Question 1

In order to achieve external equity,a company must first benchmark key jobs.

Accepted Answer

A) True 
 B)False

Question 2

Companies using performance-based compensation systems tend to be:

Accepted Answer

A)  publicly-held corporations in competitive markets. 
B)  smaller, rapidly growing companies that face strong competitive pressures. 
C)  larger firms with several layers of management that operate in relatively stable markets. 
D)  large firms that desire to break out of the "pack" and distinguish themselves from competitors. 
A)  publicly-held corporations in competitive markets. 
B)  smaller, rapidly growing companies that face strong competitive pressures. 
C)  larger firms with several layers of management that operate in relatively stable markets. 
D)  large firms that desire to break out of the "pack" and distinguish themselves from competitors.

Question 3

The first step in achieving pay equity for job-based compensation plans is conducting a job analysis.

Accepted Answer

A) True 
 B)False

Question 4

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 is primarily concerned about:

Accepted Answer

A)  external equity. 
B)  skill-based pay. 
C)  distributive justice. 
D)  internal equity. 
A)  external equity. 
B)  skill-based pay. 
C)  distributive justice. 
D)  internal equity.

Question 5

Most Americans feel that pay is the most important consideration in accepting or staying at a job.

Accepted Answer

A) True 
 B)False

Question 6

Employee earnings:

Accepted Answer

A)  correlate directly with employee job satisfaction. 
B)  are the most important factor in job acceptance. 
C)  are relatively easy for organizations to manage. 
D)  affect employees economically and psychologically. 
A)  correlate directly with employee job satisfaction. 
B)  are the most important factor in job acceptance. 
C)  are relatively easy for organizations to manage. 
D)  affect employees economically and psychologically.

Question 7

In a company where pay decisions are decentralized,the managers of each unit often have the responsibility of determining compensation for employees.

Accepted Answer

A) True 
 B)False

Question 8

Pay incentives make up the greatest percentage of total compensation for employees.

Accepted Answer

A) True 
 B)False

Question 9

A company designs its compensation system around the philosophy that employees exchange their skills and contributions for pay.As a consequence,employees feel fairly compensated when the ratio of their inputs and outputs is equivalent to those of other employees whose job demands are similar to their own.This company's compensation system is based on a ________ compensation model.

Accepted Answer

A)  balanced equity 
B)  labor market 
C)  free market 
D)  distributive justice 
A)  balanced equity 
B)  labor market 
C)  free market 
D)  distributive justice

Question 10

A job that is similar or comparable in content across firms is called a(n)________.

Accepted Answer

benchmark

Question 11

Which of the following is NOT a criticism of skill-based compensation systems?

Accepted Answer

A)  Too much labor specialization 
B)  Unspecific job qualifications 
C)  Higher labor costs 
D)  Workplace chaos 
A)  Too much labor specialization 
B)  Unspecific job qualifications 
C)  Higher labor costs 
D)  Workplace chaos

Question 12

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.For Jeff to accomplish his task,he most likely needs to:

Accepted Answer

A)  conduct the job evaluations. 
B)  write the job descriptions. 
C)  rate the worth of the jobs. 
D)  create a job hierarchy. 
A)  conduct the job evaluations. 
B)  write the job descriptions. 
C)  rate the worth of the jobs. 
D)  create a job hierarchy.

Question 13

Firms that use nonmonetary rewards are most likely trying to:

Accepted Answer

A)  reinforce achievement and sales growth. 
B)  foster an internally competitive climate. 
C)  develop responsibility among employees. 
D)  emphasize customer service and loyalty. 
A)  reinforce achievement and sales growth. 
B)  foster an internally competitive climate. 
C)  develop responsibility among employees. 
D)  emphasize customer service and loyalty.

Question 14

The distributive justice model of pay equity holds that the wage rate for a given occupation is set at a point where the labor supply and labor demand are equally distributed.

Accepted Answer

A) True 
 B)False

Question 15

The MAA gives the highest possible points to which compensable factor?

Accepted Answer

A)  Problem solving 
B)  Accountability 
C)  Experience 
D)  Skill 
A)  Problem solving 
B)  Accountability 
C)  Experience 
D)  Skill

Question 16

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.What is the best way to address O'Donnell's key concern?

Accepted Answer

A)  Conducting a market survey 
B)  Referring to the Hay system 
C)  Conducting a job evaluation 
D)  Initiating a TQM program 
A)  Conducting a market survey 
B)  Referring to the Hay system 
C)  Conducting a job evaluation 
D)  Initiating a TQM program

Question 17

When management is discussing whether to lead,lag,or pay the "going rate" for a job,they are deciding:

Accepted Answer

A)  whether to be egalitarian or elitist. 
B)  if they want to have an open or secret compensation system. 
C)  how to balance internal equity. 
D)  their company's pay policy. 
A)  whether to be egalitarian or elitist. 
B)  if they want to have an open or secret compensation system. 
C)  how to balance internal equity. 
D)  their company's pay policy.

Question 18

Karen,president of a small restaurant chain,would like to centralize compensation decisions.She asks you about the pitfalls of such a move,and you should most likely respond that:

Accepted Answer

A)  internal equity would not be maintained. 
B)  it is likely that the company will not be able to defend itself legally. 
C)  external equity is difficult to maintain. 
D)  it is only beneficial during great economic prosperity. 
A)  internal equity would not be maintained. 
B)  it is likely that the company will not be able to defend itself legally. 
C)  external equity is difficult to maintain. 
D)  it is only beneficial during great economic prosperity.

Question 19

The head of HR has asked you to gather information about the tasks,duties,and responsibilities of specific jobs.He has most likely asked you to perform a(n):

Accepted Answer

A)  job evaluation. 
B)  job analysis. 
C)  equity analysis. 
D)  comparable worth assessment. 
A)  job evaluation. 
B)  job analysis. 
C)  equity analysis. 
D)  comparable worth assessment.

Question 20

The practice of replacing narrowly defined job descriptions with broader categories or related jobs is referred to as ________.

Accepted Answer

The answer of The practice of replacing narrowly defined job...

In order to achieve external equity,a company must first benchmark key jobs.

Companies using performance-based compensation systems tend to be:

The first step in achieving pay equity for job-based compensation plans is conducting a job analysis.

Most Americans feel that pay is the most important consideration in accepting or staying at a job.

Employee earnings:

In a company where pay decisions are decentralized,the managers of each unit often have the responsibility of determining compensation for employees.

Pay incentives make up the greatest percentage of total compensation for employees.

A job that is similar or comparable in content across firms is called a(n)________.

Which of the following is NOT a criticism of skill-based compensation systems?

Firms that use nonmonetary rewards are most likely trying to:

The distributive justice model of pay equity holds that the wage rate for a given occupation is set at a point where the labor supply and labor demand are equally distributed.

The MAA gives the highest possible points to which compensable factor?

When management is discussing whether to lead,lag,or pay the "going rate" for a job,they are deciding:

Karen,president of a small restaurant chain,would like to centralize compensation decisions.She asks you about the pitfalls of such a move,and you should most likely respond that:

The head of HR has asked you to gather information about the tasks,duties,and responsibilities of specific jobs.He has most likely asked you to perform a(n):

The practice of replacing narrowly defined job descriptions with broader categories or related jobs is referred to 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 to achieve external equity,a company must first benchmark key jobs.

Companies using performance-based compensation systems tend to be:

The first step in achieving pay equity for job-based compensation plans is conducting a job analysis.

Most Americans feel that pay is the most important consideration in accepting or staying at a job.

Employee earnings:

In a company where pay decisions are decentralized,the managers of each unit often have the responsibility of determining compensation for employees.

Pay incentives make up the greatest percentage of total compensation for employees.

A job that is similar or comparable in content across firms is called a(n)________.

Which of the following is NOT a criticism of skill-based compensation systems?

Firms that use nonmonetary rewards are most likely trying to:

The distributive justice model of pay equity holds that the wage rate for a given occupation is set at a point where the labor supply and labor demand are equally distributed.

The MAA gives the highest possible points to which compensable factor?

When management is discussing whether to lead,lag,or pay the "going rate" for a job,they are deciding:

Karen,president of a small restaurant chain,would like to centralize compensation decisions.She asks you about the pitfalls of such a move,and you should most likely respond that:

The head of HR has asked you to gather information about the tasks,duties,and responsibilities of specific jobs.He has most likely asked you to perform a(n):

The practice of replacing narrowly defined job descriptions with broader categories or related jobs is referred to 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