Total Rewards putting it all together M8

Question 1

What must the design process of Total Rewards begin with?

Answer 1

Must begin with the corporate vision and mission.

Question 2

Once the corporate mission and vision is understood, what are the next 2 elements that can be determined in order to achieve a Total Rewards Strategy?

Answer 2

1. Business Strategy

2. HR Strategy

Question 3

What steps must be accomplished in order to design and administer Total Rewards? Name in chronological order.

Answer 3

1. Define Corporate value and mission
2. Develop Business Strategy
3. Develop HR Strategy
4. Develop Total Rewards strategy

Question 4

What best describes the reason why the total rewards design model is circular?

A. The process ends after evaluating programs
B. The process should not become too far removed from the corporate mission
C. The process should maintain alignment to the six elements of total rewards
D. The process is used to determine what will motivate and retain employees

Answer 4

B. The process should not become too far removed from the corporate mission

Question 5

Which of the following is a design consideration that is often ignored, miscalculated or forgotten?

A. Rising health care costs that increase the cost of benefits programs
B. Legal and regulatory compliance issues
C. Support staff needed to administer the program
D. Competitive wages and rewards

Answer 5

C. Support staff needed to administer the program

Question 6

Which statement is most accurate regarding a precaution to be taken in communicating total rewards statements?

A. Avoid sending a total rewards statement to an employee’s home address
B. Avoid summarizing each employee’s complete total rewards package
C. Avoid arbitrarily setting a monetary value on intangible benefits that not all employees use
D. Avoid itemizing the value of benefits or work-life programs. Include only compensation

Answer 6

C. Avoid arbitrarily setting a monetary value on intangible benefits that not all employees use

Question 7

What guides the design of all total rewards programs?
A. The human resources strategy
B. The business strategy
C. The business vision
D. The total rewards strategy

Answer 7

D. The total rewards strategy

Question 8

What is a primary purpose of pay grades or bands?

A. To identify a compensation range in which to group multiple jobs with similar value
B. To meet legal and regulatory requirements for classifying jobs according to market value
C. To provide documentation that supports termination decisions
D. To justify paying some employees less than market based on internal administrative limitations

Answer 8

A. To identify a compensation range in which to group multiple jobs with similar value

Question 9

Regarding medical plans, what is the out-of-pocket maximum?

A. The most that the member will be liable for in relation to co-insurance
B. The maximum the plan will pay if the member is covered by another insurance plan
C. The limit the member will be required to pay at each doctor visit
D. The lifetime limit for benefits to any one employee

Answer 9

A. The most that the member will be liable for in relation to co-insurance

Question 10

Which of the following best describes a factor that has influenced the growth and change in benefits?

A. There is a decreasing number of females in the workforce.
B. Employees are expressing a greater desire for choice in their benefits.
C. Employees have longer career expectations.
D. Decreasing costs are causing growth in the numbers of benefits employers offer.

Answer 10

B. Employees are expressing a greater desire for choice in their benefits.

Question 11

How far do broadbanded pay ranges stretch from minimum to maximum?
A. 10% to 30%
B. 30% to 50%
C. 50% to 100%
D. 100% to 300%

Answer 11

D. 100% to 300%

Question 12

What is the final result of the job evaluation process?
A. The job worth hierarchy
B. The base pay structure
C. Job documentation
D. Job descriptions

Answer 12

A. The job worth hierarchy

Question 13

Performance can be measured most objectively through which of the following methods?
A. Making direct observations
B. Documenting examples of performance
C. Quantifying performance data
D. Using management judgment

Answer 13

C. Quantifying performance data

Question 14

A medical benefits plan provision ensuring that the correct plan is paying expenses when the member is covered under more than one plan is known as what?
A. Deductible
B. Coinsurance
C. Coordination of benefits
D. Out-of-pocket expenses

Answer 14

C. Coordination of benefits

Question 15

Cash compensation is a reward intended to provide what type of motivation?
A. Intrinsic
B. Extrinsic

Answer 15

B. Extrinsic

Question 16

Which of the following is a nonquantitative method of job evaluation?
A. Point factor
B. Ranking
C. Job content
D. Rating

Answer 16

B. Ranking

Question 17

When using a market pricing approach to build a base pay structure, what percentage of job content should typically be similar for a job match to be considered good for benchmarking purposes?
A. 10% or more
B. 30% or more
C. 50% or more
D. 70% or more.

Answer 17

D. 70% or more.

Question 18

Which method of job evaluation uses a "whole -job" approach to determine the importance of each job to the company?
A. Job component
B. Ranking
C. Benchmark
D. Point factor.

Answer 18

B. Ranking

Question 19

An employee and his manager have decided that he will type reports with no more than one error per five pages. Which type of performance standard are they using?
A. Quality
B. Time
C. Process

Answer 19

A. Quality

Question 20

What are usual, customary and reasonable charges (UCR)?
A. The charges that an insurance carrier determines are normal for a particular medical procedure within a specific geographical area
B. The charges that are published annually in the Global Insurers’ Medical Cost Comparison Guide
C. The charges that are allowable for any given medical procedure with no pre-treatment authorization
D. The charges that are typically paid up front by a plan participant for services rendered.

Answer 20

A. The charges that an insurance carrier determines are normal for a particular medical procedure within a specific geographical area

Question 21

The number of pay structures in an organization is most likely to be influenced by which of the following?
A. The diversity of jobs
B. The demographics of the workforce
C. The organization’s financial condition
D. The organizations policies regarding centralized pay administration.

Answer 21

A. The diversity of jobs

Question 22

Which of the following leads to the specific performance objectives for an organization?
A. Performance standards
B. Human resources strategy
C. Performance measures
D. Business strategy.

Answer 22

D. Business strategy.

Question 23

Why is greater flexibility an advantage of a total rewards approach?
A. Because programs can be added and/or withdrawn with little employee resistance
B. Because incentive plans can be designed by work group or unit as well as separatel y for each employee
C. Because the mix of rewards offered can be tailored according to the organization’s specific challenges.

Answer 23

C. Because the mix of rewards offered can be tailored according to the organization’s specific challenges.

Question 24

What type of pay increase is given when an organization finds that its compensation program is behind competitive market rates?
A. General
B. Cost of living
C. Automatic
D. Merit.

Answer 24

A. General

Question 25

If the beginning wage needed to recruit quality candidates for given job is higher than that of incumbents who have been with a company for some time, what type of pay adjustment should be used to correct this discrepancy?
A. Cost-of-living
B. Tenure
C. Automatic
D. Market.

Answer 25

D. Market.

Question 26

Performance can be measured most objectively through which of the following methods?
A. Making direct observations
B. Documenting examples of performance
C. Quantifying performance data
D. Using management judgment.

Answer 26

C. Quantifying performance data

Question 27

Which of the following combines traditionally segregated time off and leave programs into one policy covering a single block of time?
A. Personal leave
B. Sabbatical
C. Severance allowances
D. Paid time off (PTO) bank.

Answer 27

D. Paid time off (PTO) bank.

Question 28

Upon which criterion are step increases typically based?
A. Market adjustment
B. Longevity
C. Individual performance
D. Skills.

Answer 28

B. Longevity

Question 29

At a company communications event, several employees were awarded certificates for their roles in improving customer service. Later, their manager noticed some of the certificates in the trash bin. Which essential element for success did the manager miss?
A. Link rewards to the performance evaluation
B. Employ meaningful rewards
C. Reward group or team accomplishments
D. Make sure that measurement is accurate.

Answer 29

B. Employ meaningful rewards

Question 30

Which of the following statements best describes defined benefit (DB) plans?
A. There is no promise of a specific benefit at retirement.
B. Individual accounts must be maintained for each participant.
C. They are often integrated with government-sponsored programs.
D. Employees are at risk for financial resources..

Answer 30

C. They are often integrated with government-sponsored programs.

Question 31

Which of the following statements best describes defined contribution (DC) plans?
A. They require complex actuarial calculations and assumptions.
B. The benefit is based on a formula that considers pay and service.
C. They generally provide better benefits to employees with longer service.
D. The employee assumes the risk for the investments..

Answer 31

C and D are correct but the given answer was: D. The employee assumes the risk for the investments..

Question 32

What does a performance standard specify?
A. The experience required to achieve the goal or objective
B. The reward that can be earned
C. The time required for satisfactory performance
D. The expected outcome.

Answer 32

D. The expected outcome.

Question 33

Why are lump-sum increases generally used?
A. To control annual fixed costs from base pay adjustments
B. To elevate employees who are below the midpoint in the range
C. To reward employees under short-term incentive plans
D. To make up for benefits not provided by the organization.

Answer 33

A. To control annual fixed costs from base pay adjustments

Question 34

How should learning opportunities to accomplish a career plan best be determined?
A. By considering emerging and future trends in the employee’s professional field
B. By considering what opportunities would enable the employee to move to competing organizations
C. By considering how much the employee likes his or her current position
D. By considering the minimum competencies needed to move up to the next pay grade.

Answer 34

A. By considering emerging and future trends in the employee’s professional field

Question 35

Which of the following is a nonquantitative method of job evaluation?
A. Point factor
B. Ranking
C. Job content
D. Rating.

Answer 35

B. Ranking

Question 36

What is continuing to contribute most to the current rise in the cost of benefits programs?
A. Rising salaries for support staff
B. Increasing cost of enterprise software systems
C. Increasing cost of communication
D. Rising costs for health care.

Answer 36

D. Rising costs for health care.

Question 37

What type of equity incentive gives employees the right to purchase company shares at a specified price?
A. Stock/share options
B. Stock/share grants
C. Restricted stock/shares
D. Performance units.

Answer 37

A. Stock/share options

Question 38

Which of the following identifies appropriate labor market segments and desired competitive position in the market for each employee group?
A. The mission statement
B. The business strategy
C. The total rewards strategy
D. The organizational vision.

Answer 38

C. The total rewards strategy

Question 39

Which of the following statements best describes defined benefit (DB) plans?
A. There is no promise of a specific benefit at retirement.
B. Individual accounts must be maintained for each participant.
C. They are often integrated with government-sponsored programs.
D. Employees are at risk for financial resources..

Answer 39

C. They are often integrated with government-sponsored programs.

Question 40

When building a job worth hierarchy, which step involves the systematic, formal study of the duties and responsibilities that comprise job content?
A. Job analysis
B. Job documentation
C. Job evaluation
D. Job worth hierarchy.

Answer 40

A. Job analysis

Question 41

Which of the following formal recognition approaches has the advantage of aligning awards to the company?
A. Gift certificates
B. Telecommuting
C. Company merchandise
D. Flexible work schedules.

Answer 41

C. Company merchandise

Question 42

What is the final result of the job evaluation process?
A. The job worth hierarchy
B. The base pay structure
C. Job documentation
D. Job descriptions

Answer 42

A. The job worth hierarchy

Question 43

Which of the following is the best source for identifying the relative importance of various rewards elements to different work groups?
A. Board of directors
B. Employees
C. Senior management
D. Candidates for employment.

Answer 43

B. Employees

Question 44

What typically happens when employees continually upgrade and build new skills?
A. They demand higher pay
B. Their level of performance increases.
C. They become bored with their current jobs.
D. Their competitiveness increases..

Answer 44

B. Their level of performance increases.

Question 45

Step-rate increase programs provide employees the opportunity to receive two regular pay increases at which points?
A. At established dates and then every six months thereafter
B. On January 1 and July 1 of each year
C. Once when they move a step, and again when the step value changes
D. At the anniversary date and at the annual merit increase date

Answer 45

C. Once when they move a step, and again when the step value changes

Question 46

Regarding medical plans, what is the out-of-pocket maximum?
A. The most that the member will be liable for in relation to co-insurance
B. The maximum the plan will pay if the member is covered by another insurance plan
C. The limit the member will be required to pay at each doctor visit
D. The lifetime limit for benefits to any one employee.

Answer 46

A. The most that the member will be liable for in relation to co-insurance

Question 47

What best describes the compensation philosophy?
A. The compensation committee’s interpretation of how employees can best meet business objectives
B. Guidelines that determine the administration of compensation programs
C. Statement of what the organization believes about how people should be paid
D. Principles that guide the design of compensation programs

Answer 47

C. Statement of what the organization believes about how people should be paid

Question 48

Which type of variable pay is best described by this statement: Criteria are discretionary and often defined in broad terms such as "exceptional customer service"?
A. Recognition
B. Bonus
C. Commission
D. Profit-sharing

Answer 48

B. Bonus

Question 49

Which of the following is a true statement regarding worldwide health care systems?
A. In emerging markets, health care programs are often over funded.
B. Medicare in Canada provides health care for the elderly and Medicaid provides it for low-income individuals and families.
C. In European countries, governments typically provide health care to all citizens, financed by taxes.
D. In countries offering mandated health care plans, company plans are often essential for competitiveness.

Answer 49

C. In European countries, governments typically provide health care to all citizens, financed by taxes.

Question 50

Work-life programs began in many organizations in response to the growing need of dual income parents for child care resource and referral services. These dependent care services have greatly expanded to include which of the following programs?
A. Financial wellness
B. Sabbaticals
C. Concierge services
D. Elder care support

Answer 50

B. Sabbaticals

Question 51

What are the three most common part-time options under the workplace flexibility category?
A. Flex time, telecommunicating and shift flexibility
B. Regular part-time work, phased return from leave, and phased retirement
C. Flex time, phased retirement, and phased return from leave
D. Regular part-time work, shift flexibility and telecommuting

Answer 51

D. Regular part-time work, shift flexibility and telecommuting

Question 52

What performance measurement system is most likely to include cost of capital when evaluating performance?
A. Business Excellence Model
B. Shareholder Value Added
C. Activity Based Costing
D. Competitive Benchmarking

Answer 52

C. Activity Based Costing

Question 53

What is the third component to pay for performance systems?
A. Assessment
B. Communicate links
C. Determine rewards
D. Conduct performance discussion

Answer 53

A. Assessment

Question 54

Which of the following would be a cause of an employee being paid only slightly above the minimum after two years on the job?
A. The job was re-evaluated and moved to a lower grade.
B. The employee receives increases every six months.
C. Market data for the job are much higher than the range midpoint.
D. The employee was minimally qualified upon entry and is still learning the job.

Answer 54

A. The job was re-evaluated and moved to a lower grade.

Question 55

It has been noted that an employee learns rapidly during the first few years on the job, after which time the rate of learning begins to slow. How can organizations address this in their pay programs?
A. Re-evaluate the job itself more frequently.
B. Provide less frequent increases to newer employees.
C. Provide larger increases as a percentage of base pay to newer employees.
D. Provide fixed dollar amount increases to all employees in the salary range.

Answer 55

C. Provide larger increases as a percentage of base pay to newer employees.