Compensation and Benefits
Exam Materials
Course Introduction
This course provides an in-depth exploration of compensation and benefits strategies within organizational settings. Students will examine key concepts, theories, and legal frameworks related to wage structures, incentive programs, health and retirement plans, and other employee benefits. Through case studies and practical applications, learners will develop the skills necessary to design equitable and competitive compensation solutions that align with organizational goals, support employee motivation, and comply with relevant regulations. The course also addresses current trends such as pay equity, executive compensation, and flexible benefits, preparing students to navigate the evolving landscape of total rewards management.
Recommended Textbook
Human Resource Management 9th Edition by
Raymond Andrew Noe
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16 Chapters
1602 Verified Questions
1602 Flashcards
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Page 2
Chapter 1: Human Resource Management: Gaining a Competitive Advantage
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Which of the following HR competencies focuses on the ability to manage interactions with and between others with the specific goal of providing service and organizational success?
A)Relationship management
B)HR technical expertise
C)Organizational navigation
D)Ethical practice
E)Business acumen
Answer: A
Q2) High-performance work systems minimize the fit between a company's social system (employees)and its technical system.
A)True
B)False
Answer: False
Q3) Evidence-based HR refers to the demonstration that human resources practices have no impact on the company's bottom or key stakeholders.
A)True
B)False
Answer: False
Page 3
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Chapter 2: Strategic Human Resource Management
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Which of the following statements is true of companies that employ differentiation strategies?
A)They primarily focus on efficient production.
B)They only train employees in specific required skill areas.
C)They want their employees to be risk averse.
D)They want their employees to take a balanced approach to process and results.
E)They expect their employees to exhibit role behaviors that are relatively repetitive.
Answer: D
Q2) Which of the following primarily examines an organization's operating environment to identify its strategic opportunities and threats?
A)Job modeling
B)Internal analysis
C)External analysis
D)Value chain analysis
E)Job analysis
Answer: C
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Chapter 3: The Legal Environment: Equal Employment
Opportunity and Safety
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Reasonable accommodation simply requires an employer to refrain from committing discriminatory acts.
A)True
B)False
Answer: False
Q2) Which of the following is the Office of Federal Contract Compliance Programs' most potent weapon and its last penalty?
A)Debarment
B)General warning
C)Right to sue letter
D)Class-action suits
E)Specific treatment
Answer: A
Q3) The legislative branch of the federal government:
A)functions under the authority and supervision of the president.
B)has no say in the appointment of judges by the president.
C)consists of the House of Representatives and the Senate.
D)enforces the laws that are passed in the United States.
E)adjudicates cases pertaining to civil issues.
Answer: C
Page 5
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Chapter 4: The Analysis and Design of Work
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Sample Questions
Q1) Due to their work-flow focus and proximity to a homogeneous consumer base, divisional structures tend to be less flexible and innovative.
A)True
B)False
Q2) Which of the following approaches views job satisfaction as one of the most important outcomes of job design?
A)Administrative approach
B)Mechanistic approach
C)Biological approach
D)Perceptual-motor approach
E)Motivational approach
Q3) Which of the following was replaced by the Occupational Information Network (O*NET)?
A)Position Analysis Questionnaire
B)General Aptitude Test Battery
C)Dictionary of Occupational Titles
D)Workforce Learning Link
E)Work Profiling System
Q4) Briefly explain the trade-offs among different approaches to job design.
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Chapter 5: Human Resource Planning and Recruitment
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Sample Questions
Q1) A policy that lays out the steps an employee can take to appeal a termination decision is called a(n)_____.
A)counter cyclical hiring policy
B)outsourcing policy
C)employment-at-will policy
D)due process policy
E)affirmative action policy
Q2) The approach that pays employees higher wages than what competitors pay their employees in similar roles is called the _____.
A)premium-wage approach
B)free-rider effect
C)lead-indicator approach
D)lead-the-market approach
E)first-mover advantage
Q3) Discuss the employment-at-will policies and due process policies.
Q4) When applicants' reactions to recruiters are examined, age and gender are the two traits that stand out the most.
A)True
B)False
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Chapter 6: Selection and Placement
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100 Flashcards
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Sample Questions
Q1) Which of the following concepts is used to describe people who are especially effective in fluid and socially intensive contexts?
A)Crystallized intelligence
B)Fluid intelligence
C)Emotional intelligence
D)Dispositional affect
E)Intelligence quotient
Q2) Which of the following validation strategies is most likely to be adversely affected by the restriction of range problem that results due to current employees being homogeneous?
A)Predictive validation
B)Concurrent validation
C)Content validation
D)Secondary validation
E)External validation
Q3) Content validity is achieved primarily through a process of expert judgment.
A)True
B)False
Q4) Explain situational interview. What are the two varieties of situational judgment items?
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Chapter 7: Training
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100 Flashcards
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Sample Questions
Q1) Which of the following statements is true of continuous learning?
A)It is an informal learning approach initiated by employees.
B)It is an organizational effort that relies solely on formal training.
C)It is a system that expects employees to understand the entire work process.
D)It is a system that requires employees to have only task-specific knowledge.
E)It expects employees to acquire knowledge on their own and not share with others.
Q2) Adventure learning focuses on developing creativity through the use of simulations and video games.
A)True
B)False
Q3) A firm focuses on organizational and person analysis during the _____ stage in the training design process.
A)needs assessment
B)employees' readiness assessment
C)learning environment development
D)transfer of training
E)selecting training methods
Q4) List any five characteristics of an effective onboarding program.
Q5) Discuss behavioral modeling as a training method.
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Chapter 8: Performance Management
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) A measure that results in drastically different ratings over time lacks _____ reliability.
A)internal consistency
B)interrater
C)parallel-forms
D)test-retest
E)inter-method
Q2) Alternation ranking requires managers to rank employees within their departments from highest performer to poorest performer.
A)True
B)False
Q3) A performance management system should link employee activities with an organization's goals.
A)True
B)False
Q4) Discuss the differences between the attribute and behavioral approaches to performance measurement related to the criteria of (a)strategic congruence, (b)validity, and (c)reliability.
Q5) What is upward feedback?
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Chapter 9: Employee Development
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100 Flashcards
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Sample Questions
Q1) Selena uses the Myers-Briggs Type Inventory to assess her personality type. If she scores highest in introversion, intuition, thinking, and perceiving, her personality type would be _____.
A)IIPT
B)INTP
C)NIFP
D)NTJP
E)FNJP
Q2) Which of the following statements is true of psychological success?
A)Psychological success limits achievement to work-related goals.
B)Psychological success is determined primarily by the signals a company gives to its employees.
C)Promotion and salary increase are prime factors that determine psychological success.
D)Psychological success is the greater focus of those pursuing protean careers.
E)Factors such as family and good health are not a part of psychological success.
Q3) Discuss the Myers-Briggs Type Indicator.
Q4) List five characteristics of a successful formal mentoring program.
Q5) Compare and contrast training and development.
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Chapter 10: Employee Separation and Retention
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101 Verified Questions
101 Flashcards
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Sample Questions
Q1) Which of the following best describes job withdrawal?
A)It refers to employers discharging employees from jobs that are to be outsourced.
B)It is a set of behaviors that dissatisfied individuals enact to avoid the work situation.
C)It refers to retracting a job offer after initial confirmation.
D)It refers to voluntary turnover initiated by employees an organization would like to retain.
E)It involves a set of actions showcased by the company to discourage its employees from working.
Q2) When it comes to complex jobs, the fact that the worst and best performers tend to leave more frequently than those at the average suggests a _____ relationship between past performance and future turnover.
A)horizontal
B)nonlinear
C)diagonal
D)circular
E)curvilinear
Q3) Define the employment-at-will doctrine and a wrongful discharge suit.
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Chapter 11: Pay Structure Decisions
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100 Flashcards
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Sample Questions
Q1) When you move an employee higher in the pay structure to compensate for higher living costs, it becomes easier to adjust the salary downward when the employee moves to a low-cost area.
A)True
B)False
Q2) During the recent financial crisis, the U.S. government, as part of the _____, decided it was appropriate to further regulate executive pay in firms receiving government "bailout" money.
A)NCUA Corporate Stabilization Program
B)Troubled Asset Relief Program (TARP)
C)Public-Private Investment Program
D)Lilly Ledbetter Fair Pay Act
E)Emergency Economic Stabilization Act
Q3) Organizations use benchmarking primarily to compete:
A)for talent.
B)for market share.
C)on costs.
D)on product differentiation.
E)for consumer loyalty.
Q4) Differentiate between pay level and job structure with an example.
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Chapter 12: Recognizing Employee Contributions With Pay
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100 Flashcards
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Sample Questions
Q1) Performing interesting work is an example of an extrinsic reward.
A)True
B)False
Q2) When an organization is using concentration strategy, it will _____.
A)have short-run pay levels below the market
B)have a long-term orientation
C)make centralized pay decisions
D)maintain high variable pay levels
E)have benefit levels below the market
Q3) Perceptions of inequity may cause employees to take actions that may not help the organization.
A)True
B)False
Q4) One solution to profit-sharing during a downturn is to design plans that have upside but not downside risk.
A)True
B)False
Q5) What are some of the potential consequences of employee involvement in compensation decision making?
Page 14
Q6) What are individual incentives? How are they different from merit pay?
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Chapter 13: Employee Benefits
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Sample Questions
Q1) _____ increases are provided as part of social security benefits for each year that the consumer price index increases.
A)Unemployment benefits
B)Cost-of-living
C)Disability benefits
D)Tuition
E)Retirement plan
Q2) Which of the following media is most widely used by organizations to communicate benefit plans?
A)Enrollment materials (online or paper)
B)Group employee benefits communications with your vendor
C)Social media
D)Newsletters (online or paper)
E)Direct mail to home/residence
Q3) Fitness facility programs have two central goals: raising awareness levels of health-related issues and informing people on health-related topics.
A)True
B)False
Q4) Discuss the Financial Accounting Statement (FAS)106 rule.
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Chapter 14: Collective Bargaining and Labor Relations
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Sample Questions
Q1) Which of the following is true of the functions performed by the National Labor Relations Board (NLRB)?
A)Its functions are guided by a specific jurisdictional standard that is constant across industries.
B)Its functions do not include conducting and certifying representation elections.
C)It enforces the National Labor Relations Act that is based on the commerce clause of the U.S. Constitution.
D)In practice, its functions are limited to purely local firms that fall within its jurisdiction. E)It not only responds to requests for actions but also initiates actions.
Q2) In collective bargaining, an important element of power is the relative ability of each party to withstand a strike.
A)True
B)False
Q3) According to John Dunlop, an effective industrial relations system eliminates conflict.
A)True
B)False
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Chapter 15: Managing Human Resources Globally
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Sample Questions
Q1) In _____ systems, there is less opportunity to develop human capital without higher costs.
A)socialist
B)capitalist
C)communist
D)feminine
E)collectivist
Q2) Plutus Inc. has its headquarters in the U.S. and has a facility in Germany. A virtual team operates from around the globe with most members from China. China is a _____ country for Plutus.
A)home
B)domestic
C)parent
D)third
E)host
Q3) What led to the formation of the European Economic Community (EEC)? Describe how the EEC has affected the global economy.
Q4) A host country is a country in which an organization's headquarters is located.
A)True
B)False
Page 17
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Chapter 16: Strategically Managing the HRM Function
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Sample Questions
Q1) In strategically designed HR structures, centers for expertise ensure that transactional activities are delivered throughout the organization.
A)True
B)False
Q2) _____ systems provide employees with an equitable return for their investment of skills and effort.
A)Selection
B)Training and development
C)Performance management
D)Reward
E)Administrative
Q3) Which of the following is the initial step in the reengineering process?
A)Interpreting the process
B)Auditing the process
C)Implementing the process
D)Redesigning the process
E)Identifying the process
Q4) Discuss the steps involved in the reengineering process.
Q5) Identify the steps involved in the basic process of building an HR strategy.
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