Question 1

The degree to which pay influences individual and aggregate motivation among employees is called the sorting effect.

Accepted Answer

A) True 
 B)False

Question 2

Base wage reflects both the value of the work and individual employee skills and experience.

Accepted Answer

A) True 
 B)False

Question 3

Describe the various returns received from work.

Accepted Answer

Returns are categorized into two types:

Question 4

Internal alignment refers to comparisons among jobs or skill levels inside a single organization.

Accepted Answer

A) True 
 B)False

Question 5

Procedural fairness suggests that the way a pay decision is made is of less importance to employees than the results of the decision.

Accepted Answer

A) True 
 B)False

Question 6

According to the text,which of the following decisions should be made jointly?

Accepted Answer

A)  Internal alignment and management decisions 
B)  External competitiveness and employee contribution decisions 
C)  Employee contribution and internal alignment decisions 
D)  Management and external competitiveness decisions 
A)  Internal alignment and management decisions 
B)  External competitiveness and employee contribution decisions 
C)  Employee contribution and internal alignment decisions 
D)  Management and external competitiveness decisions

Question 7

One of the reasons why 8 in 10 of the uninsured in the United States are from working families is that _____.

Accepted Answer

A)  many larger employers do not offer health insurance as it does not guarantee an increase in productivity levels 
B)  health insurance is more costly for larger employers 
C)  many small employers are much less likely than larger employers to offer health insurance to their employees 
D)  most workers decline health insurance when offered by their employers 
A)  many larger employers do not offer health insurance as it does not guarantee an increase in productivity levels 
B)  health insurance is more costly for larger employers 
C)  many small employers are much less likely than larger employers to offer health insurance to their employees 
D)  most workers decline health insurance when offered by their employers

Question 8

Commissions are an example of incentives.

Accepted Answer

A) True 
 B)False

Question 9

Even if the federal compensation laws change,it is unnecessary to change pay systems to ensure continued compliance.

Accepted Answer

A) True 
 B)False

Question 10

The best way to establish _____ is to account for competing explanations,either statistically or through control groups.

Accepted Answer

A)  causation 
B)  profitability 
C)  correlation coefficient 
D)  internal alignment 
A)  causation 
B)  profitability 
C)  correlation coefficient 
D)  internal alignment

Question 11

Monetary incentives produce the biggest increases in job performance.

Accepted Answer

A) True 
 B)False

Question 12

Compensation policy choices that affect the pay level relative to other companies are most closely associated with the _____ aspect of the pay model.

Accepted Answer

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

Question 13

Which of the following is a fundamental objective,and NOT a policy,in the pay model?

Accepted Answer

A)  Fairness 
B)  Competitiveness 
C)  Contributions 
D)  Alignment 
A)  Fairness 
B)  Competitiveness 
C)  Contributions 
D)  Alignment

Question 14

Recent surveys show that,on average,an outstanding performer receives a _____ merit increase,an average performer a _____ merit increase,and a poor performer a 0.4% merit increase.

Accepted Answer

A)  10.5%;7% 
B)  8.4%;5.2% 
C)  6.7%;4.2% 
D)  4.4%;2.8% 
A)  10.5%;7% 
B)  8.4%;5.2% 
C)  6.7%;4.2% 
D)  4.4%;2.8%

Question 15

The decisions to implement pay for performance,flat rate pay,and profit sharing are examples of _____ policy decisions.

Accepted Answer

A)  internal alignment 
B)  efficiency 
C)  employee contributions 
D)  management 
A)  internal alignment 
B)  efficiency 
C)  employee contributions 
D)  management

Question 16

Since HR research contains information useful to managers,most managers read research in HR management,and compensation journals.

Accepted Answer

A) True 
 B)False

Question 17

Most U.S.firms use merit pay increases.

Accepted Answer

A) True 
 B)False

Question 18

The R2,which is an output from a regression analysis,is different from correlation in that it tells us what percentage of the variation is accounted for by the variables we are using to predict or explain.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is often the largest component in an executive pay package?

Accepted Answer

A)  Base pay 
B)  Stock options 
C)  Merit pay 
D)  Perks 
A)  Base pay 
B)  Stock options 
C)  Merit pay 
D)  Perks

Question 20

Base wage is the overtime pay given to employees who are exempt from regulations of the Fair Labor Standards Act.

Accepted Answer

A) True 
 B)False

The degree to which pay influences individual and aggregate motivation among employees is called the sorting effect.

Base wage reflects both the value of the work and individual employee skills and experience.

Describe the various returns received from work.

Internal alignment refers to comparisons among jobs or skill levels inside a single organization.

Procedural fairness suggests that the way a pay decision is made is of less importance to employees than the results of the decision.

According to the text,which of the following decisions should be made jointly?

One of the reasons why 8 in 10 of the uninsured in the United States are from working families is that _____.

Commissions are an example of incentives.

Even if the federal compensation laws change,it is unnecessary to change pay systems to ensure continued compliance.

The best way to establish _____ is to account for competing explanations,either statistically or through control groups.

Monetary incentives produce the biggest increases in job performance.

Compensation policy choices that affect the pay level relative to other companies are most closely associated with the _____ aspect of the pay model.

Which of the following is a fundamental objective,and NOT a policy,in the pay model?

Recent surveys show that,on average,an outstanding performer receives a _ merit increase,an average performer a _ merit increase,and a poor performer a 0.4% merit increase.

The decisions to implement pay for performance,flat rate pay,and profit sharing are examples of _____ policy decisions.

Since HR research contains information useful to managers,most managers read research in HR management,and compensation journals.

Most U.S.firms use merit pay increases.

The R²,which is an output from a regression analysis,is different from correlation in that it tells us what percentage of the variation is accounted for by the variables we are using to predict or explain.

Which of the following is often the largest component in an executive pay package?

Base wage is the overtime pay given to employees who are exempt from regulations of the Fair Labor Standards Act.

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

The degree to which pay influences individual and aggregate motivation among employees is called the sorting effect.

Base wage reflects both the value of the work and individual employee skills and experience.

Describe the various returns received from work.

Internal alignment refers to comparisons among jobs or skill levels inside a single organization.

Procedural fairness suggests that the way a pay decision is made is of less importance to employees than the results of the decision.

According to the text,which of the following decisions should be made jointly?

One of the reasons why 8 in 10 of the uninsured in the United States are from working families is that _____.

Commissions are an example of incentives.

Even if the federal compensation laws change,it is unnecessary to change pay systems to ensure continued compliance.

The best way to establish _____ is to account for competing explanations,either statistically or through control groups.

Monetary incentives produce the biggest increases in job performance.

Compensation policy choices that affect the pay level relative to other companies are most closely associated with the _____ aspect of the pay model.

Which of the following is a fundamental objective,and NOT a policy,in the pay model?

Recent surveys show that,on average,an outstanding performer receives a _____ merit increase,an average performer a _____ merit increase,and a poor performer a 0.4% merit increase.

The decisions to implement pay for performance,flat rate pay,and profit sharing are examples of _____ policy decisions.

Since HR research contains information useful to managers,most managers read research in HR management,and compensation journals.

Most U.S.firms use merit pay increases.

The R2,which is an output from a regression analysis,is different from correlation in that it tells us what percentage of the variation is accounted for by the variables we are using to predict or explain.

Which of the following is often the largest component in an executive pay package?

Base wage is the overtime pay given to employees who are exempt from regulations of the Fair Labor Standards Act.

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

Recent surveys show that,on average,an outstanding performer receives a _ merit increase,an average performer a _ merit increase,and a poor performer a 0.4% merit increase.

The R²,which is an output from a regression analysis,is different from correlation in that it tells us what percentage of the variation is accounted for by the variables we are using to predict or explain.