Question 1

Monetary incentives produce the biggest increases in job performance.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

Which of the following is an example of a relational return?

Accepted Answer

A) Short-term incentives 
B) Employment security 
C) Long-term incentives 
D) Income protection 
A) Short-term incentives 
B) Employment security 
C) Long-term incentives 
D) Income protection

Question 5

Describe the various returns received from work.

Accepted Answer

Returns are categorized into two types:

Question 6

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 7

Pension and health benefits are a very large component of total compensation for many large companies such as American Airlines and GM.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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

Accepted Answer

A) Ethics 
B) Competitiveness 
C) Efficiency 
D) Fairness 
A) Ethics 
B) Competitiveness 
C) Efficiency 
D) Fairness

Question 10

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 11

Incentives do not permanently increase labor costs because:

Accepted Answer

A) they rely on a subjective rating of performance. 
B) they are given based on the past performances of the employees. 
C) they increase the base wage. 
D) they are one-time payments. 
A) they rely on a subjective rating of performance. 
B) they are given based on the past performances of the employees. 
C) they increase the base wage. 
D) they are one-time payments.

Question 12

Most U.S.firms use merit pay increases.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Which of the following is given as an increment to the base pay in recognition of past work behavior?

Accepted Answer

A) Base pay 
B) Long-term incentive 
C) Merit pay 
D) Short-term incentive 
A) Base pay 
B) Long-term incentive 
C) Merit pay 
D) Short-term incentive

Question 15

The degree to which pay influences individual and aggregate motivation among employees at any point in time is referred to as a(n):

Accepted Answer

A) sorting effect. 
B) incentive effect. 
C) turnover effect. 
D) directional effect. 
A) sorting effect. 
B) incentive effect. 
C) turnover effect. 
D) directional effect.

Monetary incentives produce the biggest increases in job performance.

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

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

Which of the following is an example of a relational return?

Describe the various returns received from work.

A difference between incentives and merit increases is that incentives:

Pension and health benefits are a very large component of total compensation for many large companies such as American Airlines and GM.

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

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

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

Incentives do not permanently increase labor costs because:

Most U.S.firms use merit pay increases.

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 given as an increment to the base pay in recognition of past work behavior?

The degree to which pay influences individual and aggregate motivation among employees at any point in time is referred to as a(n):

Strategy: The Totality of Decisions

Defining Internal Alignment

R: 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: Pay-For-Performance: The Evidence

Monetary incentives produce the biggest increases in job performance.

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

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

Which of the following is an example of a relational return?

Describe the various returns received from work.

A difference between incentives and merit increases is that incentives:

Pension and health benefits are a very large component of total compensation for many large companies such as American Airlines and GM.

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

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

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

Incentives do not permanently increase labor costs because:

Most U.S.firms use merit pay increases.

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 given as an increment to the base pay in recognition of past work behavior?

The degree to which pay influences individual and aggregate motivation among employees at any point in time is referred to as a(n):

Strategy: The Totality of Decisions

Defining Internal Alignment

R: 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