Question 1

When setting up a job-based pay plan,it is most likely important for a firm to:

Accepted Answer

A)  have a relatively flat management hierarchy. 
B)  use an external consulting firm to ensure objectivity. 
C)  differentiate among depth, horizontal, and vertical skills. 
D)  establish a way for employees to improve pay without moving into management. 
A)  have a relatively flat management hierarchy. 
B)  use an external consulting firm to ensure objectivity. 
C)  differentiate among depth, horizontal, and vertical skills. 
D)  establish a way for employees to improve pay without moving into management.

Question 2

Job-based compensation systems have a number of disadvantages or drawbacks,such as being:

Accepted Answer

A)  difficult to administrate. 
B)  subjective and arbitrary. 
C)  too flexible for managers. 
D)  biased against managerial jobs. 
A)  difficult to administrate. 
B)  subjective and arbitrary. 
C)  too flexible for managers. 
D)  biased against managerial jobs.

Question 3

The Internal Revenue Code affects how benefits are treated for tax purposes.

Accepted Answer

A) True 
 B)False

Question 4

The ________ is the fundamental compensation law in the United States that requires employers to record earnings and hours worked by all covered employees,and to report this information to the U.S.Department of Labor.

Accepted Answer

Fair Labor

Question 5

In the opening case in Chapter 10,a secretary complains that janitors make more money than she does.Her complaints and Dr.Smith's response show that Sigma's compensation system:

Accepted Answer

A)  may lack internal equity. 
B)  is a decentralized pay system. 
C)  relies on individual-based pay. 
D)  uses variable pay to induce performance. 
A)  may lack internal equity. 
B)  is a decentralized pay system. 
C)  relies on individual-based pay. 
D)  uses variable pay to induce performance.

Question 6

According to surveys,which of the following is most likely true about family businesses?

Accepted Answer

A)  Family employees earn twice as much in base salary at family-owned businesses than they would at businesses not owned by family members. 
B)  Family employees would earn more compensation at similar positions in businesses not owned by family members. 
C)  Owners of family businesses have total compensation packages less than those paid to nonowner presidents. 
D)  Contributions of family member employees outweigh personal needs when determining compensation. 
A)  Family employees earn twice as much in base salary at family-owned businesses than they would at businesses not owned by family members. 
B)  Family employees would earn more compensation at similar positions in businesses not owned by family members. 
C)  Owners of family businesses have total compensation packages less than those paid to nonowner presidents. 
D)  Contributions of family member employees outweigh personal needs when determining compensation.

Question 7

Which of the following is most likely true regarding compensation systems?

Accepted Answer

A)  Nonmonetary rewards tend to predominate in companies concerned with external equity. 
B)  External equity is easier to manage in decentralized pay systems. 
C)  The nine issues discussed in the text regarding compensation are interdependent with minimal influence on one another. 
D)  Centralized pay systems work best in large, diverse organizations. 
A)  Nonmonetary rewards tend to predominate in companies concerned with external equity. 
B)  External equity is easier to manage in decentralized pay systems. 
C)  The nine issues discussed in the text regarding compensation are interdependent with minimal influence on one another. 
D)  Centralized pay systems work best in large, diverse organizations.

Question 8

Most professional,administrative,executive,and outside sales jobs fall into the category of ________.

Accepted Answer

The answer of Most professional,administrative,executive,and outside sales jobs fall into...

Question 9

The perceived fairness of an employee's pay relative to what other employees are being paid for the same labor describes the concept of internal equity.

Accepted Answer

A) True 
 B)False

Question 10

The primary reason variable pay is the norm in U.S.industry is because it correlates labor costs with production costs and enhances a company's competitive position.

Accepted Answer

A) True 
 B)False

Question 11

Job descriptions:

Accepted Answer

A)  require the rating of each position described. 
B)  list all the compensable factors of a particular job. 
C)  consist of worker characteristics necessary for successful performance. 
D)  identify, define, and describe each job in terms of its duties, responsibilities, and working conditions. 
A)  require the rating of each position described. 
B)  list all the compensable factors of a particular job. 
C)  consist of worker characteristics necessary for successful performance. 
D)  identify, define, and describe each job in terms of its duties, responsibilities, and working conditions.

Question 12

What is comparable worth? What role does job evaluation play in arguments for and against comparable worth?

Accepted Answer

Comparable worth calls for comparable pa

Question 13

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.Brighton executives have decided to implement a decentralized pay system.Which of the following,if true,best supports this decision?

Accepted Answer

A)  Brighton is a large, diverse firm that has never faced legal challenges regarding compensation. 
B)  The Brighton CEO wants pay decisions to be made at the firm's headquarters. 
C)  Brighton's unit managers have never received compensation training. 
D)  A large percentage of Brighton's staff is non-exempt. 
A)  Brighton is a large, diverse firm that has never faced legal challenges regarding compensation. 
B)  The Brighton CEO wants pay decisions to be made at the firm's headquarters. 
C)  Brighton's unit managers have never received compensation training. 
D)  A large percentage of Brighton's staff is non-exempt.

Question 14

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 would be most appropriate for Jeff to use?

Accepted Answer

A)  MAA 
B)  Hay Guide 
C)  Ranking system 
D)  Classification system 
A)  MAA 
B)  Hay Guide 
C)  Ranking system 
D)  Classification system

Question 15

Job-based pay policies work best in which of the following situations?

Accepted Answer

A)  Employees require little training for a job. 
B)  Employees' jobs don't change often. 
C)  Technology changes rapidly. 
D)  Turnover is fairly high. 
A)  Employees require little training for a job. 
B)  Employees' jobs don't change often. 
C)  Technology changes rapidly. 
D)  Turnover is fairly high.

Question 16

Variable compensation systems work best:

Accepted Answer

A)  with smaller, less well-established firms with younger employees. 
B)  in difficult economies with high rates of inflation. 
C)  when the job market is flooded with qualified workers. 
D)  in larger, established companies that need significant productivity improvement. 
A)  with smaller, less well-established firms with younger employees. 
B)  in difficult economies with high rates of inflation. 
C)  when the job market is flooded with qualified workers. 
D)  in larger, established companies that need significant productivity improvement.

Question 17

Compensable factors are concrete terms relating to the necessary education,skill,and work experience for compensation at a particular level.

Accepted Answer

A) True 
 B)False

Question 18

The process of achieving internal equity involves six steps.Enumerate and explain this process.

Accepted Answer

Summary of suggested answer -
•Steps - 1

Question 19

Once job specifications and descriptions are created,the next step in developing a compensation system is:

Accepted Answer

A)  conducting a job analysis. 
B)  creating a job hierarchy. 
C)  rating the worth of jobs. 
D)  assigning individual pay. 
A)  conducting a job analysis. 
B)  creating a job hierarchy. 
C)  rating the worth of jobs. 
D)  assigning individual pay.

Question 20

Elitist compensation systems are most likely:

Accepted Answer

A)  beneficial to firms trying to expand market share. 
B)  implemented by newer, smaller businesses. 
C)  established in very competitive environments. 
D)  used by older firms with mature products. 
A)  beneficial to firms trying to expand market share. 
B)  implemented by newer, smaller businesses. 
C)  established in very competitive environments. 
D)  used by older firms with mature products.

When setting up a job-based pay plan,it is most likely important for a firm to:

Job-based compensation systems have a number of disadvantages or drawbacks,such as being:

The Internal Revenue Code affects how benefits are treated for tax purposes.

The ________ is the fundamental compensation law in the United States that requires employers to record earnings and hours worked by all covered employees,and to report this information to the U.S.Department of Labor.

In the opening case in Chapter 10,a secretary complains that janitors make more money than she does.Her complaints and Dr.Smith's response show that Sigma's compensation system:

According to surveys,which of the following is most likely true about family businesses?

Which of the following is most likely true regarding compensation systems?

Most professional,administrative,executive,and outside sales jobs fall into the category of ________.

The perceived fairness of an employee's pay relative to what other employees are being paid for the same labor describes the concept of internal equity.

The primary reason variable pay is the norm in U.S.industry is because it correlates labor costs with production costs and enhances a company's competitive position.

Job descriptions:

What is comparable worth? What role does job evaluation play in arguments for and against comparable worth?

Job-based pay policies work best in which of the following situations?

Variable compensation systems work best:

Compensable factors are concrete terms relating to the necessary education,skill,and work experience for compensation at a particular level.

The process of achieving internal equity involves six steps.Enumerate and explain this process.

Once job specifications and descriptions are created,the next step in developing a compensation system is:

Elitist compensation systems are most likely:

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

When setting up a job-based pay plan,it is most likely important for a firm to:

Job-based compensation systems have a number of disadvantages or drawbacks,such as being:

The Internal Revenue Code affects how benefits are treated for tax purposes.

The ________ is the fundamental compensation law in the United States that requires employers to record earnings and hours worked by all covered employees,and to report this information to the U.S.Department of Labor.

In the opening case in Chapter 10,a secretary complains that janitors make more money than she does.Her complaints and Dr.Smith's response show that Sigma's compensation system:

According to surveys,which of the following is most likely true about family businesses?

Which of the following is most likely true regarding compensation systems?

Most professional,administrative,executive,and outside sales jobs fall into the category of ________.

The perceived fairness of an employee's pay relative to what other employees are being paid for the same labor describes the concept of internal equity.

The primary reason variable pay is the norm in U.S.industry is because it correlates labor costs with production costs and enhances a company's competitive position.

Job descriptions:

What is comparable worth? What role does job evaluation play in arguments for and against comparable worth?

Job-based pay policies work best in which of the following situations?

Variable compensation systems work best:

Compensable factors are concrete terms relating to the necessary education,skill,and work experience for compensation at a particular level.

The process of achieving internal equity involves six steps.Enumerate and explain this process.

Once job specifications and descriptions are created,the next step in developing a compensation system is:

Elitist compensation systems are most likely:

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