Question 1

LennoCorp has introduced a new recognition program in which employees are publicly recognized for outstanding efforts or contributions to the firm. This is a form of nonfinancial compensation.

Accepted Answer

A) True 
 B)False

Question 2

The relationship between the relative worth of jobs and their wage rates can be represented by means of a

Accepted Answer

A) regression line. 
B) wage survey. 
C) salary progression chart. 
D) wage curve.

Question 3

The job evaluation system that seeks to measure a job's worth through its value to the organization is known as the

Accepted Answer

A) point method. 
B) job ranking system. 
C) work valuation system. 
D) Hay profile method.

Question 4

The point system of job evaluation permits jobs to be evaluated quantitatively based on compensable factors.

Accepted Answer

A) True 
 B)False

Question 5

One potential disadvantage to the cost of living increases often negotiated by unions is that

Accepted Answer

A) employees are not motivated to increase performance. 
B) employees are more likely to seek jobs at unionized organizations. 
C) employees are less likely to seek jobs at unionized organizations. 
D) it makes it harder to recruit new employees in a tight labor market.

Question 6

The elements of a job such as fiscal accountability, leadership, and product accountability are referred to as

Accepted Answer

A) job specifications. 
B) job classification factors. 
C) compensable factors. 
D) factor comparisons.

Question 7

Clauses in labor agreements that provide for quarterly cost-of-living adjustments in wages, basing the adjustments on changes in the consumer price index are known as

Accepted Answer

A) maintenance clauses. 
B) escalator clauses. 
C) roll-up clauses. 
D) guarantee clauses.

Question 8

The description "G2 jobs include those classes of positions for which the duties are to be performed with minimal supervision and little latitude for the exercise of independent judgment" is typical of that found in what type of job evaluation system?

Accepted Answer

A) Job ranking 
B) Job classification 
C) Point system 
D) Competency-based

Question 9

There is reason to believe that pay secrecy can do all of the following EXCEPT

Accepted Answer

A) generate distrust in the compensation system. 
B) reduce employee motivation. 
C) inhibit organizational effectiveness. 
D) generate feelings of commitment.

Question 10

Raising selection standards and hiring better-qualified employees can reduce training costs.

Accepted Answer

A) True 
 B)False

Question 11

The relative worth of a job evaluated using the point manual is determined by

Accepted Answer

A) benchmark jobs contained in the point manual. 
B) the wage mix. 
C) the number of steps within the pay grade. 
D) the total points that have been assigned to that job.

Question 12

The Hay profile method uses which three factors for evaluating jobs?

Accepted Answer

A) Knowledge, skill, and responsibility 
B) Responsibility, mental ability, and skill 
C) Responsibility, knowledge, and mental ability 
D) Knowledge, accountability, and mental ability

Question 13

Sandra is a clerk in a mid-size office. She has two friends who have similar jobs in other offices. All three friends have been in their jobs for about the same length of time, and their wages are almost identical. Sandra has pay equity.

Accepted Answer

A) True 
 B)False

Question 14

A company that is facing the challenge of pay rate compression might want to increase the size of pay increases for merit-worthy employees and redesign its pay structure to increase the spread between hourly and supervisory employees.

Accepted Answer

A) True 
 B)False

Question 15

One of the major criticisms of job-based compensation systems is that they often fail to reward employees for their skills or the knowledge they possess.

Accepted Answer

A) True 
 B)False

Question 16

Changes in technology have required LennoCorp to create several new jobs in the company. Because LennoCorp uses a job classification system, the specifications of each new position can be compared to the descriptions of each grade to determine the appropriate wage.

Accepted Answer

A) True 
 B)False

Question 17

Aida is an exempt employee. Her regular pay is $1000 a week, which works out to about $25 an hour. It was very busy at work this week, and she worked 46 hours. She earned $225 over her regular pay, so that her gross pay for the week will be $1225.

Accepted Answer

A) True 
 B)False

Question 18

A point manual can be used to determine the external equity of a job.

Accepted Answer

A) True 
 B)False

Question 19

A major criticism of competence-based pay systems is that after achieving the top wage, employees may be reluctant to continue their educational training.

Accepted Answer

A) True 
 B)False

Question 20

Which system of job evaluation is being used when jobs are grouped according to a series of predetermined wage grades?

Accepted Answer

A) Hay profile method 
B) Job ranking system 
C) Factor comparison method 
D) Job classification system

Exam 9: Managing Compensation

LennoCorp has introduced a new recognition program in which employees are publicly recognized for outstanding efforts or contributions to the firm. This is a form of nonfinancial compensation.

The relationship between the relative worth of jobs and their wage rates can be represented by means of a

The job evaluation system that seeks to measure a job's worth through its value to the organization is known as the

The point system of job evaluation permits jobs to be evaluated quantitatively based on compensable factors.

One potential disadvantage to the cost of living increases often negotiated by unions is that

The elements of a job such as fiscal accountability, leadership, and product accountability are referred to as

Clauses in labor agreements that provide for quarterly cost-of-living adjustments in wages, basing the adjustments on changes in the consumer price index are known as

The description "G2 jobs include those classes of positions for which the duties are to be performed with minimal supervision and little latitude for the exercise of independent judgment" is typical of that found in what type of job evaluation system?

There is reason to believe that pay secrecy can do all of the following EXCEPT

Raising selection standards and hiring better-qualified employees can reduce training costs.

The relative worth of a job evaluated using the point manual is determined by

The Hay profile method uses which three factors for evaluating jobs?

Sandra is a clerk in a mid-size office. She has two friends who have similar jobs in other offices. All three friends have been in their jobs for about the same length of time, and their wages are almost identical. Sandra has pay equity.

A company that is facing the challenge of pay rate compression might want to increase the size of pay increases for merit-worthy employees and redesign its pay structure to increase the spread between hourly and supervisory employees.

One of the major criticisms of job-based compensation systems is that they often fail to reward employees for their skills or the knowledge they possess.

Changes in technology have required LennoCorp to create several new jobs in the company. Because LennoCorp uses a job classification system, the specifications of each new position can be compared to the descriptions of each grade to determine the appropriate wage.

Aida is an exempt employee. Her regular pay is $1000 a week, which works out to about $25 an hour. It was very busy at work this week, and she worked 46 hours. She earned $225 over her regular pay, so that her gross pay for the week will be $1225.

A point manual can be used to determine the external equity of a job.

A major criticism of competence-based pay systems is that after achieving the top wage, employees may be reluctant to continue their educational training.

Which system of job evaluation is being used when jobs are grouped according to a series of predetermined wage grades?