1. A comparison of earnings of women with those of men highlights what many consider:
1. A comparison of earnings of women with those of men highlights what many consider:
2. Stockholders generally pay particular attention to what issue associated with pay?
a. Executive compensation
b. Internal consistency
e. Base wage
3. In the United States, pay for executives is supposed to be tied to the:
4. For managers, compensation influences their success in the following way:
5. All of the following are forms of pay except:
6. Which form of pay would best be described as a return, rather than a reward?
a. Base wage
b. Merit pay
c. Short term incentive
d. Sales commission
7. A merit increase is best described as:
8. An incentive payment:
9. Incentives are:
10. Programs that help employees better integrate their work and life responsibilities include time away from work, access to services to meet specific needs, and flexible work arrangements. These programs are referred to as:
11. Relational returns from work include all of the following except:
12. The compensation objective of compliance refers to:
13. Which of the following relationships within a pay system is accurate?
14. Which policy provides the foundation on which pay systems are built?
a. Internal alignment
b. External competitiveness
c. Employee contributions
d. Administration of the pay system
e. All of the above
15. Internal alignment may be achieved by:
16. The objective(s) of a pay system is(are) to:
17. A strategic compensation perspective addresses the question:
a. What business should we be in?
b. What is our desired return on assets?
c. What kind of job evaluation system should we use?
d. How can job analysis help us select the most appropriate certain compensation technique(s) for our organization?
e. How can our total compensation help gain competitive advantage to achieve organization success?
18. Contingency refers to:
19. The fundamental strategic choice of a compensation plan is decided on at the:
20. The business strategy that stresses satisfying customers and bases employee pay on how well they do this is a (an):
21. Internal alignment refers primarily to:
22. Which of the following pay policies refers to how an employer positions its pay relative to what competitors are paying?
a. external consistency
b. internal alignment
c. external competitiveness
d. internal competitiveness
23. Deciding how much employees should be told about how their pay is determined is an issue of:
24. A pay strategy that has the potential to sustain a competitive advantage:
25. The process used in the design and administration of a pay structure is known as:
26. Fairness of the results produced by a pay structure is known as:
27. The pay differences among levels are referred to as:
28. A job-based pay structure relies primarily on:
29. The major factors that shape internal structures are:
30. External factors that can influence compensation programs of employers include all of the following except:
32. A hierarchical pay structure will encourage employees:
33. When job analysis is done for compensation purposes, data collected must focus on:
34. The major questions that need be asked when designing a job analysis are:
35. Job analysis usually collects information about:
36. The Position Analysis Questionnaire (PAQ) is typically used in:
37. The major limitation of conventional job analysis for compensation purposes is:
38. Advantages of quantitative job analysis over conventional methods include:
39. Why is it important to involve the employees when conducting a job analysis?
40. Job descriptions:
41. In addition to defining and describing jobs, descriptions of managerial/professional jobs often include more detailed information on the:
42. In assessing the relevance of job analysis, which of the following factors are considered?
e. all of the above
43. Obtaining consistent results regardless of the job analysis method used is a measure of:
44. A job analysis is considered "reliable" if:. A systematic process designed to aid in determining the relative worth of jobs and establishing pay differentials among jobs within an organization is:
a. the point method.b. job evaluation.c. market pricing.d. performance appraisal.e. broad banding.46. An internal structure based on job value refers to the relative contribution of the:
a. skills, duties, and responsibilities of each job to the organization's goals.b. compensable factors of a point plan to the organization's goals.c. job characteristics model to achieving the organization's goals.d. PAQ to achieving the organization's goals.e. all of the above47. Job evaluation is linked to internal alignment because it:
a. recognizes similarities in performance levels.b. results in a pay plan.c. establishes a job hierarchy based on relative value of jobs.d. describe internal jobs.e. all of the above.48. Multiple internal structures:
a. make compensation planning easier.b. may have different job evaluation plans for different types of work.c. evaluate all jobs in the organization simultaneously.d. are more cost-effective.e. all of the above.49. A benchmark job has all of the following characteristicsexcept:
a. its contents are well known and stable.b. it is usually medium to high paying.c. a sizable proportion of the work force is employed in the job.d. it is common across a number of different employers.e. it is not unique to a particular employer.50. A pay structure in which employees are paid based on what they have shown that they know rather than what particular job they are doing is known as a/an:
a. skill-based structure.b. task-based structure.c. behavior-based structure.d. job-based structure.e. administrative structure.51. Skill plans focus on:
a. gaining additional years of experience on the job.b. producing a superior product or service.c. depth and/or breadth of skills.d. participation of employees in structuring the work flow.e. all of the above.52. Pay increases in a skill-based plan are based on the:
a. certification of new skills.b. performance of critical incidents.c. combined efforts of a team of employees.d. accomplishments of an employee.e. production of a superior product or service.53. One of the main advantages of a skill-based plan is:
a. the link to an organization's performance is clearly specified.b. it facilitates matching employees to a changing work flow.c. it minimizes favoritism in determining which employees receive training.d. it facilitates the involvement and commitment of all stakeholders.e. all of the above.54. What is the first major decision in designing a skill-based plan?
a. Determine the skill blocks and certification methods.b. Evaluate the plan's usefulness.c. Establish the objective of a skill-based plan.d. Obtain involvement and commitment of stakeholders.e. Top management approval of the financing for the committee.55. Practices for certifying that employees possess the necessary skills and are able to apply them include:
a. peer review of skill accomplishments.b. on-the-job demonstrations of skills.c. successful completion of tests for certification.d. ongoing recertification to ensure skills are fresh.e. all of the above.56. A potential problem with a skill-based approach to compensation is:
a. the workforce becomes lazy.b. employees may be difficult to train.c. over time all employees may qualify for top pay rates.d. employees may not understand the criteria for advancement.e. all of the above.57. If employees do not feel they are being fairly paid compared to employees in similar jobs outside the organization, this is a problem of:
a. employee contributions.b. the relative importance of jobs.c. external competitiveness.d. internal alignment.e. inflationary pressure.58. What factors influence external competitiveness?
a. Labor market factorsb. Product market factorsc. Degree of competitiond. All of the abovee. None of the above59. Which of the following is a factor that influences the pay level in an organization?
a. Labor market factors.b. Product market factors.c. Organizational factors.d. None of the above.e. All of the above.60. Which of the following isnot a primary determinant of an organization's pay level?
a. Level of product demand.b. Organization strategy.c. Employee performance.d. Degree of competition.e. Industry environment.61. Which of the following isnot an assumption an economist typically uses to explain the environment and the wage determination process?
a. Employers seek to maximize profits.b. Labor is homogeneous.c. Pay rates reflect all costs (base wage, benefits, etc.) associated with employing labor.d. Markets are competitive.e. Human behavior is frequently irrational.
62. In a perfectly competitive market, what is likely to happen as a result of the following scenario? Employer A raises its wages in an attempt to attract more employees. Employer A's competitors immediately raise their wages to the same level.
a. Employer A will attract more employees.b. Employer A will still be shorthanded and may be forced to pay more just to keep the employees it has.c. Employer A's competitors will lose workers.d. Employer A's competitors will attract employees away from employer A.e. We cannot predict from the data given.63. The additional output associated with the employment of one additional unit of labor is:
a. marginal product.b. marginal revenue.c. a compensating differential.d. market signaling.e. product supply curve.64. The marginal product of labor doesnot take into account:
a. differences among worker characteristics.b. the addition of labor.c. fixed factors of production.d. diminishing returns.e. addition to total output.65. In a perfectly competitive market, the supply curve facing the individual firm:
a. is upward sloping.b. is horizontal.c. is downward sloping.d. does not intersect the demand curve.e. is inelastic.66. Marginal revenue:a. is a function of the pay structure.b. is measurable only in a conceptual sense.c. is easily calculated using computers.d. progressively increases with each added input of labor.e. all of the above.67. Pay surveys:
a. are more useful if they use nationwide data.b. are more useful if all data sources are local.c. help employers set their competitive pay position relative to other organizations.d. assist employers in establishing internal alignment.e. must use statistical sampling techniques if they are to be useful.68. Wage survey data is used to establish:
a. relative value of clerical v. technical jobs.b. a competitive pay position.c. rankings of jobs relative to the market.d. which jobs will be chosen as benchmark jobs.e. the internal job hierarchy.69. Which of the following is a systematic process of collecting and making judgments about compensation paid by other employers?
a. Market surveyb. Job questionnairec. Job analysisd. Competency analysise. Job evaluation70. According to the text, an employer participates in a survey for all of the following reasonsexcept:
a. to establish or price the pay structure.b. to analyze pay-related problems.c. to estimate its internal alignment policy.d. to estimate the labor costs of competitors.e. to set the mix of pay forms relative to competitors.71. Which of the following wouldnot be considered a purpose of a pay survey?
a. To adjust the pay levelb. To keep labor costs as low as possible within a given industryc. To estimate the labor costs of product market competitorsd. To establish or price a pay structuree. To set the mix of pay forms relative to competitors72. In defining relevant markets for pay surveys, relevant market competitors include employers who compete in all of the following areasexcept:
a. the same products and services.b. the same occupations and skills.c. in the same geographic area.d. A, B & C.e. A & C.
73. Global competition requires global pay comparisons because of the complexities pertaining to all of the followingexcept:a. legal regulations.b. tax policies.c. customs.d. work force diversity.e. all of the above.74. Which occupation would most likely be sought in a local or regional labor market?
a. Engineerb. Compensation specialistc. Genetic researcherd. Executive secretarye. Professor75. Internet-based businesses are often created by a "fusion" of industries called:
a. regional markets.b. performance-based markets.c. supply markets.d. equity markets.e. all of the above.76. Designing a survey requires answering all of the following questionsexcept:
a. who should be involved in the survey design.b. how many employers should be included.c. communication feedback to the sender.d. which jobs to include.e. what information to collect.77. All of the following are advantages of the ranking methodexcept:
a. simple to use.b. less time involved.c. easy to understand and explain to employeesd. use of well-defined criteria to rank the jobs.e. least expensive method.78. A job ranking method that uses a matrix to compare all possible pairs of the jobs would be:
a. paired comparison.b. factored comparison method.c. point method plan.d. critical incident method.e. job classification method.79. Which job evaluation method has a series of classes, each one defined by a class description of the work activities?
a. Factor comparison method.b. Point method.c. Critical incident method.d. Skill-based plan.e. all of the above.80. Which method of job evaluation is favored in the public sector?
a. Classificationb. Skill-based planc. Rankingd. Market pricinge. Point plan81. The U.S. federal government's job evaluation system is an example of which job evaluation technique:
a. alternation ranking.b. the point method.c. a skill-based plan.d. market pricing.e. the classification method.82. Which job evaluation method has compensable factors, factor degrees that are numerically scaled and weights reflecting the relative importance of each factor?
a. Classificationb. Point methodc. Rankingd. Competency-based plane. all of the above83. Each job's relative value, and hence its location in the point method of job evaluation in a pay structure, is determined by:
a. observation by the supervisor.b. critical incidents.c. the total points assigned to it.d. paired comparison of job factors.e. behavioral anchors.
84. Point plans represent a significant change from ranking and classification methods because:
a. they make explicit the criteria for evaluating jobs.b. they leave the evaluation up to employees.c. they create loyalty to the company.d. they lend credence to the theory of diminishing returns.e. all of the above.85. Which job evaluation method is based on assigning weights to compensable factors?
a. Rankingb. Classificationc. Point methodd. Factor comparisone. Policy capturing86. The point method of job evaluation has all of the following characteristicsexcept:
a. compensable factors.b. factor degrees numerically scaled.c. weights reflecting the relative importance of each factor.d. pairs of comparison.e. use of job analysis.87. The relative output for each dollar of pay is called:
a. performance-based pay.b. supplemental pay benefits.c. productivity.d. job evaluation.e. performance appraisal.88. Which of the following isnot included in the definition of compensation in the U.S.?
a. Paid vacationb. Health insurancec. Promotionsd. Cost of living adjustmentse. Merit pay89. The two main categories of pay are:
a. direct and indirect compensation.b. total compensation and relational returns.c. cash compensation and benefits.d. cash compensation and allowances.e. all of the above.90. The traditional view of “compensation” in Japan is:
a. it is a reward for doing one's job.b. it is an entitlement.c. it is something given by one's superior.d. it includes providing allowances as well as providing for financial needs.e. all of the above.91. The basic cash compensation that an employer pays for the work performed is called:
a. merit pay.b. base wage.c. compensation.d. incentives.e. all of the above.92. Which of the following isnot one of the key aspects associated with a strategic perspective of compensation?
a. Internal alignmentb. Pay techniquesc. External competitivenessd. Recognizing employee contributionse. Management of the system93. When considering the pay model proposed by the authors, all of the following are trueexcept:
a. Policies include internal alignment, external competitiveness and employee contributions.b. Compensation objectives are efficiency, fairness, and complying with government regulations.c. Internally equitable pay within the organization focuses people on what competitors are paying.d. Employers with strong "pay for performance" policies are more likely to place greater emphasis on incentive and merit schemes as part of their pay systems.e. The model helps organize our thinking about objectives.94. The compensation strategy of SAS Institute, a software company, emphasizes:
a. work/life programs.b. external competitiveness.c. payment of bonuses based on company performance.d. internal alignment.e. all of the above.95. In most European countries:
a. pay systems communicate a need for change in the organization.b. unions play a lesser role in pay determination than in the U.S.c. pay systems tend to be based more on markets and performance than in the U.S.d. pay plays a supporting role in the overall HR strategy.e. all of the above.96. The key question to be addressed in developing business unit strategies is:
a. what business should we be in?b. how do we gain and sustain competitive advantage?c. how should total compensation help gain and sustain competitive advantage?d. what should be the balance between total compensation and relational returns?e. none of the above.97. A company that decides to compete on the basis of innovation:
a. will emphasize cost control.b. will probably pay on the basis of productivity increases.c. may use detailed job descriptions.d. wants to shorten the time it takes to develop a new product and get it to customers.e. will use a piece rate pay system.98. All of the following are features of a compensation system that supports a cost cutter strategyexcept:
a. a focus on competitors' labor costs.b. an emphasis on productivity.c. a focus on system control and work specifications.d. the use of flexible, generic job descriptions.e. the use of variable pay.99. Which of the following isnot one of the key steps involved in developing a total compensation strategy?a. Determining which best-practices options to use.b. Reassess the fit between policy decisions and the strategy.c. Implement the strategy.d. Assess the total compensation implications.e. Fit policy decisions to the strategy.100. Social and political context factors include all of the followingexcept:a. legal and regulatory requirements.b. influence of other HR activities.c. cultural differences.d. workforce demographics.e. all of the above.