Question 1

Above-market compensation policies are more likely to:

Accepted Answer

A)  create an impression of innovation and success. 
B)  improve employee morale and reduce employee turnover. 
C)  affect employee cooperation more than any other business policy. 
D)  reduce barriers between people who need to work closely together. 
A)  create an impression of innovation and success. 
B)  improve employee morale and reduce employee turnover. 
C)  affect employee cooperation more than any other business policy. 
D)  reduce barriers between people who need to work closely together.

Question 2

A compensation system that assumes that the tasks being performed and the contribution of those tasks to the company are the best criteria for setting the wage is a(n)________-centered compensation system.

Accepted Answer

A)  performance 
B)  individual 
C)  equity 
D)  job 
A)  performance 
B)  individual 
C)  equity 
D)  job

Question 3

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 Finance VP would most likely favor a(n):

Accepted Answer

A)  variable pay system. 
B)  membership-based system. 
C)  individual-centered system. 
D)  egalitarian compensation system. 
A)  variable pay system. 
B)  membership-based system. 
C)  individual-centered system. 
D)  egalitarian compensation system.

Question 4

The distributive justice model is based on the idea that:

Accepted Answer

A)  employees prefer keeping salary issues private. 
B)  employers pay what employees deserve to receive. 
C)  employees make input/output comparisons to their co-workers. 
D)  employers will never pay above-market wages unless external equity occurs. 
A)  employees prefer keeping salary issues private. 
B)  employers pay what employees deserve to receive. 
C)  employees make input/output comparisons to their co-workers. 
D)  employers will never pay above-market wages unless external equity occurs.

Question 5

The design of job-based compensation pay plans begins with:

Accepted Answer

A)  writing job descriptions. 
B)  creating a job hierarchy. 
C)  conducting a job analysis. 
D)  writing job specifications. 
A)  writing job descriptions. 
B)  creating a job hierarchy. 
C)  conducting a job analysis. 
D)  writing job specifications.

Question 6

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.Which of the following methods would Sean LEAST likely use?

Accepted Answer

A)  Interviewing employees 
B)  Using a point factor system 
C)  Analyzing equipment costs 
D)  Distributing questionnaires to managers 
A)  Interviewing employees 
B)  Using a point factor system 
C)  Analyzing equipment costs 
D)  Distributing questionnaires to managers

Question 7

Employees' total compensation consists of which of the following?

Accepted Answer

A)  Base compensation, personnel costs, payroll 
B)  Benefits, pay incentives, personnel costs 
C)  Base compensation, pay incentives, indirect compensation 
D)  Payroll, pay incentives, base compensation 
A)  Base compensation, personnel costs, payroll 
B)  Benefits, pay incentives, personnel costs 
C)  Base compensation, pay incentives, indirect compensation 
D)  Payroll, pay incentives, base compensation

Question 8

Decentralizing pay decisions most likely enables a company to:

Accepted Answer

A)  more effectively face legal challenges to compensation decisions. 
B)  better utilize the expertise of their compensation specialist. 
C)  build a stronger link between pay and performance. 
D)  better manage fixed pay-based compensation. 
A)  more effectively face legal challenges to compensation decisions. 
B)  better utilize the expertise of their compensation specialist. 
C)  build a stronger link between pay and performance. 
D)  better manage fixed pay-based compensation.

Question 9

________ is a program designed to reward employees for good performance.

Accepted Answer

The answer of ________ is a program designed to reward...

Question 10

The practice of openness in a compensation system generally leads to:

Accepted Answer

A)  greater pay dissatisfaction among employees. 
B)  increased fairness in managerial pay decisions. 
C)  greater overall compensation costs. 
D)  increased team building. 
A)  greater pay dissatisfaction among employees. 
B)  increased fairness in managerial pay decisions. 
C)  greater overall compensation costs. 
D)  increased team building.

Question 11

You are trying to convince the management of Marcelle,Inc.to pay its employees the "going rate," no more,no less.You are trying to:

Accepted Answer

A)  reach external equity. 
B)  reach internal equity. 
C)  reduce Marcelle's work force. 
D)  increase Marcelle's work force. 
A)  reach external equity. 
B)  reach internal equity. 
C)  reduce Marcelle's work force. 
D)  increase Marcelle's work force.

Question 12

An important tool for companies seeking to maintain external equity is the use of:

Accepted Answer

A)  job analysis. 
B)  job hierarchies. 
C)  Hay rating scales. 
D)  market survey data. 
A)  job analysis. 
B)  job hierarchies. 
C)  Hay rating scales. 
D)  market survey data.

Question 13

________ is the perceived fairness of the pay structure within a firm.

Accepted Answer

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

Question 14

A skill-based approach to compensation is built on which of the following characteristics?

Accepted Answer

A)  Workers are paid for performing well-defined jobs using vertical skills. 
B)  The greater the variety of job-related skills a worker possesses, the more he/she should be paid. 
C)  Each job must be very clearly described with highly defined tasks and skill requirements. 
D)  The primary objective is to allocate pay so that the most important jobs command the highest pay. 
A)  Workers are paid for performing well-defined jobs using vertical skills. 
B)  The greater the variety of job-related skills a worker possesses, the more he/she should be paid. 
C)  Each job must be very clearly described with highly defined tasks and skill requirements. 
D)  The primary objective is to allocate pay so that the most important jobs command the highest pay.

Question 15

You have just been hired at Corpus Entertainment,Inc.(CEI)and as part of your contract,you sign an oath that you will not divulge information about your compensation to your co-workers or any other employee of CEI.You realize that the company has a(n)________ pay policy.

Accepted Answer

A)  egalitarian 
B)  centralized 
C)  open 
D)  secret 
A)  egalitarian 
B)  centralized 
C)  open 
D)  secret

Question 16

Job-based compensation plans have the advantage of:

Accepted Answer

A)  being objective, data-based systems. 
B)  having a bureaucratic and definitive structure. 
C)  appearing rational and systematic, thereby minimizing employee complaints. 
D)  focusing on the three most important compensable factors, depth, breadth, and vertical skills. 
A)  being objective, data-based systems. 
B)  having a bureaucratic and definitive structure. 
C)  appearing rational and systematic, thereby minimizing employee complaints. 
D)  focusing on the three most important compensable factors, depth, breadth, and vertical skills.

Question 17

According to your text,which of the following questions is LEAST relevant to developing an effective compensation plan?

Accepted Answer

A)  Will compensation link pay with group performance? 
B)  Will the compensation plan be developed by HR managers? 
C)  Will compensation decisions be made by unit managers? 
D)  Will the compensation plan emphasize nonmonetary rewards? 
A)  Will compensation link pay with group performance? 
B)  Will the compensation plan be developed by HR managers? 
C)  Will compensation decisions be made by unit managers? 
D)  Will the compensation plan emphasize nonmonetary rewards?

Question 18

In skill-based compensation plans,employees acquire depth skills when they learn self-management abilities,such as scheduling and organizing.

Accepted Answer

A) True 
 B)False

Question 19

________ are work-related criteria that an organization considers most important in assessing the relative value of different jobs.

Accepted Answer

The answer of ________ are work-related criteria that an organization...

Question 20

The Hay Guide Chart Profile Method of weighing compensable factors in a job is best used when establishing a:

Accepted Answer

A)  skill-based compensation system. 
B)  job-based compensation system. 
C)  performance-centered compensation system. 
D)  variable pay compensation system. 
A)  skill-based compensation system. 
B)  job-based compensation system. 
C)  performance-centered compensation system. 
D)  variable pay compensation system.

Above-market compensation policies are more likely to:

A compensation system that assumes that the tasks being performed and the contribution of those tasks to the company are the best criteria for setting the wage is a(n)________-centered compensation system.

The distributive justice model is based on the idea that:

The design of job-based compensation pay plans begins with:

Employees' total compensation consists of which of the following?

Decentralizing pay decisions most likely enables a company to:

________ is a program designed to reward employees for good performance.

The practice of openness in a compensation system generally leads to:

You are trying to convince the management of Marcelle,Inc.to pay its employees the "going rate," no more,no less.You are trying to:

An important tool for companies seeking to maintain external equity is the use of:

________ is the perceived fairness of the pay structure within a firm.

A skill-based approach to compensation is built on which of the following characteristics?

You have just been hired at Corpus Entertainment,Inc.(CEI)and as part of your contract,you sign an oath that you will not divulge information about your compensation to your co-workers or any other employee of CEI.You realize that the company has a(n)________ pay policy.

Job-based compensation plans have the advantage of:

According to your text,which of the following questions is LEAST relevant to developing an effective compensation plan?

In skill-based compensation plans,employees acquire depth skills when they learn self-management abilities,such as scheduling and organizing.

________ are work-related criteria that an organization considers most important in assessing the relative value of different jobs.

The Hay Guide Chart Profile Method of weighing compensable factors in a job is best used when establishing a:

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

Above-market compensation policies are more likely to:

A compensation system that assumes that the tasks being performed and the contribution of those tasks to the company are the best criteria for setting the wage is a(n)________-centered compensation system.

The distributive justice model is based on the idea that:

The design of job-based compensation pay plans begins with:

Employees' total compensation consists of which of the following?

Decentralizing pay decisions most likely enables a company to:

________ is a program designed to reward employees for good performance.

The practice of openness in a compensation system generally leads to:

You are trying to convince the management of Marcelle,Inc.to pay its employees the "going rate," no more,no less.You are trying to:

An important tool for companies seeking to maintain external equity is the use of:

________ is the perceived fairness of the pay structure within a firm.

A skill-based approach to compensation is built on which of the following characteristics?

You have just been hired at Corpus Entertainment,Inc.(CEI)and as part of your contract,you sign an oath that you will not divulge information about your compensation to your co-workers or any other employee of CEI.You realize that the company has a(n)________ pay policy.

Job-based compensation plans have the advantage of:

According to your text,which of the following questions is LEAST relevant to developing an effective compensation plan?

In skill-based compensation plans,employees acquire depth skills when they learn self-management abilities,such as scheduling and organizing.

________ are work-related criteria that an organization considers most important in assessing the relative value of different jobs.

The Hay Guide Chart Profile Method of weighing compensable factors in a job is best used when establishing a:

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