Compensation and Benefits Exam
Materials
Course Introduction
This course provides a comprehensive overview of compensation and benefits strategies within organizations, focusing on the design, implementation, and evaluation of total rewards systems. Students will explore core concepts such as job evaluation, market pricing, pay structures, incentive programs, and the legal and ethical considerations governing employee compensation. The course also covers the development and administration of indirect compensation, including health and retirement benefits, paid time off, and other employee services. Through case studies and practical applications, students gain the skills to align compensation and benefits plans with organizational goals, motivate employee performance, and ensure competitiveness in the labor market.
Recommended Textbook
Human Resource Management 15th Edition by Gary Dessler
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Page 2
Chapter 1: Introduction to Human Resource Management
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Sample Questions
Q1) Which HR specialty involves preparing job descriptions?
A)compensation manager
B)EEO coordinator
C)job analyst
D)recruiter
Answer: C
Q2) Communicating is one of the five basic functions of the management process.
A)True
B)False
Answer: False
Q3) All of the following are the most common reasons that firms decide to globalize EXCEPT ________.
A)lower costs
B)supervising quality control methods
C)make employees more productive
D)to do things better
Answer: B
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Page 3
Chapter 2: Equal Opportunity and the Law
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Sample Questions
Q1) Shippers Express is accused of adverse impact on a protected group. Eighty percent of all male applicants are hired, but only 50% of female applicants are hired. Using the formula for disparate rejection rates, adverse impact cannot be shown.
A)True
B)False
Answer: False
Q2) Which of the following would LEAST likely foster diversity in the workplace?
A)changing the culture through diversity training education programs
B)appointing a small group of minorities to high-profile positions
C)recruiting minority members to the board of directors
D)using metrics to evaluate diversity programs
Answer: B
Q3) An employer that uses a screen-reading program to meet the needs of a blind employee is most likely ________.
A)making a reasonable accommodation
B)fulfilling job analysis requirements
C)identifying essential job functions
D)complying with Title VII rules
Answer: A
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Chapter 3: Human Resource Management Strategy and Analysis
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Sample Questions
Q1) Human resource strategies are the ________ used to support a firm's strategic goals.
A)visions and objectives
B)policies and practices
C)missions and goals
D)theories and tools
Answer: B
Q2) Human resource practices, such as hiring based on selection tests, pay raises based on work performance, and training provided to new and experienced employees, contribute to a company's ability to achieve high-performance levels.
A)True
B)False
Answer: True
Q3) Benchmarking indicates the extent to which a firm's HR practices are helping to accomplish long-term strategic goals.
A)True
B)False
Answer: False
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Chapter 4: Job Analysis and the Talent Management Process
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Sample Questions
Q1) Which of the following refers to the human requirements needed for a job, such as education, skills, and personality?
A)job specifications
B)job analysis
C)job placement
D)job descriptions
Q2) Which term refers to the holistic, integrated and results and goal-oriented process of planning, recruiting, selecting, developing, managing, and compensating employees?
A)job analysis
B)HR alignment
C)strategic planning
D)talent management
Q3) How does job analysis support human resource management activities? Briefly describe one of the methods commonly used for gathering job analysis data.
Q4) If a manager wants to know "should a job even exist," a workflow analysis should be performed.
A)True
B)False
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Chapter 5: Personnel Planning and Recruiting
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Sample Questions
Q1) A small software firm is seeking several permanent employees with experience in the semiconductor industry and advanced degrees in computer science. The firm is a small one and cannot afford to pay a traditional recruiting firm a fee of 30% per each hire's salary. Instead, this firm should consider using a(n)________.
A)contingency-based recruiter
B)temporary staffing agency
C)outsourcing staffing service
D)on-demand recruiting service
Q2) The assumption shared by both trend analysis and ratio analysis is that productivity remains about the same from year to year.
A)True
B)False
Q3) Dixon Industries wants to engage in predictive workforce monitoring. As the HR manager at Dixon, you should most likely ________.
A)continuously monitor workforce planning issues
B)primarily use recruiters for top executive jobs
C)frequently assess the online HR scorecard
D)regularly implement the Markov analysis
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Chapter 6: Employee Testing and Selection
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Sample Questions
Q1) Employers concerned about ethical and EEO violations may purchase employment tests that have been validated.
A)True
B)False
Q2) In order to be legally eligible to work in the United States, a person must be a U.S. citizen.
A)True
B)False
Q3) Industrial psychologists often emphasize the "big five" personality dimensions in personnel testing. List and explain the meaning of the big five dimensions. How do personality traits correlate with job performance?
Q4) Tests administered for hiring purposes should be both valid and reasonable if used by a firm that adheres to evidence-based human resources.
A)True
B)False
Q5) What is the difference between criterion validity and content validity? Which one is more difficult to demonstrate?
Q6) What is test validity? How are selection tests validated?
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Chapter 7: Interviewing Candidates
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Sample Questions
Q1) In a brief essay, discuss the three main types of questions that are frequently used in structured situational interviews. Explain the purpose of each question type and provide an example of each.
Q2) Consider the question: "Can you provide an example of a specific instance where you provided leadership in a difficult situation?" What type of question is this?
A)background question
B)behavioral question
C)situational question
D)job knowledge question
Q3) According to studies, which of the following has the most influence on the outcome of a job interview?
A)thank-you notes sent from the candidate to the interviewer
B)an interviewer's first impression of the candidate
C)favorable information about the candidate
D)a candidate's extroverted personality
Q4) All structured interviews specify acceptable answers for each question.
A)True
B)False
Q5) How do nonverbal behaviors and impression management affect an interview?
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Chapter 8: Training and Developing Employees
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Sample Questions
Q1) Attitude surveys, employee diaries, tests, and performance appraisals are tools for conducting a performance analysis.
A)True
B)False
Q2) ________ training is a method in which trainees learn on actual or simulated equipment but are trained away from the job.
A)Vestibule
B)Virtual-reality
C)Programmed
D)Job instruction
Q3) ________ are special software tools that support Internet training by helping employers identify training needs, and to schedule, deliver, assess, and manage the online training itself.
A)Learning management systems
B)Intelligent tutoring systems
C)Computer simulations
D)Learning portals
Q4) What is meant by the idea of organizational change? How does organizational development facilitate organizational change?
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Chapter 9: Performance Management and Appraisal
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Sample Questions
Q1) Which performance appraisal technique lists traits and a range of performance values for each trait?
A)behaviorally anchored rating scale
B)graphic rating scale
C)forced distribution
D)critical incident
Q2) The alternation ranking method of performance appraisals can be problematic and unfair if all employees have excellent job performance.
A)True
B)False
Q3) All of the following are considered best practices for administering fair performance appraisals EXCEPT ________.
A)explaining how subordinates can improve their performance
B)basing the appraisal on observable job behaviors
C)using subjective performance data for appraisals
D)training supervisors how to conduct appraisals
Q4) Top employees often outperform the average or poor employees by as much as 100%.
A)True
B)False
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Chapter 10: Employee Retention, Engagement, and Careers
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Sample Questions
Q1) With career-oriented appraisals, the supervisor and employee jointly merge the latter's past performance, career preferences, and developmental needs into a formal career plan.
A)True
B)False
Q2) The rate at which employees leave a firm is best known as ________.
A)downsizing
B)retirement
C)turnover
D)retention
Q3) ABC Consulting has a formal mentoring program in which senior-level managers are paired with less-experienced employees. Which of the following employees most likely needs a mentor?
A)Raj, who is uncertain how to navigate office politics
B)Jason, who does not perform tasks as quickly as required
C)Michele, who is experiencing personal problems at home
D)Haley, who is working and attending graduate school simultaneously
Q4) Coaching focuses on helping employees reach long term career goals.
A)True
B)False
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Chapter 11: Establishing Strategic Pay Plans
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Sample Questions
Q1) Which of the following is NOT one of the compensable factors emphasized in the Equal Pay Act?
A)skills
B)accountability
C)responsibility
D)working conditions
Q2) ________ means collapsing salary grades and ranges into just a few wide levels, each of which contains a relatively wide range of jobs and salary levels.
A)Comparable worth
B)Job evaluation
C)Broadbanding
D)Job grading
Q3) Job evaluations are used to determine the pay scale of all employees in an organization from hourly workers to the CEO.
A)True
B)False
Q4) What are the primary factors involved in determining compensation for a firm's CEO? What reasons best explain compensation reductions for top executives in recent years?
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Chapter 12: Pay for Performance and Financial Incentives
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Q1) In ________, employees agree to put some portion of their normal pay at risk if they don't meet their goals, in return for a much larger bonus if they exceed their goals.
A)earnings-at-risk pay plans
B)gainsharing
C)the Scanlon plan
D)team incentive plans
Q2) In a brief essay, discuss the difference between annual bonuses for employees and gainsharing plans.
Q3) Explain the advantages of employee stock ownership plans.
Q4) In which of the following do workers receive a basic hourly rate plus a premium equal to the percent by which their performance exceeds the standard?
A)variable pay
B)straight piecework
C)standard hour plan
D)standard piecework
Q5) Sometimes managers need to reinforce positive behavior but cannot turn to a cash incentive to do so. Identify some positive reinforcement rewards that a manager could use on a day-to-day basis to reward employees.
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Page 14
Chapter 13: Benefits and Services
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Sample Questions
Q1) The more flexible a work schedule, the greater the effectiveness of the program.
A)True
B)False
Q2) Which of the following is NOT an employer cost associated with granting leave to employees under the Family and Medical Leave Act?
A)paying temporary workers
B)recruiting replacement workers
C)paying employee for time not worked
D)compensating for lower productivity of new workers
Q3) Benefits are an important aspect of employee compensation, and they involve the direct financial payments employees receive for remaining with an employer.
A)True
B)False
Q4) A plan that contains a formula for determining retirement benefits is known as a ________.
A)defined contribution pension plan
B)defined benefit pension plan
C)cash balance plan
D)401(k)plan
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Chapter 14: Building Positive Employee Relations
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Sample Questions
Q1) Distributive justice refers to the manner in which managers conduct their interpersonal dealings with employees.
A)True
B)False
Q2) Joel is a manager who is doing an activity that involves establishing and maintaining the positive employee-employer relationships that contribute to satisfactory productivity and a cohesive work environment. This is defined as:
A)employee relations
B)organizational justice
C)public policy
D)ethics
Q3) Managing employee relations is usually assigned to HR.
A)True
B)False
Q4) What are the main characteristics of workplace bullying? How can employers and their HR departments reduce bullying incidents in the workplace?
Q5) What is the "Bad Apples, Bad Cases, and Bad Barrels" way of looking at ethics in organizations? Describe each category.
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Page 16
Chapter 15: Labor Relations and Collective Bargaining
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Sample Questions
Q1) Ignoring bargaining items is a good strategy for negotiating with labor unions while staying within the limits of good faith bargaining.
A)True
B)False
Q2) A wildcat strike is an unauthorized strike that occurs during the term of a contract.
A)True
B)False
Q3) The Landrum-Griffin Act of 1932 encouraged union activity by guaranteeing each employee the right to bargain collectively without interference, restraint, or coercion.
A)True
B)False
Q4) Which of the following is most likely a false statement about union membership?
A)Union members work in both blue-collar and white-collar industries.
B)Insurance plan benefits are better for union workers than for nonunion workers.
C)Union workers receive more holidays and unpaid leave than nonunion workers do.
D)Employers prefer nonunion workers, so they pay them higher wages than union members.
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Chapter 16: Safety, Health, and Risk Management
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Sample Questions
Q1) Which government agency enforces the standards set out in the Occupational Safety and Health Act?
A)Department of Health and Human Services
B)Department of Agriculture
C)Department of Commerce
D)Department of Labor
Q2) According to research, which of the following is an increasing cause of motor vehicle crashes that contribute to 24% of motor vehicle crashes per year?
A)alcohol abuse
B)hazardous roads
C)cell phone usage
D)improper driver training
Q3) Safety awareness programs involve trained supervisors orienting new workers regarding common safety hazards and simple prevention methods in the workplace.
A)True
B)False
Q4) Discuss what a job hazard analysis is and how it can be conducted.
Q5) What is OSHA and how does it help protect workers?
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Chapter 17: Managing Global Human Resources
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Sample Questions
Q1) All of the following characterize European labor relations EXCEPT ________.
A)limited number of bargaining units
B)informal recognition of labor unions
C)bargaining through employer associations
D)industry-wide collective bargaining
Q2) U.S. employers have most likely experienced an increase in successful expatriate assignments in the last two decades because they have ________.
A)focused on job performance as the main selection criteria
B)increased the number of selection criteria for global assignees
C)provided global assignees with local managers to serve as mentors
D)allowed HR managers to have more control of the global hiring process
Q3) Which of the following terms refers to citizens of a country other than the parent or the host country?
A)third-country national
B)home-country national
C)multi-national
D)local
Q4) Explain what a virtual team is. What are some challenges virtual teams face and how can they be dealt with?
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Chapter 18: Managing Human Resources in Small and Entrepreneurial Firms
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Q1) All of the following are reasons that firms install human resource information systems EXCEPT ________.
A)worker performance monitoring
B)online self-processing
C)transaction processing
D)system integration
Q2) Kate is applying for a job at Logan Electronics, a small firm. Kate has been asked to take the Wonderlic Personnel Test. What is Logan Electronics most likely trying to measure?
A)honesty and ethics
B)psychological status
C)general mental ability
D)personality traits
Q3) An integrated human resource information system (HRIS)is interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization of an organization's human resource management activities.
A)True
B)False
Page 20
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