Question 1

In order for a compensation system to work well,it must:

Accepted Answer

A)  enable the firm to achieve its objectives. 
B)  guarantee low employee turnover. 
C)  follow an egalitarian strategy. 
D)  meet federal guidelines. 
A)  enable the firm to achieve its objectives. 
B)  guarantee low employee turnover. 
C)  follow an egalitarian strategy. 
D)  meet federal guidelines. A

Question 2

A pay plan in which most employees are part of the same compensation system is referred to as a(n)________.

Accepted Answer

egalitarian pay system

Question 3

Open pay policies tend to lead to greater dissatisfaction among employees as employees compare compensation with each other.

Accepted Answer

A) True 
 B)False  False

Question 4

An individual-based pay policy works best in which of the following situations?

Accepted Answer

A)  Employees may have many opportunities to learn new skills. 
B)  Employees are expected to move up "through the ranks." 
C)  Employee turnover is low and jobs don't change often. 
D)  Jobs are standardized within the industry. 
A)  Employees may have many opportunities to learn new skills. 
B)  Employees are expected to move up "through the ranks." 
C)  Employee turnover is low and jobs don't change often. 
D)  Jobs are standardized within the industry.

Question 5

A company designing a compensation plan needs to make several decisions.Explain a company's pay options in terms of: fixed versus variable pay,performance versus membership,and individual versus job-based system.

Accepted Answer

Summary of suggested answer -
•Fixed ver

Question 6

________ is the perceived fairness of individual pay decisions.

Accepted Answer

The answer of ________ is the perceived fairness of individual...

Question 7

Cornilia and Janice have similar jobs at different firms.Janice is compensated with higher pay and better benefits than Cornilia,which bothers Cornilia.Cornilia's concern reflects the compensation issue of:

Accepted Answer

A)  job versus individual pay. 
B)  external equity. 
C)  internal equity. 
D)  fixed versus variable pay. 
A)  job versus individual pay. 
B)  external equity. 
C)  internal equity. 
D)  fixed versus variable pay.

Question 8

Additional Case 10.2 
O'Donnell International is updating its job-based compensation system with a primary goal of achieving internal equity. Sean is responsible for gathering and organizing information concerning the tasks and duties of specific jobs. Susie is to determine the prerequisites for the successful accomplishment of each job analyzed. Jeff will work with three line managers to determine the compensable factors for specific lower-level jobs. The HR director, the president, and two VPs will review the information on management jobs in order to determine the compensable factors in each before putting all jobs at the firm into a job hierarchy.
-Refer to Additional Case 10.2.Susie's responsibility most likely relates to:

Accepted Answer

A)  conducting the job evaluations. 
B)  writing the job descriptions. 
C)  identifying job specification components. 
D)  rating the worth of the jobs. 
A)  conducting the job evaluations. 
B)  writing the job descriptions. 
C)  identifying job specification components. 
D)  rating the worth of the jobs.

Question 9

An exempt employee:

Accepted Answer

A)  works as a temporary employee. 
B)  is more costly to a firm than a nonexempt employee. 
C)  is not covered by the Fair Labor Standards Act. 
D)  works part time rather than full time. 
A)  works as a temporary employee. 
B)  is more costly to a firm than a nonexempt employee. 
C)  is not covered by the Fair Labor Standards Act. 
D)  works part time rather than full time.

Question 10

As an employee's base pay increases,it is likely that the percentage of variable pay that he or she receives will decrease.

Accepted Answer

A) True 
 B)False

Question 11

________ is a pay concept or doctrine that calls for comparable pay for jobs that require comparable skills,effort,and responsibility and have comparable working conditions,even if the job content is different.

Accepted Answer

The answer of ________ is a pay concept or doctrine...

Question 12

The practice of secret pay in a compensation system generally leads to:

Accepted Answer

A)  managers being more careful in their compensation decisions because they have to defend them. 
B)  an increase in the cost of mistakes in the pay-making decisions. 
C)  greater pay dissatisfaction among employees. 
D)  an egalitarian pay system. 
A)  managers being more careful in their compensation decisions because they have to defend them. 
B)  an increase in the cost of mistakes in the pay-making decisions. 
C)  greater pay dissatisfaction among employees. 
D)  an egalitarian pay system.

Question 13

Companies that pay employees at rates above the market are generally:

Accepted Answer

A)  small start-up companies. 
B)  involved in global expansion. 
C)  companies that struggle financially. 
D)  larger companies in less competitive industries. 
A)  small start-up companies. 
B)  involved in global expansion. 
C)  companies that struggle financially. 
D)  larger companies in less competitive industries.

Question 14

Additional Case 10.1 
Brighton Manufacturing is reviewing its compensation system. The CEO wants employees to be paid wages and benefits comparable to Brighton's competitors. He wants a system that allows for maximum flexibility in reassigning workers to different jobs without requiring compensation adjustments each time. The Finance VP suggests that the company link compensation costs more closely to productivity and profit. When profits are down, compensation costs should be reduced as well. The Finance VP also believes that employees should be paid for what they produce, not for their time, and the compensation program should apply to all employees equally. The VP of HR suggests that the key to the company's success is their employees and advocates an individual-based compensation plan. People should be paid for their skills or knowledge, not just because they are fulfilling certain jobs. The VP of HR also feels that it would be simpler to implement a compensation system by level rather than by job.
-Refer to Additional Case 10.1.The CEO,VP of HRM,and VP of Finance would most likely agree on a(n):

Accepted Answer

A)  elitist pay system. 
B)  egalitarian pay system. 
C)  below-market pay system. 
D)  individual-centered pay system. 
A)  elitist pay system. 
B)  egalitarian pay system. 
C)  below-market pay system. 
D)  individual-centered pay system.

Question 15

A company using a labor market model holds the philosophy that:

Accepted Answer

A)  the wage rate for any given job is set at the point where the supply of labor equals the demand for that labor in the marketplace. 
B)  internal equity is more important than external equity in a balanced labor market. 
C)  egalitarian pay policies are more effective than elitist policies when labor demand is high. 
D)  nonmonetary rewards are more effective motivators than monetary rewards. 
A)  the wage rate for any given job is set at the point where the supply of labor equals the demand for that labor in the marketplace. 
B)  internal equity is more important than external equity in a balanced labor market. 
C)  egalitarian pay policies are more effective than elitist policies when labor demand is high. 
D)  nonmonetary rewards are more effective motivators than monetary rewards.

Question 16

Define the concepts of internal and external equity,describing two basic models a company may use,and explain how the objectives of internal and external equity can conflict.

Accepted Answer

•Definitions - internal equity,perceived

Question 17

The code of tax laws that affects how much of their earnings employees can keep and how benefits are treated for tax purposes,is called the ________.

Accepted Answer

Internal R

Question 18

A listing of jobs in order of their importance to the organization,from highest to lowest,is referred to as a(n)________.

Accepted Answer

The answer of A listing of jobs in order of...

Question 19

Which of the following is the most common compensation practice among small firms?

Accepted Answer

A)  Paying below-market rates to technical workers 
B)  Offering stock options instead of base salaries 
C)  Paying bonuses based on company performance 
D)  Offering sign-on bonuses to attractive recruits 
A)  Paying below-market rates to technical workers 
B)  Offering stock options instead of base salaries 
C)  Paying bonuses based on company performance 
D)  Offering sign-on bonuses to attractive recruits

Question 20

Perquisites,also called "perks" are best described as:

Accepted Answer

A)  special benefits reserved for upper-level managers. 
B)  stock options available to long-term employees. 
C)  indirect compensation, such as vacation. 
D)  fixed pay rewarded regularly. 
A)  special benefits reserved for upper-level managers. 
B)  stock options available to long-term employees. 
C)  indirect compensation, such as vacation. 
D)  fixed pay rewarded regularly.

In order for a compensation system to work well,it must:

A pay plan in which most employees are part of the same compensation system is referred to as a(n)________.

Open pay policies tend to lead to greater dissatisfaction among employees as employees compare compensation with each other.

An individual-based pay policy works best in which of the following situations?

A company designing a compensation plan needs to make several decisions.Explain a company's pay options in terms of: fixed versus variable pay,performance versus membership,and individual versus job-based system.

________ is the perceived fairness of individual pay decisions.

Cornilia and Janice have similar jobs at different firms.Janice is compensated with higher pay and better benefits than Cornilia,which bothers Cornilia.Cornilia's concern reflects the compensation issue of:

An exempt employee:

As an employee's base pay increases,it is likely that the percentage of variable pay that he or she receives will decrease.

________ is a pay concept or doctrine that calls for comparable pay for jobs that require comparable skills,effort,and responsibility and have comparable working conditions,even if the job content is different.

The practice of secret pay in a compensation system generally leads to:

Companies that pay employees at rates above the market are generally:

A company using a labor market model holds the philosophy that:

Define the concepts of internal and external equity,describing two basic models a company may use,and explain how the objectives of internal and external equity can conflict.

The code of tax laws that affects how much of their earnings employees can keep and how benefits are treated for tax purposes,is called the ________.

A listing of jobs in order of their importance to the organization,from highest to lowest,is referred to as a(n)________.

Which of the following is the most common compensation practice among small firms?

Perquisites,also called "perks" are best described as:

Meeting Present and Emerging Strategic Human Resource Challenges

Managing Work Flows and Conducting Job Analysis

Understanding Equal Opportunity and the Legal Environment

Managing Diversity

Recruiting and Selecting Employees

Managing Employee Separations, Downsizing, and Outplacement

Appraising and Managing Performance

Training the Workforce

Developing Careers

Rewarding Performance

Designing and Administering Benefits

Developing Employee Relations

Respecting Employee Rights and Managing Discipline

Working With Organized Labor

Managing Workplace Safety and Health

International HRM Challenge

Filters

Exam 10: Managing Compensation

In order for a compensation system to work well,it must:

A pay plan in which most employees are part of the same compensation system is referred to as a(n)________.

Open pay policies tend to lead to greater dissatisfaction among employees as employees compare compensation with each other.

An individual-based pay policy works best in which of the following situations?

A company designing a compensation plan needs to make several decisions.Explain a company's pay options in terms of: fixed versus variable pay,performance versus membership,and individual versus job-based system.

________ is the perceived fairness of individual pay decisions.

Cornilia and Janice have similar jobs at different firms.Janice is compensated with higher pay and better benefits than Cornilia,which bothers Cornilia.Cornilia's concern reflects the compensation issue of:

An exempt employee:

As an employee's base pay increases,it is likely that the percentage of variable pay that he or she receives will decrease.

________ is a pay concept or doctrine that calls for comparable pay for jobs that require comparable skills,effort,and responsibility and have comparable working conditions,even if the job content is different.

The practice of secret pay in a compensation system generally leads to:

Companies that pay employees at rates above the market are generally:

A company using a labor market model holds the philosophy that:

Define the concepts of internal and external equity,describing two basic models a company may use,and explain how the objectives of internal and external equity can conflict.

The code of tax laws that affects how much of their earnings employees can keep and how benefits are treated for tax purposes,is called the ________.

A listing of jobs in order of their importance to the organization,from highest to lowest,is referred to as a(n)________.

Which of the following is the most common compensation practice among small firms?

Perquisites,also called "perks" are best described as:

Meeting Present and Emerging Strategic Human Resource Challenges

Managing Work Flows and Conducting Job Analysis

Understanding Equal Opportunity and the Legal Environment

Managing Diversity

Recruiting and Selecting Employees

Managing Employee Separations, Downsizing, and Outplacement

Appraising and Managing Performance

Training the Workforce

Developing Careers

Rewarding Performance

Designing and Administering Benefits

Developing Employee Relations

Respecting Employee Rights and Managing Discipline

Working With Organized Labor

Managing Workplace Safety and Health

International HRM Challenge

Filters