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WGU > Compensation and Benefits > Flashcards

Compensation and Benefits Flashcards

1
Q

In your capacity as a generalist, your ability to impact compensation will happen in the following way:
A. Staffing
B. Training
C. Recruiting
D. All of the above

A

D. All of the above

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2
Q

Compensation affects which groups of people in a company?
A. HR managers
B. Employees
C. Potential employees
D. All of the above

A

D. All of the above

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3
Q

As a compensation manager, you will not:
A. Manage company goals
B. Understand the compensation plan
C. Explain the compensation plan to others
D. Require the organization to implement a market-standardized compensation plan

A

D. Require the organization to implement a market-standardized compensation plan

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4
Q

What department of the company is not affected by the compensation plan?
A. Accounting
B. All departments are affected
C. Research and development
D. Marketing

A

B. All departments are affected

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5
Q

What is another term for “fringe benefits”?
A. Perks
B. Salary
C. Paid time off
D. Company salaries

A

A. Perks

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6
Q

True/False
One set of awards may fit one firm but may not fit another firm

A

True

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7
Q

To have an effective rewards system, you will not need to understand:
A. Market conditions
B. Customer needs
C. Employees’ previous salary
D. Profitability

A

C. Employees’ previous salary

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8
Q

What is variable pay?
A. Performance-based rewards and long-term equity
B. Being paid in a variety of ways (base salary, fringe benefits, etc)
C. Ability to negotiate salary
D. Being paid variably through the month

A

A. Performance-based rewards and long-term equity

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9
Q

What is base pay?
A. The salary or hourly wage including benefits
B. An hourly employee’s wage for training hours
C. The salary or hourly wage in exchange for the employee’s contribution to the organization
D. The salary based on the market rate

A

C. The salary or hourly wage in exchange for the employee’s contribution to the organization

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10
Q

Employee performance represents:
A. The quality of the work that individual employees produce in the organization
B. The quality and quantity of the work that an organization has in the market
C. The quantity of the work that individual employees produce in the organization
D. The quality and quantity of the work that individual employees produce in the organization

A

D. The quality and quantity of the work that individual employees produce in the organization

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11
Q

The organizational citizenship behavior is:
A. A value-creating activity that employees do as part of the job description
B. A value-creating activity that is asked from senior management to mid-level management to complete
C. A value-creating activity that engages employees, which is part of the job
D. A value-creating activity engaged in by employees, but not as part of the job

A

D. A value-creating activity engaged in by employees, but not as part of the job

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12
Q

Which of the following does organizational performance not include?
A. Developing employees
B. New product creation
C. Gains in market share
D. Effectiveness at meeting customer needs

A

A. Developing employees

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13
Q

Which of the following laws relates to total rewards?
A. Civil rights laws
B. Arbitrage law
C. Litigation
D. None of the above

A

A. Civil rights laws

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14
Q

Of the following, which is not considered a guide to fairness in total rewards:
A. Interactional
B. Extreme
C. Procedural
D. Distributive

A

B. Extreme

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15
Q

The employment relationship is:
A. An agreed-upon basis for organizations and people meeting each other’s needs
B. A disagreed-upon basis for organizations and people meeting each other’s needs
C. An agreed-upon basis for organizations and government meeting each other’s needs
D. None of the above

A

A. An agreed-upon basis for organizations and people meeting each other’s needs

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16
Q

Organization’s get work done through:
A. Product
B. Dollars
C. People
D. Customers

A

C. People

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17
Q

Total rewards includes:
A. Base salary and benefits
B. Benefits, base salary, paid time off
C. Benefits
D. Base salary

A

A. Base salary and benefits

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18
Q

True/False
Meaningful work would be considered a discretionary employee benefit

A

False

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19
Q

True/False
Understanding the total rewards system will not allow you to create a meaningful total rewards plan

A

False

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20
Q

Which of the following job families would not be affected by total rewards?
A. Engineers
B. Finance
C. Marketing
D. All job families are affected by total rewards

A

D. All job families are affected by total rewards

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21
Q

True/False
Pay is not a broad category that refers to the monetary compensation that is provided to an employee in exchange for their work

A

False

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22
Q

Cash compensation is monetary pay from ? to ?
A. Employers, employees
B. Employees, employers
C. Government, citizens
D. None of the above

A

A. Employers, employees

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23
Q

Fringe benefits have become quite ? to compensation plans.
A. Unimportant
B. Central
C. Conditional
D. Proven

A

B. Central

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24
Q

True/False
When you think about a company’s health benefits or retirement plan, you are thinking about employee benefits.

A

True

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25
Q

? Refers to the direct monetary pay given to an employee in exchange for their contributions to the organization
A. Total rewards
B. Time off
C. Benefits
D. Cash compensation

A

D. Cash compensation

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26
Q

Which of the following would not be included as an intangible reward?
A. Location
B. Salary
C. Positive working relationships
D. Meaningful work

A

B. Salary

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27
Q

True/False
Cash compensation can have an influence on the employee’s perception of how much they are valued at the firm

A

True

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28
Q

To create a strategic total rewards plan, you need to understand all of the following except:
A. Market
B. Benefits
C. Customers
D. None of the above

A

B. Benefits

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29
Q

Base pay includes:
A. Salary or hourly wages
B. Hourly and benefits
C. Benefits and salary
D. None of the above

A

A. Salary or hourly wages

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30
Q

Team performance:
A. Comprises the collective actions of groups of employees
B. Comprises senior management level of performance
C. Comprises customer feedback regarding employees
D. Comprises the star employees’ level of performance

A

A. Comprises the collective actions of groups of employees

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31
Q

True/False
Total rewards systems do not need to be reviewed to ensure that they are not penalizing such OCB’s and instead provide a degree of encouragement for those helpful behaviors.

A

False

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32
Q

Organizational performance includes all but:
A. Meeting customer needs
B. Profits
C. Employee satisfaction
D. New market share

A

C. Employee satisfaction

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33
Q

True/False
Employee perception of the organization has potential to lead to turnover and performance

A

True

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34
Q

True/False
Managing total rewards is an art and a science

A

True

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35
Q

A job incumbent is:
A. An employer that is seeking to hire new employees
B. An employee that is currently working in a job that you are studying
C. An employee agency seeking new part time workers
D. None of the above

A

B. An employee that is currently working in a job that you are studying

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36
Q

A traditional interview does not consist of:
A. Asking about family history
B. Time spent on activities on the job
C. Content
D. Skills

A

A. Asking about family history

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37
Q

In a traditional interview, one advantage would be:
A. Allowing for exploration
B. Asking for clarification
C. Both A & B
D. None of the above

A

C. Both A & B

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38
Q

This is a benefit to using generic questions in an interview:
A. Number of interviewers
B. Efficient in time
C. Length of interview
D. Financial cost

A

B. Efficient in time

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39
Q

This is a disadvantage to using generic questions in an interview:
A. Length of interview
B. Financial cost
C. Efficient in time
D. Amount of people in an interview

A

B. Financial cost

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40
Q

True/False
Key personnel throughout the organization should be involved in the data’s collection, synthesis, and documentation.

A

True

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41
Q

Job analysis is gained by
A. Guessing
B. Data
C. People
D. Computer graphics

A

C. People

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42
Q

Job analysis needs to be ____ to achieve buy in.
A. Respectable
B. Incredible
C. Credible
D. Understandable

A

C. Credible

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43
Q

Job analysis will be ___ if management and employees do not buy into it.
A. Useful
B. Useless
C. Understandable
D. None of the above

A

B. Useless

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44
Q

True/False
The goal of job analysis is to understand the work involved in creating value for the organization.

A

True

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45
Q

A reference ID is:
A. A series of numbers and letters that is used to reference a company
B. A series of numbers and letters that is used to reference a government agency
C. A series of numbers and letters that is used to reference an employee
D. A series of numbers and letters that is used to reference the job.

A

D. A series of numbers and letters that is used to reference the job.

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46
Q

A job family is:
A. A grouping of jobs that have similar functions or content
B. A grouping of employees that have similar functions
C. A grouping of management that have similar functions to other management in other companies
D. None of the above

A

A. A grouping of jobs that have similar functions or content.

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47
Q

The bulk of job descriptions do not include which of the following:
A. Requirements
B. Responsibilities
C. Tasks
D. Duties

A

A. Requirements

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48
Q

True/False
If pay rates are set based upon what a job was three years ago and not what it is today, then it will not meet the needs of the employees doing the job today.

A

True

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49
Q

KSAO’s stand for
A. Knowledge, Skills, Agility, and Other
B. Knowledge, Skills, Abilities, and Other
C. Kindness, Skills, Ability, and Other
D. Kindness, Skills, Agility, and Other

A

B. Knowledge, Skills, Abilities, and Other

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50
Q

Job descriptions often contain information about the ____ that are important for accomplishing the job.
A. Relationships
B. Understanding
C. Monetary values
D. Strengths

A

A. Relationships

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51
Q

Job descriptions can also reference any ____ involved in doing the job.
A. Tools
B. Necessities
C. Both A & B
D. None of the above

A

A. Tools

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52
Q

True/False
Job descriptions are simple and cannot contain every detail relating to the job.

A

True

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53
Q

What is the longest a job description should be?
A. 3 pages
B. 1 page
C. 2 pages
D. 4 pages

A

B. 1 page

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54
Q

True/False
The world is changing, and organizations do not have to change with it.

A

False

55
Q

Which of the following is not an approach to an Internal Reward Alignment?
A. Group-based approach
B. Individual-based approach
C. Performance-based approach
D. Job-based approach

A

A. Group-based approach

56
Q

The job-based approach assumes that organizations will reward based on:
A. Results by an employee
B. Employee merit and end-of-year company performance
C. The job a person holds
D. Characteristics of a person holding a job

A

C. The job a person holds

57
Q

The Individual-based approach assumes that rewards should be based on:
A. The job a person holds
B. Characteristics of a person holding a job
C. Results by an employee
D. Merit based pay for end-of-year company performance

A

B. Characteristics of a person holding a job

58
Q

The performance-based approach assumes that rewards should be based on:
A. Characteristics of a person holding a job
B. Results by an employee
C. Merit based pay for end-of-year company performance
D. The job a person holds

A

B. Results by an employee

59
Q

Job evaluation provides the basis for developing a network or configuration of ____ that make up a rewards structure.
A. Pay increases
B. Pay rates
C. Pay differences
D. Pay decreases

A

B. Pay rates

60
Q

The most fundamental question of internal reward alignment relates to the number of ____ in an organization.
A. Distinct benefit plans
B. Distinct business strategy
C. Distinct reward structures
D. Distinct business goals

A

C. Distinct reward structures

61
Q

Which of the following is not an example of a job family?
A. Biology
B. All are considered job families
C. Accounting
D. Engineering

A

B. All are considered job families

62
Q

True/False
Once jobs are broadly organized into such a job structure, the next step is to create a mechanism for assigning their relative value in the organization.

A

True

63
Q

The job value structure represents:
A. The structure of jobs internally positioned according to their immediate value
B. The structure of jobs internally positioned according to their natural value
C. The structure of jobs internally positioned according to their relative value.
D. None of the above

A

C. The structure of jobs internally positioned according to their relative value.

64
Q

Job-value structure does not answer the question of:
A. How important are jobs
B. What jobs are
C. Whom to recruit for jobs
D. How jobs are related

A

C. Whom to recruit for jobs

65
Q

True/False
Job evaluation is a tool to help organizations create internal reward alignment that is both equitable and conducive to effective employee performance

A

True

66
Q

Which approach is a way to establish internal reward alignment?
A. Classification approach
B. Job comparison approach
C. Point factor approach
D. All of the above

A

D. All of the above

67
Q

In which approach would it appear that jobs are ordered based on rank and file?
A. Job comparison approach
B. Point factor approach
C. Classification approach
D. None of the above

A

A. Job comparison approach

68
Q

In which approach would it appear that jobs are categorized by job descriptions?
A. Job comparison approach
B. Point factor approach
C. Classification approach
D. None of the approach

A

C. Classification approach

69
Q

In which approach are jobs compared and “winning” or more “important” jobs get points?
A. Job comparison approach
B. Point factor approach
C. Classification approach
D. None of the above

A

A. Job comparison approach

70
Q

The advantage of the job comparison approach is that it is:
A. Intuitive
B. Holistic
C. Intuitive and Holistic
D. None of the above

A

C. Intuitive and Holistic

71
Q

A downside to the comparison approach is it:
A. Becomes inefficient as size of company shrinks
B. Becomes inefficient as management grows
C. Becomes inefficient as management shrinks
D. Becomes inefficient as size of company grows

A

D. Becomes inefficient as size of company grows

72
Q

True/False
The goal of job evaluation is to create a way to measure the value (and relative value) of each job in the organization.

A

True

73
Q

The point factor approach does all except:
A. Defines valuable elements of jobs
B. Measures the extents to which each job has that element
C. Specifies the importance of each element of a job
D. Develops revolutionary ideas for job analysis

A

D. Develops revolutionary ideas for job analysis

74
Q

Choose the answer which does not complete the blank: internal reward alignment is how ____ the relative value of all jobs in an organization is.
A. Enjoyable
B. Clear
C. Coherent
D. Fair

A

A. Enjoyable

75
Q

It is better to have a ____ approach in job analysis.
A. Quantitative
B. Qualitative
C. Both A & B
D. None of the above

A

A. Quantitative

76
Q

A compensable factor is a:
A. Statement of what the organization needs
B. Statement of what the organization values
C. Statement of what the organization has
D. Statement of what the organization wants

A

B. Statement of what the organization values

77
Q

A benchmark job is:
A. A sample of jobs that is representative of the type, content, and level of jobs in the organization
B. A sample of jobs within the organization that are to be addressed for compensation levels
C. A sample of jobs provided by government to control wage decreases
D. None of the above

A

A. A sample of jobs that is representative of the type, content, and level of jobs in the organization

78
Q

A graphic rating scale is:
A. Where raters rate the extent to which the job involves the un-compensable factor
B. Where raters rate the extent to which the job involves the compensable factor
C. Both A & B
D. None of the above

A

B. Where raters rate the extent to which the job involves the compensable factor

79
Q

Green circle rates refer to
A. Employees whose pay is below market average
B. Employees whose pay is above market range
C. Employees whose pay is at market range
D. None of the above

A

A. Employees whose pay is below market range

80
Q

Red circle rates refer to
A. None of the below
B. Employees whose pay is below market range
C. Employees whose pay is above market range
D. Employees whose pay is at market range

A

C. Employees whose pay is above market range

81
Q

True/False
There is not a degree of correspondence between pay grade size and range size

A

False
The Principle of Parity suggests that, in general, the more grades that are used the smaller the ranges will be.

82
Q

_______ exist within the range of the broad band and are applied to specific job families to provide guidance on appropriate compensation levels.
A. Shadow exits
B. Shadow pillars
C. Shadow entrances
D. Shadow ranges

A

D. Shadow ranges

83
Q

Organizations can use pay grades and ranges to monitor how well pay rates are conforming to the pay plan. _____ is frequently used to measure this conformity.
A. Compa-stats
B. Compa-ratio
C. Statistical analysis
D. None of the above

A

B. Compa-ratio
Compa-ratio is calculated by dividing the average pay for the pay grade by the midpoint of that range

84
Q

True/False
With the principle of overlap, it is impossible that an employee in pay grade three could be paid more than an employee in pay grade four.

A

False

85
Q

Overlapping grades allow for _____ career management as employees are promoted up through their own function or take a lateral position in a different function
A. Similar
B. Robust
C. Easier
D. Difficult

A

C. Easier

86
Q

The larger, overlapping ranges make it ____ likely that employees can make such moves without having to dramatically raise or lower their pay.
A. More
B. Less
C. Somewhat
D. None of the above

A

A. More

87
Q

True/False
It is wise to leave a buffer zone around the current pay rates to ensure that the range is adequate.

A

True

88
Q

When jobs were grouped into ____, it was for the purpose of treating them the same for compensation purposes.
A. Grades and bands
B. Grades and threads
C. Bands and threats
D. Bands and threads

A

A. Grades and bands

89
Q

For compensation levels a _____ needs to be established.
A. Floor
B. Ceiling
C. Both A & B
D. None of the above

A

C. Both A & B

90
Q

True/False
By using pay form-specific strategies, organizations can create more customized reward systems that are more likely to differentiate them from their competition in the labor market.

A

True

91
Q

In a dynamic-role based job:
A. Compensation plans are able to stay static
B. Compensation plans do not need to facilitate change
C. Compensation plans need to be evaluated
D. Compensation plans need to facilitate change

A

D. Compensation plans need to facilitate change

92
Q

Broad-banding allows organizations to:
A. Use a few broad bands to organize work for pay purposes
B. Use many broad bands to organize work for pay purposes
C. Both A & B
D. None of the above

A

A. Use a few broad bands to organize work for pay purposes

93
Q

Broad-banding allows employees to do all of the following except:
A. Modify their role in the organization
B. Manage lateral changes in their career
C. Join and exit multiple organizational teams
D. Be promotable within a given time period

A

D. Be promotable within a given time period

94
Q

The purpose of grades is to:
A. Allow jobs creating a different amount of value for the organization to be treated in the same way
B. Allow jobs creating the same amount of value for the organization to be treated in the same way
C. Allow jobs creating the same amount of value for the organization to be treated in a different way
D. None of the above

A

B. Allow jobs creating the same amount of value to be treated in the same way.

95
Q

True/False
Using pay grades is useful because it allows the organization to establish different pay strategies for different pay grades.

A

True

96
Q

Without any grade structure, a job-based pay strategy could involve _____ of different reward strategies in one organization.
A. Tens
B. Hundreds
C. Zero
D. Thousands

A

B. Hundreds

97
Q

True/False
Pay grades are useful as they allow organizations to simplify reward systems because similar jobs can all be treated in the same way.

A

True

98
Q

A sunset clause specifies a program’s temporary nature in order to allow the organization to ____ the program according to the results it produces.
A. Shift
B. Create
C. Adapt
D. None of the above

A

C. Adapt

99
Q

The purpose of a pilot program is to better understand:
A. The design parameters
B. How the program is received
C. The impact of the program
D. All of the above

A

D. All of the above

100
Q

The rollout of capability-based pay systems, like all reward system changes, should be accompanied by:
A. No communication
B. Expensive communication
C. Expressive communication
D. Intensive communication

A

D. Intensive communication

101
Q

Intensive communication can be damaging if there is:
A. Poor participation
B. Unrealistic expectations
C. Both A & B
D. None of the above

A

C. Both A & B

102
Q

True/False
In the development stage it is not important to also design a training support system that is customized to the skills or competencies in the system

A

False

103
Q

Eligibility refers to:
A. Understanding for participation in the system
B. Being able to participate in the system and to certify on each skill or competency
C. The ability to participate in the health insurance program
D. Certifying on each skill or competency

A

B. Being able to participate in the system and to certify on each skill or competency

104
Q

Generally speaking, the eligibility should be ______ to ensure that the number of employees certifying is in line with current and future needs for that capability.
A. Enforced
B. Altered
C. Changed
D. Restricted

A

D. Restricted

105
Q

True/False Within individual-based systems value is assumed to derive from the characteristics of the person within the job, and therefore pay should be driven by the knowledge, skills, experience, or competencies of that individual.

A

True

106
Q

The value in having policies that slow the process of topping out include all except:
A. Better understand the system implementation
B. Employee development
C. Allow for potential growth
D. Organization can control costs

A

B. Employee development

107
Q

True/False
All capability-based pay systems require sources of skill- or competency- related information

A

True

108
Q

Having a panel ____ the reliability of the system as having multiple people viewing the performance creates a more accurate picture of the employee’s behavior.
A. Increases
B. Decreases
C. Speeds
D. Slows

A

A. Increases

109
Q

Having a panel:
A. Helps ensure consistency of standard across employees
B. increases an employee’s perception of the procedural justice of the system
C. Both A & B
D. None of the above

A

C. Both A & B

110
Q

Having a scale that would rank abilities from Unable, Somewhat Able, Able, Very Able, Extremely Able, is an example of:
A. Level definitions
B. Likert scale
C. Likert definitions
D. None of the above

A

A. Level definitions

111
Q

True/False
The first challenge in creating a capability-based pay plan is to define those individual characteristics that create value for the organization.

A

True

112
Q

Individual characteristics should be categorized into two categories:
A. Job analyses, job frequency
B. Strategic utility, employer frequency
C. Job analyses, strategic utility
D. Strategic utility, job frequency

A

C. Job analyses, strategic utility

113
Q

Strategic measurement means that the definition of criteria are all conceptually and empirically connected to the:
A. Employee
B. Unit
C. Organizational outcomes
D. All of the above

A

D. All of the above

114
Q

True/False
When a reward system explicitly attempts to vary rewards based upon the capabilities of the employee, it is referred to as capability-based pay.

A

True

115
Q

Reliable measurement means that an employee’s level of skill, competency, or experience can be measured _____ across employees and raters.
A. Curatively
B. Capably
C. Congruently
D. Consistently

A

D. Consistently

116
Q

True/False
Reinforcement and expectancy theory would both recommend that contingencies in pay be made very clear.

A

True

117
Q

Employees attribute their own behavior to being ____ or ____.
A. Self chosen; automatic
B. Self chosen; imposed
C. Imposed; unavoidable
D. Imposed; exposed

A

B. Self chosen; imposed

118
Q

Intangible rewards include all except:
A. Culture
B. Meaning
C. Paid time off
D. Recognition

A

C. paid time off

119
Q

Interactional justice perceptions grow out of whether or not managers and other personnel show ____ to employees in their pay-related interactions.
A. professionalism and love
B. professionalism and respect
C. Admiration and respect
D. kindness and respect

A

B. professionalism and respect

120
Q

True/False
Every reward system should be reviewed to ensure that there are policies in place to address each driver of procedural justice.

A

True

121
Q

When employees have a _____ in the design of the compensation system they are more likely to see the system as procedurally fair.
A. Memory
B. Idea
C. Voice
D. Thought

A

C. Voice

122
Q

Employees should always be provided an ____ for the reward decision.
A. Explanation
B. Evaporation
C. Evacuation
D. Evaluation

A

A. Explanation

123
Q

True/False
The primary reasons that organizations use performance-based pay is to provide an incentive for the types of behaviors and outcomes that enable higher performance

A

True

124
Q

It is important that multiple people had input into the process. This can be done through all except:
A. Market prices established
B. Government mandates
C. Competencies rated
D. Performance assessed

A

B. Government mandates

125
Q

When distributive justice is low, procedural justice receives a lot of ______
A. Managerial attention
B. Psychological attention
C. Employee attention
D. None of the above

A

C. Employee attention

126
Q

Distributive justice perceptions are based upon _____ views of the distribution of rewards in the organization.
A. Customers’
B. Employers’
C. Governments’
D. Employees’

A

D. Employees’

127
Q

Distributive justice is also known as the
A. Equity theory
B. Grace theory
C. Equality theory
D. Quantity theory

A

A. Equity theory

128
Q

When low distributive justice occurs, which of the following changes will employees not make?
A. Seeking higher rewards
B. Earning lower rewards
C. Leaving the organization
D. Changing inputs

A

B. Earning lower rewards

129
Q

True/False
It is not important to have both the internal reward alignment process and the external reward alignment process in place

A

False

130
Q

Employees will compare their rewards to those both ____ and _____ to the organization.
A. Aligned, misaligned
B. Functioned, malfunctioned
C. Internal, external
D. None of the above

A

C. Internal, external

131
Q

True/False
Human beings have an inherent need for justice in social exchanges

A

True

132
Q

Justice theory has three types of justice. Which is not included?
A. Distributive
B. Interactional
C. Procedural
D. Interchangeable

A

D. interchangeable

133
Q

This theory explains why people purchase lottery tickets
A. Expectancy theory
B. Justice theory
C. Tournament theory
D. Reinforcement theory

A

C. Tournament theory

134
Q
A

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