Question 1

In order to show how the rate of compensation changes compares with the rate of changes in the organization's revenues overall

Accepted Answer

A)   compensation metrics should be calculated each year and compared with previous years' metrics.
B)   compensation metrics should be calculated for regular employees (excluding compensation for part time employees)  and compared with previous years' metrics.
C)   the board of directors should have compensation metrics calculated on a rotating basis: Human value added one year, return on human capital invested the next year, and so forth. This provides the "big picture" strategically.
D)   total compensation should be charted against total revenues, and any upward change in total compensation should be analyzed.

Question 2

The last step in establishing a pay structure is to

Accepted Answer

A)   compute pay ranges.
B)   set the pay for individual employees.
C)   compare current pay to pay ranges.
D)   establish pay grades.

Question 3

Ernest,a U.S.citizen employee is being assigned to the company's German office in Munich because of his intimate knowledge of the company's main product.Ernest was previously stationed at the company headquarters in Kansas City.Al,l of the following issues should be taken into account when determining Ernest's pay during the years he works in Munich EXCEPT

Accepted Answer

A)   the compensation that a German would make in a similar job in Munich.
B)   German income tax policies.
C)   cost of living differences between Kansas City and Munich.
D)   fluctuations between the value of the dollar and the euro.

Question 4

Which of the following is a major drawback to the point method of job evaluation?

Accepted Answer

A)   It is too simplified to apply to complex jobs.
B)   It is too complex to implement in most organizations.
C)   It reinforces traditional organizational structures.
D)   It is available only through consulting firms, consequently this system is too expensive for many small employers.

Question 5

When using the point method of job evaluation,a ____ factor is used to identify a job value that is commonly present throughout a group of jobs.

Accepted Answer

A)   compensable
B)   Hays
C)   value
D)   KSA

Question 6

Employee medical insurance paid for by the employer is classified as ____ compensation.

Accepted Answer

A)   indirect
B)   direct
C)   intangible
D)   intrinsic

Question 7

The two basic compensation philosophies,which should be seen as opposite ends of a continuum,are the ____ and the ____ orientations.

Accepted Answer

A)   competency, productivity
B)   exempt; non-exempt
C)   entitlement; performance
D)   market-driven, equity-driven

Question 8

As a rule of thumb,the aggregate employer costs for the typical expatriate employee,including all allowances,is about ____ the expatriate's salary.

Accepted Answer

A)   10% of
B)   half
C)   double
D)   three or four times

Question 9

What are exempt and non-exempt jobs? How are exempt and non-exempt jobs identified in the organization? What are independent contractors and why is it important for the organization to identify who is a contractor and who is an employee?

Accepted Answer

The FLSA requires that some employees be...

Question 10

Job evaluation provides a formal,systematic basis for determining the market value of jobs and establishing external pay equity in the organization's compensation system.

Accepted Answer

A) True 
 B)False

Question 11

Traditional job evaluation programs have been criticized as being gender-biased against women.Employers argue that

Accepted Answer

A)   female-dominated jobs are concentrated in lower-paying industries and smaller firms which have lower pay levels.
B)   job evaluation is based on internal equity, and so the resulting pay levels are by definition non-discriminatory.
C)   male-dominated jobs require physical strength and endurance of severe working conditions, which makes these jobs objectively more valuable to the organization.
D)   job evaluations reflect the pay rates the "market economy" sets for jobs, so there is no discrimination by the individual organization.

Question 12

A compensation philosophy in which each employee who has gained another year of seniority should have an increase in pay is called the ____ philosophy.

Accepted Answer

A)   entitlement
B)   commitment
C)   paternalistic
D)   the equity-based

Question 13

Which of the following approaches is recommended for bringing a red-circled employee's pay into line?

Accepted Answer

A)   Transfer the employee to a lower paying job.
B)   Promote the employee to a job with the appropriate pay grade.
C)   Cut the employee's pay so it falls within the range.
D)   Freeze the employee's pay until the pay range is adjusted upward.

Question 14

Tom has just taken his first full time job with a salary of $58,000.He knows that he should plan his personal recurring expenses,such as rent and car payments,around this amount because it is his

Accepted Answer

A)   total compensation.
B)   total reward package.
C)   base pay.
D)   living wage.

Question 15

A compensation plan for expatriates that equalizes the cost differences between the international assignment and the same assignment in the home country of the individual or the corporation is the ____ approach.

Accepted Answer

A)   global market
B)   cost equalization
C)   total rewards
D)   balance sheet

Question 16

The consensus among compensation and motivation experts is that compensation systems strongly affect the types of behavior that employees demonstrate.

Accepted Answer

A) True 
 B)False

Question 17

Chuck has applied to a residential roofing firm for a job as a roofer during school vacation because the pay is very good.Roofing is considered hazardous work.Under the FLSA Chuck cannot be hired unless he is at least ____ years old.

Accepted Answer

A)   14
B)   16
C)   18
D)   21

Question 18

The market line is

Accepted Answer

A)   a regression line derived from job evaluation points and the results of the pay survey.
B)   calculated from the median point in each of the organization's pay ranges.
C)   a line representing the organization's average pay for each job in a job family graphed against the average pay for each job in the pay survey.
D)   typically so affected by outliers that it must be adjusted according to the expert judgment of compensation specialists.

Question 19

____ is the concept that the pay for all jobs requiring comparable knowledge,skills,and abilities should be similar even if actual duties and market rates differ significantly.

Accepted Answer

A)   Pay equity
B)   Equal pay for equal work
C)   Gender-neutral compensation
D)   Equality in compensation

Question 20

Organizations that have specific policies about where they wish to position themselves in the labor market use a/an ____ strategy.

Accepted Answer

A)   industry
B)   quartile
C)   benchmarking
D)   labor market

Exam 11: Total Rewards and Compensation

Which of the following approaches is recommended for bringing a red-circled employee's pay into line?

Correct Answer
verified

Traditional job evaluation programs have been criticized as being gender-biased against women.Employers argue that

Correct Answer
verified

Correct Answer
verified

A compensation plan for expatriates that equalizes the cost differences between the international assignment and the same assignment in the home country of the individual or the corporation is the ____ approach.

Correct Answer
verified

The market line is

Correct Answer
verified

What are exempt and non-exempt jobs? How are exempt and non-exempt jobs identified in the organization? What are independent contractors and why is it important for the organization to identify who is a contractor and who is an employee?

Correct Answer
verified
The FLSA requires that some employees be...
View Answer

Tom has just taken his first full time job with a salary of $58,000.He knows that he should plan his personal recurring expenses,such as rent and car payments,around this amount because it is his

Correct Answer
verified

The consensus among compensation and motivation experts is that compensation systems strongly affect the types of behavior that employees demonstrate.

Correct Answer
verified

Organizations that have specific policies about where they wish to position themselves in the labor market use a/an ____ strategy.

Correct Answer
verified

____ is the concept that the pay for all jobs requiring comparable knowledge,skills,and abilities should be similar even if actual duties and market rates differ significantly.

Correct Answer
verified

A compensation philosophy in which each employee who has gained another year of seniority should have an increase in pay is called the ____ philosophy.

Correct Answer
verified

The last step in establishing a pay structure is to

Correct Answer
verified

In order to show how the rate of compensation changes compares with the rate of changes in the organization's revenues overall

Correct Answer
verified

Employee medical insurance paid for by the employer is classified as ____ compensation.

Correct Answer
verified

Which of the following is a major drawback to the point method of job evaluation?

Correct Answer
verified

Job evaluation provides a formal,systematic basis for determining the market value of jobs and establishing external pay equity in the organization's compensation system.

Correct Answer
verified

As a rule of thumb,the aggregate employer costs for the typical expatriate employee,including all allowances,is about ____ the expatriate's salary.

Correct Answer
verified

The two basic compensation philosophies,which should be seen as opposite ends of a continuum,are the and the orientations.

Correct Answer
verified

When using the point method of job evaluation,a ____ factor is used to identify a job value that is commonly present throughout a group of jobs.

Correct Answer
verified

Chuck has applied to a residential roofing firm for a job as a roofer during school vacation because the pay is very good.Roofing is considered hazardous work.Under the FLSA Chuck cannot be hired unless he is at least ____ years old.

Correct Answer
verified

Exam 11: Total Rewards and Compensation

Which of the following approaches is recommended for bringing a red-circled employee's pay into line?

Correct AnswerverifiedShow Answer

Traditional job evaluation programs have been criticized as being gender-biased against women.Employers argue that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A compensation plan for expatriates that equalizes the cost differences between the international assignment and the same assignment in the home country of the individual or the corporation is the ____ approach.

Correct AnswerverifiedShow Answer

The market line is

Correct AnswerverifiedShow Answer

What are exempt and non-exempt jobs? How are exempt and non-exempt jobs identified in the organization? What are independent contractors and why is it important for the organization to identify who is a contractor and who is an employee?

Correct AnswerverifiedThe FLSA requires that some employees be...View AnswerShow Answer

Tom has just taken his first full time job with a salary of $58,000.He knows that he should plan his personal recurring expenses,such as rent and car payments,around this amount because it is his

Correct AnswerverifiedShow Answer

The consensus among compensation and motivation experts is that compensation systems strongly affect the types of behavior that employees demonstrate.

Correct AnswerverifiedShow Answer

Organizations that have specific policies about where they wish to position themselves in the labor market use a/an ____ strategy.

Correct AnswerverifiedShow Answer

____ is the concept that the pay for all jobs requiring comparable knowledge,skills,and abilities should be similar even if actual duties and market rates differ significantly.

Correct AnswerverifiedShow Answer

A compensation philosophy in which each employee who has gained another year of seniority should have an increase in pay is called the ____ philosophy.

Correct AnswerverifiedShow Answer

The last step in establishing a pay structure is to

Correct AnswerverifiedShow Answer

In order to show how the rate of compensation changes compares with the rate of changes in the organization's revenues overall

Correct AnswerverifiedShow Answer

Employee medical insurance paid for by the employer is classified as ____ compensation.

Correct AnswerverifiedShow Answer

Which of the following is a major drawback to the point method of job evaluation?

Correct AnswerverifiedShow Answer

Job evaluation provides a formal,systematic basis for determining the market value of jobs and establishing external pay equity in the organization's compensation system.

Correct AnswerverifiedShow Answer

As a rule of thumb,the aggregate employer costs for the typical expatriate employee,including all allowances,is about ____ the expatriate's salary.

Correct AnswerverifiedShow Answer

The two basic compensation philosophies,which should be seen as opposite ends of a continuum,are the ____ and the ____ orientations.

Correct AnswerverifiedShow Answer

When using the point method of job evaluation,a ____ factor is used to identify a job value that is commonly present throughout a group of jobs.

Correct AnswerverifiedShow Answer

Chuck has applied to a residential roofing firm for a job as a roofer during school vacation because the pay is very good.Roofing is considered hazardous work.Under the FLSA Chuck cannot be hired unless he is at least ____ years old.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The FLSA requires that some employees be...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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The two basic compensation philosophies,which should be seen as opposite ends of a continuum,are the and the orientations.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified