Compensation and Benefits Exam Practice Tests
Course Introduction
This course explores the principles and practices involved in designing and managing compensation and benefits programs within organizations. Students will examine the strategic role of compensation systems, including job evaluation, pay structures, incentives, and executive compensation. The course also addresses legal compliance, equity, and market competitiveness, as well as employee benefits such as health insurance, retirement plans, and wellness programs. Through case studies and practical applications, students will develop the analytical and decision-making skills needed to create compensation packages that attract, motivate, and retain talent while aligning with organizational objectives.
Recommended Textbook
Human Resource Management 15th Edition by
Robert L. Mathis
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16 Chapters
1604 Verified Questions
1604 Flashcards
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Page 2
Chapter 1: Human Resource Management in Organizations
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Organizational culture consists of the shared values and beliefs that give members of an organization meaning and provide them with rules for behavior.
A)True
B)False
Answer: True
Q2) Briefly describe a Millennial.
Answer: Millennials (also called Generation Y) are an emerging group of workers in organizations today, with their numbers expected to represent 75% of the workplace by the year 2025. These individuals value "flexibility" in work characteristics, "transparency" in decision making, and a culture of "community." Members of Generation Y are often negatively stereotyped as "entitled" and "wanting everything now," but Millennials are often energetic, committed, and industrious.
Q3) Global Professional in Human Resource (GPHR), a human resource certification, is sponsored by the American Society for Training and Development.
A)True
B)False
Answer: False
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3
Chapter 2: Human Resources Strategy and Planning
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100 Flashcards
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Sample Questions
Q1) Human economic value added = Net profit before taxes + Cost of capital / Full-time head count
A)True
B)False
Answer: False
Q2) Which of the following is true of the Consolidated Omnibus Budget Reconciliation Act?
A) Displaced workers can retain their group medical coverage for up to 18 months for themselves, and up to 36 months for their dependents, if they pay the premiums themselves.
B) Displaced workers can use the Medicare program sponsored by the government for up to 18 months after the termination of their employment.
C) Displaced workers can use the Medicare program sponsored by the federal government for up to 36 months after the termination of their employment.
D) Displaced workers can retain their group medical coverage for up to 12 months for themselves, and up to 24 months for their dependents, if they pay the premiums themselves.
Answer: A
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4
Chapter 3: Equal Employment Opportunity
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Sample Questions
Q1) Tea Leaves, Inc., Jason's employer, realized that he had valuable information that should be passed on to another associate before Jason's retirement. Tea Leaves offered himphased retirement, which means that his_____.
A) workload and pay level are increased
B) workload and pay level are reduced
C) workloadis reduced and pay level isincreased
D) workload is increased and pay level isreduced
Answer: B
Q2) The Family and Medical Leave Act (FMLA) of 1993 is applicable only to women.
A)True
B)False
Answer: False
Q3) The Rehabilitation Act was initially applicable to only federal contractors.
A)True
B)False
Answer: True
Q4) The Americans with Disabilities Act (ADA) covers all state government employees.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Workforce, Jobs, and Job Analysis
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100 Flashcards
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Sample Questions
Q1) _____ is the process of shifting a person from job to job.
A) Job rotation
B) Job retention
C) Job enlargement
D) Job enrichment
Q2) _____ refers to organizing tasks, duties, responsibilities, and other elements into a productive unit of work.
A) Job planning
B) Job analysis
C) Job design
D) Job redesign
Q3) Which of the following is typically the last part of the job description?
A) Essential job functions and duties
B) Job specifications
C) Identification
D) Disclaimers and approval
Q4) Job specifications list the knowledge, skills, and abilities (KSAs) an individual needs to perform a job satisfactorily.
A)True
B)False
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Chapter 5: Individual/Organization Relations and Retention
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Sample Questions
Q1) Employers can address job satisfaction by regularly surveying employees.
A)True
B)False
Q2) Hiring has little to do with retention.
A)True
B)False
Q3) According to Maslow's need theory, motivation is a goal-directed drive, and it seldom occurs in a void.
A)True
B)False
Q4) A software firm plans to reduce the number of talented designers in its workforce who leave their jobs. In this case, the firm seeks to focus on _____ turnover among the designers.
A) uncontrollable
B) positive
C) functional
D) voluntary
Q5) Describe three methods used to control absenteeism in organizations.
Q6) Describe a few causes of voluntary turnover.
Q7) What areas are included in calculating detailed turnover costs?
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Chapter 6: Recruiting and Labor Markets
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Sample Questions
Q1) The _____ includes all individuals available for selection, if all possible recruitment strategies are used.
A) labor force population
B) external labor market
C) recruitment pool
D) applicant population
Q2) List the strategic components of effective recruiting.
Q3) Mention the factors that need to be considered when dealing with job posting systems.
Q4) An organization with a strong union has a higher probability of having less flexibility than a nonunion company in deciding who will be hired and where a newly hired person will be placed.
A)True
B)False
Q5) One advantage of leasing companies for employees is that_____.
A) employees canreceive betterbenefits than a small company can offer
B) employers can hire permanent employees
C) it reduces total payroll costs for the employers
D) it exempts employers following the OSHA regulations
Q6) What is involved in strategic recruiting?
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Chapter 7: Selecting Human Resources
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103 Verified Questions
103 Flashcards
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Sample Questions
Q1) Which of the following predictorsindicates that a new employee hired to create a training program can work well with subject matter experts, with a reputation for being difficult,to gather the information she needs to create training materials?
A) Experience
B) Intelligence
C) Education
D) Conscientiousness
Q2) What selection tests would be appropriate to use for entry-level professional positions? Which tests would clearly not be appropriate or even illegal?
Q3) EEO laws require employers to collect data on race, sex, and other demographics about their applicants but, legally, employers are not allowed to use this information in making hiring decisions except in very limited circumstances.
A)True
B)False
Q4) Describe the relationship among job performance, selection criteria, and predictors in the employee selection process.
Q5) Why does inter-rater reliability become important during selection interviewing?
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Chapter 8: Training Human Resources
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Sample Questions
Q1) Soltura Products Inc. has a training program for customer service representatives that tests trainees on their knowledge of company products. Every time a trainee answers a question, he/she learns whether the answer is right or wrong. This is called_____.
A) behavior modeling
B) overlearning
C) immediate confirmation
D) active practice
Q2) In her evaluation sheet, Theresa, a trainer in a company, gets very high ratings in the areas of class enjoyability and trainee willingness to take the program again. This evaluation best exemplifies a _____ measure.
A) reaction-level
B) learning-level
C) behavior-level
D) results-level
Q3) Discuss how performance appraisals can be used to make individual analysis of training needs.
Q4) Why do organizations opt for external training?
Q5) Why does informal training occur?
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Chapter 9: Talent, Careers, and Development
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Sample Questions
Q1) Phased retirement is generally used as a means of allowing older employees to gradually leave an organization.
A)True
B)False
Q2) How does succession planning differ from replacement planning?
Q3) Which of the following is true of career plateaus?
A) Plateaued employees are poor candidates for training and development because they have reached the highest level for which they are suitable in their organizations.
B) Career plateaus are a sign that valuable resources are not being used appropriately.
C) Career plateaus are more likely to occur in a person's early career rather than in one's later career.
D) An employee who defines career success in terms of upward mobility would view a career plateau as a sign of failure.
Q4) Whatare "jobshifters" and what do they need from employers?
Q5) Describethe four general individual characteristics that form the career profile.
Q6) How does development differ from training?
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Chapter 10: Performance Management and Appraisal
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100 Flashcards
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Sample Questions
Q1) The _____ occurs when a low rating on one characteristic leads to an overall low rating.
A) halo effect
B) horns effect
C) similar-to-me error
D) contrast error
Q2) Describe supervisory rating of subordinates, employee rating of managers, team/peer rating, self-rating, and outsider rating.
Q3) Describe the administrative uses of performance appraisals.
Q4) Which of the following is typically the first stage in implementing a guided self-appraisal system using MBO?
A) Job review and agreement
B) Continuing performance discussions
C) Setting of objectives
D) Development of performance standards
Q5) Employee attitude is classified as trait-based information.
A)True
B)False
Q6) Discuss management by objectives.
Page 12
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Chapter 11: Total Rewards and Compensation
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Sample Questions
Q1) Which of the following is an indicator of external inequity?
A) Difficulty hiring new employees
B) Lack of fairness in how rewards are distributed among employees
C) Lower attrition levels
D) Reward system based on favoritism
Q2) The expectancy theory says that an employee's motivation is based on several linked concepts.
A)True
B)False
Q3) If a state's minimum wage is higher than the federal minimum wage, _____.
A) employers must pay whichever wage is higher
B) employers must pay whichever wage is lower
C) employers are free to choose between either of the two
D) employers must pay the difference as employee benefits
Q4) Define base pay.
Q5) The child labor provisions of the FLSA set the minimum age for employment with unlimited hours at 19 years.
A)True
B)False
Q6) Differentiate between exempt employees and nonexempt employees.
Page 13
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Chapter 12: Variable Pay and Executive Compensation
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Sample Questions
Q1) Which of the following is a disadvantage of the individual incentive system?
A) The net result is typically less than optimal for the competing individual.
B) Employees may primarily focus on what is best for them personally.
C) This system can be used only for providing monetary incentives.
D) This system does not include any form of bonus.
Q2) Which of the following is a metric of human resources in variable pay plans?
A) Revenue growth
B) Employee satisfaction
C) Customer satisfaction
D) Return on investment
Q3) What are employee stock ownership plans?
Q4) Describe the three categories of variable pay.
Q5) The focus of gainsharing is to _____.
A) decrease discretionary efforts
B) decrease pay variances
C) increase discretionary efforts
D) increase pay variances
Q6) Explain commissions.
Q7) Describe the primary objectives of profit sharing plans.
Q8) Explain profit sharing.
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Chapter 13: Managing Employee Benefits
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Sample Questions
Q1) What are the different conditions under which employers grant "leaves of absence" to their employees?
Q2) Union contracts have an impact on the number of paid holidays offered by organizations.
A)True
B)False
Q3) The Family and Medical Leave Act (FMLA) defines a _____ as one requiring in-patient, hospital, hospice, or residential medical care or continuing physician care.
A) medical leave event
B) serious health condition
C) life-threatening illness
D) qualifying event
Q4) Why do companies outsource benefits administration?
Q5) Which are the two important U.S. laws that govern issues related to the protection of the health of former workers?
Q6) What are the advantages of using paid paid-time-off (PTO) plans?
Q7) George, a travel agent, shares some of his unused vacation time with his colleague Sam. Is such an arrangement legal in the U.S.?
Page 15
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Chapter 14: Risk Management and Worker Protection
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Sample Questions
Q1) During disaster planning, organizational assessment includes the_____.
A) development of a disaster recovery plan
B) creation of backup databases for storing employee contact details
C) development of training modules in consultation with disaster experts
D) creation of simulations for employees and managers
Q2) What are the four categories of recordable injury defined byOSHA?
Q3) According to the Civil Rights Act and Pregnancy Discrimination Act, employers should not prevent people from working in hazardous jobs because of reproductive concerns.
A)True
B)False
Q4) Employers have a duty to protect their workers from workplace violence.
A)True
B)False
Q5) Which of the following is considered a safe job for workers under the age of 18 years?
A) Roofing operations
B) Cab driving
C) Newspaper delivery
D) Excavation operations
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Chapter 15: Employee Rights and Responsibilities
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Sample Questions
Q1) The greatest difficulty with the positive approach to discipline is that_____.
A) employees do not take the process seriously until they reach the final warning stage
B) it needs the managers to take an authoritative approach
C) managers have to be trained extensively to become effective counselors
D) it typically increases the rate of voluntary turnover
Q2) _____ typically incorporates a sequence of steps, each becoming more stringent, that are designed to change an employee's inappropriate behavior.
A) Progressive discipline
B) Self-discipline
C) Peer-review
D) Positive discipline
Q3) Discipline is a process of corrective action that enforces organizational rules.
A)True
B)False
Q4) Mere employee expectations about acceptable behavior and performance cannot legally be considered an implied contract.
A)True
B)False
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Chapter 16: Union/Management Relations
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Sample Questions
Q1) What are the advantages of a union grievance procedure?
Q2) The goal of each stage of thegrievance procedure is_____.
A) assigning responsibility for the grievance
B) documenting grievance cases for grievance procedures
C) engaging in grievance prevention efforts
D) resolving the issue
Q3) In the United States, why do laws prohibit police officers and firefighters from conducting strikes?
A) Strikes are unethical because police officers are equivalent to military officers.
B) Strikes by firefighters may endanger public health and safety.
C) Strikes are expensive and time-consuming to carry out.
D) Strikes are contradictory to the governing philosophies of public service.
Q4) The process by which union members vote to accept the terms of a negotiated labor agreement is called_____.
A) authorization
B) certification
C) acceptance
D) ratification
Q5) What are the advantages and disadvantages of employee ownership programs?
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