Question 1

Which of the following statements best describes the context of compensation management within a firm?

Accepted Answer

A)  All organizations need a human resources department to deal with compensation issues. 
B)  The larger the firm, the greater the need for compensation specialists. 
C)  In smaller organizations, compensation consulting firms are responsible for compensation strategy. 
D)  Within a large firm, all managers require extensive knowledge of compensation. 
A)  All organizations need a human resources department to deal with compensation issues. 
B)  The larger the firm, the greater the need for compensation specialists. 
C)  In smaller organizations, compensation consulting firms are responsible for compensation strategy. 
D)  Within a large firm, all managers require extensive knowledge of compensation.

Question 2

Which of the following statements most accurately describes extrinsic rewards?

Accepted Answer

A)  They focus on factors inherent in the work itself-the job content. 
B)  They satisfy higher-order human needs. 
C)  They include monetary and nonmonetary rewards and come from the job context. 
D)  They involve skill variety, task identity, task significance, autonomy, and feedback. 
A)  They focus on factors inherent in the work itself-the job content. 
B)  They satisfy higher-order human needs. 
C)  They include monetary and nonmonetary rewards and come from the job context. 
D)  They involve skill variety, task identity, task significance, autonomy, and feedback.

Question 3

What is the goal of an organization's reward and compensation system?

Accepted Answer

All organizations have a compensation pl

Question 4

Which of the following items is a component of the compensation strategy?

Accepted Answer

A)  employee benefits 
B)  employment security 
C)  promotion criteria 
D)  compensation plan 
A)  employee benefits 
B)  employment security 
C)  promotion criteria 
D)  compensation plan

Question 5

Joe, a service manager, loves his job. He particularly appreciates the level of autonomy his job provides. From a rewards perspective, which kind of reward appears to be motivating Joe?

Accepted Answer

A)  extrinsic 
B)  incentives 
C)  intrinsic 
D)  compensation 
A)  extrinsic 
B)  incentives 
C)  intrinsic 
D)  compensation

Question 6

Which of the following is considered a goal of an effective reward and compensation system?

Accepted Answer

A)  distributing rewards in an equal manner across the organization 
B)  reducing turnover to the lowest possible level 
C)  supporting the corporate strategy 
D)  decreasing overall salary levels 
A)  distributing rewards in an equal manner across the organization 
B)  reducing turnover to the lowest possible level 
C)  supporting the corporate strategy 
D)  decreasing overall salary levels

Question 7

In large organizations, who is typically responsible for approving strategic changes to compensation strategy?

Accepted Answer

A)  the head of human resources 
B)  the board of directors 
C)  the manager of compensation 
D)  compensation consultants 
A)  the head of human resources 
B)  the board of directors 
C)  the manager of compensation 
D)  compensation consultants

Question 8

A group of unionized employees negotiating a new contract is holding out for a better indirect pay plan. What should management offer the group in order to reach an agreement?

Accepted Answer

A)  better services and benefits 
B)  better training and development opportunities 
C)  pay for performance 
D)  a more competitive base pay 
A)  better services and benefits 
B)  better training and development opportunities 
C)  pay for performance 
D)  a more competitive base pay

Question 9

You have offered to your sales associate an all-expenses-paid trip for two to Australia if she doubles her annual sales volume from last year. What concept are you applying?

Accepted Answer

A)  intrinsic rewards 
B)  extrinsic rewards 
C)  incentives 
D)  job enrichment 
A)  intrinsic rewards 
B)  extrinsic rewards 
C)  incentives 
D)  job enrichment

Question 10

Which of the following items is considered part of a compensation system?

Accepted Answer

A)  variable pay 
B)  flexible work schedules 
C)  positive organizational culture 
D)  work/life programs 
A)  variable pay 
B)  flexible work schedules 
C)  positive organizational culture 
D)  work/life programs

Question 11

What is the last step to effective compensation according to the "Road Map to Effective Compensation"?

Accepted Answer

A)  developing new job descriptions and performance evaluation criteria 
B)  implementing, managing, and evaluating the compensation system as circumstances change 
C)  securing senior management approval and implementing the compensation system 
D)  determining the compensation mix to be used in the compensation system 
A)  developing new job descriptions and performance evaluation criteria 
B)  implementing, managing, and evaluating the compensation system as circumstances change 
C)  securing senior management approval and implementing the compensation system 
D)  determining the compensation mix to be used in the compensation system

Question 12

Explain the difference between "extrinsic" and "intrinsic" rewards. Provide examples for each type of reward.

Accepted Answer

Extrinsic rewards satisfy our basic need

Question 13

As a small business owner committed to the total rewards approach to compensation, what do you need to establish before you start to develop your compensation system?

Accepted Answer

A)  a reward system 
B)  an incentive program 
C)  a compensation strategy 
D)  a reward strategy 
A)  a reward system 
B)  an incentive program 
C)  a compensation strategy 
D)  a reward strategy

Question 14

As head of the human resources department for a new company, you have been asked to formulate a compensation strategy. What do you need to determine first?

Accepted Answer

A)  the role that compensation will play in the reward system 
B)  the correct mix of performance and base pay 
C)  the total amount of compensation to be provided 
D)  the role the reward system will play in the compensation strategy 
A)  the role that compensation will play in the reward system 
B)  the correct mix of performance and base pay 
C)  the total amount of compensation to be provided 
D)  the role the reward system will play in the compensation strategy

Question 15

The main similarity between extrinsic rewards and intrinsic rewards is that they both satisfy so-called higher order needs such as survival and security.

Accepted Answer

A) True 
 B)False

Question 16

The main difference between a reward system and a compensation system is that a reward system rewards only good performance while a compensation system provides pay to all employees.

Accepted Answer

A) True 
 B)False

Question 17

Explain the ways in which "direct" and "indirect" pay are similar and different to each other.

Accepted Answer

Combined, both are tangible financial ex

Question 18

Which of the following would be the best choice for a compensation system?

Accepted Answer

A)  A competitive base pay and incentives are offered. 
B)  Employees share in the organization's profits. 
C)  Compensation is linked to knowledge. 
D)  The system is cost effective and achieves company goals. 
A)  A competitive base pay and incentives are offered. 
B)  Employees share in the organization's profits. 
C)  Compensation is linked to knowledge. 
D)  The system is cost effective and achieves company goals.

Question 19

A reward strategy is the plan for the mix of rewards to be provided to organization members along with the means through which they will be provided.

Accepted Answer

A) True 
 B)False

Question 20

What does a firm's compensation strategy identify?

Accepted Answer

A)  all of the financial and nonfinancial rewards of work 
B)  the total amount of cash compensation employees will receive 
C)  the mix of intrinsic rewards 
D)  the mix and total amount of base, performance, and indirect pay 
A)  all of the financial and nonfinancial rewards of work 
B)  the total amount of cash compensation employees will receive 
C)  the mix of intrinsic rewards 
D)  the mix and total amount of base, performance, and indirect pay

Which of the following statements best describes the context of compensation management within a firm?

Which of the following statements most accurately describes extrinsic rewards?

What is the goal of an organization's reward and compensation system?

Which of the following items is a component of the compensation strategy?

Joe, a service manager, loves his job. He particularly appreciates the level of autonomy his job provides. From a rewards perspective, which kind of reward appears to be motivating Joe?

Which of the following is considered a goal of an effective reward and compensation system?

In large organizations, who is typically responsible for approving strategic changes to compensation strategy?

A group of unionized employees negotiating a new contract is holding out for a better indirect pay plan. What should management offer the group in order to reach an agreement?

You have offered to your sales associate an all-expenses-paid trip for two to Australia if she doubles her annual sales volume from last year. What concept are you applying?

Which of the following items is considered part of a compensation system?

What is the last step to effective compensation according to the "Road Map to Effective Compensation"?

Explain the difference between "extrinsic" and "intrinsic" rewards. Provide examples for each type of reward.

As a small business owner committed to the total rewards approach to compensation, what do you need to establish before you start to develop your compensation system?

As head of the human resources department for a new company, you have been asked to formulate a compensation strategy. What do you need to determine first?

The main similarity between extrinsic rewards and intrinsic rewards is that they both satisfy so-called higher order needs such as survival and security.

The main difference between a reward system and a compensation system is that a reward system rewards only good performance while a compensation system provides pay to all employees.

Explain the ways in which "direct" and "indirect" pay are similar and different to each other.

Which of the following would be the best choice for a compensation system?

A reward strategy is the plan for the mix of rewards to be provided to organization members along with the means through which they will be provided.

What does a firm's compensation strategy identify?

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: The Job Evaluation Process

Evaluating Jobs: The Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters

Exam 1: A Road Map to Effective Compensation

Which of the following statements best describes the context of compensation management within a firm?

Which of the following statements most accurately describes extrinsic rewards?

What is the goal of an organization's reward and compensation system?

Which of the following items is a component of the compensation strategy?

Joe, a service manager, loves his job. He particularly appreciates the level of autonomy his job provides. From a rewards perspective, which kind of reward appears to be motivating Joe?

Which of the following is considered a goal of an effective reward and compensation system?

In large organizations, who is typically responsible for approving strategic changes to compensation strategy?

A group of unionized employees negotiating a new contract is holding out for a better indirect pay plan. What should management offer the group in order to reach an agreement?

You have offered to your sales associate an all-expenses-paid trip for two to Australia if she doubles her annual sales volume from last year. What concept are you applying?

Which of the following items is considered part of a compensation system?

What is the last step to effective compensation according to the "Road Map to Effective Compensation"?

Explain the difference between "extrinsic" and "intrinsic" rewards. Provide examples for each type of reward.

As a small business owner committed to the total rewards approach to compensation, what do you need to establish before you start to develop your compensation system?

As head of the human resources department for a new company, you have been asked to formulate a compensation strategy. What do you need to determine first?

The main similarity between extrinsic rewards and intrinsic rewards is that they both satisfy so-called higher order needs such as survival and security.

The main difference between a reward system and a compensation system is that a reward system rewards only good performance while a compensation system provides pay to all employees.

Explain the ways in which "direct" and "indirect" pay are similar and different to each other.

Which of the following would be the best choice for a compensation system?

A reward strategy is the plan for the mix of rewards to be provided to organization members along with the means through which they will be provided.

What does a firm's compensation strategy identify?

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: The Job Evaluation Process

Evaluating Jobs: The Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters