Q&A Hero

Q: To contain health care costs, an employer may increase an employee's deductible amount or co-payments. a. True b. False

Q: Today, the majority of U.S. employees get health coverage through their employers. a. True b. False

Q: Health care plans only cover medical, surgical, and hospital expenses. a. True b. False

Q: Some states provide rights to employees that are lesser than those provided by the Family and Medical Leave Act. a. True b. False

Q: As of 2014, firms that employ 50 or more people who work 30 or morehours per week but do not offer them health insurance will have to pay a penalty tothe government. a. True b. False

Q: Under the Family and Medical Leave Act, an employee returning to work does not necessarily have to be restored to his or her original job or to an equivalent job. a. True b. False

Q: The Family and Medical Leave Act permits substitution of paid leave and vacation during leave. a. True b. False

Q: If an employee takes a leave of absence under the Family and Medical Leave Act, the employer must continue the employee's medical benefits for the duration of the leave. a. True b. False

Q: Under the Family and Medical Leave Act, a convenience store owner with 20 employees is required to provide up to 12 weeks of unpaid leave to an eligible employee for medical reasons. a. True b. False

Q: The Consolidated Omnibus Budget Reconciliation Act requires all employers to provide health care coverage to employees and their spouses for 12 months following termination, death, or divorce of an employee. a. True b. False

Q: Workers' compensation insurance rates depend on the seriousness of the occupations, each state's level of benefits for injuries, and the company's frequency and severity of employee injury. a. True b. False

Q: Workers' compensation laws provide uniform compensation to disabled workers regardless of the state in which they work. a. True b. False

Q: One of the major problems of workers' compensation programs is that an injured employee faces substantial legal expense to obtain a settlement. a. True b. False

Q: Workers eligible for unemployment benefits must submit an application for unemploymentcompensation with their state employment agencies, register for available work, and be willing to accept any suitable employment that may be offered to them. a. True b. False

Q: Workers' compensation programs serve to prevent financial disaster to employees who are injured or become ill through their work. a. True b. False

Q: Workers who are laid off are eligible for 52 weeks of unemployment insurance per occurrence. a. True b. False

Q: To be eligible for Social Security disability benefits, an individual's disability must have existed for at least one year and must result in, or be expected to result in, death. a. True b. False

Q: In order to qualify for Social Security benefits, all individuals must be at least 65 years of age. a. True b. False

Q: The Social Security program is funded by a tax paid by an employer, based on an employee's earnings. a. True b. False

Q: Generally speaking, a firm with a record of laying off large numbers of employees will have to pay a lower rate than those that do not. a. True b. False

Q: Although some government programs provide money to people with partial disabilities or short-term disabilities, Social Security does not. a. True b. False

Q: When communicating benefits packages to employees, using a uniform method or technique is recommended for consistency, so that everyone hears the same message in the same way. a. True b. False

Q: Employees can sue employers who deliberately mislead them about health and welfare benefits. a. True b. False

Q: The Social Security Act was designed to protect workers against the loss of earnings resulting from old age and unemployment. a. True b. False

Q: Compensation specialists often see flexible benefits plans as ideal. a. True b. False

Q: An advantage of flexible benefit plans is that if employees make poor selections and do not use their benefits, it saves the employer money. a. True b. False

Q: To accommodate the individual needs of employees, it would be desirable for employers to implement a cafeteria plan. a. True b. False

Q: A need for a new benefit should be established through consultation with employees before it is introduced. a. True b. False

Q: Employers are tailoring their benefits programs to be family-friendly, because employees desire more work-life balance. a. True b. False

Q: Typically, employees are offered a basic or core benefits package of life and health insurance, sick leave, and vacation. a. True b. False

Q: There has been a reduction in the number of single-parent families and two-earner couples in the workplace than there have been in thedecades past. a. True b. False

Q: Most online benefits systems are adaptable and transfer information with full security. a. True b. False

Q: Generation Y employees are less likely to be concerned with having pensions than Baby Boomers. a. True b. False

Q: Surveys show that employees who are satisfied with their benefits are more likely to be satisfied with their jobs. a. True b. False

Q: Benefits generally account for approximately 14 percent of payroll costs. a. True b. False

Q: Discuss the advantages of incentive pay programs.

Q: What are the pros and cons of high executive pay?

Q: Briefly describe the Scanlon Plan.

Q: Identify the principal methods for compensating salespersons and the advantages of each method.

Q: Discuss the problems identified with merit raises. As a manager what should one do to insure that merit raises fulfill their intended value?

Q: Briefly discuss three individual incentive plans.

Q: The most widely used sales incentive program is the_____ plan. a. straight salary b. straight commission c. combined salary and commission d. commission plus bonus

Q: Compensation specialists recognize all the following generations of employees EXCEPT: a. Generation X. b. Generation Y. c. Boomers. d. Synthesizers.

Q: Noncash incentive rewards are most effective as motivators when the award is: a. a complete surprise to the recipient. b. combined with a meaningful employee recognition program. c. increased every year it is given. d. tailored to individual employees.

Q: According to one budget survey, _____ percent of reporting organizations use variable pay. a. 100 b. 80 c. 60 d. 40

Q: A major problem of employee stock ownershipplans is that: a. motivation of employees is rarely achieved. b. employees viewit as a form of management control. c. itplaces employees' pensions at risk. d. itcan be damaging to the financial well-being of an organization.

Q: The advantages of employee stock ownership plans include all of the following EXCEPT that: a. employers are able to provide retirement benefits to employees at a relatively low cost. b. employees' pensions are less vulnerable due to diversification. c. employee stock ownership plans can increase employees' pride of ownership. d. employee stock ownership plans can provide an incentive for employees to increase productivity.

Q: ESOPs can qualify as tax-exempt employee trusts under section _____ of the Internal Revenue Code. a. 402(a) b. 457(k) c. 401(a) d. 407(k)

Q: The use of_____ is apopular and prevalent method used in different industries for motivating and compensating hourly, salaried, and executive personnel. a. bonuses b. stock options c. benefits d. perquisites

Q: The disadvantages of profit sharing include all of the following EXCEPT that: a. payments may lose their motivational value as theyare made only once a year. b. plans may not pay off for several years in a row. c. effective profit sharing plans require a second HR program. d. employee morale could drop during time periods after no bonus has been given.

Q: The success of the Lincoln Electric Company profit-sharing plan rests largely on: a. contributions by employees. b. objective standards. c. comparison data between departments. d. economics of the review period.

Q: The purpose of a profit-sharing plan is to: a. allow workers to contribute specific knowledge to improving the organization. b. give employees the opportunity to increase their earnings. c. enable workers to share in labor cost savings. d. instill commitment to the employee's immediate work group.

Q: Profit sharing refers to any procedure by which an employer pays employees: a. an incentive based on their merit. b. an incentive based on labor cost savings. c. a bonus based on the overall productivity of their particular work group. d. current or deferred sums based on the organization's financial performance.

Q: When the determination of a bonus includes both production employees and nonproduction employees and this bonus is based on overall group productivity, which type of gainsharing program is being used? a. Profit sharing b. The Rucker Plan c. Improshare d. The Scanlon Plan

Q: The philosophy behind the Scanlon Plan is that: a. employees should make suggestions to improve performance and be rewarded for their contributions. b. organizational profits should improve through sales efforts. c. managers and employees should establish quality and quantity goals for optimum organizational performance. d. rewards should be shared with employees based on improved profits.

Q: _____ is a bonus incentive plan which uses employee and management committees to gain cost-reduction improvements. a. Piecework b. The Rucker Plan c. The Scanlon Plan d. Improshare

Q: Common output measures for productivity include: a. sales. b. materials. c. labor costs. d. total costs.

Q: Team incentive bonuses may be paid out in all of the following ways EXCEPT by distributing it: a. equally among team members. b. proportion to each member's base pay. c. proportion to each member's relative contribution to the team. d. on the basis of individual performance appraisal.

Q: A problem with creating team incentive plans is that: a. they encourage negativity rather than cooperative behavior. b. not all teams that are createdare alike. c. they don'tenable employees to share efficiency gains.. d. they pay only when agreed-upon standards are met or exceeded.

Q: Group incentive plans do all of the following EXCEPT: a. enabling employees to share the benefits of improved efficiency. b. encouraging cooperation. c. reducing free-ride effect. d. rewarding employees for total contribution to organizational performance.

Q: A major concern of executive compensation involves: a. timing of the bonus. b. the amount of compensation. c. lack of perquisites. d. lack of objective market data.

Q: Compensation committees justify large executive compensation packages in the following ways EXCEPT: a. effective executives create shareholder value. b. good executive talent is in great demand. c. the pay gap between the CEO and employees builds credibility. d. large incentives reward superior performance.

Q: Special benefits given to executive employees, such as assigned chauffeurs, country club memberships, and special vacation policies, are known as: a. executive rewards. b. perquisites. c. golden parachutes. d. assigned benefits.

Q: Which of the following is an individual type of incentive plan? a. Improshare b. Lump sum merit pay c. Stock options d. Employee stock ownership plans

Q: Which plan provides opportunities for executives to purchase shares of their organization's stock valued at full market or a discounted price? a. Stock options b. Stock appreciation rights c. Stock purchase d. Phantom stock

Q: Long-term incentive plans in which rights are granted to executives to purchase shares of their company's stock at a fixed price for a fixed period of time are known as: a. stock options. b. stock grants. c. restricted stocks. d. performance shares.

Q: Management should guard against incentive payments being seen as _____. a. too competitive b. equitable c. permanent d. an entitlement

Q: When computing executive pay, many organizations are tying _____ to traditional financial gauges. a. performance markers b. global standards c. application rewards d. balanced scorecards

Q: The greatest influence on executive base salary is most likely: a. the amount of short-term incentives received. b. the amount of long-term incentives received. c. the levels of competitive salaries in the job market. d. the time spent in the occupation.

Q: Executive base salaries represent between _____ percent of the total annual compensation. a. 10 and 20 b. 20 and 30 c. 30 and 40 d. 40 and 50

Q: Executive compensation consists of all of the following EXCEPT: a. base salary. b. proficiency adjustments. c. perquisites. d. short-term incentives.

Q: Which of the following is NOT one of the simple rules for maintaining motivation among professionals? a. Provide clear goals b. Provide the ability to develop new skills c. Reward performance quickly d. Eliminate autonomy in work

Q: A compensation plan that compensates sales employees based on a percentage of sales is known as a: a. straight ratio plan. b. straight salary plan. c. straight commission plan. d. straight bonus plan.

Q: According to the National Center for Employee Ownership, in 2013 approximately _____ organizations have employee stock ownership plans (ESOP)for their employees. a. 3,500 b. 11,000 c. 17,500 d. 24,500

Q: A sales incentive plan that permits salespeople to be paid for performing various duties not reflected immediately in their sales volume is known as a: a. merit plan. b. straight salary plan. c. lump-sum merit pay. d. standard hour plan.

Q: Performance of sales people can be affected by all of the following external factors EXCEPT: a. the sales territory. b. changes in demand. c. changes in the sales volume standard. d. seasonal fluctuations.

Q: In most profit-sharing plans, about _____ of the net profit is shared. a. 5 to 10 percent b. 10 to 15 percent c. 15 to 20 percent d. 20 to 25 percent

Q: A cash or stock award determined by increase in stock price during any time chosen by the executive in the option period, which does not require executive financing is known as: a. phantom stock. b. stock appreciation rights. c. restricted stock. d. performance shares.

Q: A grant of units equal in value to fair market value or book value of a share of stock is known as: a. stock appreciation rights. b. astock purchase. c. restricted stock. d. phantom stock.

Q: The straight commission plan is limited by all of the following disadvantages EXCEPT that: a. salespeople will stress low-priced products. b. customer service after the sale is likely to be neglected. c. earnings tend to fluctuate widely between good and poor periods of business. d. salespeople are tempted to grant price concessions.