Q&A Hero

Q: Which is the fundamental principle of internally consistent compensation systems? A) Pay rates should mirror pay rate differences among the competition. B) Jobs that require higher qualifications should be paid more than jobs that require lower qualifications. C) All jobs should be valued equally because every job directly contributes to competitive advantage. D) All jobs should be valued according to need.

Q: This is the systematic process for recognizing differences in the relative worth among a set of jobs and for establishing pay differentials accordingly. A) job analysis B) job content C) job evaluation D) job-relatedness

Q: Which of the following describes job duties, tasks, and relevant factors needed to perform a job adequately? A) job content B) job structure C) job summary D) job context

Q: This clearly defines the relative value of each job among all jobs within a company. A) internally consistent compensation system B) generalized work activities C) intra-organizational job markers D) market comparison standards

Q: Which of the following is NOT true for internally consistent compensation systems? A) Jobs that require higher qualifications and more responsibilities should be paid more than jobs that require lower qualifications and fewer responsibilities. B) Internally consistent compensation systems are created through job analysis and job evaluation. C) Internally consistent compensation systems may increase a company's flexibility to respond to changes in competitor's pay practices. D) Internally consistent compensation structures result in bureaucracy.

Q: Developing internally consistent job structures affects the competitive strategy of a company. Which of the following is a potential constraint on competitive strategy? A) reducing a company's rigidity to respond to moves by the competition B) potentially causing the definition of jobs to become less fluid C) leading to less routinization D) potentially creating far more bureaucratization within an organization

Q: Narrowly defined jobs can create which type of problem? A) bureaucracy B) excessive flexibility C) extremely small pay differentials based on job worth differences D) difficulty in conducting a job evaluation.

Q: What are the considerations for choosing between a single versus multiple job evaluation methods?

Q: The ________ ranking method orders jobs by extremes as committee members determine most and least valuable jobs until all jobs have been evaluated.

Q: Which of the following type of job evaluation plans is used when the company chooses to assign job pay rates that are neither too low nor too high relative to the market? A) market-based B) internally consistent C) job-based D) hybrid

Q: Sarah works at a federal government agency. Her pay rate is determined by her GS level and work seniority. Which type of job-content evaluation approach was used to categorize her job? A) alternation ranking B) simple ranking plans C) paired comparison D) classification plans

Q: Which type of organizations use classification plans most prevalently? A) private sector organizations B) non-profit organizations C) multi-national organizations D) public sector organizations

Q: Which job evaluation method entails ordering jobs on the basis of extremes? A) paired comparison B) alternation ranking C) classification D) factor comparison

Q: Person-focused pay programs depend, in large part, on well-designed ________ programs.

Q: ________ refers to a job design approach that creates more intrinsically motivating and interesting work environments.

Q: Wei is the HR manager of a manufacturing facility that has used the cross-departmental system and has noticed that absenteeism rates have been significantly lower since implementing this system. As a result, Wei may tell the managers that the company is able to do which of the following? A) award pay increases to those whose absenteeism is low B) increase the size of the workforce C) increase the size of the training budget D) reduce the size of the workforce

Q: Which of the following costs is NOT associated with the use of person-focused pay programs? A) payroll B) overhead C) training D) recruitment

Q: Employees who take advantage of person-focused pay program opportunities may experience which of the following? A) difficulty in finding employment elsewhere because person-focused pay programs are always firm specific B) higher likelihood of being laid off during periods of business slowdown C) higher likelihood of remaining employed during periods of business slowdown D) feelings of inequity

Q: Evidence suggests that person-focused pay programs lead to which of the following? A) diminished employee commitment B) no significant change in employee satisfaction C) increased employee commitment D) higher competitive advantage

Q: In the garment factory of the XYZ Co., line workers are trained to work at different manufacturing steps such as grading, cutting, sewing and assembling, pressing, etc. XYZ Co.'s strategy of training is an example of which of the following? A) task identity B) skill variety C) autonomy D) feedback

Q: This term reflects an approach to job design that results in the development of more intrinsically motivating and interesting work. A) job security B) job enrichment C) job variety D) job identity

Q: Compare and contrast the concepts of job-based pay and person-focused pay.

Q: ________ pay compensates employees for the work they currently perform.

Q: Which type of pay program applies to an organization-wide context because employees earn base pay rates for the jobs they perform? A) person-focused B) competency-based C) company-based D) job-based

Q: Which of the following is a characteristic of job-based pay? A) It compensates employees for the number of jobs in which they possess the skills to perform. B) It rewards employees on their promise to make positive contributions to the work place. C) It compensates employees for the jobs they currently perform. D) A reward is based on the successful acquisition of work-related skills or knowledge.

Q: A ________ plan encourages employees to develop skills and learn to perform jobs from different job families.

Q: A company that designs, manufactures, and sells only Halloween costumes would probably benefit most from this model. A) cross-departmental B) skill blocks C) job-point accrual D) stair-step

Q: This model is geared to promoting staffing flexibility in a company by training employees in one area of the company with some of the critical skills that are needed to perform effectively in another area of the company. A) the skill blocks B) the stair-step C) the job-point accrual D) the cross-departmental

Q: Which pay model promotes learning and skills development for a wide variety of jobs from different job families? A) cross-departmental B) job-point accrual C) stair-step D) skill blocks

Q: Which one of the following would be correct regarding person-focused pay programs? A) the skill blocks model only emphasizes horizontal skills B) the stair-step model addresses depth, while the skill blocks model emphasizes both horizontal and vertical skills C) employees do not progress to more complex jobs in the stair-step model D) competency models do not apply to jobs within the same family

Q: This type of person-focused pay plan can result in lending an employee from one area in the company to other areas. A) stair-step B) cross-departmental C) job-point accrual D) skill blocks

Q: Which person-focused model links pay levels to increased knowledge and skills within the same general job category? A) cross-departmental B) skill blocks C) job-point accrual D) stair-step

Q: Jamie earned a raise in pay when he finished the training for the Technician 2 position. He will receive another raise when he finishes the training for the Technician 3 position. The company is probably using which type of model? A) stair-step B) skill blocks C) job-point accrual D) cross-departmental

Q: What are the two most important reasons for adopting person-focused pay?

Q: This is considered "at the heart" of person-focused pay programs. A) innovation B) management C) training D) data

Q: Which of the following is a reason many European and Pacific Rim employees are better skilled and able to work more productively than American workers? A) Both European and Pacific Rim economies provide a higher quality of academic preparation and workplace learning for the non-college portions of their work forces. B) Partnerships between public educators and employers are much stronger in the United States. C) Learning is accorded a higher standing in the operations of the U.S. economy than in the European and Pacific Rim economies. D) Americans do not have equal access to educational opportunities.

Q: Which of the following are the two main reasons given for adopting person-focused programs? A) smaller labor markets and strategic outlines B) market monopolies and lower labor costs C) technological innovations and increased global competition D) market monopolies and company turnover

Q: Summarize the findings of studies and anecdotal information about the characteristics of employers that use person-focused pay programs as well as the effectiveness of these programs.

Q: Many of the companies known to be using person-focused pay systems generally employ no fewer than ________ employees.

Q: A ________ model specifies and defines all the knowledge and skills necessary for success in a group of jobs that are set within an industry context.

Q: Manufacturing companies that use assembly lines where one employee's job depends on the work of at least one other employee can be described as which of the following settings? A) ad hoc work team B) semi-autonomous work team C) continuous process D) bureaucratized

Q: Person-focused pay programs that emphasize vertical skills work well at manufacturing companies that organize work flow around which type of organization? A) departments B) high performance work teams C) task forces D) business units

Q: Describe the concept of competencies.

Q: ________ of skills is the level of expertise or specialization an employee brings to a job.

Q: ________ skills are those skills typically considered supervisory.

Q: ________ skills refer to similar skills or knowledge.

Q: Both unions and contractors, who employ carpenters, use ________ pay plans.

Q: James, who is a clerical employee of a university, has been trained to perform several kinds of record-keeping tasks. He maintains employee attendance records, schedules salespeople's work shifts, and monitors the use of office supplies for reordering. Which type of knowledge is necessary to perform all three of these tasks? A) work-team B) horizontal C) breadth D) depth

Q: This term refers to the level of specialization or expertise an employee possesses in a particular job. A) vertical skills B) depth of skills C) breadth of skills D) horizontal skills

Q: In this team, members learn scheduling, coordinating, training, leadership. Which of the following describes this type of work team? A) self-regulating B) supervisory C) management D) non-supervised

Q: Employees would need to learn these types of skills in order to develop self-managed work teams. A) horizontal B) vertical C) depth D) breadth

Q: When a filing clerk is trained to maintain employee attendance records, it is an example of acquiring which type of skills? A) horizontal B) vertical C) depth D) breadth

Q: Which of the following pay systems is used by unions and contractors to reward their carpenters for increasing carpentry abilities? A) knowledge-based B) incentive C) skill-based D) merit-based

Q: This type of pay program rewards employees for successfully learning specific curricula. A) skill-based B) person-based C) pay-for-knowledge D) incentive

Q: Which compensation approach refers to three types of person-focused pay programs? A) competency-based B) innovation-based C) service based D) stair-step

Q: This type of pay system rewards employees for successfully acquiring new job-related knowledge. A) person-focused pay B) competency-based pay C) merit pay D) incentive pay

Q: Which pay plan generally rewards employees for meeting work objectives? A) knowledge-based B) seniority C) longevity D) job-based

Q: In an effort to increase the productivity of its employees, a manufacturing company is considering adopting an incentive pay program. List and discuss the five factors the HR professionals should consider in the adoption of an incentive program.

Q: Companies in such ________ industries as retail sales could benefit by including an incentive component in the core compensation programs they offer to employees.

Q: The general rule of thumb is that short-term company goals last less than how long? A) 1 month B) 6 months C) 1 year D) 5 years

Q: Which of the following is true about the level of risk involved with incentive pay? A) It decreases as incentive pay represents a greater proportion of total core compensation. B) It is lower for higher-level employees than for lower-level employees. C) It depends on the extent to which employees control the attainment of a desired goal. D) It is dependent on subjective performance appraisals.

Q: In general, which of the following is an incentive plan design consideration? A) profitability B) the outcome of an employee election about willingness to participate in one or more incentive plans C) the level of risk employees will accept in their overall compensation package D) workforce unionization

Q: Stock ________ describe an employee's right to purchase equity in the company.

Q: ________ profit sharing plans place cash awards in trust accounts for employees and are set aside on employees' behalf as a source of retirement income.

Q: Which arrangement represents a long-term company-wide incentive plan that provides employees with the option to purchase ownership in the company? A) employee stock option plans B) company equality awards C) profit sharing plans D) gain sharing plans

Q: With which profit sharing formula does the profit sharing pool become funded only after profits exceed a predetermined level, but fall below some established maximum level? A) fixed first-dollar-of-profits B) profitability threshold C) graduated first-dollar-of-profit D) equal payments

Q: This formula for calculating profit sharing awards gives the employees a higher percentage of the profits as the profits increase. A) fluctuating first-dollar-of-profits B) differed first-dollar-of-profits C) graduated first-dollar-of-profits D) fixed first-dollar-of-profits

Q: This formula for determining the amount available for profit sharing uses a specific percentage of annual profits contingent upon the successful attainment of a specified profit goal. A) fluctuating first-dollar-of-profits B) differed first-dollar-of-profits C) graduated first-dollar-of-profits D) fixed first-dollar-of-profits

Q: The XYZ Company pays a portion of company profits to its employees. The management offers this incentive plan as one kind of retirement program. Which kind of companywide incentive plan does XYZ Co. offer? A) employee stock ownership B) deferred profit sharing C) current profit sharing D) employee stock option

Q: These profit sharing plans award cash to employees on a quarterly or annual basis as part of their regular compensation. A) common B) current C) deferred D) anticipated

Q: Profit sharing plans and employee stock option plans are incentives on what level? A) individual B) group C) companywide D) executive

Q: The main disadvantage of group incentive compensation is employee ________.

Q: The Improshare bonus is based on a ________ ratio formula.

Q: The sales value of production (SVOP) is the sum of sales ________ plus the value of goods in inventory.

Q: ________ teams consist of a group of people assigned to complete a one-time task.

Q: Which of the following is true regarding group incentive plans? A) There are more groups in a company than individuals to measure. B) Individual group members usually work more efficiently alone than in cohesive groups. C) It is easier to develop performance measures for individual incentive plans than for group incentive plans. D) It is easier to develop performance measures for group incentive plans than individual incentive plans.

Q: The XYZ Manufacturing Co. uses a gain sharing plan that gives incentives to employees to finish products rather than to incentivize dollar savings. Therefore, this company measures productivity as the ratio of standard labor hours and actual labor hours. Which kind of gain sharing program does XYZ Manufacturing Co. use? A) Improshare B) Rucher C) Scanlon D) SVOP

Q: Which of the following is an operational measure used in company-wide incentive plans? A) safety/occupational injury rates B) revenue growth C) earnings per share D) operating income

Q: Which gain sharing plan bases incentives on the ratio between labor costs and sales value of production (SVOP)? A) Rucker Plan B) referral plan C) Scanlon Plan D) Improshare

Q: What is the main objective of Scanlon plans? A) to standardize the workforce B) to encourage unionization C) to increase workforce competitiveness D) to increase employee involvement