151205238 82634683 Exam 1 Test Bank PDF

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chapter1 Human Resources management in perspective...

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ch1 1. Which of the following includes restrictions on executive pay that are designed to discourage executives from taking "unnecessary and excessive risks"? A. Corporate Welfare Program B. Employee Welfare Program Ÿ C. Troubled Asset Relief Program D. Corporate Liability Relief Program 2. According to the text, if women had the same education, experience, and union coverage as men and also worked in the same industries and occupations, they would be expected to earn about _____ of what men earn. A. 62% B. 70% C. 80% Ÿ D. 90% 3. Hourly compensation costs for manufacturing workers are higher in _____ than the U.S. Ÿ A. Norway B. Japan C. Spain D. Singapore 4. Hourly compensation costs for manufacturing workers are lower in _____ than the U.S. Ÿ A. Korea B. Norway C. Sweden D. Netherlands 5. When executives decide where to locate a manufacturing plant, the most important consideration is: A. hourly compensation costs Ÿ B. labor productivity C. strength of local labor unions D. cost of government mandated benefits 6. _____ would be most concerned about executive pay. A. Managers B. Employees C. Society Ÿ D. Stockholders 7. _____ would be most concerned about compensation as a major expense. Ÿ A. Managers B. Employees C. Society D. Stockholders

8. The primary reason compensation is important to managers is because: A. employees regard it as a reward. Ÿ B. it influences employee behavior. C. it is a larger cost than benefits. D. stock holders dislike high compensation costs. 9. Employees view compensation as all but which of the following? A. A return B. An entitlement C. A reward Ÿ D. An investment 10. The degree to which pay influences individual and aggregate motivation among the employees at any point in time is referred to as: A. sorting effect. Ÿ B. incentive effect. C. motivational effect. D. directional effect. 13. Which of the following is an example of a relational return? A. Short-term incentives Ÿ B. Recognition and status C. Work-life balance D. Income protection 14. Which of the following are given as increments to the base pay in recognition of past work behavior? A. Base pay B. Cost-of-living adjustments Ÿ C. Merit pay D. Incentives 15. Which form of pay is likely to be least expensive for employers? Ÿ A. Incentive B. Merit pay C. Cost-of-living adjustments D. Base pay 16. Employees who want to be sure their good performance will be rewarded will prefer A. merit pay. B. team incentives. Ÿ C. individual incentives. D. across-the-board pay increases. 17. Variable pay may also be called A. exempt B. non-exempt C. stock options Ÿ D. incentives 18. Which of the following is the largest component in an executive pay package?

A. Base pay Ÿ B. Stock options C. Merit pay D. Perks 19. A company that says its relatively low starting pay will be offset by larger future pay increases is using the concept of _____. Ÿ A. present-value B. merit pay C. incentives D. deferred benefits 20. All of the following have direct financial costs for an employer except: A. benefits Ÿ B. relational returns C. work-life balance D. income protection 21. Which of the following is not an objective in the pay model? A. Fairness B. Compliance C. Efficiency Ÿ D. Productivity 22. Costs are to management as _____ is to alignment. Ÿ A. work analysis B. communication C. surveys D. merit guidelines 23. Market definitions are to competitiveness as performance based is to _____. A. alignment B. compliance C. efficiency Ÿ D. contributions 24. Which of the following is not a policy in the pay model? Ÿ A. Fairness B. Competitiveness C. Contributions D. Alignment 25. Performance, quality, customers, stockholders and costs are components of which of the objectives of the pay model? A. Fairness B. Compliance Ÿ C. Efficiency D. Competitiveness 26. _____ implies that the way a pay decision is made may be as important to employees as the results of that decision.

Ÿ A. Fairness B. Compliance C. Efficiency D. Competitiveness 27. _____ refers to comparisons among jobs or skills inside a single organization. A. External competitiveness Ÿ B. Internal alignment C. Pay structure D. Equitable contributions 28. Which of the following policy choices has the greatest effect on employees' decisions to stay with the organization and to seek additional training and responsibilities? A. External competitiveness B. Employee contributions Ÿ C. Internal alignment D. Job evaluation 29. Managers seek internal alignment within their organization by: A. matching competitors' pay rates. B. following FLSA guidelines. C. using fair merit increases. Ÿ D. paying on the basis of similarities among jobs. 30. Compensation policy choices affecting pay level are most closely associated with _____. A. internal alignment Ÿ B. external competitiveness C. contributions D. management 31. Sam's Club matches the pay of other similar businesses, Whole Foods uses base pay and team incentives and Medtronic emphasizes work and life balance. These illustrate _____ pay policy choices. A. cost control B. internal alignment C. contributions Ÿ D. external competitiveness 32. Choices among pay for performance, flat rate pay and profit sharing are examples of _____ policy decisions. A. internal alignment B. efficiency Ÿ C. employee contributions D. management 33. Which of the following decisions directly affects employees' attitudes and work behaviors? Ÿ A. Employee contributions B. Internal alignment

C. External competitiveness D. Management 34. According to the text, which of the following decisions should be made jointly? A. Internal alignment and Management. Ÿ B. External competitiveness and Employee contribution C. Employee contribution and Internal alignment D. Management and External competitiveness 35. Which of the following decisions answers the "So What" question? A. Internal alignment B. Employee contributions C. External competitiveness Ÿ D. Management 36. If an organization allows workers to get rewards such as stock options due to illegal and unethical means, this reflects a failure of which policy choice? A. Internal alignment B. Efficiency C. Employee contributions Ÿ D. Management 37. You are an HR manager and your boss has told you to find the best way to raise job performance. After some research you find that _____ produce(s) the largest and most reliable performance increases. A. high base pay B. great benefits that attract and retain workers C. a combination of goal setting and job enrichment Ÿ D. monetary incentives 38. Which of the following is not a guideline for determining if research has value? A. Is the research useful B. Can alternative explanations be ruled out Ÿ C. Was the research conducted by Ph D researchers D. Is correlation separated from causation 39. A measure of how changes in one variable are related to changes in another variable is: A. standard deviation B. analysis of variance Ÿ C. correlation coefficient D. regression analysis 40. The best way to establish _____ is to account for competing explanations, either statistically or through control groups. Ÿ A. causation B. profitability C. correlation coefficient D. internal alignment

1. A merit increase is best described as: Ÿ A. an incentive that recognizes past performance. B. an inducement for achieving long-term organizational objectives. C. a one-time reward for past performance that does not increase base pay. D. an increase that is exempt from the regulations of the Canada Labour Code. E. a promise of future payments. 2. A comparison of earnings of women with those of men highlights what many consider: Ÿ A. inequities in pay decisions. B. external pay equity. C. equity theory of motivation. D. comparative wage principle. E. supplemental pay benefit. 3. The following are forms of pay except: A. base wage. B. incentives. C. merit. D. benefits. Ÿ E. administration. 4. Pay for executives is supposed to be tied to the: A. external pay equity theory. Ÿ B. financial performance of the company. C. cost of living index. D. industry-wide norm. E. piece-rate production plan. 5. Compensation research can be evaluated on the basis of its: A. cost effectiveness. B. contingency. C. performance. D. alternative explanations. Ÿ E. quality and relevance. 6. The point of looking at the definition of compensation in other languages, especially in Japan, is to understand that compensation takes care of: A. stakeholders of the business. B. stockholder returns. Ÿ C. employees' financial needs. D. suppliers in the chain. E. customers in the target market. 7. All of the following are characteristics of base pay except: Ÿ A. pay that reflects past work behaviours and accomplishments. B. pay that reflects the value of work itself. C. basic work compensation that an employee pays for work performed. D. pay calculated at an hourly rate. E. a bonus paid for a special holiday. 8. Incentives are: A. rewards that induces performance.

B. rewards of past work behaviours and accomplishments. C. long-term and short-term. Ÿ D. rewards that induces performance and long-term and short-term. E. paid as a flat rate. 9. Which of the following is NOT included in the definition of compensation? A. Paid vacation B. Health insurance Ÿ C. Promotions D. Cost of living adjustments E. Merit pay 10. Internal alignment may be achieved by: A. making cost of living adjustments. B. matching competitors' wage rates. C. paying below-market base wages but offering training and rapid promotion. D. matching outside job offers employees receive from other organizations. Ÿ E. paying on the basis of similarities among jobs within a firm. 11. Which of the following relationships within a pay system is accurate? Ÿ A. Compensation objectives shape pay policies. B. Pay policies determine the objectives of the pay system. C. Organization strategies determine employee needs. D. Pay policies form the compensation strategy of the organization. E. External competitiveness is the sole determinant of employee pay. 12. An incentive payment: A. will increase base wages in future years. B. is nontaxable and therefore highly preferred by employees. C. may be made at the beginning of a quarter for expected performance during that quarter. Ÿ D. can be based on individual or group performance. E. all of the answers are correct. 13. The most effective compensation mix for an organization is: A. increasing base wage with seniority. Ÿ B. there is no single mix which is best for all organizations. C. maintaining or decreasing base wage as benefits increase. D. roughly equal distribution between financial and non-financial compensation. E. significantly higher financial compensation, relative to non-financial compensation. 14. 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: A. long-term incentives. B. merit pay. C. total earnings opportunities. Ÿ D. work/life focus benefits. E. income protection benefits. 15. Which policies form the building blocks, the foundation on which pay systems are

built? A. Internal alignment B. External competitiveness C. Employee contributions D. Administration of the pay system Ÿ E. All of the answers are correct. 16. Telling students they must answer half the questions in this exam correctly in order to pass this course is similar to which form of compensation? A. Merit pay B. Base wage C. Compensation Ÿ D. Incentives E. Benefits 17. External competitiveness refers to: A. employee contributions. B. the relative importance of jobs within an employer. C. internal consistency. Ÿ D. compensation paid by competitors. E. inflationary pressure. 18. The compensation objective of compliance refers to: A. controlling labour costs. B. complying with common accounting procedures. C. complying with product quality standards. Ÿ D. complying with relevant regulations and laws. E. comparing the total wage bill to the estimated wage bills of competitors. 19. Stockholders generally pay particular attention to what aspect of pay? Ÿ A. Executive compensation B. Internal consistency C. Benefits D. Administration E. Base wage 20. The pay policy that is typically established through a sequence that starts with the analysis of the work done and the people needed to do it is called a (an): A. performance-based increase. B. incentive plan. C. employee stock option. Ÿ D. internal alignment. E. external competitiveness. 21. The basic cash compensation that an employer pays for the work performed is called: A. merit pay. Ÿ B. base wage. C. compensation. D. incentives. E. None of the answers are correct.

22. The relative output for each dollar of pay is called: A. performance-based pay. B. supplemental pay benefits. Ÿ C. productivity. D. job evaluation. E. performance appraisal. 23. Employees may: A. vary in their preferences for forms of pay. B. also be stockholders. C. weight the psychological returns of work as equal to the financial returns. D. view pay as a stream of earnings. Ÿ E. All of the answers are correct. 24. When assessing the worth of a study related to compensation theory it is important to ask: A. " Does the research measure anything useful?" B. "Does the study separate correlation from causation?" C. "Are there alternative explanations?" D. "Does the research measure anything useful?" and "Are there alternative explanations?" . Ÿ E. All of the answers are correct. 25. Which pay form would best be described as a return, rather than a reward? Ÿ A. Base wage B. Merit pay C. Short term incentive D. Sales commission E. Promotion CH2

1. "Supporting promotional growth opportunities" is an example of which of the following? A. Objectives Ÿ B. Internal alignment C. Externally competitive D. Employee contributions 2. "Putting some skin in the game" refers to: A. employees paid entirely on commission B. being paid as a contract vs. a regular employee Ÿ C. below market base pay with stock ownership D. above market base pay with low benefits 3. A compensation system that pays employees such that "some skin is in the game" means that Ÿ A. a portion of employee pay is at risk B. employers risk high labor costs C. level of base pay is below competitors

D. base pay is low while benefits are generous 4. In which of the following country would it be most difficult for someone to move from one employer to another? A. U.S. B. Korea Ÿ C. Germany D. Canada 5. At the corporate level, a strategic compensation perspective addresses the question: Ÿ A. What business should we be in? B. What is our desired return on assets? C. How can our total compensation help gain competitive advantage to achieve organization success? D. How can job analysis help us select the most appropriate certain compensation technique(s) for our organization? 6. What level of strategy is the question "how do we gain competitive advantage"? A. Corporate Ÿ B. Business unit C. HR D. Departmental 7. The social, competitive and regulatory environment factors are most important for which type of strategy? A. Corporate B. Business unit C. HR Ÿ D. Strategic compensation 8. Which of the following relationships within a pay system is accurate? Ÿ A. Compensation objectives shape pay policies. B. Pay policies determine the objectives of the pay system. C. Organization strategies determine employee pay needs. D. Pay policies form the compensation strategy of the organization. 9. A focus on competitor's costs is most closely associated with a _____ strategy. A. innovator B. customer-focused Ÿ C. cost-cutter D. differentiated 10. A compensation system using market-based pay is most likely to be part of a _____ strategy. Ÿ A. innovator B. cost-cutter C. global D. customer-focused 11. Flexible-generic job descriptions would most likely be used with a _____ strategy. Ÿ A. innovator B. customer-focused

C. differentiated D. cost-cutter 12. A compensation system focusing on system control and work specifications is most closely associated with _____ strategy. A. global B. customer-focused Ÿ C. cost-cutter D. differentiated 13. Whole Foods' policy of holding executive salaries to no more than 14 times average pay of full-time employees is an example of which strategic pay decision? A. External competitiveness B. Employee contributions C. Management Ÿ D. Internal alignment 14. Decisions regarding what forms compensation should be are part of _____. A. internal alignment Ÿ B. external competitiveness C. employee contributions D. management 15. The choice to communicate and make open an organization's pay system to employees is an example of which strategic choice? A. Internal alignment B. External competitiveness C. Employee contributions Ÿ D. Management 16. The decision to base pay increases on individual or group performance is made within the _____ strategic compensation choices. A. internal alignment B. external competitiveness Ÿ C. employee contributions D. management 17. A book listing the previous year's pay of all employees is part of Whole Foods "Nosecrets" philosophy. This is an example of which strategic compensation choice? A. Internal alignment B. External competitiveness C. Employee contributions Ÿ D. Management 18. Whole Foods' decision to seek and engage employees who are going to help the company make money is an example of which strategic pay decisions? Ÿ A. Objectives

B. Employee contributions C. Internal alignment D. Management 19. The second step of developing a total compensation strategy is to: A. implement strategy. B. assess total compensation implications. C. estimate the cost of the strategy. Ÿ D. map a total compensation strategy. 20. "Choosing techniques to fit strategy" is a part of which step in developing a total compensation system? A. Reassess Ÿ B. Implement strategy C. Map a total compensation strategy D. Assess total compensation implications 21. Examination of employee and union needs and the social and political context is a part of _____ step in formulating a total compensation strategy. Ÿ A. assess total compensation implications B. implement strategy C. mapping strategy D. assessing business needs 22. Which of the following is the correct order of the steps in formulating a total compensation strategy? A. Assess total compensation strategy, implement strategy, map a total compensation strategy, reassess Ÿ B. Assess total compensation strategy, map a total compensation strategy, implement strategy, reassess C. Map a total compensation strategy, implement strategy, assess total compensation strategy, reassess D. Map a total compensation strategy, assess total compensation strategy, implement strategy, reassess 23. "To maintain good citizenship as a company" and "To make a fair profit on current operations" are examples of _____. Ÿ A. values B. mission C. goals D. operating principles 24. Among unconventional benefits, U. S. workers in the Hudson's survey rated _____ as their most preferred. A. more supplemental insurance B. more job training Ÿ C. a more flexible work schedule D. more personal days and family leave 25. Which of the following statements regarding allowing employees choice in their pay mix is not true?

A. A wide-range of choices is difficult to manage Ÿ B. It provides an employer a clear competitive advantage C. Unlimited choice is difficult to design D. Too many choices can confuse people 26. Union preferences is a major factor in _____ of a total compensation strategy. A. implementing B. reassessing Ÿ C. assessing implications D. mapping 27. In mapping a total compensation strategy, the question of how is compensation in the overall HR strategy is part of _____. Ÿ A. objectives B. internal alignment C. external competitiveness D. management 28. The issue of how much and what forms of pay are our competitors using is part of which objective of total compensation strategy? A. Objectives B. Internal alignment Ÿ C. External competitiveness D. Management 29. The role non-HR managers play in making pay decisions is called _____. Ÿ A. ownership B. transparency C. technology D. decentralized decision-making 30. Issues of transparency, technology, and choice are examples of choices related to the _____ strategy choice of total compensation. A. objectives Ÿ B. management C. employee contributions D. internal alignment 31. Career ...