot be tied to the performance of an individual,whereas merit increases can be tied to the performance of an individual. 
C)  rely on a subjective measure of performance,whereas merit increases rely on an objective measure of performance. 
D)  are relational returns,whereas merit increases are part of the total compensation. 
A)  do not increase the base wage,whereas merit increases the base wage. 
B)  cannot be tied to the performance of an individual,whereas merit increases can be tied to the performance of an individual. 
C)  rely on a subjective measure of performance,whereas merit increases rely on an objective measure of performance. 
D)  are relational returns,whereas merit increases are part of the total compensation.

Question 6

Variable pay may also be called _____.

Accepted Answer

A)  relational returns 
B)  pensions 
C)  stock options 
D)  incentives 
A)  relational returns 
B)  pensions 
C)  stock options 
D)  incentives

Question 7

Which of the following policy decisions directly affects employees' attitudes and work behaviors?

Accepted Answer

A)  Employee contributions 
B)  Internal alignment 
C)  External competitiveness 
D)  Management 
A)  Employee contributions 
B)  Internal alignment 
C)  External competitiveness 
D)  Management

Question 8

A study found that only a very small amount of change in CEO pay is related to changes in company performance.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following companies is taking efforts to improve the work/life balance of its employees?

Accepted Answer

A)  MH Corp.increases the number of paid holidays given to its senior employees. 
B)  Kay Corp.increases the transport allowance for its employees by 10 percent. 
C)  Haywire Corp.allows its employees to buy company stocks at a reduced price of $30 per share. 
D)  Halo Corp.increases the variable pay for its employees. 
A)  MH Corp.increases the number of paid holidays given to its senior employees. 
B)  Kay Corp.increases the transport allowance for its employees by 10 percent. 
C)  Haywire Corp.allows its employees to buy company stocks at a reduced price of $30 per share. 
D)  Halo Corp.increases the variable pay for its employees.

Question 10

GreenRain Corp.faces an increase in employee turnover rate.The CEO calls for a board meeting with the senior executives to discuss the issue.Who among the following suggests increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?

Accepted Answer

A)  Tom suggests increasing the decision-making authorities given to the employees to make work more challenging. 
B)  Deena suggests providing more work/life balance for the employees by increasing the number of paid leaves. 
C)  Syed suggests increasing the medical insurance coverage offered to the employees. 
D)  Liam suggests increasing merit bonuses. 
A)  Tom suggests increasing the decision-making authorities given to the employees to make work more challenging. 
B)  Deena suggests providing more work/life balance for the employees by increasing the number of paid leaves. 
C)  Syed suggests increasing the medical insurance coverage offered to the employees. 
D)  Liam suggests increasing merit bonuses.

Question 11

Among employers that provide health insurance,the cost to provide family coverage per year per employee is approximately _____.

Accepted Answer

A)  $4,000 
B)  $9,000 
C)  $16,000 
D)  $22,000 
A)  $4,000 
B)  $9,000 
C)  $16,000 
D)  $22,000

Question 12

A major challenge facing most employers is the rising cost of health care benefits.

Accepted Answer

A) True 
 B)False

Question 13

Incentives and merit guidelines are techniques of the _____ policy of the pay model.

Accepted Answer

A)  internal alignment 
B)  external competitiveness 
C)  employee contributions 
D)  management of the pay system 
A)  internal alignment 
B)  external competitiveness 
C)  employee contributions 
D)  management of the pay system

Question 14

Robert,the CEO of GameTrack Corp. ,wants to restructure the pay plan without increasing the labor costs in the long run.He is most likely to achieve this,while retaining his top employees,by:

Accepted Answer

A)  increasing base pay and decreasing variable pay. 
B)  increasing incentive pay and decreasing base pay. 
C)  hiring more employees and reducing the marginal product output requirements. 
D)  providing across-the-board increases on a monthly basis. 
A)  increasing base pay and decreasing variable pay. 
B)  increasing incentive pay and decreasing base pay. 
C)  hiring more employees and reducing the marginal product output requirements. 
D)  providing across-the-board increases on a monthly basis.

Question 15

Objectives guide the design of pay systems and provide the standards for evaluating their effectiveness.

Accepted Answer

A) True 
 B)False

Question 16

When unemployment increases,the proportion of the population covered by health insurance decreases.

Accepted Answer

A) True 
 B)False

Question 17

If the objective is to increase customer satisfaction,then incentive programs and merit pay might be used to pay for performance.

Accepted Answer

A) True 
 B)False

Question 18

In the context of pay relationships,which of the following is illegal in the United States?

Accepted Answer

A)  Paying on the basis of the nature of jobs 
B)  Paying on the basis of pay comparisons with competitors 
C)  Paying on the basis of one's age 
D)  Paying on the basis of one's skill level 
A)  Paying on the basis of the nature of jobs 
B)  Paying on the basis of pay comparisons with competitors 
C)  Paying on the basis of one's age 
D)  Paying on the basis of one's skill level

Question 19

Hourly compensation costs for production workers in manufacturing are higher in _____ than in the United States.

Accepted Answer

A)  Germany 
B)  Czech Republic 
C)  Mexico 
D)  China 
A)  Germany 
B)  Czech Republic 
C)  Mexico 
D)  China

Question 20

Which of the following is NOT a question to ask for determining if research has value?

Accepted Answer

A)  Is the research useful? 
B)  Can alternative explanations be ruled out? 
C)  Was the research conducted by PhD researchers? 
D)  Is correlation separated from causation? 
A)  Is the research useful? 
B)  Can alternative explanations be ruled out? 
C)  Was the research conducted by PhD researchers? 
D)  Is correlation separated from causation?

List the basic elements of the pay model.

Which form of pay does not permanently increase labor costs?

A measure of how changes in one variable are related to changes in another variable is the:

Explain the basic compensation objectives of pay systems.

A difference between incentives and merit increases is that incentives:

Variable pay may also be called _____.

Which of the following policy decisions directly affects employees' attitudes and work behaviors?

A study found that only a very small amount of change in CEO pay is related to changes in company performance.

Which of the following companies is taking efforts to improve the work/life balance of its employees?

GreenRain Corp.faces an increase in employee turnover rate.The CEO calls for a board meeting with the senior executives to discuss the issue.Who among the following suggests increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?

Among employers that provide health insurance,the cost to provide family coverage per year per employee is approximately _____.

A major challenge facing most employers is the rising cost of health care benefits.

Incentives and merit guidelines are techniques of the _____ policy of the pay model.

Robert,the CEO of GameTrack Corp. ,wants to restructure the pay plan without increasing the labor costs in the long run.He is most likely to achieve this,while retaining his top employees,by:

Objectives guide the design of pay systems and provide the standards for evaluating their effectiveness.

When unemployment increases,the proportion of the population covered by health insurance decreases.

If the objective is to increase customer satisfaction,then incentive programs and merit pay might be used to pay for performance.

In the context of pay relationships,which of the following is illegal in the United States?

Hourly compensation costs for production workers in manufacturing are higher in _____ than in the United States.

Which of the following is NOT a question to ask for determining if research has value?

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

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

Exam 1: The Pay Model

List the basic elements of the pay model.

Which form of pay does not permanently increase labor costs?

A measure of how changes in one variable are related to changes in another variable is the:

Explain the basic compensation objectives of pay systems.

A difference between incentives and merit increases is that incentives:

Variable pay may also be called _____.

Which of the following policy decisions directly affects employees' attitudes and work behaviors?

A study found that only a very small amount of change in CEO pay is related to changes in company performance.

Which of the following companies is taking efforts to improve the work/life balance of its employees?

GreenRain Corp.faces an increase in employee turnover rate.The CEO calls for a board meeting with the senior executives to discuss the issue.Who among the following suggests increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?

Among employers that provide health insurance,the cost to provide family coverage per year per employee is approximately _____.

A major challenge facing most employers is the rising cost of health care benefits.

Incentives and merit guidelines are techniques of the _____ policy of the pay model.

Robert,the CEO of GameTrack Corp. ,wants to restructure the pay plan without increasing the labor costs in the long run.He is most likely to achieve this,while retaining his top employees,by:

Objectives guide the design of pay systems and provide the standards for evaluating their effectiveness.

When unemployment increases,the proportion of the population covered by health insurance decreases.

If the objective is to increase customer satisfaction,then incentive programs and merit pay might be used to pay for performance.

In the context of pay relationships,which of the following is illegal in the United States?

Hourly compensation costs for production workers in manufacturing are higher in _____ than in the United States.

Which of the following is NOT a question to ask for determining if research has value?

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

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters