95 test bank for compensation 11th edition

Test Bank for Compensation 11th Edition40 Test Bank f True – False Questions 10 Test Bank Free Text Questions 45 Test Bank Multiple Choice Questions p.. 22 Which of the following policy

Test Bank for Compensation 11th Edition

40 Test Bank f True – False Questions

10 Test Bank Free Text Questions

45 Test Bank Multiple Choice Questions

(p 15) Variable pay may also be called

1 A exempt

2 B non-exempt

3 C stock options

4 D incentives

(p 26) A measure of how changes in one variable are related

to changes in another variable is:

1 A standard deviation

2 B analysis of variance

3 C correlation coefficient

4 D regression analysis

(p 23) According to the text, which of the following

decisions should be made jointly?

1 A Internal alignment and Management.

2 B External competitiveness and Employee contribution

3 C Employee contribution and Internal alignment

4 D Management and External competitiveness

(p 18) Market definitions are to competitiveness as

performance based is to _.

1 A alignment

2 B compliance

3 C efficiency

4 D contribution

(p 6) One of the reasons 8 in 10 working families have no

health insurance is because

1 A many large employers do not offer health insurance

2 B health insurance is more costly at large employers

3 C many small employers do not offer health insurance

4 D most workers decline health insurance when offered by their

5 employer

(p 11) The degree to which pay influences individual and

aggregate motivation among the employees at any point in time is referred to as:

1 A sorting effect.

2 B incentive effect.

3 C motivational effect.

4 D directional effect.

(p 15) Employees who want to be sure their good

performance will be rewarded will prefer

1 A merit pay.

2 B team incentives.

3 C individual incentives.

4 D across-the-board pay increases

(p 23) If an organization allows workers to get rewards such

as stock options due to illegal and unethical means, this reflects a failure of which policy choice?

1 A Internal alignment

2 B Efficiency

3 C Employee contributions

(p 5) Which of the following includes restrictions on

executive pay that are designed to discourage

executives from taking "unnecessary and excessive risks"?

1 A Corporate Welfare Program

2 B Employee Welfare Program

3 C Troubled Asset Relief Program

4 D Corporate Liability Relief Program

(p 18) Which of the following is not an objective of the pay

model?

1 A Ethics

2 B Competitiveness

3 C Efficiency

4 D Fairness

(p18) Seniority based, incentive and merit guidelines are

components of the policy

1 A internal alignment

2 B management

3 C competitiveness

4 D management

(p 14) Which of the following are given as increments to the

base pay in recognition of past work behavior?

1 A Base pay

2 B Cost-of-living adjustments

3 C Merit pay

4 D Incentives

(p 17) A company that says its relatively low starting pay will

be offset by larger future pay increases is using the concept of _

1 A present-value

2 B merit pay

3 C incentives

4 D deferred benefits

(p 25) Compensation policy choices affecting pay level are

most closely associated with _

1 A internal alignment

2 B external competitiveness

3 C contributions

4 D management

(p 11) Employees view compensation as all but which of the

following?

1 A A return

2 B An entitlement

3 C A reward

4 D An investment

(p 12) In China, compensation, dai yu, has come to mean

1 A entitlement and benefits.

2 B cash compensation.

3 C returns and entitlement.

4 D cash compensation and relational returns.

(p 13) In Japanese companies, the concept of teate is

consistent with which of the following?

1 A Sophisticated performance appraisal systems

2 B A strong emphasis on performance pay

3 C Family, housing and commuting allowances

4 D Rapid promotions

(p 10-11) Costco has higher labor costs than Walmart and

Sam’s Club The result is Costco has better

performance in all but which of the following?

1 A turnover

2 B profit

3 C customer satisfaction

4 D sales/square foot

(p 9) “Say on pay” is part of a law designed to protect the

interests of _

1 A Employees

2 B Managers

3 C Society

4 D Shareholders

(p 23) Which of the following decisions answers the "So

What" question?

1 A Internal alignment

2 B Employee contributions

3 C External competitiveness

(p 18) Which of the following is not a policy in the pay

model?

1 A Fairness

2 B Competitiveness

3 C Contributions

4 D Alignment

(p 15) Which of the following is the largest component in an

executive pay package?

1 A Base pay

2 B Stock options

3 C Merit pay

4 D Perks

(p 22) Choices among pay for performance, flat rate pay and

profit sharing are examples of _ policy decisions

1 A internal alignment

2 B efficiency

3 C employee contributions

4 D management

(p 16) Employers’ annual cost per employee to provide

family health care coverage is approximately

1 A $5000

2 B, $10000

3 C $15000

4 D $20000

(p 5) Employers spend cents for benefits in addition to

each dollar of wages or salaries

1 A 44

2 B 34

3 C 24

4 D 14

(p 18) Which of the following is not an objective in the pay

model?

1 A Fairness

2 B Compliance

3 C Efficiency

4 D Productivity

(p 7) _ would be most concerned about executive pay

1 A Managers

2 B Employees

3 C Society

4 D Stockholders

(p 15) Recent surveys show the average merit raise for an

outstanding performer is and average

performers receive and poor performers receive 0.4%

1 A 10.5, 7

2 B 8.4, 5.2

3 C 6.7, 4.2

4 D 4.4, 2.8

(p 5) According to the text, if women had the same

education, experience, and union coverage as men and also worked in the same industries and

occupations, they would be expected to earn about _ of what men earn

1 A 62%

2 B 70%

3 C 80%

(p 17) All of the following have direct financial costs for an

employer except:

1 A benefits

2 B relational returns

3 C work-life balance

4 D income protection

(p 15) Which form of pay is likely to be least expensive for

employers?

1 A Incentive

2 B Merit pay

3 C Cost-of-living adjustments

4 D Base pay

(p.25) You are an HR manager and your boss has told you to

find the best way to raise job performance After some research you find that _ produce(s) the largest and most reliable performance increases

1 A high base pay

2 B great benefits that attract and retain workers

3 C a combination of goal setting and job enrichment

4 D monetary incentives

(p 22) Which of the following policy choices has the greatest

effect on employees' decisions to stay with the

organization and to seek additional training and

responsibilities?

1 A External competitiveness

2 B Employee contributions

3 C Internal alignment

4 D Job evaluation

(p 22) Which of the following policy decisions directly

affects employees' attitudes and work behaviors?

1 A Employee contributions

2 B Internal alignment

3 C External competitiveness

4 D Management

(p 7) _ would be most concerned about compensation

as a major expense

1 A Managers

2 B Employees

3 C Society

4 D Stockholders

(p 18) Cost is to change in the pay model as

are to policy lines

1 A market definitions

2 B surveys

3 C descriptions

4 D incentives

(p 25-27) Which of the following is not a guideline for

determining if research has value?

1 A Is the research useful

2 B Can alternative explanations be ruled out

3 C Was the research conducted by Ph D researchers

4 D Is correlation separated from causation

(p 27) The best way to establish _ is to account for

competing explanations, either statistically or through control groups

1 A causation

2 B profitability

3 C correlation coefficient

4 D internal alignment

(p 13) Which of the following is an example of a relational

return?

1 A Short-term incentives

2 B Recognition and status

3 C Work-life balance

4 D Income protection

(p 22) Managers seek internal alignment within their

organization by:

1 A matching competitors' pay rates.

2 B following FLSA guidelines.

3 C using fair merit increases.

4 D paying on the basis of similarities among jobs.

(p 22) Sam's Club matches the pay of other similar

businesses, Whole Foods uses base pay and team incentives and Medtronic emphasizes work and life balance These illustrate _ pay policy choices

1 A cost control

2 B internal alignment

3 C contributions

4 D external competitiveness

(p 21) _ refers to comparisons among jobs or skills

inside a single organization

1 A External competitiveness

2 B Internal alignment

3 C Pay structure

4 D Equitable contributions

(p 9) The primary reason compensation is important to

managers is because:

1 A employees regard it as a reward.

2 B it influences employee behavior.

3 C it is a larger cost than benefits.

4 D stock holders dislike high compensation costs.

(p.18)Costs are to management as _ is to alignment

1 A work analysis

2 B communication

3 C surveys

4 D merit guideline

(p 6) Hourly compensation costs for manufacturing workers

are higher in _ than the U.S

1 A Germany

2 B Czech Republic

3 C Spain

4 D Singapore

40 Free Test Bank for Compensation 11th Edition by

Milkovich True - False Questions

(p 25) Management and HR research has conclusively

shown that goal setting and job enrichment produce the largest and most reliable increases in job

performance.

1 True

2 False

(p 19) The most important of the pay model policies for

assuring fairness is contributions

1 True

2 False

(p 16) Pension and health benefits are a very large

component of total compensation for many large

companies such as American Airlines and GM

1 True

2 False

(p 15) A bonus promised by your boss if costs are below

your budget is a merit increase

1 True

2 False

(p 9) Compensation is important to managers' success

because it is a major cost and it influences employee behavior

1 True

2 False

(p 26) An important criteria for determining the value of

research is whether the research is useful

1 True

2 False

(p 21) Internal alignment refers to comparisons among jobs

or skill levels inside a single organization

1 True

2 False

(p 26) Causality is one of the most difficult questions to

answer and continues to be an important and

sometimes perplexing problem for researchers

1 True

2 False

(p 26) A study found that there is only a very small amount

of change in CEO pay is related to changes in

company performance

1 True

2 False

(p 14) If you often had to work 50 or more hours per week at

an assembly job, you would probably prefer to that your job is classified as exempt under the FLSA

1 True

2 False

(p 19) The objective of compliance suggests the way a pay

decision is made may be as important to employees as the results of that decision

1 True

2 False

(p 4) Companies that pay high wages compared to their

industry competitors, such as Nucor Steel and General Motors did for many years, are likely to go bankrupt

1 True

2 False

(p.10- 11) The degree to which pay influences individual and

aggregate motivation among employees is called the sorting effect

1 True

2 False

(p 13) Total compensation includes relational returns, cash

compensation and benefits

1 True

2 False

(p 21) If an objective is to increase customer satisfaction,

then incentive programs and merit pay might be used

to pay for performance

1 True

2 False

(p 22External competitiveness decisions focus on both pay

levels

1 True

2 False

(p 26) A study of IBM showed that their long-standing policy

of no layoffs was the major cause of their strong

profits

1 True

2 False

(p 22) Contributions refers to employees' perceptions of the

fairness of pay differences among different jobs within their organization

1 True

2 False

(p 14) In jobs paid a base wage, the wage is the same for

everyone with the same job title

1 True

2 False

(p 14) Most U S firms use merit pay increases

1 True

2 False

(p 14) Employees classified as non-exempt under FLSA are

paid a salary, not wages

1 True

2 False

(p 11) Base wage reflects both the value of the work and

individual employee skills and experience

1 True

2 False

(p 24) An important criteria for determining the value of

research is/are there alternative An 80 (p 26)An

important criteria for determining the value of research is/are there alternative explanations for the research findings?

1 True

2 False

(p 15) Commissions are an example of incentives

1 True

2 False

(p 23) Management of the pay system focuses on cost

control and employee perceptions of fairness since they are most important to management

1 True

2 False

(p 21) Objectives guide the design of pay systems and

provide standards for evaluating their effectiveness

1 True

2 False

(p 16) A major challenge facing most employers is the rising

cost of health care benefits

1 True

2 False

(p 25)) Monetary incentives produce the biggest increases in

job performance

1 True

2 False

(p 23) The policy choice of management means ensuring

that the right people get the right pay for achieving the right objectives in the right way

1 True

2 False

(p 5) A financial expert concluded that misaligned incentive

programs were a major cause of the recent crisis in the

US financial system

1 True

2 False

(p 6) Since the U.S has the highest hourly compensation

costs for manufacturing workers of any industrialized nation, executives could minimize total labor costs by producing in low cost countries such as China and Mexico

1 True

2 False

(p 26) The R2 is different form correlation in that it tells us

what percentage of the variation is accounted for by the variables we are using to predict or explain

1 True

2 False

(p 19) The objective of procedural fairness suggests the way

a pay decision is made may be as important to

employees as the results of that decision

1 True

2 False

(p 6) The U.S has the highest hourly compensation costs

for manufacturing workers of any industrialized

nation

1 True

2 False

(p 6) When unemployment increases, the proportion of the

population covered by health insurance decreases

1 True

2 False

(p 25) Since HR research contains information useful to

managers, most managers read research in HR,

management and compensation journals

1 True

2 False

(p 15) In practice, there is no real difference between merit

pay increases and cost-of-living adjustments

1 True

2 False

(p 13) Challenging work and employment security are

examples of total compensation

1 True

2 False

(p20-21) Compensation professionals’ conduct is guided by

the American Compensation Association’s Code of Ethics

1 True

2 False

(p.10- 11) The degree to which pay influences individual and

aggregate motivation among employees is called the sorting effect

1 True

2 False

10 Free Test Bank for Compensation 11th Edition by

Milkovich Free Text Questions

(p 15-17) Explain the compensation objectives of the pay

model The basic objectives include efficiency,

fairness, ethics, and compliance with laws and

regulations.

Answer Given

i Efficiency can be stated more specifically: (1) improving performance, increasing quality, delighting customers and stockholders, and (2) controlling labor costs; ii The fairness objective calls for fair treatment for all employees by recognizing both employee contributions (e.g., higher pay for greater performance, experience, or training) and employee needs (e.g., a fair wage as well as fair procedures); iii Ethics means the organization cares about how its results are achieved Because

it is so important, it is inevitable that managing pay sometimes creates ethical dilemmas; iv Compliance as a pay objective means conforming to federal and state compensation laws and regulations If laws change, pay systems may need

to change, too, to ensure continued compliance As companies go global, they must comply with the laws of all the countries in which they operate.