1. Organizations being squeezed between labor and product
markets need to
A. couple pay policies with creative HR, production, and
marketing management to make workers’ contributions more valuable
and products more profitable. B. change their strategic mission and
direction, moving to more attractive industries. C. move from
job-based pay structures to skill-based pay systems, where
employees are empowered and jobs are more enriched. D. move their
operations overseas.
2. Pay specifically designed to energize, direct, or control
employees’ behavior is known as A. empowerment pay. B. exempt pay.
C. indirect pay. D. incentive pay.
3. Three of the following are vesting rights. Which is not a
vesting right? A. The right to a pension regardless of whether or
not the employee remains with the employer until retirement B. In
most cases, a waiting period of no more than five years or a three-
to seven-year period, with 20 percent in the third and each year
thereafter C. The right to a pension at retirement D. A guarantee
that the employer won’t switch the pension plan from
defined-benefit to defined-contribution plan
4. A system in which an employer pays a worker specifically for
each unit produced is known as A. hourly wage. B. salary. C.
piecework rate. D. gross pay.
5. Which level of child care is most frequently provided by
organizations with 100 or more employees? A. The organization
offers no support within this area. B. The organization operates a
day-care center at or near the workplace. C. The organization
supplies and helps employees collect information about the cost and
quality of available child care. D. The organization provides
vouchers or discounts for employees to use at existing child-care
6. Due to increasing diversity within the workplace, many
employers are extending benefits to A. independent contractors. B.
domestic partners. C. anyone living within the employee’s
household. D. extended-family members.
7. Since the 1990s, the trend in larger public companies is to
grant stock options to A. all exempt employees. B. all employees.
C. all top and middle managers. D. only top management.
8. Which act permits a lower training wage, which employers may
pay to workers under the age of 20 for a period of up to 90 days?
9. On average, out of every dollar spent on compensation, about
_______ cents go to benefits. A. 30 B. 8 C. 45 D. 17
10. The Scanlon plan is a variation of which type of incentive?
A. Merit pay B. Gainsharing C. Profit sharing D. Individual
11. From which source do most retirees receive the largest
percentage of their retirement income? A. Private pensions B.
Social Security C. Disability insurance D. Earnings from personal
12. Which of the following is a false statement about key jobs?
A. Key jobs are jobs on which it’s possible to obtain market-pay
survey data. B. Key jobs are relatively stable in content. C. Key
jobs have many incumbents within the organization. D. Key jobs are
common to many organizations.
13. Employees who have met the enrollment and length-of-service
requirements to receive a pension at retirement, regardless of
whether they remained with the employer until that time, are said
to be A. pensioners. B. vested. C. retirees. D. expatriates.
14. Which of the following is not an advantage of a balanced
scorecard? A. A balanced scorecard allows for a combination of
performance measures that are directed toward both the company’s
longand short-term objectives. B. Communicating a balanced
scorecard helps employees understand the organization’s goals and
how they might contribute to these goals. C. A balanced scorecard
links external pay rates with internal job structures, allowing
organizations to gain both internal and external pay equity. D. A
balanced scorecard balances the disadvantages of one type of
incentive pay with the advantages of another type.
15. If employees conclude that they’re underrewarded, they’re
likely to make up the difference in three of the following ways.
Which is not a way in which employees who feel underrewarded are
likely to make up the difference? A. Refusing to cooperate B.
Finding a way to reduce their outcomes C. Reducing their inputs D.
Withdrawing by leaving the organization
16. Which of the following is an advantage of group incentives?
A. Groups trying to outdo one another in satisfying customers B.
Encouraging team members to compete with each other so they can
achieve their goal C. Group more likely using a broad range of
performance measures D. Rewarding the performance of all employees
at a facility
17. An employee produces 10 components in an hour and earns
$8.00 ($.80 × 10), while an employee who produces 12 components per
hour earns $9.60 ($.80 × 12). This arrangement is an example of a
_______ plan. A. straight-salary B. commission C.
differential-piece-rate D. straight-piecework
18. Which of the following is a false statement about the Fair
Labor Standards Act? A. Nonexempt employees are covered by FLSA and
include most hourly workers. B. The overtime rate under the FLSA is
one and a half times the employee’s hourly rate, including any
bonuses and piece-rate payments. C. The FLSA permits a subminimum
training wage equal to 85 percent of the minimum wage. D. The FLSA
requires federal contractors to pay prevailing wage rates. End of
19. An organization is adjusting pay to better match a local
labor market in which the cost of living is rising sharply. These
adjustments are called A. green-circle rates. B. rank-and-file
adjustments. C. pay differentials. D. bonuses.
20. The National Compensation Survey is an ongoing activity of
the A. AFL-CIO. B. Society for Human Resource Management. C.
American Management Association. D. Bureau of Labor Statistics.

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