Question 1

The compa-ratio is calculated by dividing the individual's pay rate by the lowest point in the pay range.

Accepted Answer

A) True 
 B)False

Question 2

Integrating performance appraisal ratings with pay changes can be done through the development of a merit-based performance matrix.

Accepted Answer

A) True 
 B)False

Question 3

Across-the-board raises are most common in organizations that follow the pay-for-performance philosophy.

Accepted Answer

A) True 
 B)False

Question 4

In knowledge-based pay (KBP) or skill-based pay (SBP) systems, employees start at a base level of pay and receive increases as they learn to do other jobs or gain additional skills and knowledge and thus become more valuable to the employer.

Accepted Answer

A) True 
 B)False

Question 5

Compa-ratio = _____.

Accepted Answer

A)  total pay divided by the total number of employees 
B)  pay level divided by the midpoint of the pay range 
C)  total pay divided by the midpoint of the pay range 
D)  pay level divided by the total number of employees 
A)  total pay divided by the total number of employees 
B)  pay level divided by the midpoint of the pay range 
C)  total pay divided by the midpoint of the pay range 
D)  pay level divided by the total number of employees

Question 6

_____ groups jobs into pay grades based on similar market survey amounts.

Accepted Answer

A)  Market scaling 
B)  Market pegging 
C)  Market lining 
D)  Market banding 
A)  Market scaling 
B)  Market pegging 
C)  Market lining 
D)  Market banding

Question 7

Describe the entitlement philosophy of employee compensation.

Accepted Answer

The entitlement philosophy assumes that

Question 8

Market banding groups jobs into pay grades based on similar market survey amounts.

Accepted Answer

A) True 
 B)False

Question 9

The total rewards package includes all forms of compensation, the monetary and nonmonetary rewards provided by a company to attract, motivate, and retain employees.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true of the point factor method of job evaluation?

Accepted Answer

A)  In this method, descriptions of each class of jobs are written and then each job is put into a grade according to the class it best matches. 
B)  It is a complex quantitative method that combines the ranking and classification methods. 
C)  It looks at compensable factors in a group of similar jobs and assigns weights to them. 
D)  It is a simple system that places jobs in order, from highest to lowest, by their value to the organization. 
A)  In this method, descriptions of each class of jobs are written and then each job is put into a grade according to the class it best matches. 
B)  It is a complex quantitative method that combines the ranking and classification methods. 
C)  It looks at compensable factors in a group of similar jobs and assigns weights to them. 
D)  It is a simple system that places jobs in order, from highest to lowest, by their value to the organization.

Question 11

Which of the following is true of the ranking method of job evaluation?

Accepted Answer

A)  In this method, descriptions of each class of jobs are written and then each job is put into a grade according to the class it best matches. 
B)  It is a complex quantitative method that combines the classification and point factor methods. 
C)  It looks at compensable factors in a group of similar jobs and assigns weights, or points, to them. 
D)  It is a simple system that places jobs in order, from highest to lowest, by their value to the organization. 
A)  In this method, descriptions of each class of jobs are written and then each job is put into a grade according to the class it best matches. 
B)  It is a complex quantitative method that combines the classification and point factor methods. 
C)  It looks at compensable factors in a group of similar jobs and assigns weights, or points, to them. 
D)  It is a simple system that places jobs in order, from highest to lowest, by their value to the organization.

Question 12

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 13

The _____ uses external pay data to identify the relative value of jobs based on what other employers pay for similar jobs.

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 14

Which of the following statements is true of the host-country-based approach?

Accepted Answer

A)  Compensation is adjusted to maintain the expatriate's standard of living in the country where the expatriate is sent from the headquarters. 
B)  Compensation is adjusted to maintain the expatriate's standard of living in the country where the MNE is headquartered. 
C)  Compensation is adjusted to maintain the expatriate's standard of living in the country that has the lowest cost of living index. 
D)  Compensation is adjusted to maintain the expatriate's standard of living in the third country. 
A)  Compensation is adjusted to maintain the expatriate's standard of living in the country where the expatriate is sent from the headquarters. 
B)  Compensation is adjusted to maintain the expatriate's standard of living in the country where the MNE is headquartered. 
C)  Compensation is adjusted to maintain the expatriate's standard of living in the country that has the lowest cost of living index. 
D)  Compensation is adjusted to maintain the expatriate's standard of living in the third country.

Question 15

Describe the different methods of job evaluation.

Accepted Answer

Job evaluation is a formal, systematic p

Question 16

Which of the following is true of a pay adjustment matrix?

Accepted Answer

A)  It reflects an employee's horizontal movement in an organization. 
B)  It is used to determine the compensation benchmark for a particular industry. 
C)  It is used to determine the compensation benchmark for a particular organization. 
D)  It reflects an employee's vertical movement in an organization. 
A)  It reflects an employee's horizontal movement in an organization. 
B)  It is used to determine the compensation benchmark for a particular industry. 
C)  It is used to determine the compensation benchmark for a particular organization. 
D)  It reflects an employee's vertical movement in an organization.

Question 17

Which of the following is classified as an input in the equity theory?

Accepted Answer

A)  Job security 
B)  Praise 
C)  Loyalty 
D)  Recognition 
A)  Job security 
B)  Praise 
C)  Loyalty 
D)  Recognition

Question 18

Describe the two different compensation philosophies.

Accepted Answer

The entitlement philosophy assumes that

Question 19

Define broadbanding.

Accepted Answer

The practice of using fewer pay grades w

Question 20

Discuss compensation fairness and equity.

Accepted Answer

Most people work for monetary rewards. W

The compa-ratio is calculated by dividing the individual's pay rate by the lowest point in the pay range.

Integrating performance appraisal ratings with pay changes can be done through the development of a merit-based performance matrix.

Across-the-board raises are most common in organizations that follow the pay-for-performance philosophy.

In knowledge-based pay (KBP) or skill-based pay (SBP) systems, employees start at a base level of pay and receive increases as they learn to do other jobs or gain additional skills and knowledge and thus become more valuable to the employer.

Compa-ratio = _____.

_____ groups jobs into pay grades based on similar market survey amounts.

Describe the entitlement philosophy of employee compensation.

Market banding groups jobs into pay grades based on similar market survey amounts.

The total rewards package includes all forms of compensation, the monetary and nonmonetary rewards provided by a company to attract, motivate, and retain employees.

Which of the following is true of the point factor method of job evaluation?

Which of the following is true of the ranking method of job evaluation?

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.

The _____ uses external pay data to identify the relative value of jobs based on what other employers pay for similar jobs.

Which of the following statements is true of the host-country-based approach?

Describe the different methods of job evaluation.

Which of the following is true of a pay adjustment matrix?

Which of the following is classified as an input in the equity theory?

Describe the two different compensation philosophies.

Define broadbanding.

Discuss compensation fairness and equity.

Human Resource Management in Organizations

Human Resources Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individual/Organization Relations and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Variable Pay and Executive Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Union/Management Relations

Filters

Exam 11: Total Rewards and Compensation

The compa-ratio is calculated by dividing the individual's pay rate by the lowest point in the pay range.

Integrating performance appraisal ratings with pay changes can be done through the development of a merit-based performance matrix.

Across-the-board raises are most common in organizations that follow the pay-for-performance philosophy.

In knowledge-based pay (KBP) or skill-based pay (SBP) systems, employees start at a base level of pay and receive increases as they learn to do other jobs or gain additional skills and knowledge and thus become more valuable to the employer.

Compa-ratio = _____.

_____ groups jobs into pay grades based on similar market survey amounts.

Describe the entitlement philosophy of employee compensation.

Market banding groups jobs into pay grades based on similar market survey amounts.

The total rewards package includes all forms of compensation, the monetary and nonmonetary rewards provided by a company to attract, motivate, and retain employees.

Which of the following is true of the point factor method of job evaluation?

Which of the following is true of the ranking method of job evaluation?

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.

The _____ uses external pay data to identify the relative value of jobs based on what other employers pay for similar jobs.

Which of the following statements is true of the host-country-based approach?

Describe the different methods of job evaluation.

Which of the following is true of a pay adjustment matrix?

Which of the following is classified as an input in the equity theory?

Describe the two different compensation philosophies.

Define broadbanding.

Discuss compensation fairness and equity.

Human Resource Management in Organizations

Human Resources Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individual/Organization Relations and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Variable Pay and Executive Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Union/Management Relations

Filters