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Q:
The two theories emphasizing line of sight are __________.A. equity and reinforcement.B. Maslow and Two-Factor.C. expectancy and goal-setting.D. agency and equity.
Q:
For which motivation theory is it important for organizations to pay attention to the training and development needs of their employees?A.EquityB.ExpectancyC.Goal settingD.Reinforcement
Q:
_____ is the belief that when a specified level of job performance is attained, the employee will receive a specified reward.A.ValenceB.ExpectancyC.InstrumentalityD.Utility
Q:
According to expectancy theory, effort level depends on which of these factors?(1) expectancy (2) valence (3) instrumentality (4) reward (5) goalsA.1, 2, 3B.2, 3, 4C.1, 4, 5D.2, 5, 4
Q:
Which of the following theories is least relevant to merit pay?A.Herzberg's theoryB.Expectancy theoryC.Equity theoryD.Reinforcement theory
Q:
According to _________ theory, ensuring fairness and consistency of performance-based pay across employees is important.A. equity.B. instrumentalityC. expectancyD. reinforcement
Q:
Employees' assessment of their ability to perform required job is called ____________A. equity.B. instrumentalityC. expectancyD. reinforcement
Q:
________ theory argues line of sight is a critical part of performance-based pay systems.A. AgencyB. Maslow'sC. ReinforcementD. Expectancy
Q:
_____ theory contends that success-sharing plans will be motivating but at-risk plans will be de-motivating.A.EquityB.Expectancy and agencyC.Herzberg's two-factorD.Agency
Q:
Which theories would support a higher minimum wage?A.Reinforcement and agencyB.Goal setting and equityC.Maslow and Herzberg's two-factorD.Expectancy and agency
Q:
In _____ theory, incentive pay is motivating if it helps an employee gain a sense of achievement, recognition or approval.A.Herzberg's two-factorB.equityC.Maslow'sD.Reinforcement
Q:
When developing a flexible compensation system, which theory or theories would be most useful?A.Expectancy theoryB.Equity theory and agency theoryC.Maslow's theory and Herzberg's theoryD.Goal setting
Q:
Research shows that all of the following except ______ are in the top three aspects of pay systems desired by workers.A. team-based payB. changes in cost of livingC. pay at market rateD. seniority
Q:
The key ingredient in _____ is careful cost analysis to make sure the dollar cost of the package an employee selects meets employer budgetary limits.A.gain-sharing plansB.individual incentive plansC.success-sharing plansD.cafeteria-style compensation
Q:
_____ involves identifying what is important to a person and offering it to them in exchange for some desired behavior.A.ConditioningB.Goal settingC.EmpathyD.Motivation
Q:
Which of the following best supports a culture of flexibility and innovation?A.A flexible benefits packageB.A strong commitment to job securityC.High base wageD.Stock options
Q:
When an organization's performance has regular and large swings and individual performance is unclear and hard to measure, the most effective compensation mix is to offer _____.A.base pay with low incentives and a variety of rewardsB.monetary rewards with large incentivesC.large base and low-incentive payD.a wide range of rewards and significant incentives
Q:
When employee performance is easily measured and the organization's performance is fairly stable over time, the most effective type of compensation is to offer _____.A.large base and low-incentive payB.variety of rewards and base payC.a variety of rewards with significant incentive payD.monetary rewards with large incentives
Q:
When an organization's performance has frequent highs and lows and individual performance is fairly stable and performance measures are clear, the most effective compensation mix is to offer _____.A.base pay with low incentives and a variety of rewardsB.monetary rewards with large incentivesC.large base and low-incentive payD.a wide range of rewards and significant incentives
Q:
When employee performance measures are ambiguous and vary from time to time and the organization's performance is fairly stable over time, the most effective type of compensation is to offer _____.A.large base and low-incentive payB.variety of rewards and base payC.a variety of rewards with significant incentive payD.monetary rewards with large incentives
Q:
Compensation should reinforce all but which of the following behaviors?A.Attracting and hiring good employeesB.Keeping turnover to nearly zeroC.Encourage skill developmentD.Motivate high job performance
Q:
A business has a centralized structure and a compensation system that rewards sales volume. However, sales volumes are low compared to competitors who respond more quickly to changes in consumer demand. Which of the following is the most likely source of the low sales performance?A.A poorly designed compensation programB.An ineffective recruitment and selection programC.An inappropriate organization designD.A poorly designed performance management program
Q:
Desired employee behaviors are influenced by ________A.motivation.B. ability.C. environment.D. ability, motivation and environment.
Q:
The ability triangle includes _____.A.selectionB.performance managementC.compensationD.organization development
Q:
The motivation triangle includes _____.A.selectionB.organization designC.cultureD.organization development
Q:
The primary guiding force that determines needed employee behaviors is _____.A.corporate goalsB.organization strategyC.strategic business unit goalsD.department/team goals
Q:
A key factor in increasing trust in top management is _____.A.an acceptable appraisal systemB.high base payC.stock optionsD.a well-designed piece rate system
Q:
Many employers use market surveys to validate their own job evaluation results.
Q:
Adjustments to forms of pay occur more often than adjustments to overall pay level.
Q:
The final step in determining externally competitive pay levels and structures is merging internal and external pressure.
Q:
Which of the following statements is true about market pricers?A.They align pay structures with the business strategy.B.Their pay structures are unique and difficult to imitate.C.They assume that little value is added through internal alignment.D.They emphasize pay structures based on unique technology or the way work is organized.
Q:
The _____ pay strategy emphasizes external competitiveness and deemphasizes internal alignment.A.job structureB.broad bandingC.reference rateD.market pricing
Q:
Job structure is to ________ as pay structure is to pay-policy line.A.market lineB.pay surveysC.job evaluationD.reference rates
Q:
Paying jobs of different functions different rates within a pay band is called ____.A.reference ratesB.broad bandingC.pay levelingD.knowledge-based pay
Q:
Which of the following statements is true regarding broad bands?A.They require a relatively stable organization design.B.They support recognition via titles or career progression.C.They foster cross-functional growth.D.They give managers "freedom with guidelines".
Q:
Size of pay differentials between grades should _____.A.be based upon differentials in market surveysB.be approximately 15 percentC.support career movement through the pay structureD.be between 10 and 25 percent
Q:
Pay ranges for clerical and production jobs commonly range between _____ and _____.A.5, 15B.15, 30C.30, 40D.40, 60
Q:
Pay ranges:A.are flexible enough to deal with differences in quality, but not with the productivity or value of these quality variations.B.usually lead to an increase in employee turnover.C.reflect the differences in performance or experience that an employer wishes to recognize with pay.D.cause employees to believe that their compensation can increase by only a limited amount.
Q:
Aging market data to a point halfway through the plan year is called _____.A.levelingB.updatingC.lead/lagD.lag
Q:
An organization that has a match (pay) policy will pay its employees:A.the market rate each month for the duration.B.more than the market rate for some months and less than the market rate for the other months.C.at the 100th percentile of the market rate obtained through the wage/salary survey.D.at the 50th percentile of the market rate obtained through the wage/salary survey.
Q:
In the regression equation, y = a + bx, job evaluation points are _____.A.aB.bC.xD.y
Q:
A market pay line _____.A.reflects an organization's internal alignment policyB.links a company's benchmark jobs with market rates paid by competitorsC.provides an accurate prediction of an organization's entry level pay ratesD.compares an organization's minimum and maximum pay rates for each skill level
Q:
A survey conducted in January, 2013 found the median pay effective January 1, 2013, for a clerk was $22,000 and the forecast rate of wage increases in the market for 2013 of was 5% and another 5% for 2014. An employer choosing to follow a lead strategy of 4% above the market for the plan year, will need to _____.A.multiply salary by 105% and then by 109%B.increase the clerk salary by $2,200C.multiply the salary by 109%D.multiply the salary by 114%
Q:
Because employers are raising employee pay at various times during the year, survey data must be updated using a process called _____ or _____.A.aging, trendingB.aging, smoothingC.trending, levelingD.gaining, smoothing
Q:
Which of the following statistical measures shows how similar or dissimilar the market rates are from each other?A.Weighted meanB.MeanC.Standard deviationD.Median
Q:
The _____ minimizes distortion of the central tendency caused by outliers.A.weighted meanB.meanC.modeD.median
Q:
Which of the following is often used to set pay ranges?A.MedianB.Weighted meanC.Quartiles and percentilesD.Standard deviation
Q:
You work in a midsize organization and have just conducted a wage survey. Five midsize companies have provided wage data for a particular job. Here are the numbers.Which of the following statistics will be the most accurate reflection of the market rate?A.MeanB.Weighted meanC.MedianD.Mode
Q:
All of the following are examples of potential anomalies except _____.A.outliersB.a large variation in base pay for a job at one companyC.one company dominates the resultsD.a large variation in average base pay for a job across companies
Q:
The process of multiplying survey data by some factor judged to reflect the difference between a survey benchmark job and a company job is called _____.A.updatingB.point factor adjustmentC.lead/lag policy adjustmentD.survey leveling
Q:
Survey data from one or a few employers that are significantly out of line with other employers _____.A.are deviant dataB.are anomaliesC.reflect a diverse sampleD.are standard deviations
Q:
The first step in interpreting survey data is _____.A.check for the accuracy of job matchesB.seek out non-respondersC.check for fraudulent dataD.remove the top and bottom paying companies
Q:
_____ measures competitors' use of performance-based pay.A.Base payB.Short-term incentive payC.Total cashD.Total compensation
Q:
This measure of compensation may overstate competitors' pay.A.Base pay plus benefitsB.Total cash compensationC.Base payD.Total compensation
Q:
_____ shows how competitors value work in similar jobs.A.Base wageB.Total cashC.Total compensationD.Base pay plus benefits
Q:
Pay surveys collect total number of employees for the purpose of_______ _____A.impact on the labor marketB.how work is organizedC.ability to payD.recruiting success
Q:
Financial data in pay surveys are used to _____.A.group firms by sizeB.analyze competitors' performanceC.compare competitors' labor costsD.compare competitors' debt ratios
Q:
Applying the job evaluation process to pay survey jobs to assess the degree of match between survey jobs and benchmark jobs is called the _____ approach.A.low-highB.benchmark jobC.benchmark conversionD.point survey conversion
Q:
For organizations using a skill-competency-based pay system or generic job descriptions, the best approach for pricing jobs is _____
A.benchmark job.
B.low-high.
C.market pricing
D.benchmark conversion
Q:
A company using a skill-based pay system prices the job of lead assembler at between $10 and $22 per hour. Survey data showed the job assembler averaged $10 per hour and the job of assembly supervisor at $22 per hour. The company was using the _____ method of job matching.A.benchmark jobB.low-highC.pay rangeD.benchmark conversion
Q:
Companies typically use _______ pay survey(s) when setting pay levels.A. one well-validatedB. twoC. three or moreD. more than five
Q:
The _____ publishes extensive information on various occupations in different geographic areas. It is a major source of publicly available compensation data.A.Chamber of CommerceB.Bureau of Labor StatisticsC.compensation associationD.Department of Economics
Q:
The answer to the question of how many firms to include in a pay survey is _____.A.there are no firm rulesB.include at least one-hundredC.focus primarily on labor-market competitorsD.the top 50 percentile of similar sized firms
Q:
The primary responsibility for conducting a pay survey is _____.A.top managementB.the facility or plant managerC.outside consultantsD.the compensation manager
Q:
Which of the following jobs would most likely fall into a fuzzy market?A.Screen writer (MGM)B.Sound engineer (Sony studios)C.Director of future vision services (West Publishing)D.Vice-president of people (Southwest Airlines)
Q:
Which of the following types of labor would most likely be recruited only locally?A.Office and clerical workersB.ScientistsC.ManagersD.Executives
Q:
A relevant labor market includes all employers who compete in one or more of the following areas except _____.A.employees in the same geographic areaB.the same occupations or skillsC.the same products and servicesD.pay similar wages
Q:
Which of the following is true regarding the Employment Cost Index (ECI)?A.It is published by the Department of Commerce.B.It is an excellent source of competitor labor costs.C.It measures annual changes in employer compensation costs.D.It allows comparison of labor costs to all-industry averages.
Q:
The final major decision in pay-level determination is _____.A.interpret and apply results of surveyB.obtain top-management acceptance of final decisionsC.design grades and ranges or bandsD.draw policy lines
Q:
The second major decision in pay-level determination is _____.A.specify relevant marketB.define purpose of surveyC.design and conduct surveyD.select product and labor market competitors
Q:
The first step in setting competitive pay and designing a pay structure is _____.A.specify pay-level policyB.conduct job evaluationC.draw policy linesD.specify relevant market
Q:
Explain the market pricing approach to compensation.
Q:
What is broad banding? What are some of its advantages?
Q:
Explain the concept of pay ranges.
Q:
What is a market line?
Q:
Explain the difference between standard deviation and quartiles and percentiles.
Q:
What are the advantages and disadvantages of the different measures of compensation?
Q:
Explain the low-high approach in selecting jobs for inclusion in a compensation survey.
Q:
Who should be involved in designing a compensation survey?
Q:
How is a relevant labor market defined?