Question 1

A job hierarchy lists jobs in order of their importance to an organization.

Accepted Answer

A) True 
 B)False

Question 2

The benefits portion of an employee's pay averages 42% of the total compensation package.

Accepted Answer

A) True 
 B)False

Question 3

Companies that emphasize monetary rewards are primarily associated with:

Accepted Answer

A)  volatile markets. 
B)  high customer service demands. 
C)  high job security. 
D)  cross-functional teams. 
A)  volatile markets. 
B)  high customer service demands. 
C)  high job security. 
D)  cross-functional teams.

Question 4

Skill-based pay assumes that workers should be paid according to how flexible or capable they are at performing multiple tasks.

Accepted Answer

A) True 
 B)False

Question 5

Garden of the Gods' (GOTG)employees are compensated according to their organizational level,with upper-level managers receiving more compensation than lower-level managers.GOTG uses a(n)________ pay system.

Accepted Answer

A)  elitist 
B)  egalitarian 
C)  internally equitable 
D)  knowledge-based 
A)  elitist 
B)  egalitarian 
C)  internally equitable 
D)  knowledge-based

Question 6

The stockholders are concerned about the cost of perquisites.Management wants maximum flexibility to move people among jobs without having to adjust their compensation.Management also wants more joint-task accomplishment and better cooperation among employees.A(n)________ compensation system will reinforce all these goals.

Accepted Answer

A)  elitist 
B)  variable 
C)  egalitarian 
D)  job-centered 
A)  elitist 
B)  variable 
C)  egalitarian 
D)  job-centered

Question 7

Variable compensation takes a variety of forms,including:

Accepted Answer

A)  base salary. 
B)  hourly wages. 
C)  profit sharing. 
D)  disability insurance. 
A)  base salary. 
B)  hourly wages. 
C)  profit sharing. 
D)  disability insurance.

Question 8

Both the MAA and the Hay Guide Chart Profile Method share:

Accepted Answer

A)  the same compensable factors. 
B)  the use of a scale of numbers and degrees. 
C)  an emphasis on experience over other factors. 
D)  the same job hierarchy. 
A)  the same compensable factors. 
B)  the use of a scale of numbers and degrees. 
C)  an emphasis on experience over other factors. 
D)  the same job hierarchy.

Question 9

In order to tie job evaluation data and external wage/salary data together,a company needs to:

Accepted Answer

A)  establish a job hierarchy. 
B)  have an open compensation system. 
C)  identify benchmark jobs. 
D)  use a skill-based compensation system. 
A)  establish a job hierarchy. 
B)  have an open compensation system. 
C)  identify benchmark jobs. 
D)  use a skill-based compensation system.

Question 10

In the opening case in Chapter 10,an experienced computer programmer complains that the starting salary for new hires at Sigma,Inc.is 15% more than his current salary.Dr.Smith's answer reveals that Sigma's compensation system is built on a(n)________ compensation model.

Accepted Answer

A)  balanced equity 
B)  labor market 
C)  free market 
D)  egalitarian 
A)  balanced equity 
B)  labor market 
C)  free market 
D)  egalitarian

Question 11

A performance-contingent compensation system bases pay upon:

Accepted Answer

A)  employee status. 
B)  specified hours. 
C)  required skills. 
D)  units produced. 
A)  employee status. 
B)  specified hours. 
C)  required skills. 
D)  units produced.

Question 12

If a company uses a committee to sort job descriptions into grades without using a point system,the company is most likely using a ________ system for its job evaluation.

Accepted Answer

A)  ranking 
B)  factor comparison 
C)  classification 
D)  policy capturing 
A)  ranking 
B)  factor comparison 
C)  classification 
D)  policy capturing

Question 13

A membership-contingent compensation system pays employees:

Accepted Answer

A)  for the number of hours during which they perform their assigned jobs. 
B)  on the basis of the value of the job they perform. 
C)  on the basis of the skills used to perform their jobs. 
D)  for how well they do their particular job. 
A)  for the number of hours during which they perform their assigned jobs. 
B)  on the basis of the value of the job they perform. 
C)  on the basis of the skills used to perform their jobs. 
D)  for how well they do their particular job.

Question 14

A job hierarchy in a compensation plan is primarily built on:

Accepted Answer

A)  job specifications, descriptions, and ratings. 
B)  job classifications by pay grade. 
C)  corporate pay policies. 
D)  market surveys. 
A)  job specifications, descriptions, and ratings. 
B)  job classifications by pay grade. 
C)  corporate pay policies. 
D)  market surveys.

Question 15

Job banding entails replacing narrowly defined job descriptions with broad categories of related jobs.

Accepted Answer

A) True 
 B)False

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.Which of the following,if true,best supports the use of market data rather than internal job evaluations to determine the value of jobs at O'Donnell?

Accepted Answer

A)  Turnover at O'Donnell is relatively low. 
B)  Most jobs at O'Donnell are typical for the industry. 
C)  The organizational structure at O'Donnell is flat. 
D)  Most lower-level positions at O'Donnell are exempt. 
A)  Turnover at O'Donnell is relatively low. 
B)  Most jobs at O'Donnell are typical for the industry. 
C)  The organizational structure at O'Donnell is flat. 
D)  Most lower-level positions at O'Donnell are exempt.

Question 17

In building a job-based compensation plan,the job evaluation process is designed to assess the:

Accepted Answer

A)  relative contribution of different jobs to the organization. 
B)  relative value or contribution of individual employees to the organization. 
C)  external equity of the system. 
D)  specific tasks and duties required of the jobs in the plan. 
A)  relative contribution of different jobs to the organization. 
B)  relative value or contribution of individual employees to the organization. 
C)  external equity of the system. 
D)  specific tasks and duties required of the jobs in the plan.

Question 18

An individual-centered compensation system:

Accepted Answer

A)  focuses on employees' contribution and increases compensation based on the employee's ability to perform more duties successfully. 
B)  assumes that the tasks being performed, and the contribution of those tasks to the company, provide the best criteria for setting the wage pay system. 
C)  pays based on the number of hours during which the employees perform their assigned job. 
D)  stresses the value and prestige of the job being performed. 
A)  focuses on employees' contribution and increases compensation based on the employee's ability to perform more duties successfully. 
B)  assumes that the tasks being performed, and the contribution of those tasks to the company, provide the best criteria for setting the wage pay system. 
C)  pays based on the number of hours during which the employees perform their assigned job. 
D)  stresses the value and prestige of the job being performed.

Question 19

Rose works for a home interiors company.She hostesses several parties a week and sells various kinds of home decorations.She receives a commission on all that she sells.Rose receives:

Accepted Answer

A)  fixed compensation. 
B)  membership-contingent compensation. 
C)  performance-contingent compensation. 
D)  risk sharing rewards. 
A)  fixed compensation. 
B)  membership-contingent compensation. 
C)  performance-contingent compensation. 
D)  risk sharing rewards.

Question 20

An employee who is covered by the provisions of the FLSA is referred to as a(n)________.

Accepted Answer

The answer of An employee who is covered by the...

A job hierarchy lists jobs in order of their importance to an organization.

The benefits portion of an employee's pay averages 42% of the total compensation package.

Companies that emphasize monetary rewards are primarily associated with:

Skill-based pay assumes that workers should be paid according to how flexible or capable they are at performing multiple tasks.

Garden of the Gods' (GOTG)employees are compensated according to their organizational level,with upper-level managers receiving more compensation than lower-level managers.GOTG uses a(n)________ pay system.

Variable compensation takes a variety of forms,including:

Both the MAA and the Hay Guide Chart Profile Method share:

In order to tie job evaluation data and external wage/salary data together,a company needs to:

In the opening case in Chapter 10,an experienced computer programmer complains that the starting salary for new hires at Sigma,Inc.is 15% more than his current salary.Dr.Smith's answer reveals that Sigma's compensation system is built on a(n)________ compensation model.

A performance-contingent compensation system bases pay upon:

If a company uses a committee to sort job descriptions into grades without using a point system,the company is most likely using a ________ system for its job evaluation.

A membership-contingent compensation system pays employees:

A job hierarchy in a compensation plan is primarily built on:

Job banding entails replacing narrowly defined job descriptions with broad categories of related jobs.

In building a job-based compensation plan,the job evaluation process is designed to assess the:

An individual-centered compensation system:

Rose works for a home interiors company.She hostesses several parties a week and sells various kinds of home decorations.She receives a commission on all that she sells.Rose receives:

An employee who is covered by the provisions of the FLSA is referred to as a(n)________.

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

A job hierarchy lists jobs in order of their importance to an organization.

The benefits portion of an employee's pay averages 42% of the total compensation package.

Companies that emphasize monetary rewards are primarily associated with:

Skill-based pay assumes that workers should be paid according to how flexible or capable they are at performing multiple tasks.

Garden of the Gods' (GOTG)employees are compensated according to their organizational level,with upper-level managers receiving more compensation than lower-level managers.GOTG uses a(n)________ pay system.

Variable compensation takes a variety of forms,including:

Both the MAA and the Hay Guide Chart Profile Method share:

In order to tie job evaluation data and external wage/salary data together,a company needs to:

In the opening case in Chapter 10,an experienced computer programmer complains that the starting salary for new hires at Sigma,Inc.is 15% more than his current salary.Dr.Smith's answer reveals that Sigma's compensation system is built on a(n)________ compensation model.

A performance-contingent compensation system bases pay upon:

If a company uses a committee to sort job descriptions into grades without using a point system,the company is most likely using a ________ system for its job evaluation.

A membership-contingent compensation system pays employees:

A job hierarchy in a compensation plan is primarily built on:

Job banding entails replacing narrowly defined job descriptions with broad categories of related jobs.

In building a job-based compensation plan,the job evaluation process is designed to assess the:

An individual-centered compensation system:

Rose works for a home interiors company.She hostesses several parties a week and sells various kinds of home decorations.She receives a commission on all that she sells.Rose receives:

An employee who is covered by the provisions of the FLSA is referred to as a(n)________.

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