human resource classQuestion Detail:1. A comparison of earnings of women with those of men highlights what many consider:a. inequities in pay decisions.b. external pay equity.c. equity theory of motivation.d. comparative wage principle.e. supplemental pay benefit.2. Stockholders generally pay particular attention to what issue associated with pay?a. Executive compensationb. Internal consistencyc. Benefitsd. Administratione. Base wage3. In the United States, pay for executives is supposed to be tied to the:a. external pay equity theory.b. financial performance of the company.c. cost of living index.d. industry-wide norm.e. piece-rate production plan.4. For managers, compensation influences their success in the following way:a. It is a major expense which must be controlled.b. It must be linked to an employee’s preferences.c. It is used to influence employee behaviors.d. A & C.e. all of the above.5. All of the following are forms of pay except:a. base wage.b. incentives.c. merit.d. benefits.e. administration.6. Which form of pay would best be described as a return, rather than a reward?a. Base wageb. Merit payc. Short term incentived. Sales commissione. Promotion7. A merit increase is best described as:a. an incentive that recognizes past performance.b. an inducement for achieving long-term organizational objectives.c. a one-time reward for past performance that does not increase base pay.d. an increase that is exempt from the regulations of the Fair Labor Standards Act.e. a promise of future payments.8. An incentive payment:a. will increase base wages in future years.b. is nontaxable and therefore highly preferred by employees.c. may be made at the beginning of a quarter for expected performance during that quarter.d. can be based on individual or group performance.e. all of the above.9. Incentives are:a. rewards that induce performance.b. rewards for past work behaviors and accomplishments.c. long-term and short-term.d. A & C.e. paid as a flat rate.10. Programs that help employees better integrate their work and life responsibilities include time away from work, access to services to meet specific needs, and flexible work arrangements. These programs are referred to as:a. long-term incentives.b. merit pay.c. total earnings opportunities.d. work/life focus benefits.e. income protection benefits.11. Relational returns from work include all of the following except:a. recognition and status.b. challenging work.c. long-term incentives.d. learning opportunities.e. employment security.12. The compensation objective of compliance refers to:a. controlling labor costs.b. complying with common accounting procedures.c. complying with product quality standards.d. complying with relevant regulations and laws.e. comparing the total wage bill to the estimated wage bills of competitors.13. Which of the following relationships within a pay system is accurate?a. Compensation objectives shape pay policies.b. Pay policies determine the objectives of the pay system.c. Organization strategies determine employee pay needs.d. Pay policies form the compensation strategy of the organization.e. External competitiveness is the sole determinant of employee pay.14. Which policy provides the foundation on which pay systems are built?a. Internal alignmentb. External competitivenessc. Employee contributionsd. Administration of the pay systeme. All of the above15. Internal alignment may be achieved by:a. making cost of living adjustments.b. matching competitors’ wage rates.c. paying below-market base wages but offering training and rapid promotion.d. matching outside job offers employees receive from other organizations.e. paying on the basis of similarities among jobs within a firm.16. The objective(s) of a pay system is(are) to:a. help the organization achieve financial success.b. help the employees connect their behavior with the success of an organization.c. comply with federal and state pay regulations.d. help the organization work more efficiently.e. all of the above.17. A strategic compensation perspective addresses the question:a. What business should we be in?b. What is our desired return on assets?c. What kind of job evaluation system should we use?d. How can job analysis help us select the most appropriate certain compensation technique(s) for our organization?e. How can our total compensation help gain competitive advantage to achieve organization success?18. Contingency refers to:a. lawyers’ fees in any tobacco settlement.b. external labor markets in Japan.c. the alignment of the compensation system to the organization’s strategy.d. paying whatever the market dictates.e. compatibility among different forms of pay.19. The fundamental strategic choice of a compensation plan is decided on at the:a. supervisory level.b. employee level.c. stockholder level.d. corporate level.e. middle-management level.20. The business strategy that stresses satisfying customers and bases employee pay on how well they do this is a (an):a. market-driven strategy.b. customer-focused strategy.c. affirmative action policy.d. focus strategy.e. innovator strategy.21. Internal alignment refers primarily to:a. the value of the work of one individual compared to the value of the work of another individual.b. the desire of management to pay above market salaries.c. the pay relationships among jobs within one employer.d. the pay relationships of all jobs within the same industry.e. pay relationships among the violinists in two orchestras.22. Which of the following pay policies refers to how an employer positions its pay relative to what competitors are paying?a. external consistencyb. internal alignmentc. external competitivenessd. internal competitivenesse. administration23. Deciding how much employees should be told about how their pay is determined is an issue of:a. internal consistency.b. external competitiveness.c. recognition of contributors.d. management.e. articulation.24. A pay strategy that has the potential to sustain a competitive advantage:a. will be difficult for employers to imitate.b. specifies low base pay and high job security.c. will not change even if the company changes business directions.d. will be the same in all countries in which the organization operates.e. will dictate promotions from within the organization.25. The process used in the design and administration of a pay structure is known as:a. distributive justice.b. equity justice.c. exchange justice.d. procedural justice.e. none of the above.26. Fairness of the results produced by a pay structure is known as:a. egalitarianism.b. procedural justice.c. exchange value.d. distributive justice.e. social justice.27. The pay differences among levels are referred to as:a. differentials.b. the gini coefficient.c. criteria.d. internal equity.e. external equity.28. A job-based pay structure relies primarily on:a. the work content â€“ tasks, behaviors, responsibilities.b. the skills and knowledge of an employee.c. the competencies of an employee.d. the exchange value of the jobs.e. all of the above.29. The major factors that shape internal structures are:a. boundary-spanning roles of management.b. labor unions.c. job enrichment programs.d. external and organization factors.e. re-engineering and human resource planning tools.30. External factors that can influence compensation programs of employers include all of the following except:a. unions.b. work design.c. stockholders.d. cultures and customs.e. government regulations.31. Internal pay structures in Japan tend to emphasize seniority and “waiting for your turn. ” This is an example of:a. the economic conditions affecting the operations of an organization.b. the technology of an organization.c. the influence of cultural factors .d. the characteristics of the work involved.e. none of the above.32. A hierarchical pay structure will encourage employees:a. to accept a promotion which requires developing new skills.b. to offer customers excellent service.c. to search for other jobs.d. to be committed to the organization objectives.e. to control costs.33. When job analysis is done for compensation purposes, data collected must focus on:a. the type of training needed to perform the job effectively.b. establishing similarities and differences among jobs.c. the typical career path for a family of jobs.d. the performance levels of job incumbents.e. task inventories.34. The major questions that need be asked when designing a job analysis are:a. for what purpose are we collecting job information.b. what information should be collected.c. how to collect the information.d. how useful are the results.e. all of the above.35. Job analysis usually collects information about:a. specific tasks or behaviors.b. the reasons pay differences exist.c. market rates paid by competitors.d. performance outcomes.e. none of the above.36. The Position Analysis Questionnaire (PAQ) is typically used in:a. job analysis.b. performance appraisal.c. collective bargaining process.d. human resource planning.e. none of the above.37. The major limitation of conventional job analysis for compensation purposes is:a. it pertains only to managerial positions.b. it requires excessive lead time.c. its complexity.d. the difficulty in documenting its objectivity.e. the amount of employee involvement required.38. Advantages of quantitative job analysis over conventional methods include:a. faster collection of more data.b. an emphasis on collecting subjective data.c. the feasibility of statistical analysis of the results.d. A & B.e. A & C.39. Why is it important to involve the employees when conducting a job analysis?a. It is less expensive.b. It takes less time.c. It may aid acceptance.d. It may be easier.e. They get to learn their jobs.40. Job descriptions:a. should contain all the information gathered in job analysis.b. require creative writing skills.c. should be written by someone outside the organization.d. include the name(s) of people currently holding the job.e. provide a word picture of a job, containing information on the tasks, people, and things included.41. In addition to defining and describing jobs, descriptions of managerial/professional jobs often include more detailed information on the:a. nature of the job, its scope, and accountability.b. job evaluation of the specific tasks.c. nature of the job specifications.d. redesign of the work flow.e. quantitative nature of the work.42. In assessing the relevance of job analysis, which of the following factors are considered?a. reliabilityb. validityc. acceptabilityd. usefulnesse. all of the above43. Obtaining consistent results regardless of the job analysis method used is a measure of:a. validity.b. flexibility.c. acceptability.d. reliability.e. administration.44. A job analysis is considered “reliable” if:a. the results of the analysis are the same regardless of who is involved in performing the analysis and what methods are used.b. the jobholder feels the results are an accurate analysis of the work.c. research proves the analysis to be an accurate portrait of the work.d. all judgmental assessments of the job have been eliminated.e. it leads the government to conclude that the system is fair.45. A systematic process designed to aid in determining the relative worth of jobs and establishing pay differentials among jobs within an organization is:a. the point method.b. job evaluation.c. market pricing.d. performance appraisal.e. broad banding.46. An internal structure based on job value refers to the relative contribution of the:a. skills, duties, and responsibilities of each job to the organization’s goals.b. compensable factors of a point plan to the organization’s goals.c. job characteristics model to achieving the organization’s goals.d. PAQ to achieving the organization’s goals.e. all of the above47. Job evaluation is linked to internal alignment because it:a. recognizes similarities in performance levels.b. results in a pay plan.c. establishes a job hierarchy based on relative value of jobs.d. describe internal jobs.e. all of the above.48. Multiple internal structures:a. make compensation planning easier.b. may have different job evaluation plans for different types of work.c. evaluate all jobs in the organization simultaneously.d. are more cost-effective.e. all of the above.49. A benchmark job has all of the following characteristics except:a. its contents are well known and stable.b. it is usually medium to high paying.c. a sizable proportion of the work force is employed in the job.d. it is common across a number of different employers.e. it is not unique to a particular employer.50. A pay structure in which employees are paid based on what they have shown that they know rather than what particular job they are doing is known as a/an:a. skill-based structure.b. task-based structure.c. behavior-based structure.d. job-based structure.e. administrative structure.51. Skill plans focus on:a. gaining additional years of experience on the job.b. producing a superior product or service.c. depth and/or breadth of skills.d. participation of employees in structuring the work flow.e. all of the above.52. Pay increases in a skill-based plan are based on the:a. certification of new skills.b. performance of critical incidents.c. combined efforts of a team of employees.d. accomplishments of an employee.e. production of a superior product or service.53. One of the main advantages of a skill-based plan is:a. the link to an organization’s performance is clearly specified.b. it facilitates matching employees to a changing work flow.c. it minimizes favoritism in determining which employees receive training.d. it facilitates the involvement and commitment of all stakeholders.e. all of the above.54. What is the first major decision in designing a skill-based plan?a. Determine the skill blocks and certification methods.b. Evaluate the plan’s usefulness.c. Establish the objective of a skill-based plan.d. Obtain involvement and commitment of stakeholders.e. Top management approval of the financing for the committee.55. Practices for certifying that employees possess the necessary skills and are able to apply them include:a. peer review of skill accomplishments.b. on-the-job demonstrations of skills.c. successful completion of tests for certification.d. ongoing recertification to ensure skills are fresh.e. all of the above.56. A potential problem with a skill-based approach to compensation is:a. the workforce becomes lazy.b. employees may be difficult to train.c. over time all employees may qualify for top pay rates.d. employees may not understand the criteria for advancement.e. all of the above.57. If employees do not feel they are being fairly paid compared to employees in similar jobs outside the organization, this is a problem of:a. employee contributions.b. the relative importance of jobs.c. external competitiveness.d. internal alignment.e. inflationary pressure.58. What factors influence external competitiveness?a. Labor market factorsb. Product market factorsc. Degree of competitiond. All of the abovee. None of the above59. Which of the following is a factor that influences the pay level in an organization?a. Labor market factors.b. Product market factors.c. Organizational factors.d. None of the above.e. All of the above.60. Which of the following is not a primary determinant of an organization’s pay level?a. Level of product demand.b. Organization strategy.c. Employee performance.d. Degree of competition.e. Industry environment.61. Which of the following is not an assumption an economist typically uses to explain the environment and the wage determination process?a. Employers seek to maximize profits.b. Labor is homogeneous.c. Pay rates reflect all costs (base wage, benefits, etc.) associated with employing labor.d. Markets are competitive.e. Human behavior is frequently irrational.62. In a perfectly competitive market, what is likely to happen as a result of the following scenario? Employer A raises its wages in an attempt to attract more employees. Employer A’s competitors immediately raise their wages to the same level.a. Employer A will attract more employees.b. Employer A will still be shorthanded and may be forced to pay more just to keep the employees it has.c. Employer A’s competitors will lose workers.d. Employer A’s competitors will attract employees away from employer A.e. We cannot predict from the data given.63. The additional output associated with the employment of one additional unit of labor is:a. marginal product.b. marginal revenue.c. a compensating differential.d. market signaling.e. product supply curve.64. The marginal product of labor does not take into account:a. differences among worker characteristics.b. the addition of labor.c. fixed factors of production.d. diminishing returns.e. addition to total output.65. In a perfectly competitive market, the supply curve facing the individual firm:a. is upward sloping.b. is horizontal.c. is downward sloping.d. does not intersect the demand curve.e. is inelastic.66. Marginal revenue:a. is a function of the pay structure.b. is measurable only in a conceptual sense.c. is easily calculated using computers.d. progressively increases with each added input of labor.e. all of the above.67. Pay surveys:a. are more useful if they use nationwide data.b. are more useful if all data sources are local.c. help employers set their competitive pay position relative to other organizations.d. assist employers in establishing internal alignment.e. must use statistical sampling techniques if they are to be useful.68. Wage survey data is used to establish:a. relative value of clerical v. technical jobs.b. a competitive pay position.c. rankings of jobs relative to the market.d. which jobs will be chosen as benchmark jobs.e. the internal job hierarchy.69. Which of the following is a systematic process of collecting and making judgments about compensation paid by other employers?a. Market surveyb. Job questionnairec. Job analysisd. Competency analysise. Job evaluation70. According to the text, an employer participates in a survey for all of the following reasons except:a. to establish or price the pay structure.b. to analyze pay-related problems.c. to estimate its internal alignment policy.d. to estimate the labor costs of competitors.e. to set the mix of pay forms relative to competitors.71. Which of the following would not be considered a purpose of a pay survey?a. To adjust the pay levelb. To keep labor costs as low as possible within a given industryc. To estimate the labor costs of product market competitorsd. To establish or price a pay structuree. To set the mix of pay forms relative to competitors72. In defining relevant markets for pay surveys, relevant market competitors include employers who compete in all of the following areas except: a. the same products and services.b. the same occupations and skills.c. in the same geographic area.d. A, B & C.e. A & C.73. Global competition requires global pay comparisons because of the complexities pertaining to all of the following except:a. legal regulations.b. tax policies.c. customs.d. work force diversity.e. all of the above.74. Which occupation would most likely be sought in a local or regional labor market?a. Engineerb. Compensation specialistc. Genetic researcherd. Executive secretarye. Professor75. Internet-based businesses are often created by a “fusion” of industries called:a. regional markets.b. performance-based markets.c. supply markets.d. equity markets.e. all of the above.76. Designing a survey requires answering all of the following questions except: a. who should be involved in the survey design.b. how many employers should be included.c. communication feedback to the sender.d. which jobs to include.e. what information to collect.77. All of the following are advantages of the ranking method except: a. simple to use.b. less time involved.c. easy to understand and explain to employeesd. use of well-defined criteria to rank the jobs.e. least expensive method.78. A job ranking method that uses a matrix to compare all possible pairs of the jobs would be:a. paired comparison.b. factored comparison method.c. point method plan.d. critical incident method.e. job classification method.79. Which job evaluation method has a series of classes, each one defined by a class description of the work activities?a. Factor comparison method.b. Point method.c. Critical incident method.d. Skill-based plan.e. all of the above.80. Which method of job evaluation is favored in the public sector?a. Classificationb. Skill-based planc. Rankingd. Market pricinge. Point plan81. The U.S. federal government’s job evaluation system is an example of which job evaluation technique:a. alternation ranking.b. the point method.c. a skill-based plan.d. market pricing.e. the classification method.82. Which job evaluation method has compensable factors, factor degrees that are numerically scaled and weights reflecting the relative importance of each factor?a. Classificationb. Point methodc. Rankingd. Competency-based plane. all of the above83. Each job’s relative value, and hence its location in the point method of job evaluation in a pay structure, is determined by:a. observation by the supervisor.b. critical incidents.c. the total points assigned to it.d. paired comparison of job factors.e. behavioral anchors.84. Point plans represent a significant change from ranking and classification methods because:a. they make explicit the criteria for evaluating jobs.b. they leave the evaluation up to employees.c. they create loyalty to the company.d. they lend credence to the theory of diminishing returns.e. all of the above.85. Which job evaluation method is based on assigning weights to compensable factors?a. Rankingb. Classificationc. Point methodd. Factor comparisone. Policy capturing86. The point method of job evaluation has all of the following characteristics except:a. compensable factors.b. factor degrees numerically scaled.c. weights reflecting the relative importance of each factor.d. pairs of comparison.e. use of job analysis.87. The relative output for each dollar of pay is called:a. performance-based pay.b. supplemental pay benefits.c. productivity.d. job evaluation.e. performance appraisal.88. Which of the following is not included in the definition of compensation in the U.S.?a. Paid vacationb. Health insurancec. Promotionsd. Cost of living adjustmentse. Merit pay89. The two main categories of pay are:a. direct and indirect compensation.b. total compensation and relational returns.c. cash compensation and benefits.d. cash compensation and allowances.e. all of the above.90. The traditional view of â€œcompensationâ€ in Japan is:a. it is a reward for doing one’s job.b. it is an entitlement.c. it is something given by one’s superior.d. it includes providing allowances as well as providing for financial needs.e. all of the above.91. The basic cash compensation that an employer pays for the work performed is called:a. merit pay.b. base wage.c. compensation.d. incentives.e. all of the above.92. Which of the following is not one of the key aspects associated with a strategic perspective of compensation?a. Internal alignmentb. Pay techniquesc. External competitivenessd. Recognizing employee contributionse. Management of the system93. When considering the pay model proposed by the authors, all of the following are true except:a. Policies include internal alignment, external competitiveness and employee contributions.b. Compensation objectives are efficiency, fairness, and complying with government regulations.c. Internally equitable pay within the organization focuses people on what competitors are paying.d. Employers with strong “pay for performance” policies are more likely to place greater emphasis on incentive and merit schemes as part of their pay systems.e. The model helps organize our thinking about objectives.94. The compensation strategy of SAS Institute, a software company, emphasizes:a. work/life programs.b. external competitiveness.c. payment of bonuses based on company performance.d. internal alignment.e. all of the above.95. In most European countries:a. pay systems communicate a need for change in the organization.b. unions play a lesser role in pay determination than in the U.S.c. pay systems tend to be based more on markets and performance than in the U.S.d. pay plays a supporting role in the overall HR strategy.e. all of the above.96. The key question to be addressed in developing business unit strategies is:a. what business should we be in?b. how do we gain and sustain competitive advantage?c. how should total compensation help gain and sustain competitive advantage?d. what should be the balance between total compensation and relational returns?e. none of the above.97. A company that decides to compete on the basis of innovation:a. will emphasize cost control.b. will probably pay on the basis of productivity increases.c. may use detailed job descriptions.d. wants to shorten the time it takes to develop a new product and get it to customers.e. will use a piece rate pay system.98. All of the following are features of a compensation system that supports a cost cutter strategy except: a. a focus on competitors’ labor costs.b. an emphasis on productivity.c. a focus on system control and work specifications.d. the use of flexible, generic job descriptions.e. the use of variable pay.99. Which of the following isnot one of the key steps involved in developing a total compensation strategy?a. Determining which best-practices options to use.b. Reassess the fit between policy decisions and the strategy.c. Implement the strategy.d. Assess the total compensation implications.e. Fit policy decisions to the strategy.100. Social and political context factors include all of the following except:a. legal and regulatory requirements.b. influence of other HR activities.c. cultural differences.d. workforce demographics.e. all of the above.