Chapter 4 Quiz Flashcards
Which of the following steps is NOT considered part of formulating the compensation strategy?
A- determining actual dollar values for jobs and individual employees
B - determining the total level of compensation to provide
C - determining how each of the mix choices should be structured
D - determining the mix of compensation components
A- determining actual dollar values for jobs and individual employees
A particular company wants to make sure employees feel they are appreciate, while at the same time ensuring key employees have a sense of loyalty towards the company. Which of the following systems does this company most likely use? a - Benefits b - performance pay c - indirect pay d - base pay
d- base pay
Johnny is compensated based on a rate of 25 dollars per hour worked. Which of the following terms best describes the manner in which Johnny is compensated? a- commissoin b - wage c - piece rate d - salary
b - wage
Which of the following is a reason why employees may prefer base pay over performance pay?
a - performance pay is more predictable
b - base pay i directly related to their performance level
c - they dislike uncertainty about their compensation
d- market conditions are always changin t
c - they dislike uncertainty about their compensation
which of the following conditions make it impractical to use output-related pay?
a - output is easy to measure
b- output is very stable
c output cannot be controlled by the individual employee
d - output is easy to price in terms of its value to the employer
c - output cannot be controlled by the individual employee
As an employer, you believe it is always a good idea to pay people for their contributions to organizational results. Which of the following plans would likely be the key component of the compensation plan a- indirect pay b - base pay c- pay for knowledge d- performance pay
d - performance pay
A particular organization wants to include in their compensation system some element of organizational performance linkage, while at the same time it wants to encourage employee commitment. In addition to base pay, which of the following would most likely be included in this compensation mix? a - merit pay b - piece rates c - profit sharing d - targeted incentives
c - profit sharing
Which of the following is an objective of variable pay?
a - to help retain long-service employees?
b - to help link individual performance to individual pay?
c- to help promote cost savings initiatives by employees?
d - to help keep labour costs down
b - to help link individual performance to individual pay?
As a consultant, you have been asked by an organization to provide a menu of indirect benefits that the employer does not have to provide by law. Which of the following would you NOT include in your menu? a - employment insurance b- company pension plan c- psychological counseling? d - supplemental medical coverage
a - employment insurance
Which of the following best explains why medical and dental coverage can be purchased more cheaply by the employer than the employee? a- indexation b- economies of scale b- utility d -dividends
b - economies of scale
Which methods are used to establish base pay?
a - market pricing, job evaluation, and pay for knowledge?
b- job analysis, competency testing, and demographics
c- tenure, job preview, and environmental analysis
d - knowledge, education, and market pricing
a - market pricing, job evaluation, and pay for knowledge?
Which of the following refers to job evaluation?
a - determining how well a job is performed
b - surveying the market
c - ranking all jobs according to their value to the firm
d - establishing the skill level of each employee
c - ranking all jobs according to their value to the firm
As a human resource specialist, you have been asked by your organization to provide recommendations on which base pay method to use, given tat the human resources department has very limited human capital and financial resources. Which of the following methods would be on the top of your list of recommendations? a - job evaluation b - person-based pay c - competency-based pay d - market-pricing
d- market pricing
As the owner of a large hotel, you expect your employees to be flexible, learn a variety of skills, and shift around from one job to another as needed. Which of the following plans will best fit your needs? a - competency-based pay b - skill-based pay c - team based pay d - piece rates
b - skill-based pay
your company offers you pay for the time not worked, disability benefits, supplemental medical coverage, and a full range of free employee services. These items refer to which component of the compensation mix a - direct pay b- base pay c - indirect pay d - performance pay
c - indirect pay
