test_item_file_ch11.doc

Chapter 11: Establishing Strategic Pay PlansChapter 11: Establishing Strategic Pay PlansMultiple Choice1. _ refers to all forms of pay or rewards going to employees and arising from their employment. a. Reimbursementb. Employee compensationc. Salaryd. Benefitse. Remuneration(b; easy)2. Direct financial payments include all of the following except _.a. wagesb. insurancec. salariesd. incentivese. commissions(b; easy)3. Which of the following is categorized as an indirect payment portion of employee compensation?a. wagesb. salariesc. employer-paid insuranced. commissionse. bonuses(c; moderate)4. Joh is a sales representative in a jewelry store. He typically works 40 hours per week and his pay is completely based on his sales. He earns a commission on every sale he makes. His pay is based on _.a. timeb. payc. incentivesd. bonusese. seniority(b; moderate)5. Which of the following factors affects the design of any pay plan?a. legalb. unionc. company policyd. equitye. all of the above(e; easy)6. In general, the main issue in collective bargaining is _.a. time off with payb. wage ratesc. income securityd. cost-of-living adjustmentse. health care benefits(b; moderate)7. Unions negotiate all of the following pay-related issues except _.a. wage ratesb. income securityc. unpaid leave to care for an immediate family memberd. time off with paye. all of the above(c; moderate)8. When longer-term employees salaries are lower than those of workers entering the firm today, _ has occurred.a. wage curveb. salary compressionc. age discriminationd. market expansione. reward strategy(b; easy)9. Salary compression can be caused by _.a. recessionb. inflationc. economic depressiond. all of the abovee. none of the above(b; difficult)10. How are cost-of-living differentials handled by employers when employees are transferred from one location to one with a higher cost of living?a. payment of a nonrecurring, lump sum amountb. payment of a differential for ongoing costsc. raise employees base salaryd. pay an ongoing differential for ongoing costs plus a lump sum amounte. all of the above(e; easy)11. When an employee is transferred to an international location and his or her base salary reflects his or her home countrys salary with allowances added for cost-of-living differences, the employer has used a _ salary plan.a. transferb. home-basedc. host-basedd. cost-of-livinge. allowances included(b; moderate)12. When an employee who is transferred to another country is assigned a salary based on the base salary for that position in the country where he or she will work, the employer has used a _ salary plan.a. transferb. home-basedc. host-basedd. cost-of-livinge. allowances included(c; moderate)13. Who usually pays the extra tax burden resulting from taxes a manager on international assignment is liable for over and above those he or she would have to pay in the home country?a. the employeeb. the employerc. the home countryd. the host countrye. there are no additional tax burdens(b; moderate)14. What theory of motivation states that people are strongly motivated to maintain a balance between what they perceive as their inputs or contributions and their rewards?a. Maslows hierarchy of needsb. Two-factor theoryc. Equity theoryd. Learned needs theorye. Expectancy theory(c; moderate)15. Which of the following is not a form of equity that should be addressed by managers dealing with compensation issues?a. underrewardb. internalc. externald. individuale. procedural(a; moderate)16. Which form of equity refers to how a jobs pay rate in one company compares to the jobs pay rate in other companies?a. externalb. internalc. distributived. individuale. procedural(a; easy)17. Which form of equity refers to how fair a jobs pay rate is, when compared to other jobs within the same company?a. externalb. internalc. distributived. individuale. procedural(b; easy)18. Jak is a sales manager and he recently learned that human resource managers with similar responsibilities and spans of control earn more than he does. He is concerned with the _ form of equity.a. externalb. internalc. distributived. individuale. procedural(b; moderate)19. Which form of equity refers to the fairness of an individuals pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on each individuals performance?a. externalb. internalc. distributived. individuale. procedural(d; easy)20. Amina is a lawyer in a mid-size firm. She recently learned that another lawyer who joined the firm at the same time earns a lower salary than she does. Amina is experiencing the _ form of equity.a. externalb. internalc. distributived. individuale. procedural(d; easy)21. Which form of equity refers to the perceived fairness of the processes and procedures used to make decisions regarding the allocation of pay?a. externalb. internalc. distributived. individuale. procedural(e; easy)22. External equity refers to _.a. how a jobs pay rate in one company compares the jobs pay rate in other companiesb. how fair the jobs pay rate is, when compared to other jobs within the same companyc. the fairness of an individuals pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on each individuals performanced. the perceived fairness of the processes and procedures used to make decisions regarding the allocation of paye. the use of salary surveys to monitor levels paid for jobs industry-wide(a; moderate)23. Internal equity refers to _.a. how a jobs pay rate in one company compares the jobs pay rate in other companiesb. how fair the jobs pay rate is, when compared to other jobs within the same companyc. the fairness of an individuals pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on each individuals performanced. the perceived fairness of the processes and procedures used to make decisions regarding the allocation of paye. the use of salary surveys to monitor levels paid for jobs industry-wide(b; moderate)24. Individual equity refers to _.a. how a jobs pay rate in one company compares the jobs pay rate in other companiesb. how fair the jobs pay rate is, when compared to other jobs within the same companyc. the fairness of an individuals pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on each individuals performanced. the perceived fairness of the processes and procedures used to make decisions regarding the allocation of paye. the use of salary surveys to monitor levels paid for jobs industry-wide(c; moderate)25. Procedural equity refers to _.a. how a jobs pay rate in one company compares the jobs pay rate in other companiesb. how fair the jobs pay rate is, when compared to other jobs within the same companyc. the fairness of an individuals pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on each individuals performanced. the perceived fairness of the processes and procedures used to make decisions regarding the allocation of paye. the use of salary surveys to monitor levels paid for jobs industry-wide(d; moderate)26. _ is a formal and systematic comparison of jobs to determine the worth of one job relative to another.a. Job analysisb. Job evaluationc. Benchmark analysisd. Compensable evaluatione. Job ranking(b; easy)27. Factors that establish how the jobs compare to one another and set the pay for each job are called _.a. compensable factorsb. job evaluation factorsc. comparison factorsd. ranking factorse. analysis factors(a; easy)28. Another term for job classification is _.a. job rankingb. job gradingc. job categorizationd. job evaluatione. none of the above(b; easy)29. When using the job classification method of job evaluation, raters categorize jobs into groups of similar jobs called _.a. classesb. gradesc. sectionsd. schedulese. cohorts(a; moderate)30. When using the job classification method of job evaluation, raters categorize jobs into groups of jobs that are similar in difficulty but not in context called _.a. classesb. gradesc. sectionsd. schedulese. cohorts(b; moderate)31. The point method of job evaluation entails _.a. identifying several compensable factors, each having several degrees, and the degree to which each of these factors is present in the jobb. ranking each job relative to all other jobs based on some overall factorc. using raters to categorize jobs into groupsd. deciding which jobs have more of the chosen compensable factorse. none of the above(a; moderate)32. The ranking method of job evaluation entails _.a. identifying several compensable factors, each having several degrees, and the degree to which each of these factors is present in the jobb. ranking each job relative to all other jobs based on some overall factorc. using raters to categorize jobs into groupsd. deciding which jobs have more of the chosen compensable factorse. none of the above(b; moderate)33. The job grading method of job evaluation entails _.a. identifying several compensable factors, each having several degrees, and the degree to which each of these factors is present in the jobb. ranking each job relative to all other jobs based on some overall factorc. using raters to categorize jobs into groupsd. deciding which jobs have more of the chosen compensable factorse. none of the above(c; moderate)34. The factor comparison method of job evaluation entails _.a. identifying several compensable factors, each having several degrees, and the degree to which each of these factors is present in the jobb. ranking each job relative to all other jobs based on some overall factorc. using raters to categorize jobs into groupsd. deciding which jobs have more of the chosen compensable factorse. none of the above(d; moderate)35. Which job evaluation method is a quantitative technique involving the identification of several compensable factors and the degree to which each of these factors is present in the job?a. ranking methodb. point methodc. factor comparisond. job grading methode. job classification method(b; moderate)36. Which job evaluation method entails deciding which jobs have more of the chosen compensable factors?a. ranking methodb. point methodc. factor comparisond. job grading methode. job classification method(c; moderate)37. A _ is comprised of jobs of approximately equal difficulty or importance as established by job evaluation.a. pay groupb. benchmarkc. pay graded. classe. wage curve(c; easy)38. The _ shows the pay rates currently paid for jobs in each pay grade, relative to the points or rankings assigned to each job or grade by the job evaluation.a. pay groupb. benchmarkc. pay graded. classe. wage curve(e; easy)39. What is the purpose of the wage curve?a. to show the relationship between the value of the job as determined by one of the job evaluation methods and the current average pay rates for your gradesb. to equate jobs of approximately equal difficulty or importance as established by job evaluationc. to cluster jobs into logical groupingsd. to assign pay rates to pay gradese. to choose benchmark jobs within each pay grade(a; difficult)40. If the current rate being paid for a job falls below the wage line, what step should be taken?a. a pay freeze should be enacted for that jobb. a pay decrease should be assessedc. a pay raise should be providedd. no steps are necessary e. a bonus should be offered(c; difficult)41. Which of the following is typically included in compensation packages for a companys top executives?a. base payb. short-term and long-term incentivesc. perksd. executive benefitse. all of the above(e; easy)42. When employers set salary for professional employees by pricing professional jobs in the marketplace to establish the values for benchmark jobs, and then develop a salary structure based on the benchmarks and their other professional jobs, the employer has used a _ approach.a. job evaluationb. job rankingc. market-pricingd. coste. point(c; moderate)43. A company using competency-based pay pays for all of the following except an employees _.a. range of skillsb. job titlec. depth of knowledged. type of skillse. all of the above are part of competency-based pay plans(b; difficult)44. _ means collapsing salary grades and ranges into just a few wide levels or bands, each of which contains a relatively wide range of jobs and salary levels.a. Comparable worthb. Strategic compensationc. Job evaluationd. Broadbandinge. Job grading(d; easy)True/ False45. Financial benefits like employer-paid insurance and vacations are not a part of employee compensation. (F; easy)46. Indirect payments that contribute to an employees compensation include variable pay like commissions and bonuses. (F; moderate)47. Direct financial payments may be based on increments of time and on performance. (T; easy)48. Performance-based pay is more popular than time-based pay. (F; moderate)49. Wage rate has been the main issue negotiated by unions in collective bargaining. (T; easy)50. A union is entitled to know the salary of each employee it is representing. (T; moderate)51. Most expatriate salaries are set using the host-country base pay. (F; moderate)52. External equity refers to how fair the jobs pay rate is, when compared to other jobs within the same company. (F; moderate)53. Informal telephone or Internet surveys are good for checking on a relatively small number of easily identified and quickly recognized jobs. (T; easy)54. Job evaluation is primarily a judgmental process. (T; moderate)55. Job classification is the simplest of the job evaluation methods. (F; easy)56. Most employers use a market-pricing approach to determine compensation for professional employees. (T; easy)57. Competencies are demonstrable characteristics of a person including knowledge, skills, and behaviors that enable performance. (T; moderate)58. There tends to be more opportunities for advancement with competency-based pay plans than with job-based pay plans because the focus on skill-building results in more developmental opportunities. (T; easy)59. Competency-based pay plans tie pay to seniority as well as to competence. (F; moderate)60. The primary advantage of broadbanding is that it provides greater flexibility into employee assignments. (T; difficult)61. Broadbanding refers to the requirement to pay men and women equal wages for jobs of comparable value to the employer. (F; easy)62. In the broadest sense, comparable worth may mean comparing jobs that are very dissimilar such as nursing to fire fighting. (T; moderate)63. In many countries, governments have introduced wage laws to protect workers. (T; easy)64. In Malaysia, regulations on wage payment are stated in the Employment Act. (T; moderate)65. In Malaysia, employers must pay their workers every week. (F; difficult)66. In Malaysia, employers must pay their workers every month. (T; moderate)67. In Malaysia, employers must pay their workers within seven days of the wage due date. (T; difficult)68. In Malaysia, when an employee terminates a contract of service, employers must pay the due wages within three days of the last date of service. (T; moderate)69. In Malaysia, it is unlawful to pay an employee a wage advance unless it is for some special purposes. (T; moderate)70. In Malaysia, an employer may pay an employee a wage advance to purchase a motorcycle or bicycle. (T; moderate)71. In Malaysia, the Employment Act specifies what deductions may or may not be made from wages. (T; easy)72. In Malaysia, an employer may deduct from employeeswages to pay for their Employees Provident Fund. (T; moderate)73. In Malaysia, wages should not be paid in taverns, amusement places, shops or stores. (T; moderate) 74. In some countries such as Malaysia, the government imposes a foreign worker levy on employers who employ foreign workers. (T, easy)75. In Singapore, the government imposes a quota to control the number of foreign workers. (T; moderate)76. In many countries, there are minimum wage laws that specify the amount of wages to be paid. (T; easy).77. In China, the minimum wage is set by the Central Government. (F; moderate)78. In China, the minimum wage is set by the provincial and municipal governments. (T; easy) 79. In Indonesia, the minimum wage is determined with union involvement. (T; easy).80. In Indonesia, the minimum wage rate is applied throughout the country. (F; moderate)81. In Indonesia, each region has its own minimum wage rate. (T; easy) 82. In Indonesia, the minimum wage rate is based on the Consumer Price Index. (T; easy).83. In Japan, there is no minimum wage. (F; easy)84. In Japan, the minimum wage rate is fixed by the Prefecture Labor Office. (T; moderate)85. In Laos, the minimum wage should be enough for a worker to buy four kilograms of rice each week. (T; moderate)86. In the Philippines, the minimum wage rates are amended periodically to reflect th