Question 1

Describe market competitive compensation.

Accepted Answer

Whether an organization's total reward p

Question 2

Team Spark LLC, a producer of consumer goods, used to practice gainsharing. After organizational restructuring, the management decides to replace its gainsharing plans with a piece-rate system. Which of the following is true of Team Spark LLC?

Accepted Answer

A)  It used to provide team incentives, but now it provides individual incentives. 
B)  It used to provide individual incentives, but now it provides team incentives. 
C)  It used to provide team incentives, but now it provides organizational incentives. 
D)  It used to provide individual incentives, but now it provides organizational incentives. 
A)  It used to provide team incentives, but now it provides individual incentives. 
B)  It used to provide individual incentives, but now it provides team incentives. 
C)  It used to provide team incentives, but now it provides organizational incentives. 
D)  It used to provide individual incentives, but now it provides organizational incentives.

Question 3

Which of the following is a disadvantage of profit sharing plans?

Accepted Answer

A)  Employees must trust that management will accurately disclose financial and profit information. 
B)  Employees are taxed heavily on the income that they generate from profit sharing plans. 
C)  Employees cannot access the funds that they receive from profit sharing plans for up to three years. 
D)  Employers get little or no rebate on income tax for choosing profit sharing plans. 
A)  Employees must trust that management will accurately disclose financial and profit information. 
B)  Employees are taxed heavily on the income that they generate from profit sharing plans. 
C)  Employees cannot access the funds that they receive from profit sharing plans for up to three years. 
D)  Employers get little or no rebate on income tax for choosing profit sharing plans.

Question 4

An individual whose pay is above the range for a job is referred to as a green-circled employee.

Accepted Answer

A) True 
 B)False

Question 5

Explain the concept of line of sight in variable pay.

Accepted Answer

A key concept for variable pay is line o

Question 6

The FLSA established overtime pay requirements for nonexempt employees at 1.5 times the regular pay rate for all hours worked over _____.

Accepted Answer

A)  50 in a week 
B)  45 in a week 
C)  40 in a week 
D)  35 in a week 
A)  50 in a week 
B)  45 in a week 
C)  40 in a week 
D)  35 in a week

Question 7

If an organization has implemented competitive pay practices and has a fair and reasonable pay structure, employee concerns about inequity can be reduced by sharing this information.

Accepted Answer

A) True 
 B)False

Question 8

Describe the pay-for-performance philosophy of employee compensation.

Accepted Answer

A pay-for-performance philosophy assumes

Question 9

The straight commission system is the most frequently used form of sales compensation.

Accepted Answer

A) True 
 B)False

Question 10

Variable pay plans attempt to provide tangible rewards, or incentives, to employees for performance beyond normal expectations.

Accepted Answer

A) True 
 B)False

Question 11

In the context of job evaluation, external pay data are used to identify the relative value of jobs based on what other employers pay for similar jobs in the _____.

Accepted Answer

A)  factor-comparison method 
B)  ranking method 
C)  point factor method 
D)  market pricing method 
A)  factor-comparison method 
B)  ranking method 
C)  point factor method 
D)  market pricing method

Question 12

Leah LLC, a producer of sporting goods, used to provide its employees with a stock option plan. After organizational restructuring, the management decides to replace the stock option plan with profit sharing. Which of the following is true of Leah LLC?

Accepted Answer

A)  It used to provide organizational incentives, but now it provides individual incentives. 
B)  It used to provide organizational incentives, but now it provides team incentives. 
C)  It used to provide organizational incentives, but now it provides the same. 
D)  It used to provide individual incentives, but now it provides the same. 
A)  It used to provide organizational incentives, but now it provides individual incentives. 
B)  It used to provide organizational incentives, but now it provides team incentives. 
C)  It used to provide organizational incentives, but now it provides the same. 
D)  It used to provide individual incentives, but now it provides the same.

Question 13

Which of the following is true of an employer who uses the first-quartile strategy of compensation?

Accepted Answer

A)  The employer pays the employees above market levels. 
B)  The employer determines the pay independent of the market scenario. 
C)  The employer pays the employees below market levels. 
D)  The employer pays the employees on par with the market levels. 
A)  The employer pays the employees above market levels. 
B)  The employer determines the pay independent of the market scenario. 
C)  The employer pays the employees below market levels. 
D)  The employer pays the employees on par with the market levels.

Question 14

Pay grades are groupings of individual jobs that have different values for the organization.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is typical of the entitlement philosophy of compensation?

Accepted Answer

A)  Pay and raises based on length of service 
B)  No raises for poor-performing employees 
C)  Market-adjusted pay scales 
D)  Industry comparisons of total rewards 
A)  Pay and raises based on length of service 
B)  No raises for poor-performing employees 
C)  Market-adjusted pay scales 
D)  Industry comparisons of total rewards

Question 16

Explain commissions in the context of variable pay.

Accepted Answer

A commission is a percentage of the reve

Question 17

Compliance with FLSA provisions on employee compensation is enforced by the National Labor Relations Board.

Accepted Answer

A) True 
 B)False

Question 18

Equity theory states that individuals judge fairness in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others.

Accepted Answer

A) True 
 B)False

Question 19

Not having to pay Social Security, unemployment, or workers' compensation costs to independent contractors offers major advantages to the employer.

Accepted Answer

A) True 
 B)False

Question 20

Salary inversion occurs when the pay given to new hires is higher than the compensation provided to more senior employees.

Accepted Answer

A) True 
 B)False

Describe market competitive compensation.

Team Spark LLC, a producer of consumer goods, used to practice gainsharing. After organizational restructuring, the management decides to replace its gainsharing plans with a piece-rate system. Which of the following is true of Team Spark LLC?

Which of the following is a disadvantage of profit sharing plans?

An individual whose pay is above the range for a job is referred to as a green-circled employee.

Explain the concept of line of sight in variable pay.

The FLSA established overtime pay requirements for nonexempt employees at 1.5 times the regular pay rate for all hours worked over _____.

If an organization has implemented competitive pay practices and has a fair and reasonable pay structure, employee concerns about inequity can be reduced by sharing this information.

Describe the pay-for-performance philosophy of employee compensation.

The straight commission system is the most frequently used form of sales compensation.

Variable pay plans attempt to provide tangible rewards, or incentives, to employees for performance beyond normal expectations.

In the context of job evaluation, external pay data are used to identify the relative value of jobs based on what other employers pay for similar jobs in the _____.

Leah LLC, a producer of sporting goods, used to provide its employees with a stock option plan. After organizational restructuring, the management decides to replace the stock option plan with profit sharing. Which of the following is true of Leah LLC?

Which of the following is true of an employer who uses the first-quartile strategy of compensation?

Pay grades are groupings of individual jobs that have different values for the organization.

Which of the following is typical of the entitlement philosophy of compensation?

Explain commissions in the context of variable pay.

Compliance with FLSA provisions on employee compensation is enforced by the National Labor Relations Board.

Equity theory states that individuals judge fairness in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others.

Not having to pay Social Security, unemployment, or workers' compensation costs to independent contractors offers major advantages to the employer.

Salary inversion occurs when the pay given to new hires is higher than the compensation provided to more senior employees.

Human Resource Management in Organizations

Human Resource Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individual Organization Relations and Retention

Recruiting High-Quality Talent

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Union-Management Relations

Global Human Resource Management

Filters

Exam 11: Total Rewards and Compensation

Describe market competitive compensation.

Team Spark LLC, a producer of consumer goods, used to practice gainsharing. After organizational restructuring, the management decides to replace its gainsharing plans with a piece-rate system. Which of the following is true of Team Spark LLC?

Which of the following is a disadvantage of profit sharing plans?

An individual whose pay is above the range for a job is referred to as a green-circled employee.

Explain the concept of line of sight in variable pay.

The FLSA established overtime pay requirements for nonexempt employees at 1.5 times the regular pay rate for all hours worked over _____.

If an organization has implemented competitive pay practices and has a fair and reasonable pay structure, employee concerns about inequity can be reduced by sharing this information.

Describe the pay-for-performance philosophy of employee compensation.

The straight commission system is the most frequently used form of sales compensation.

Variable pay plans attempt to provide tangible rewards, or incentives, to employees for performance beyond normal expectations.

In the context of job evaluation, external pay data are used to identify the relative value of jobs based on what other employers pay for similar jobs in the _____.

Leah LLC, a producer of sporting goods, used to provide its employees with a stock option plan. After organizational restructuring, the management decides to replace the stock option plan with profit sharing. Which of the following is true of Leah LLC?

Which of the following is true of an employer who uses the first-quartile strategy of compensation?

Pay grades are groupings of individual jobs that have different values for the organization.

Which of the following is typical of the entitlement philosophy of compensation?

Explain commissions in the context of variable pay.

Compliance with FLSA provisions on employee compensation is enforced by the National Labor Relations Board.

Equity theory states that individuals judge fairness in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others.

Not having to pay Social Security, unemployment, or workers' compensation costs to independent contractors offers major advantages to the employer.

Salary inversion occurs when the pay given to new hires is higher than the compensation provided to more senior employees.

Human Resource Management in Organizations

Human Resource Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individual Organization Relations and Retention

Recruiting High-Quality Talent

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Union-Management Relations

Global Human Resource Management

Filters