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149 Cards in this Set

  • Front
  • Back

CHP 3


What type of performance appraisal method relies on many sources for information (employees, supervisors, coworkers, etc)?


Forced distribution


360-degree


Comparison


BARS


Trait

360-degree

CHP 3


A manager uses the following form in evaluating her employees:


1-5 to judge how task efficient a employee is.


What type of performance appraisal method is the manager using?


Trait system


Paired comparisons


BOS


MBO


BARS



BARS

CHP 3


Harry has worked as a junior clerk for XYZ Company for three months, starting at $10 per hour. In the next five to seven years, if Harry continues to perform well and is willing and able, he can more than likely expect_____


an increase in longevity pay but not seniority pay


an increase in longevity and seniority pay simultaneously, but not a promotion


an increase in seniority pay and a promotion


a cost-of-living increase with no increase in seniority pay


an increase in seniority pay but not longevity pay

an increase in seniority pay and a promotion

CHP 3


Jane works for a private employer that does not follow the seniority pay system, but Alex, her friend, works for the federal government, which awards seniority pay. Alex has an advantage over Jane because _______


he expects much larger pay raises


he knows that he will be treated fairly bc seniority pay will be based on objective standards, rather than subjective standards


the federal government is known for taking care of its employees


He is male and will always receive better raises than Jane


He knows that he will get seniority pay as well as a COL adjustment

he knows that he will be treated fairly bc seniority pay will be based on objective standards, rather than subjective standards

CHP 3


Which of the following organizations will most likely utilize a longevity pay program 10 years from now?


A yo-yo manufacturer


A public elementary school


A small, locally owned coffee shop


A privately owned flower shop


A mechanical engineering organization



A public elementary school

CHP 3


What are the most common problems associated with merit pay programs?


A poor personal relationship between a supervisor and an employee


A supervisor's improper choice of performance standards


A supervisor's unwillingness to participate in merit pay program


The failure of a supervisor to properly differentiate performers


An employee not feeling that the merit pay is significant enough



A supervisor's unwillingness to participate in a merit pay program

CHP 3


In order to establish an internally consistent compensation system, which of the following is absolutely necessary?


Establishing subjective performance measures


Establishing effective appraisals


Linking performance appraisals to business goals


Conducting job analyses


Communicating about merit pay

Conducting job analyses

CHP 3


When an employee receives a minimum pay increase that is perceived as significant, it is known as ______.


regressive


just-meaningful


most-available


least-acceptable


progressive



just-meaningful

CHP 3


Maria and Jill have been employed for three years at an accounting firm. In the last quarter, both received the same merit raise, although Maria has been a star performer and has not missed any deadlines, while Jill has missed deadlines on multiple occasions. On which aspect of the pay-for-performance link should the supervisor focus in this scenario so that this situation does not occur in the future?


Establish effective appraisal


Communicate the way the merit pay was determined


Empower both Mary and Jill


Conduct a job analysis


Differentiate among performers

Differentiate among performers

CHP 3


Marco likes to note several positive and negative behaviors and their outcomes when it comes to documenting performance appraisals of his employees. However, Matt never has enough time to record all the details. Macro is more than likely using _______.


A trait system


A forced distribution appraisal


BARS


The critical incident technique


A comparison system

The critical incident technique

CHP 3


The motivational benefit of merit pay can be perceived differently by employees and employers. Of the following factors of merit pay, which one is perceived differently by employers and employees?


Value of other employees


Amount of merit pay increase


Need for merit pay


Job description


Value of competition

Amount of merit pay increase

CHP 3


The error that occurs when a rater generalizes an employee's good or bad behavior on one aspect of the job to all aspects of the job is known as ________.


similar-to-me effect


error of central tendency


contrast error


first impression effect


halo effect

halo effect

CHP 3


Empowering employees to conduct self-appraisals is a strategy to strengthen the pay-for-performance link. What is the key advantage of this strategy?


It increases moral among the sales force


It leads to self-corrective responses to supervisory feedback


It partially relieves the supervisor of the appraisal task


it reduces cost


It reduces job-related stress for many employees



It leads to self-corrective responses to supervisory feedback

CHP 3


Dee Ann and her supervisor Andy both attend the same church and share similar points of view on many issues. It is possible for Andy to commit which type of error when judging Dee Ann's performance?


Contrast error


Similar-to-me bias error


Error of central tendency


Positive or negative halo effect bias error


First-impression effect bias error



Similar-to-me bias error

CHP 3


Generally, supervisors give merit raises based on subjective assessment of the employee's performance. It is therefore essential that _______.


Employees not put much effort into obtaining merit pay


Employees get a commitment from the supervisor before extending any effort for merit pay


Supervisors conduct accurate performance appraisals for merit pay to be effective


Supervisors do not give a high level of merit pay


Supervisors become friendly with their employees

Supervisors conduct accurate performance appraisals for merit pay to be effective

CHP 3


A software company is launching its new product line. The performance standards of the salespeople responsible for promoting the software should be judged based on ________.


Their job descriptions


Linking their performance to the company's business strategy or goals


Communicating clearly to them about merit increases


how they self-appraise themselves


making sure that effective appraisals are in place

linking their performance to the company's business strategy or goals

CHP 3


Which statement is correct?


Administrators of merit pay programs depends solely on the skills of the supervisor, not necessarily on the design and implementation of merit pay programs


Supervisors are generally very objective when awarding merit pay


When employees get continual and ongoing feedback, they learn to dread performance appraisals


The frequency with which employees are provided feedback on their performance is not very critical


Accurate and effective performance appraisals are key for effective merit pay programs

Accurate and effective performance appraisals are key for effective merit pay programs

CHP 3


In a merit pay program, there must be explicit _______ that specify the procedures or outcomes against which employees' job performance can be clearly evaluated.


outcome assessments


specifications


job qualifications


performance standards


job descriptions

performance standards

CHP 3


Mary's employer rewards employees with periodic additions to base pay according to employee's length of service in performing their jobs. What type of pay system is the organization utilizing?


Comparison pay


Longevity pay


Pay-for-performance


Merit pay


Just-meaningful pay

Longevity pay

CHP 3


John was disappointed when he saw a negligible increase in his paycheck after he was awarded merit pay. This problem can be attributed to which of the following problems with merit pay?


Supervisor's biased rating of employee's job performance


Lack of open communications between management and employees


Counting costs associated with merit pay


Little motivation value of merit pay


Undesirable competition among workers

Little motivational value of merit pay

CHP 3


Performance targets establish effective appraisals, which strengthen the pay-for-performance link. What is the best way to establish performance targets?


Ask the employees to set targets for themselves


Set performance targets based on prior performance appraisal


Find out how other companies set performance targets


Refer to the performance standards listed within job descriptions


The supervisor should set the standard as the supervisor sees fit



Refer to the performance standards listed within job descriptions

CHP 3


Before merit pay can be awarded, it is important that companies first ________.


Consider whether the person was employed in a for-profit or not-for-profit company in the past


Consider the amount of times spent on the job by an employee


Make permanent adjustments to base pay for inflation


Make the employee realize that any pay increase is temporary


Ignore the amount of available funds for merit pay

Make permanent adjustments to base pay for inflation

CHP 3


There are 15 classifications in the General Schedule for government employees. These classifications are based on _____.


Supervisory experience and length of service


Knowledge and expertise


Age, seniority, and merit


Skill, education, and experience levels


Education and technical skills

Skill, education, and experience levels

CHP 3


Which of the following is NOT a reason why seniority pay is expected to disappear in the future?


Employee belief that workers become more valuable over time


Skill deficits of new employees


Rapid technological advancements


Skill deficits of current workers


Increased global competition

Employee belief that workers become more valuable over time

CHP 4


What is the benefit of including an incentive component in the core compensation program offered to employees in an industry that experiences cyclical demand, such as retail sales?


Reducing turnover


Lowering payroll costs during lean periods


Reducing absenteeism


Having tax advantages associated with the strategy


Attracting better educated applicants





Lowering payroll costs during learn periods

CHP 4


Which of the following jobs would most likely use incentive pay as the base compensation plan?


Customer service representatives


Factory workers


Automobile salespersons


Wait staff


teachers



Automobile salespersons

CHP 4


A greater number of employees are becoming eligible for incentive pay. The key reason behind this phenomenon is that _______.


Companies award incentive pay instead of cost-of-living adjustments


More workers demand incentive pay


Companies want to control costs and motivate employees


More companies want to share their profits with employees


Incentive pay is replacing merit pay



Companies want to control costs and motivate employees

CHP 4


Employees are rewarded in a company-wide incentive plan ________.


To promote healthy individual competition among workers


When the company exceeds the minimum acceptable performance standard


When the company perceives loyalty on the part of the employees


When an individual worker exceeds the performance standard


Regardless of the prevailing profit levels and stock price of the company

When the company exceeds the minimum acceptable performance standard

CHP 4


One of the advantages of introducing incentive pay instead of merit pay for cyclical industries such as retail sales is that​ ________.


Incentive pay is much easier to achieve for all types of performers


Incentive pay is perceived as more valuable by employees than merit pay


Supervisors can choose not to award incentive pay


Compensation expenses can be minimized with incentive pay


Incentive pay is always less than merit pay



Compensation expenses can be minimized with incentive pay

CHP 4


Companies generally institute incentive pay programs to control payroll costs and motivate employee productivity. Of the​ following, which would be an example of an incentive pay program element that could help an organization meet those​ objectives?


increasing sales commissions from 20% of sales to 25% of sales


Profit-sharing program


10% base pay increase for all employees


Holiday bonus program


Overtime pay program

Profit-sharing program

CHP 4


Which of the following statements is​ true?


Individualistic compensation practices encourage group behavior


​Team-based pay plans should compensate employees for achieving group objectives as well as assuming their respective roles in a team.


Companies that rely on groups should offer more individualistic incentives.Your answer is not correct


Traditional pay programs are beneficial for work teams


Merit and seniority pay are compatible with​ team-based work.

Team-based pay plans should compensate employees for achieving group objectives as well as assuming their respective roles in a team.

CHP 4


When designing incentive​ plans, it is important to keep time horizons in mind. Most HR professionals follow the general guideline that​ ________.


Short-term goals can be achieved in 5 years or less and​ long-term goals take longer than 5 years


Long term goals can be achieved in less than 3 years


Short-term and​ long-term goals can be divided arbitrarily by a supervisor


Short-term goals take less than a year and​ long-term goals take longer than a year to be achieved


Short-term goals can be achieved in 8 years or less and​ long-term goals take longer than 8 years

Short-term goals can be achieved in 5 years or less and​ long-term goals take longer than 5 years

CHP 4


Java Jazz is a company known for superior pay and good benefits. Java Jazz is having a hard time finding qualified​ employees, and it is experiencing high growth. Which type of incentive is it most likely to​ offer?


Individual incentive plans


Management incentive plan


Group incentive plan


Spot bonuses


Referral plan

Referral plan

CHP 4


The Rucker plan and the Scanlon plan are similar​ gain-sharing plans. What is the key difference between the two​ plans?


The Rucker plan uses the​ value-added formula, and the Scanlon plan uses the sales value of production formula.


The Scanlon plan provides no input from​ management, but the Rucker plan does


The Scanlon plan does not emphasize monetary rewards as much as the Rucker plan does


The Rucker plan emphasizes the suggestion system within the​ company, but the Scanlon plan does not


The Scanlon plan does not recommend employee​ involvement, but the Rucker plan does

The Rucker plan uses the​ value-added formula, and the Scanlon plan uses the sales value of production formula.

CHP 4


Jill works at a factory where she is responsible for producing collector dolls. More than​ likely, Jill's employer uses​ ________.


merit plans


group incentive plans


individual incentive plans


bonus plans


​company-wide incentive plans



Individual incentive plans

CHP 4


Matt, Juan,​ Linda, and Ming are working on a new product for their company that will be launched in the near future. Management wants to reinforce cohesiveness among the team. Which type of group incentive plan would be best suited for attaining the management​ objective?


Equal incentive payments approach


Differential incentive payments


​Gain-sharing plans


Referral plans


Differential payments based on ratio of base pay



Equal incentive payments approach

CHP 4


Incentive plans that promote collaborative behavior are called​ ________.


cooperation incentives


​team-based incentive plans


group incentive plans


behavioral rewards


​team-building incentives



group incentive plans

CHP 4


Which type of incentive would be most applicable for a company that values employees with exemplary attendance​ records?


Management incentive plan


Piecework plan


Spot bonuses


Referral plan


Behavioral encouragement plan



Behavioral encouragement plan

CHP 4


Incentive or variable pay is defined as​ compensation, other than​ ________ that​ fluctuate(s) according to​ employees' attainment of some​ standard, such as a​ pre-established formula, individual or group​ goals, or company earnings.


Bonus pay


​Group-based pay


Merit pay


Base wages or salaries


performance-based pay



Base wages or salaries

CHP 4


Each of the following is true of a​ company-wide incentive plan EXCEPT​ ________.


Company-wide incentive plans are used to motivate employees to work toward increased profits


Employees are rewarded based on company profits


Employees are rewarded based on stock values for publicly traded companies


Company-wide incentive plans make​ employees' goals more compatible with corporate goals


Individual performance is measured in support of company goals

Individual performance is measured in support of company goals

CHP 4


When designing an incentive pay​ plan, the time horizon of the plan becomes a major issue. Of the​ following, which is​ true?


Production​ workers' performance is sometimes judged on periods as short as one hour


Incentive programs for professionals and executives should have a​ short-term orientation


In​ general, incentives for​ lower-level employees should be based on​ long-term goals.Your answer is not correct


Production​ workers' performance should be based on longer periods of time in order to accurately assess skills


As a general rule of​ thumb, short-term goals can be achieved in two years or less.

Production​ workers' performance is sometimes judged on periods as short as one hour

CHP 4


Which of the following best defines group​ incentives?


A program that rewards employees for their collective performance


An incentive fund that can be distributed to individual team members based on supervisor appraisals


Incentives paid to group members based on individual performance


Incentive pay based on individual group​ members' contribution


A program that rewards groups on​ company-wide objective

A program that rewards employees for their collective performance

CHP 4


Which is true of​ profit-sharing plans?


Profit-sharing plans are​ short-term in nature​Profit-sharing plans include merit pay


Profit-sharing plans do not pay cash awards.


There is only type of​ profit-sharing plan in use today long dash—the deferred​ profit-sharing plan


​Profit-sharing plans pay a part of the​ company's profit to the employees.



Profit-sharing plans pay a part of the​ company's profit to the employees.

CHP 4


A key difference between merit pay and incentive pay is that supervisors generally​ ________.


Offer greater merit pay than incentive pay


Communicate in advance about the incentive pay​ amounts, but do not communicate in advance about the merit awards


Communicate in advance about merit​ pay, but do not communicate in advance about incentive pay


Offer greater incentive pay than merit pay


Base incentive pay on subjective assessment and merit pay on objective assessment of the employees



Communicate in advance about the incentive pay​ amounts, but do not communicate in advance about the merit awards

CHP 4


The level of risk increases for employees as incentive pay becomes a greater proportion of total compensation. Generally this perceived level of risk​ ________.


Is higher for​ higher-ranked employees


Can be controlled by supervisors


Is lower for​ higher-rank employees


Increases for all employees regardless of their rank


Is subjective for most employees



Is higher for​ higher-ranked employees

CHP 4


The disadvantage of​ profit-sharing plans for employees is that​ ________.


Employees find it difficult to predict their earnings from year to year


Management makes it harder to achieve the performance standards


Profit-sharing plans generally replace​ cost-of-living increases


Profit-sharing plans create unnecessary competition among workers


Employees do not see a significant increase in base pay

Employees find it difficult to predict their earnings from year to year

CHP 5


Which statement about incentive pay is​ correct?


Incentive pay is more costly for firms than seniority and merit pay


Incentive pay replaces an​ employee's traditional pay at most firms


Incentive pay is a​ one-time payment that augments an​ employee's base pay.


Incentive pay is used to reward individual employees but not groups


Incentive pay is limited to production and nonsupervisory employees.

Incentive pay is a​ one-time payment that augments an​ employee's base pay.

CHP 5


In traditional pay​ plans, employees are paid​ ________.


For length of service to the company


A fixed hourly rate or annual salary


Every two weeks


In advance of work performed


Based on performance

A fixed hourly rate or annual salary

CHP 5


John has been employed for 15 years with a textile company that produces​ men's shirts. John has received incentive pay for most of the 15 years of his employment. What is the term an economist would use to classify this longevity of​ employment?


Incentive effect


Longevity effect


Seniority effect


Sorting effect


Base pay effect

Sorting effect

CHP 5


If the following types of​ businesses, which one will benefit the most from the​ cross-departmental model of​ person-focused pay?


Hair salon


Dentist office


Auto body shop


Pharmacy


Gift store selling holiday items

Gift store selling holiday items

CHP 5


Person-focused pay programs are innovative because they​ ________.


Reward employees very well for lack of absenteeism


Reward employees for taking high levels of risk on the job


Treat compensation as a reward rather than an entitlement


Reward employees on the basis of loyalty


Make supervisors more accountable on the job

Treat compensation as a reward rather than an entitlement

CHP 5


There is evidence that​ well-designed person-focused programs lead to greater employee​ commitment, motivation, and satisfaction. What is the main reason why employees feel the way they do in​ person-focused pay​ programs?


Employees can attain more skills and autonomy in this system


This is the correct answer


Employees feel supervisors communicate better in this system


Employees feel less pressure to develop themselves in this system


Employees can take more personal time off in this system


Employees feel less threatened in this system.

Employees can attain more skills and autonomy in this system

CHP 5


Marketing-for-All relies on its employees developing certain skills that address the key concerns of the​ company, like customer relations skills. The company rewards its employees by assigning points to skills such as customer​ relations, communication​ skills, and creativity. Which type of​ person-focused pay program is​ Marketing-for-All more than likely​ following?


Cross-departmental model


​Job-point accrual model


Stair-step model


Horizontal skill model


​Skill-block model

Job-point accrual model

CHP 5


Pay-for-knowledge, skill-based​ pay, and​ competency-based pay are forms of​ ________.


Incentive pay


Job-based pay


Person-focused pay


Merit pay


Ccost-of-living adjustments

Person-focused pay

CHP 5


Which statement about​ person-focused pay systems is​ FALSE?


​Person-focused pay systems offer job enrichment


​Person-focused systems create staffing flexibility


​Person-focused systems often lead to enhanced job motivation.


Person-focused pay systems create the need for more workers.


​Person-focused systems lead to higher job commitment from employees.

Person-focused pay systems create the need for more workers

CHP 5


One of the key advantages of​ person-focused pay for employees is that it​ ________.


Provides job enrichment


Makes promotions easier to attain


Provides greater pay raises than any other system


Helps them to strengthen relationships with supervisors


Helps them earn bonuses

Provides job enrichment

CHP 5


The focus of the​ ________ model is to promote staffing flexibility by training employees in one department with critical skills they would need to perform effectively in other departments​cross-departmental


Team skills


Skill blocks


Stair-step


Job-point accrual

cross-departmental

CHP 5


Which type of jobs would be best suited for​ person-focused pay​ programs?


Jobs in the finance industry


Jobs in the fast food industry


Jobs in telemarketing


Jobs in manufacturing


Jobs in the retail industry

Jobs in manufacturing

CHP 5


Under which pay system do employers feel that hourly​ costs, training​ costs, and overhead costs can be​ high?


​Job-based pay


Merit pay


Incentive pay


Person-focused pay


Seniority pay

Person-focused pay

CHP 5


Which statement about​ job-based pay and​ person-focused pay is​ true?


​Job-based pay considers key​ skills, but​ person-focused pay considers the market value of the job itself


In a​ job-based pay​ system, an​ employee's pay is determined by the market value of their skills


A​ person-focused pay system is easier to administer than a​ job-based pay system


​Job-based pay promotes workers based on their past​ proficiency, but​ person-focused pay promotes based on seniority


In a​ person-focused pay​ system, employees tend to have more job variety and job enrichment than in a​ job-based system.

In a​ person-focused pay​ system, employees tend to have more job variety and job enrichment than in a​ job-based system

CHP 5


One of the disadvantages of​ person-focused pay programs is that it is hard to assign a monetary value to skill and knowledge sets. This is because compensation surveys​ ________.


Compensation surveys become outdated very quickly


Report the value of entire jobs rather than of individual skill sets


Are biased in reporting the monetary value of skill and knowledge sets


Usually are taken from a small number of companies and are therefore limited in nature


Are not always accurate when reporting the monetary value of skill and knowledge sets

Report the value of entire jobs rather than of individual skill sets

CHP 5


What is the difference between​ person-focused pay and incentive​ pay?


​Person-focused pay is paid one​ time, but incentive pay is ongoing


​Person-focused pay is agreed upon in​ advance, but incentive pay is not


​Person-focused pay is for skill​ development, but incentive pay is​ one-time pay for the attainment of goals communicated in advance


Person-focused pay is a much larger amount than incentive pay


​Person-focused pay focuses on past​ performance, whereas incentive pay focuses on future performance.

Person-focused pay is for skill​ development, but incentive pay is​ one-time pay for the attainment of goals communicated in advance

CHP 5


Personal effectiveness and academic and workplace competencies can be grouped as​ ________.


Industry-wide technical competencies


Industry-sector technical competencies​Occupation-specific competencies


Foundational competencies


Management competencies

Foundational competencies

CHP 5


The key difference between the​ stair-step model and the skill blocks model is that​ ________.


The skill blocks model addresses both horizontal and vertical​ skills, but the​ stair-step model addresses skill depth only


The​ stair-step model deals with general​ skills, and the skill blocks model deals with specialized skills


In the​ stair-step model, skills do not build on each​ other, but in the skill blocks​ model, they do


The skill blocks model addresses skill​ depth, but the​ stair-step model does not


The​ stair-step model depends on a defined​ curricula, but the skill blocks model does not

The skill blocks model addresses both horizontal and vertical​ skills, but the​ stair-step model addresses skill depth only

CHP 5


A key difference between​ knowledge-based pay and merit pay is that​ ________.


Merit pay takes into account the number of years of​ service, but​ knowledge-based pay does not


Merit pay is for job​ performance, and​ knowledge-based pay is for potential future performance


Merit pay is for the commitment to future job​ performance, but​ knowledge-based pay is not


Knowledge-based pay is smaller than merit pay


Knowledge-based pay is awarded to employees who achieve high scores on​ training, but merit pay is not

Merit pay is for job​ performance, and​ knowledge-based pay is for potential future performance

CHP 5


Which statement about the skills and education of global workers is​ FALSE?


Some private sector firms in Ireland offer employees training in​ technology, science, and marketing


The U.S. provides highly successful apprenticeship programs to both high school students and continuing education employees


In the​ EU, academic institutions and employers often collaborate to educate workers.


Learning is emphasized by many employers in both the EU and some Pacific Rim economies


Western European economies provide vocational instruction for the​ non-college-bound members of their workforces.

The U.S. provides highly successful apprenticeship programs to both high school students and continuing education employees

CHP 5


_______ is one of the key features of​ person-focused pay that makes it costly for employers.


Generous allowances for time off


Higher training costs


Larger pay raises


Reduced work hours


Greater need for staffing

Higher training costs

CHP 5


What term refers to a job design approach that creates a more intrinsically motivating and interesting work​ environment?Empowerment


Job security


Job enrichment


Job analysis


Skill variety

Job enrichment

CHP 5


When awarding​ person-focused pay to autonomous work​ teams, which types of skills are emphasized for team​ members?


Vertical skills


Horizontal skills


Leadership skills


Numerical skills


Interpersonal skills

Vertical skills

CHP 5


Which of the following statements is​ true?Merit pay and​ person-focused pay mesh together very well


Incentive pay and merit pay combine together well


Incentive pay and​ person-focused pay combine together very well


Job-based pay and​ person-focused pay combine well together


​Person-focused pay and incentive pay do not mesh well together.

person-focused pay and incentive pay do not mesh well together

CHP 5


Seniority​ pay, merit​ pay, and incentive pay are forms of​ ________.


Job-based pay


Training costs


Person-focused pay


Skill-based pay


Pay-for-knowledge

Job-based pay

CHP 5


When an HR specialist continues to take courses and acquire additional experience in the benefits​ area, that specialist is​ ________.


Acquiring depth of skills


Acquiring vertical skills


Restricting the​ specialist's career progression


Acquiring horizontal skills


Acquiring fewer competencies in the HR area

Acquiring depth of skills

CHP 5


The​ ________ model is a​ person-focused pay plan that encourages employees to develop skills and learn to perform jobs from different job families.


Stair-step


Skill blocks


Incentive-pay


Job-point accrual


Cross-departmental

Job-point accrual

CHP 5


Anna is a new graduate with a B.S. degree in Business Management and is entering the workforce. Which type of competencies will a future employer expect Anna to​ demonstrate?​Industry-sector technical competencies​Industry-related competencies


Foundational competencies


Occupation​ -related competencies


Workplace competencies

Foundational competencies

CHP 6


________ refers to the job duties and tasks as well as such pertinent factors as the skill and effort needed to perform a job adequately


Job motivation


Job content


Job analysis


A job requirement


A job specification

Job content

CHP 6


What do compensation professionals use to establish pay differentials among employees within a​ company?


Seniority in the company


Job descriptions


Skills and qualifications


Academic background


Job evaluation

Job Evaluation

CHP 6


he Standard Occupational Classification System​, trade​ associations, professional​ societies, and trade unions are​ ________.


internal sources from which pertinent information on labor laws can be determined


external sources from which pertinent information on pay raises can be determined


external sources that job analysts can use to find pertinent job information to conduct job analysis


excellent sources that companies can use when developing training programs for employees


external sources that HR professionals can use to develop performance appraisals

External sources that job analysts can use to find pertinent job information to conduct job analysis

CHP 6


Questionnaires, interviews,​ observations, and participation are methods for​ ________.


conducting job evaluation


collecting information for job analysis


determining pay raises


conducting job orientation


training job analysts

collecting information for job analysis

CHP 6


The​ job-content evaluation technique that follows an order of all jobs from the lowest to the highest on a single criterion is known as​ ________.


simple ranking plan


paired comparison


alternation ranking


job-content plan


classification plan

simple ranking plan

CHP 6


Noor, an HR​ specialist, has expertise in labor laws due to his​ master's degree in HR and years of experience in the field. According to the​ EEOC, Noor's HR expertise is considered​ ________.


knowledge


a skill


an ability


a benefit



knowledge

CHP 6


A job evaluation committee frequently uses the point method as a job valuation technique. When using the point​ method, an evaluation committee examines the importance of a factor to the overall value of the​ job, which means the committee is​ ________.


determining the point value of each compensable factor


selecting benchmark jobs


defining factor degrees


determining the weight of each factor


verifying factor degrees and point values

determining the weight of each factor

CHP 6


What is the first step in the job evaluation​ process?


Training employees to conduct job evaluations


Documenting the job evaluation plan


Setting up the appeals process


Choosing the job evaluation committee


Determining single versus multiple job evaluation techniques



Determining single versus multiple job evaluation techniques

CHP 6


What is the sixth and final step in the job evaluation​ process?


Setting up the appeals process


Choosing the job evaluation committee


Documenting the job evaluation plan


Training employees to conduct job evaluations


Communicating with employees



Setting up the appeals process

CHP 6


Dysfunctional turnover is best defined as the departure of​ ________.


​high-quality employees due to inadequate pay


​high-quality employees due to bad supervisory behavior


supervisors due to​ low-quality employees being hired


part-time employees from the organization due to bad performance reviews


employees due to the lack of adequate job benefits



High-quality employees due to inadequate pay

CHP 6


The point method is a​ job-content valuation technique. What is the first step when using this​ technique?


Defining factor degrees


Determining the weight of each factor


Determining point values for each factor


Selecting benchmark jobs


Choosing compensable factors based on a benchmark



Selecting benchmark jobs

CHP 6


The social context within which waiters in a restaurant interact with​ guests, or tax accountants in a tax preparation office interact with​ clients, is known as the​ ________.


job content


KSAs


job description


working conditions


worker requirements



working conditions

CHP 6


What is the biggest drawback for a company that follows a tightly defined job description based on an internally consistent pay​ system?The company ends up giving employees greater bargaining power in an internally consistent pay system.


The company ends up with fewer jobs than it normally would.


It becomes difficult for supervisors to assess employees on narrowly defined job descriptions.Y


The company usually ends up paying more to its employees than its competitors do.


The company ends up being less flexible in responding to its​ competitor's pay practices.



The company ends up being less flexible in responding to its​ competitor's pay practices.

CHP 6


Which is true of using alternative​ job-content evaluation approaches by compensation​ specialists?


Simple ranking plans use different criteria to rank jobs


Qualitative methods used to study job content assign numerical values to rank jobs.


Ranking plans use objective data.


Ranking plans use neither job analyses nor job​ descriptions, which makes them harder to defend legally


Private-sector organizations use classification plans extensively.

Ranking plans use neither job analyses nor job descriptions, which makes them harder to defend legally

CHP 6


Which of the following best explains the concept of an internally consistent compensation​ system?


Every employee within an organization should be paid​ equally, regardless of duties and responsibilities


The relative value and corresponding compensation associated with each job is determined by compensation professionals in an organization.


The value of each job is determined by a​ cross-functional team, which then assigns compensation based on a formula incorporating both longevity and employee skill sets necessary to complete tasks.


Compensation systems do not change over time. When an employee is hired by an​ organization, the employee is guaranteed that the compensation system in place upon hiring will remain in place until separation.


The compensation system for internal​ full-time employees remains consistent over​ time, whereas the compensation paid to contractors and outside agents is subject to change depending on market fluctuations.

The relative value and corresponding compensation associated with each job is determined by compensation professionals in an organization.

CHP 6


What is the reason many companies use a​ market-based evaluation plan when conducting job​ evaluation?


​Market-based evaluation plans use​ companies' internal value system in establishing job worth.


​Market-based evaluations plans are more accurate than​ job-content evaluations.


​Market-based evaluation plans do not rely on any questionnaires or surveys and therefore are easier to conduct.


Market-based evaluation plans are preferred by compensation specialists.


​Market-based evaluation plans determine appropriate pay rates relative to the market.

Market-based evaluation plans determine appropriate pay rates relative to the market

CHP 6


Mary has applied for an​ entry-level position in a marketing firm. She believes she meets the minimum qualifications for the job and that she has the​ knowledge, skills, and abilities to perform the job well. In other​ words, Mary believes she has the necessary​ ________.


job content


background check


worker certification


work ethic


worker requirements



worker requirements

CHP 6


A problem associated with​ ________ is that they often lead to bureaucracy that can lead to higher fixed costs and a less competitive position.


internally inconsistent compensation systems


flexible pay systems


​salary-based pay systems


hourly-wage-based pay systems


internally consistent compensation systems



internally consistent compensation systems

CHP 6


What is the best approach to producing valid job​ descriptions?


Supervisors should study jobs for a minimum of six​ months, and conduct extensive job interviews with employees.


The results obtained from multiple data sources and multiple methods should converge.


External HR consulting companies should communicate with supervisors and employees for one month.


Data from government websites and employee questionnaires should be gathered by job analysts.


Employees should provide detailed​ information, as well as document their daily tasks and activities for one year.



The results obtained from multiple data sources and multiple methods should converge.

CHP 6


Which of the following would be the best source of information for providing information on the interrelationship among jobs when conducting a job​ analysis?Supervisors


Compensation specialists


Job incumbents


New hires


​Ex-employees

Supervisors

CHP 6


Internally consistent compensation systems facilitate the use of lowest cost strategy for companies because​ ________.


jobs are placed on a​ hierarchy, with most jobs placed on the​ lower-paid levels


job descriptions are broadly defined and focus on quality


jobs are valued​ numerically, with most jobs being assigned lower points


job duties and responsibilities are clearly defined with a focus on efficiency


merit pay is not part of the compensation

job duties and responsibilities are clearly defined with a focus on efficiency

CHP 6


When setting up an appeals process for employees to challenge the job evaluation​ process, it is best to have​ ________ be present.


no more than one or two key individuals from HR


an external labor consultant


a group of compensation​ professionals, supervisors, and employees


members of the union


as many employees as possible

a group of compensation​ professionals, supervisors, and employees

CHP 6


Which of the following is a list of educational​ qualifications, KSAs, and other qualifications an individual must possess to perform a job​ adequately?Job duties


Worker specifications


Job analysis


Job summary


Job content



Worker specifications

CHP 6


Martina is a sales manager in a major department store. Two independent job analysts have listed​ Martina's duties, which match the sales manager job description. This approach is known as the​ ________.


reliable job analysis method


observation method


data collection method


interview method


valid job analysis method

reliable job analysis method

CHP 6


There is a basic principle that companies rely on for building an internally consistent compensation system. This principle states that​ ________.


the relative value of each job should be based on the academic qualifications required to perform the job


there is very little difference in job characteristics between jobs that fall within a job family


all employees should be paid equally


the greater the responsibilities and complexities of a job the greater the pay


jobs should be ranked on the basis of seniority

the greater the responsibilities and complexities of a job the greater the pay

CHP 7


Who should be involved in job leveling in a​ company?


Employees and union leaders


Compensation professionals and HR specialists


Job incumbents and supervisors


Compensation professionals


Employees and HR professionals

Job incumbents and supervisors

CHP 7


What does the term market pay line imply when conducting a regression​ analysis?


The deviation in pay rates


The lowest wages paid in the market


The typical market pay rates expressed as a mean or median


The highest wages paid in the market


Insignificant pay rate increases in the market



The typical market pay rates expressed as a mean or median

CHP 7


The index component of National Compensation​ Data, the Employer Cost Index​ (ECI), measures changes in​ ________.


pay raises


benefits


pay relative to inflation


labor costs


hourly versus salaried wages

labor costs

CHP 7


Companies traditionally competed for qualified candidates on the basis of​ ________.


​sign-up bonuses


benefits


quality pension plans


generous relocation allowances


base pay

Base pay

CHP 7


Which statement about benchmark jobs is​ true?


Benchmark jobs increase the time required to determine pay levels.


Benchmark jobs are common across many different employers.


Benchmark jobs are used for determining appropriate employee benefits.


Benchmark jobs are typically unstable over time in most industries.


Benchmark jobs represent a limited number of jobs within a company.



Benchmark jobs are common across many different employers.

CHP 7


Compensation specialists hope to gain information regarding​ ________ from compensation surveys.


​competitors' hiring practices


​competitors' benefits packages


​competitors' base pay and mix of total monetary compensation


employee preferences regarding pay


labor​ unions' preferences regarding pay

competitors' base pay and mix of total monetary compensation

CHP 7


The​ ________ survey is a monthly survey of the payroll records of businesses establishments that provides national estimates of average weekly hours and average hourly earnings for the private sector for all employees and for production and nonsupervisory employees.


Bureau of Labor Statistics


Consumer Price Index


Current Employment Statistics


National Estimates


National Compensation



Current Employment Statistics

CHP 7


What is the balance that companies must strike when it comes to designing a differentiation pay​ strategy?


Trying to match their overhead costs to their competitors while keeping up with productivity levels


Paying employees competitively while pursuing a​ lowest-cost strategy


Paying employees lower pay than competitors and keeping employees from joining unions


Attracting and retaining qualified candidates with sufficient pay and giving them adequate resources with which to work


Providing employees generous benefits while keeping compensation costs to a minimum

Attracting and retaining qualified candidates with sufficient pay and giving them adequate resources with which to work

CHP 7


A hospital that has been looking to fill the position for a neurosurgeon​ (a highly skilled and specialized job where demand is high and supply is​ low) would more than likely define its relevant labor market in terms of​ ________.


the local area where the hospital is located


product market competitors


service market competitors


geography


occupational classification

geography

CHP 7


A relevant labor market can be defined on the basis of all of the following EXCEPT​ ________.


geography


product market competitors


service market competitors


customer type


occupational classification

customer type

CHP 7


Who is ultimately responsible for making compensation policy​ decisions?


HR specialists


Labor unions


Top management


Employees


Supervisors

Top management

CHP 7


All of the following activities are part of designing a​ market-competitive pay system EXCEPT​ ________.


matching job descriptions to pay levels


conducting strategic analyses


assessing​ competitors' pay practices with surveys


integrating internal job structures with external market pay rates


determining compensation policies



matching job descriptions to pay levels

CHP 7


The data collected on compensation by professional and industry association members tends to be accurate because​ ________.


it is valuable​ information, and therefore goes through several cycles of accuracy checks


it is extremely expensive to purchase the data


members themselves stand to benefit from the data


members are proficient in statistical techniques


it takes a very long time to compile the data

members themselves stand to benefit from the data

CHP 7


Which of the following measures the purchasing power of a​ dollar?


Nominal compensation


Real compensation


Market pay line


Standard deviation


Central tendency


Real compensation

CHP 7


Pay mix policy may be expressed in​ ________.


fractions and ratios


hours spent on the job


dollars expressing total payroll taxes paid in a given year


dollars expressing the total savings in compensation


currency or as a percentage of total dollars spent on compensation

currency or as a percentage of total dollars spent on compensation

CHP 7


When compensation analysts use regression​ analysis, they are trying to​ ________.


come up with an average of the salaries on a survey


establish the highest and lowest salary levels on the survey


study the amount of deviation in salaries


predict the values of one variable from another


predict salary increases in the future

predict the values of one variable from another

CHP 7


Compensation professionals must be aware of certain characteristics of compensation surveys. Which statement about compensation surveys is​ FALSE?


Compensation survey data requires statistical analysis.


Compensation surveys become outdated quickly.


Compensation surveys are loaded with information.


Compensation surveys contain a wide range of pay rates across companies.


Compensation surveys represent​ real-time data.

Compensation surveys represent​ real-time data.

CHP 7


Which term refers to the set of data that clusters around a typical numerical​ value?Regression analysis


Standard deviation


Central tendency


Quartile


Variation

Central tendency

CHP 7


An appropriate pay mix should consider the relative worth of jobs within a structure. Keeping this in​ mind, most of the bonus compensation in a technology company like Intel would likely be given to which of the following​ groups?


Administrative staff


Engineers


Custodial staff


Sales and marketing staff


Blue collar workers

Engineers

CHP 7


What are the components of a pay​ mix?


Core compensation and incentive pay


Core compensation and benefits


Total benefits and bonuses


Total pay and merit pay


Total benefits and incentives

Core compensation and benefits

CHP 7


Which of the following is true in regard to​ benefits?


Benefits are currently far less important to employees than base pay.


Benefits are becoming a smaller component of total compensation packages.


Benefits costs have been falling for most companies.


Benefits costs have​ increased, giving rise to greater variability in benefits among companies.


Compensation surveys do not take into account​ benefits; they concentrate on base pay.



Benefits costs have​ increased, giving rise to greater variability in benefits among companies.

CHP 7


In order to remain​ competitive, how often should companies update their pay​ systems?Every two years


Annually


Quarterly


Every five years


Every six months

Annually

CHP 7


Before investing time and money into compensation​ surveys, which question is most important for compensation professionals to​ consider?


How should we design the​ survey?


How long will the survey be​ valid?


Should company employees be involved in constructing the​ survey?


How long will it take to conduct the​ survey?What does the company want to gain from the​ survey?



What does the company want to gain from the​ survey?

CHP 7


________ is when companies make corrections for differences between their jobs and external benchmark jobs.


Job leveling


Point factor leveling


Objective correction


Occupational classification


Subjective correction



Job leveling

CHP 7


Custom compensation surveys designed by consulting firms for clients may be superior to existing surveys because they​ ________.


cost much less than existing surveys


include questions specifically designed to meet client​ needs, unlike existing surveys


use multiple sources to collect​ data, unlike existing​ surveys, which use one source


are not as out of date as existing surveys


consider the total compensation package of the​ client, unlike existing surveys

include questions specifically designed to meet client​ needs, unlike existing surveys

CHP 8


All of the following are effective goals and objectives for sales professionals EXCEPT​ ________.


improving sales productivity


achieving customer objectives


acquiring new direct customers


keeping current distribution channels


expanding overall sales



keeping current distribution channels

CHP 8


Which of the following is NOT a step that compensation professionals use to begin plans for setting the merit pay​ grid?


Calculate the expected number of employees who will fall into each cell


Ask managers for the names of employees receiving merit pay increases


Determine if the projected merit increase totals are within the budgeted amount


Ask managers for the performance distribution of their employees


Gather data on employee positions in the pay range



Ask managers for the names of employees receiving merit pay increases

CHP 8


What is the primary limitation of a​ two-tiered pay​ structure?


It increases the total compensation costs for the company.


It limits a​ company's ability to retain​ senior, experienced workers.


It restricts the​ company's ability to award merit pay.


It leads to discord between workers inside and outside the company.


It limits the​ company's ability to recruit and retain qualified workers.



It limits the​ company's ability to recruit and retain qualified workers.

CHP 8


Generally, the greater the influence of the salesperson on the buying​ decision, the​ ________.


less likely that the salesperson will serve as a consultant to the buyer


greater the likelihood of receiving a straight​ salary-only plan


less effort will be exerted by the salesperson


less emphasis on incentive pay in the compensation mix


more emphasis on incentive pay in the compensation mix



more emphasis on incentive pay in the compensation mix

CHP 8


Pay rates that fall along the market pay line represent​ ________.


bonus pay awarded to workers on a random basis


labor uniondash–determined pay rates negotiated and agreed upon by the company


minimum wage rates as determined by the government


competitive pay rates based on relevant labor market


incentive pay historically paid by the company

competitive pay rates based on relevant labor market

CHP 8


Merit pay systems use​ ________ to determine​ employees' performance.


the​ employee's job title


the labor​ union's input


customer feedback


seniority


performance appraisals

performance appraisals

CHP 8


What is one of the most difficult tasks managers face when they guide employees towards​ person-focused pay?


Trying to help employees understand the connection between seniority and​ person-focused pay systems


Helping employees understand the basic performance appraisal system


Aligning employee pay with the knowledge structure


Making employees understand the incentive pay structure


Making employees understand the base pay structure

Helping employees understand the basic performance appraisal system

CHP 8


When determining pay structure based on geographical​ consideration, many employers consider the​ ________.


insurance costs in a given area


minimum wage in a given area


​cost-of-living adjustment for a certain area


sales taxes in a given area


payroll taxes in a given area

cost-of-living adjustment for a certain area

CHP 8


Which of the following best describes what a​ well-designed pay structure​ promotes?


A reduction in payroll costs


The retention of valued employees


Identification of which pay system is the best to use


A​ company-wide balanced budget


Limiting the number of excess employees

The retention of valued employees

CHP 8


When sales professionals are required to perform a significant amount of nonsales​ duties, they should be compensated primarily with​ ________.


draws


bonus pay


incentive pay


frequent promotions


fixed pay



fixed pay

CHP 8


In which type of selling situation will salary represent a significant pay​ component?


Furniture store


Cosmetic sales


Pharmaceutical sales


Auto sales


Home electronics sales

Pharmaceutical sales

CHP 8


Jill and her colleagues have received an annual merit pay increase on June 15 for the last two years. What is the term used to define the date when Jill and her colleagues receive the annual merit​ increase?


Merit pay raise date


Compensation budget date


Employee anniversary date


Common review date


Performance review date

Common review date

CHP 8


What type of a compensation plan is best suited for a salesperson who dislikes having to attain a specific volume of sales and who prefers concentrating on presale and​ post-sale activities?


​Salary-based sales plan


Commission-plus-draw plan


​Commission-only plan


​Salary-plus-commission plan


Salary-plus-bonus plan



​Salary-based sales plan

CHP 8


What is the requirement of the​ Davis-Bacon Act?


It requires government agencies to match the wage rates to prevailing wages paid by private contractors


It requires private contractors who employ more than 15 workers to pay​ $10 above the minimum wage rate.


It requires private contractors to give the minimum wage as set by the state.


It requires private contractors to provide wages that are equal to or above the prevailing wage rates in the area where work is being performed.


It requires private companies to match wages paid by government agencies.

It requires private contractors to provide wages that are equal to or above the prevailing wage rates in the area where work is being performed.

CHP 8


Why are​ commission-only sales plans best suited for companies that are pursuing​ lowest-cost strategies?


Companies using​ commission-only plans have compensation expenditures that vary with sales revenue.


Generally, in​ commission-only plans, companies pay draws to salespeople but do not provide any incentive pay.


Companies using​ commission-only plans are not required to give pay raises to employees on a regular basis


Companies using​ commission-only plans can pay smaller and smaller commissions on incremental sales.


Companies using​ commission-only plans can avoid paying commission to salespeople if they do not meet their required quota of sales.

Companies using​ commission-only plans have compensation expenditures that vary with sales revenue.

CHP 8


In a​ ________, employees earn a higher rate of commission for all sales made in a given period if the sales level exceeds a predetermined level.


​salary-only plan


graduated commission plan


commission-only plan


​multiple-tiered commission plan


draw-only plan



​multiple-tiered commission plan

CHP 8


Which is true of merit pay​ increases?


Merit pay can be administered regardless of the level of funding for merit pay


Merit pay should be awarded equally across the board for it to be meaningful.


Merit pay is not viewed by employees as having any relationship to​ cost-of-living adjustments


Merit pay should be substantive in the absolute​ sense, not a relative​ sense, for the employee.


Research shows that boosting merit pay will not necessarily increase productivity.

Research shows that boosting merit pay will not necessarily increase productivity.

CHP 8


Which of the following rewards newly hired employees less than established or tenured​ employees?


Broadbanding


​Salary-only plans


​Two-tiered pay structures


Commission-only plans


Pay compression

​Two-tiered pay structures

CHP 8


When the pay spread between newly hired or less qualified employees and more qualified job incumbents is​ small, it is known as​ ________.


pay compression


a pay grade


a green circle rate


a red circle rate


broadbanding



pay compression

CHP 8


Which term refers to a salesperson receiving a set salary plus a single payment for the achievement of​ specific, exceptional​ goals?


​Salary-only-plan


​Salary-plus-bonus plan


Salary-plus-commission


​Commission-only plan


​Salary-plus-draw plan

Salary-plus-bonus plan

CHP 8


Which statement about commissions is​ true?Commissions interfere with the​ cost-cutting measures of most organizations


The intrinsic motivation of some sales professionals is undermined by​ commission-only plans


As​ incentives, commissions are considered the best tactic for compensating sales professionals.


Younger sales professionals typically prefer​ commission-only plans much more than older sales professionals


Commission plans generate cohesiveness among most sales professionals.



The intrinsic motivation of some sales professionals is undermined by​ commission-only plans

CHP 8


Which of the following ensures that employees possess at least a minimally acceptable level of skill proficiency upon completion of a training​ unit?


Certification


Recertification


Skill blocks


Pay ranges


Pay structure

Certification

CHP 8


What is a​ draw?


A bonus payment


An employee incentive


An increase in base pay


Money to cover basic living expenses


A type of merit pay

Money to cover basic living expenses

CHP 8


________ group jobs based on similar compensable factors for the purpose of pay policy application.


Pay compressions


Green circle rates


Red circle rates


Compa-ratios


Pay grades

Pay grades

CHP 8


Which term refers to an incentive compensation based on the percentage of the selling price of a product or​ service?


Recoverable draw


Salary


Nonrecoverable draw


Draw


Commission

Commission