Compensation and Benefits Exam Bank
Course Introduction
This course provides a comprehensive overview of compensation and benefits practices within organizations, focusing on the design, implementation, and evaluation of total rewards systems. Students will explore foundational concepts such as job analysis, wage and salary administration, incentive plans, employee benefits, and regulatory requirements. The course also examines strategies for aligning compensation and benefits programs with organizational objectives, ensuring competitiveness in the labor market, and maintaining internal and external equity. Real-world cases and practical exercises help students develop the analytical and decision-making skills needed to manage compensation and benefits effectively in diverse workplace environments.
Recommended Textbook Human Resource Management 3rd Edition by
Robert N. Lussier
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Chapter 1: The New Human Resource Management Process
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Sample Questions
Q1) Alexandra's role in the organization involves measuring and evaluating job satisfaction and employee engagement.Alexandra's human resource management specialty is ______.
A) staffing
B) labor and industrial relations
C) ethics and sustainability
D) employee relations
Answer: D
Q2) ______ gather and interpret information to improve a product or process.They are known for using "their head more than their hands."
A) Knowledge workers
B) Staff managers
C) Line managers
D) Empathy workers
Answer: A
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Chapter 2: Strategy-Driven Human Resource Management
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Q1) Rebecca is examining a measure of the financial return the human resources department received for its investment in a new performance appraisal system.The new system cost $3,500 and saved more than $5,000 in payroll expenses.Rebecca is examining the ______.
A) economic value added
B) return on investment
C) gain from investment
D) balanced scorecard
Answer: B
Q2) ______ is the process of accessing large amounts of data to analyze those data and gain insight into significant trends or patterns within organizations or industries.
A) Complexity
B) Organizational culture
C) Formalization
D) Data analytics
Answer: D
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Chapter 3: The Legal Environment and Diversity Management
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Sample Questions
Q1) A Latino applicant scores 55 points on a job selection exam and is hired based on the results of the exam while a White applicant scores 62 points on the same exam and does not get hired.What illegal activity might have occurred?
A) reasonable accommodation
B) race norming
C) undue hardship
D) disparate impact
Answer: B
Q2) Quid pro quo harassment is harassment that occurs when some type of benefit or punishment is made contingent upon the employee submitting to sexual advances.
A)True
B)False
Answer: True
Q3) ______ is simply the act of being opposed to another.
A) Diversity
B) Cohesiveness
C) Conflict
D) Innovation
Answer: C
Page 5
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Chapter 4: Workforce Planning: Job Analysis, Design, and Employment Forecasting
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Sample Questions
Q1) In the ______ method of job analysis,questions are asked of the job incumbent and the answers are compiled into a profile of the job.
A) questionnaire
B) diary
C) interview
D) observation
Q2) ______ job design focuses on the job characteristics that affect the psychological meaning and motivational potential of the job,and it views attitudinal variables as the most important outcomes of job design.
A) Biological
B) Motivational
C) Perceptual-motor
D) Organic
Q3) Experts generally agree that as many as ______ of all jobs that currently exist are at risk of automation.
A) ten percentage
B) a quarter
C) a third
D) half
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Chapter 5: Recruiting Job Candidates
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Q1) In ______,an organization asks a manager to provide their support for an employee before that employee would be considered for a promotion through the internal recruiting process.
A) open recruiting
B) employee referral
C) managerial sponsorship
D) mentoring
Q2) Katya is looking for workers with good basic skill sets.She does not need the applicants in her recruitment pool to have a lot of work experience.Her best external recruitment source would be ______.
A) educational institutions
B) specialized publications
C) temporary agencies
D) public agencies
Q3) Describe the main considerations an organization should address before recruiting.
Q4) What is "grit" and why is it important in recruiting?
Q5) Describe the major advantages and disadvantages of internal recruiting.
Q6) Why is it important to analyze the performance of new hires and compare it to organizational norms?
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Chapter 6: Selecting New Employees
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Sample
Questions
Q1) When conducting selection interviews,Benjamin likes to ask a series of yes/no questions such as "If hired,can you arrive at work each day by 8 a.m.?" and "Do you understand the essential functions of the job?" Benjamin is asking ______ questions.
A) structured
B) unstructured
C) open-ended
D) closed-ended
Q2) The ______ is usually the most heavily weighted and one of the last steps in the selection process,even though it has low predictive validity.
A) honesty test
B) drug test
C) interview
D) work sample
Q3) Explain the OUCH test and how it should be used in the preinterview stage of the selection process.
Q4) What is the difference between applications and résumés and how are each used as selection tools?
Q5) Describe the various types of selection tests.
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Chapter 7: Learning and Development
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Q1) In operant conditioning,______ provides a reward in return for a constructive action on the part of the subject.
A) onboarding
B) positive reinforcement
C) employee development
D) remediation
Q2) ______ conditioning behaviors are direct because the learning occurs as a result of something happening directly to the employee.
A) Operant
B) Classical
C) Plateau
D) Competency
Q3) Self-ability is whether or not a person believes that they have the capability to do something or attain a particular goal.
A)True
B)False
Q4) Describe the common challenges in the training and development process.
Q5) Describe each level in the four-level evaluation method of training: reaction,learning,behaviors,and results.
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Chapter 8: Performance Management and Appraisal
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Sample Questions
Q1) Casey's performance appraisal indicated that she was good at managing client relationships.Casey asked her supervisor for more details and was simply told,"you just do a good job in that area." What aspect of good performance appraisals does Casey's appraisal appear to be missing?
A) reliability
B) specificity
C) acceptability
D) feasibility
Q2) ______ is the ongoing process of evaluating employee performance.
A) Performance appraisal
B) Performance management
C) Critical incidents method
D) Behaviorally anchored rating scale (BARS) form
Q3) ______ is simply a personality-based tendency,either toward or against something.
A) Bias
B) Stereotyping
C) Ranking
D) Rating
Q4) Describe the purposes of performance appraisals.
Page 10
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Chapter 9: Rights and Employee Management
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Sample Questions
Q1) What is a code of conduct and why is such a code helpful to an organization?
Q2) ______ is corrective action designed to get employees to meet standards and the code of conduct.
A) Serious misconduct
B) Employee assistance programs (EAPs)
C) Coaching
D) Discipline
Q3) At the end of the selection process at Acme Global,all new employees are required to pass a physical exam that includes a urinalysis.This is part of management's right to establish ______.
A) drug testing
B) workplace monitoring
C) employment-at-will
D) orientation period
Q4) ______ is a serious failure to exercise care in the work environment.
A) Progressive discipline
B) Serious misconduct
C) Gross negligence
D) Accident
Q5) Describe the employee rights of free consent,due process,and life and safety.
Page 11
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Chapter 10: Employee and Labor Relations
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Q1) A(n)______ exists when parties form an agreement from their actions rather than from a specific oral or written agreement.
A) implied contract
B) express contract
C) personal contract
D) quasi-contract
Q2) Negotiating is about building ______ so that everyone gets a good deal.
A) trust
B) standards
C) contracts
D) conflicts
Q3) Describe the union certification process and the NO TIPS rules for labor elections.
Q4) What does the Worker Adjustment and Retraining Notification Act of 1988 require of organizations conducting layoffs?
Q5) Describe the five conflict management styles-avoiding,accommodating,forcing,negotiating,and collaborating-and discuss each in terms of win or lose scenarios.
Q6) Describe the value of trust and communication in organizations.
Q7) Describe three major ways we can measure job satisfaction.
Page 12
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Chapter 11: Compensation Management
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Sample Questions
Q1) Briefly describe the concept of comparable worth in compensation.
Q2) The ______ comparison method of job evaluation is more time consuming because it is tailored to the individual organization and to the jobs within the organization.
A) pay
B) rate
C) point
D) custom factor
Q3) ______ is now the top reason for job satisfaction,overtaking job security as the top driver of satisfaction back in 2013.
A) Pay
B) Equity
C) Expectancy
D) Overtime
Q4) Expectancy theory is a ______ theory of motivation.
A) process
B) structure
C) culture
D) rate
Q5) Describe the four components of a compensation system.
Page 13
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Chapter 12: Incentive Pay
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Q1) Entitlements provide executives who are dismissed from a merged or acquired organization with typically large lump sum payments on dismissal.
A)True
B)False
Q2) ______ allow managers to vary the reward given employees based on the individual (or group)effort put into the work process.
A) Incentives
B) Entitlement
C) Pay structure
D) Rate range
Q3) In compensation,a ______ is a lump sum payment,typically given to an individual at the end of a time period.
A) bonus
B) merit
C) perquisites
D) variable pay
Q4) Describe five of the guidelines for creating motivational incentive systems.
Q5) Describe the challenges of offering incentives to employees.
Q6) Describe the major reasons why an organization would use incentive pay.
Page 14
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Chapter 13: Employee Benefits
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Q1) In a ______ plan,there is a base set of benefits,called the core,that are provided to everyone,and then employees are allowed to choose other options to meet personal needs and desires.
A) core-minus
B) core-plus
C) core-less
D) core-flex
Q2) In a ______,the amount received upon retirement will depend on the success of the investment of the retirement funds over the years.
A) utilization analysis
B) vesting
C) defined contribution plan
D) defined benefit plan
Q3) Describe an organization's options when providing flexible benefit plans.
Q4) Describe the strategic value of benefits programs to organizations.
Q5) ______ is a measure of how often claims are made against an insurance policy.
A) Utilization analysis
B) Variable analysis
C) Experience rating
D) Merit analysis
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Chapter 14: Workplace Safety, Health, and Security
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Q1) Dysfunction is a constant lack of interest and motivation to perform one's job.
A)True
B)False
Q2) Bullying behaviors have been found to be four times more common than______.
A) social loafing
B) safety violations
C) sexual harassment
D) workplace violence
Q3) When Occupational Safety and Health Act inspectors discover that an employer knew of a hazardous condition but made no effort to eliminate the hazard,it reports a(n)______ violation.
A) willful
B) serious
C) de minimis
D) failure to abate
Q4) Discuss the new OSHA regulation on drug testing that made it illegal to do blanket post-accident drug and alcohol testing.
Q5) Describe the value of ergonomics to organizations and employees.
Q6) Describe the top concerns for security in the workplace today.
Q7) Describe the causes of stress and how it can be managed.
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Chapter 15: Organizational Ethics, Sustainability, and Social Responsibility
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Q1) ______ refers to exploring the responsibilities of business and its role in society.
A) Corporate social responsibility
B) Justification
C) Sustainability
D) Accountability
Q2) The stakeholders' approach tries to create ______ results for all stakeholders affected by the decision.
A) lose-lose
B) lose-win
C) win-win
D) win-lose
Q3) Describe the concept of sustainability in a business context.
Q4) Describe some of the common sustainability-based benefits organizations are using.
Q5) Describe the three levels of corporate social responsibility available to organizations.
Q6) What does the term "ethics" mean and what factors commonly contribute to unethical behavior?
Q7) Define corporate social responsibility and provide an example.
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Chapter 16: Global Issues for Human Resource Managers
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Q1) Which of the following is NOT a generic approach to managing a global company?
A) ethnocentric
B) parochial
C) polycentric
D) geocentric
Q2) The term ______ of markets refers to the buying and selling of goods and services worldwide.
A) globalization
B) complexity
C) parochialism
D) nationalization
Q3) Describe the big five personality traits and how they relate to expatriate assignments.
Q4) People who happen to have a skill set needed for an international assignment but who are not citizens of either the home or host country are known as ______ nationals.
A) parent-country
B) host-country
C) home-country
D) third-country
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