Q&A Hero

Q: Job classification is the simplest of the job evaluation methods.

Q: Scanlon plans involve putting some portion of an employee's weekly pay at risk for the opportunity to earn incentives if the employee meets or exceeds his or her goals.

Q: The Scanlon plan is a type of gainsharing plan.

Q: A key advantage of employee stock ownership plans is that the company gets a tax advantage equal to the fair market value of the shares that are transferred to the trustee and can also claim an income tax deduction for dividends paid on ESOP-owned stock.

Q: All merit increases are cumulative in that they become a part of an employee's base salary.

Q: The Sarbanes-Oxley Act of 2002 makes board members personally liable for violating their fiduciary responsibilities to their shareholders.

Q: The Equal Pay Act focuses on three compensable factorsknow-how, problem solving, and accountability.

Q: External equity refers to how fair the job's pay rate is, when compared to other jobs within the same company.

Q: Some employers may misclassify employees as independent contractors to reduce the taxes they must pay.

Q: The provision of the Family and Medical Leave Act that entitles employees to take up to 12 weeks of unpaid, job-protected leave for the birth of a child only applies to women.

Q: While laws exist to protect against discrimination in compensation based on gender and age, no law protects against such discrimination against persons with disabilities.

Q: The Equal Pay Act states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work.

Q: Because the minimum wage is set by the Fair Labor Standards Act, all states adhere to that wage.

Q: When employees work more than 40 hours per week, employers must pay overtime at a rate of at least one and a half times the normal pay for any hours worked over 40 in a workweek.

Q: Indirect payments that contribute to an employee's compensation include variable pay, such as commissions and bonuses.

Q: Historically, the main issue in collective bargaining is wage rates.

Q: Financial benefits like employer-paid insurance and vacations are not a part of employee compensation.

Q: Plans that put some portion of the employee's weekly pay at risk to encourage goal attainment are called ________ pay plans. A) at-risk variable B) Rucker C) Improshare D) Scanlon

Q: An employee stock ownership plan is an incentive plan that ________. A) engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company B) focuses on the sharing of benefits between employer and employees C) contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees D) involves the firm distributing total annual profits each year among employees based on their merit rating

Q: ESOP is an incentive plan that ________. A) uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement B) engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company C) contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees D) provides tax advantages for employees by deferring income taxes, often until the employee retires

Q: ________ seek to enable employees to better meet the demands of their family and work lives. A) Sick leave B) Family-friendly benefits C) Pay plans D) Benefit management systems

Q: ________ provide services like personal legal and financial counseling, child care referrals, elder care referrals adoption assistance, mental health counseling, and life event planning. A) Social Security programs B) Pension plans C) Employee Assistance Programs D) Family-friendly benefits

Q: A defined contribution pension plan encourages employees to contribute a portion of their earnings to the fund with an employer contribution that is matched to that of the employee in whole or part is called a(n) ________. A) savings and thrift plan B) matching plan C) deferred profit-sharing plan D) employee stock ownership plan

Q: Jenny's pension plan encourages her to contribute at least 5% of her annual salary in addition to the set amount that her company contributes. She is given choices regarding how the money is invested. When she retires, the amount she has available will depend on how much she invested herself, and the rate of return on the investments she chose. This pension plan could be classified as ________. A) qualified, defined benefit B) non-contributory, defined benefit C) contributory, defined contribution D) contributory, defined benefit

Q: Malcolm is interviewing for a new job and he is evaluating the quality of the pension plans offered for each company he is considering. One company offers a pension plan in which the company will make all contributions to the plan and will base his pension benefit on a formula linked to his pay at the time of retirement and the number of years he was with the firm. This pension plan could be classified as ________. A) qualified, defined benefit B) non-contributory, defined benefit C) non-contributory, defined contribution D) contributory, qualified

Q: When an employer makes all of the contributions to the pension plan, the pension plan is classified as ________. A) qualified B) non-qualified C) defined contribution D) non-contributory

Q: Social Security provides all of the following benefits except: A) income if retirement is at age 62 or later and individual is insured under the Social Security Act. B) death benefits to surviving dependents for those insured under the Social Security Act C) Medicare. D) income if retirement is at age 55 or later.

Q: The full retirement age according to Social Security for individuals born in 1960 or later is ________. A) 62 B) 65 C) 67 D) 70

Q: The Comprehensive Omnibus Budget Reconciliation Act requires most private employers to continue to make health benefits available to terminated or retired employees and their families for a period of time, generally ________. A) 6 months B) 12 months C) 18 months D) 24 months

Q: The Pregnancy Discrimination Act ________. A) requires employers to treat women affected by pregnancy, childbirth, or related medical conditions the same as any employee not able to work, with respect to all benefits, including sick leave and disability benefits, health and medical insurance B) covers pension plans and requires employers to have written plan documents that establish terms such as eligibility and participation C) prohibits an employer's health plan from using incentives to encourage employees to leave the hospital after childbirth after less than the legislatively-determined minimum stay D) sets minimum requirements for protecting individuals' health-care data accessibility and confidentiality

Q: Which regulation listed below requires that most private employers continue to make health benefits available to terminated or retired employees and their families for a period of time? A) Family and Medical Leave Act B) Pregnancy Discrimination Act C) Comprehensive Omnibus Budget Reconciliation Act D) Health Insurance Portability and Accountability Act

Q: The ________ requires employers to treat women affected by pregnancy, childbirth, or related medical conditions the same as any employee not able to work, with respect to all benefits, including sick leave and disability benefits, health and medical insurance. A) Family and Medical Leave Act B) Pregnancy Discrimination Act C) Comprehensive Omnibus Budget Reconciliation Act D) American Disabilities Act

Q: ________ are groups of health care providers that contract with employers, insurance companies, or third-party payers to provide medical care services at a reduced fee. A) PPOs B) HMOs C) DMOs D) Hospitals

Q: A(n) ________ is a medical organization consisting of specialists operating out of a community-based health care center that provides routine medical services to employees who pay a nominal fee. A) PPO B) HMO C) DMO D) hospital

Q: Which health benefit listed below is offered by almost all employers? A) mental health insurance B) chiropractic insurance C) medical care insurance D) wellness program

Q: Which of the following conditions must be met for an injured employee to earn workers' compensation from his or her employer? A) The injury must have occurred while the employee was on the job. B) The employee suffered the injury through no fault of his or her own. C) The employee must have worked for a minimum of 1250 hours during the past twelve consecutive months. D) All of the above.

Q: Which of the following benefits could be awarded as workers' compensation? A) cash benefit B) medical services C) time off with pay D) Both A and B.

Q: The goal of ________ is to provide sure, prompt income and medical benefits to work-related accident victims or their dependents, regardless of fault. A) severance pay B) sick leave C) workers' compensation D) the Health Insurance Portability and Accountability Act

Q: Who contributes funds to workers' compensation benefits? A) each state B) federal government C) employers D) All of the above.

Q: ________ provides benefits if a person is unable to work through no fault of his or her own. A) Supplemental pay benefits B) Unemployment insurance C) Retirement D) Health insurance

Q: Holidays, vacations, jury duty, funeral leave, military duty, personal days, sick leave, sabbatical leave, and maternity leave are classified as ________ benefits. A) supplemental pay B) insurance C) services D) premium

Q: Which of the following is false regarding the application of the Family and Medical Leave Act? A) Up to 12 weeks must be granted in a twelve-month period. B) To be eligible, an employee must have worked for the employer for at least twelve months. C) No advance notice is necessary. D) To be eligible, an employee must have worked for a minimum of 1250 hours in the past twelve months.

Q: How many weeks may an employee take as unpaid leave under the Family and Medical Leave Act? A) two B) four C) six D) twelve

Q: The Family and Medical Leave Act ________. A) provides guidelines regarding what rates of return employers should use in computing their pension plan values B) ensures that an employer must grant an employee up to 12 weeks of leave in a twelve-month period for the birth or care of a newborn child, placement of a child for adoption, to care for a spouse, child, or parent with a serious health condition, or to care for the employee's own serious health condition C) prohibits an employer's health plan from using incentives to encourage employees to leave the hospital after childbirth after less than the legislatively-determined minimum stay D) sets minimum requirements for protecting individuals' health-care data accessibility and confidentiality

Q: Which regulation ensures that an employer must grant an employee up to 12 weeks of leave in a twelve-month period for the birth or care of a newborn child, placement of a child for adoption, to care for a spouse, child, or parent with a serious health condition, or to care for the employee's own serious health condition? A) Family and Medical Leave Act B) Economic Growth and Tax Relief Conciliation Act C) Job Creation and Worker Assistance Act D) Newborn Mother's Protection Act E) Health Insurance Portability and Accountability Act

Q: Which regulation covers pension plans and requires employers to have written plan documents that establish terms such as eligibility and participation? A) Employee Retirement Income Security Act (ERISA) B) Economic Growth and Tax Relief Conciliation Act C) Newborn Mother's Protection Act D) Health Insurance Portability and Accountability Act

Q: Which of the following benefits is required by federal or state law? A) disability insurance B) workers' compensation C) paid time off for vacations and holidays D) pensions

Q: Approximately what percentage of employers offer some health insurance coverage? A) 25% B) 40% C) 60% D) 99%

Q: Nonfinancial payments like health and life insurance, pensions, time off with pay, and child care facilities are examples of ________. A) variable pay B) competency-based incentives C) benefits D) salary

Q: The indirect financial and nonfinancial payments employees receive for continuing employment with the company are called ________. A) reimbursement B) employee compensation C) salary D) benefits

Q: Gainsharing is an incentive plan that ________. A) uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement B) engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company C) contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees D) involves the firm simply distributing a percentage of profits as profit shares to employees at regular intervals

Q: A(n) ________ plan is an incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company. A) Scanlon B) Lincoln incentive C) Gainsharing D) ESOP

Q: Which incentive plan is based on a philosophy that managers and employees must cooperate together? A) cash plan B) Scanlon plan C) deferred profit-sharing plan D) employee stock ownership plan

Q: The Scanlon plan includes all of the following features except: A) improving productivity. B) an emphasis on individual achievement. C) sharing. D) financial gains.

Q: Which plan uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement? A) cash plan B) Jefferson incentive system C) deferred profit-sharing plan D) employee stock ownership plan

Q: Companywide plans in which a corporation contributes shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees are called ________. A) cash plans B) Jefferson incentive systems C) deferred profit-sharing plans D) employee stock ownership plans

Q: Which profit-sharing plan provides tax advantages for the employer at fair market value? A) cash plan B) Jefferson incentive system C) deferred profit-sharing plan D) ESOP

Q: What type of profit-sharing plan involves the awarded shares of stock as part of the incentive plan? A) cash plan B) Lincoln incentive system C) Jefferson incentive system D) ESOP

Q: All of the following are advantages of team incentives except that: A) team planning is reinforced. B) worker's pay may not be proportional to his or her efforts. C) jealousy is reduced. D) collaboration is encouraged.

Q: Which of the following is true of recognition programs? A) They have a positive impact on performance. B) They are expensive to administer. C) They reduce extrinsic motivation. D) Both A and B.

Q: How does merit pay differ from a bonus? A) Merit pay becomes part of an employee's base pay, but a bonus does not. B) A bonus becomes part of an employee's base pay, but merit pay does not. C) Merit pay is linked to individual performance, while a bonus is not. D) A bonus is linked to individual performance, while merit pay is linked to company performance

Q: ________ is any salary increase the firm awards to an individual employee based on his or her individual performance. A) Merit pay B) Variable pay C) Competency-based pay D) Piecework

Q: What type of pay plan is being used when workers are paid a sum for each unit they produce? A) base pay B) competency-based pay C) job-based pay D) piecework

Q: According to the Sarbanes-Oxley Act of 2002, if a company must restate financial statements due to material noncompliance with a financial reporting requirement, the act requires that the CEO ________. A) repay any bonuses received during the 12 months prior to the issuance of the financial statements in question B) make a public apology to stock holders C) resign from the position of CEO D) All of the above.

Q: ________ means collapsing salary grades and ranges into just a few wide levels or bands, each of which contains a relatively wide range of jobs and salary levels. A) Comparable worth B) Strategic compensation C) Broadbanding D) Job grading

Q: A company using competency-based pay compensates for all of the following except an employee's ________. A) range of skills B) job title C) depth of knowledge D) type of skills

Q: Supplemental executive retirement plans and supplemental life insurance are classified as ________ in executive compensation packages. A) base pay B) short-term incentives C) long-term incentives D) executive benefits

Q: Which of the following is typically included in compensation packages for a company's top executives? A) short-term and long-term incentives B) perks C) executive benefits D) All of the above.

Q: What is the purpose of the wage curve? A) to show the relationship between the value of the job as determined by one of the job evaluation methods and the current average pay rates for your grades B) to equate jobs of approximately equal difficulty or importance as established by job evaluation C) to assign pay rates to pay grades D) to choose benchmark jobs within each pay grade

Q: The ________ shows the pay rates currently paid for jobs in each pay grade, relative to the points or rankings assigned to each job or grade by the job evaluation. A) pay group B) pay grade C) class D) wage curve

Q: A ________ is comprised of jobs of approximately equal difficulty or importance as established by job evaluation. A) pay group B) benchmark C) pay grade D) class

Q: Which job evaluation method is a quantitative technique involving the identification of several compensable factors and the degree to which each of these factors is present in the job? A) ranking method B) point method C) factor comparison D) job classification method

Q: The point method of job evaluation entails ________. A) identifying several compensable factors, each having several degrees, and the degree to which each of these factors is present in the job B) ranking each job relative to all other jobs based on some overall factor C) using raters to categorize jobs into groups D) deciding which jobs have more of the chosen compensable factors

Q: When using the job classification method of job evaluation, raters categorize jobs into groups of jobs that are similar in difficulty but not in context called ________. A) classes B) grades C) sections D) cohorts

Q: When using the job classification method of job evaluation, raters categorize jobs into groups of similar jobs called ________. A) classes B) grades C) sections D) cohorts

Q: Factors that establish how the jobs compare to one another and set the pay for each job are called ________ factors. A) compensable B) job evaluation C) ranking D) analysis

Q: Which of the following is not one of the compensable factors emphasized in the Equal Pay Act? A) skills B) effort C) accountability D) responsibility

Q: ________ is a formal and systematic comparison of jobs to determine the worth of one job relative to another. A) Job analysis B) Job evaluation C) Benchmark analysis D) Job ranking

Q: Internal equity refers to ________. A) how a job's pay rate in one company compares the job's pay rate in other companies B) how fair the job's pay rate is, when compared to other jobs within the same company C) the fairness of an individual's pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on each individual's performance D) the perceived fairness of the processes and procedures used to make decisions regarding the allocation of pay

Q: External equity refers to ________. A) how a job's pay rate in one company compares the job's pay rate in other companies B) how fair the job's pay rate is, when compared to other jobs within the same company C) the fairness of an individual's pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on each individual's performance D) the perceived fairness of the processes and procedures used to make decisions regarding the allocation of pay