Compensation and Benefits Management
Textbook Exam Questions
Course Introduction
Compensation and Benefits Management explores the principles, practices, and strategies involved in designing and administering employee compensation and benefits programs within organizations. This course covers topics such as job evaluation, pay structures, incentive systems, government regulations, and the strategic role of compensation in attracting, motivating, and retaining talent. Students will also examine benefits administration, including health care, retirement plans, and work-life programs, as well as current trends and emerging issues affecting compensation and benefits management in a global context.
Recommended Textbook
Managing Human Resources 17th Edition by
Scott Snell
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16 Chapters
1993 Verified Questions
1993 Flashcards
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Page 2
Chapter 1: The Challenge of Human Resources Management
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Sample Questions
Q1) What are the seven competitive challenges facing human resources management departments?
Answer: Students should expand upon the following:
1.Responding strategically to changes in the marketplace;
2.Competing,recruiting and,staffing globally;
3.Setting and achieving corporate social responsibility and sustainability goals;
4.Advancing HRM with technology;
5.Containing costs while retaining top talent and maximizing productivity;
6.Responding to the demographic and diversity challenges of a workforce;
7.Adapting to educational and cultural shifts affecting a workforce.
Q2) Human capital is _____ and _____ be managed the way organizations manage jobs,products,and technologies.
A)tangible; cannot
B)tangible; can
C)intangible; cannot
D)intangible; can
Answer: C
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Chapter 2: Strategy and Human Resources Planning
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Sample Questions
Q1) The mission of a company:
A)is used for the systematic monitoring of its external opportunities.
B)is the basic purpose of the company.
C)is the strong enduring belief used by the company to make decisions.
D)provides a perspective on where the company is headed.
Answer: B
Q2) The Balanced Scorecard is a tool for mapping a firm's strategy in order to ensure strategic alignment.
A)True
B)False Answer: True
Q3) In international joint ventures,the issue of culture is paramount.
A)True
B)False Answer: True
Q4) Core values are the essence of corporate cultures and an expression of their personality.
A)True
B)False Answer: True
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Chapter 3: Equal Employment Opportunity and Human Resources Management
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Sample Questions
Q1) An important step in avoiding discriminatory practices during selection is to:
A)base selection decisions solely on interviews.
B)use multiple interviewers for each applicant.
C)use validation studies to demonstrate the job-relatedness of a selection instrument.
D)require all applicants to complete an application form.
Answer: C
Q2) Title VII of the Civil Rights Act prohibits discrimination on the basis of race,color,religion,sex,or age.
A)True
B)False
Answer: True
Q3) Age discrimination does NOT exist when:
A)employers make off-hand remarks about older individuals.
B)advanced age affects organizational efficiency.
C)older workers are pressured to take early retirement.
D)older workers are terminated during downsizing.
Answer: B
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Page 5
Chapter 4: Job Analysis and Job Design
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Sample Questions
Q1) Under which method of analyzing jobs would you videotape jobs for later study?
A)Interviews
B)Questionnaires
C)Observation
D)Diaries
Q2) Inflating a job's responsibilities can occur unintentionally.
A)True
B)False
Q3) Complete training for teams should cover each of the following skills,EXCEPT:
A)leadership.
B)goal setting.
C)conflict resolution.
D)etiquette.
Q4) The Fair Labor Standards Act requires the payment of overtime to regular workers who work more than eight hours in a day.
A)True
B)False
Q5) Telecommuting is effective in retaining valued employees.
A)True
B)False
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Chapter 5: Expanding the Talent Pool: Recruitment and Careers
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Sample Questions
Q1) Trade schools can be a good source of applicants even for high level positions within organizations.
A)True
B)False
Q2) According to the Attraction-Selection-Attrition (ASA)model,which of the following is NOT a reason for organizational inbreeding to occur?
A)Attraction
B)Appraisal
C)Selection
D)Attrition
Q3) Organizations prefer to hire older workers because:
A)they have proven employment experience.
B)they learn faster.
C)they are more willing to relocate.
D)they do not require medical benefits.
Q4) Unlike temporary help agencies,employee-leasing companies:
A)place employees with subscribers on a permanent basis.
B)require subscribers to pay for benefits.
C)prevent subscribers from laying off employees.
D)allow subscribers to lower their employee requirements.
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Chapter 6: Employee Selection
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Sample Questions
Q1) Data obtained from nondirective interviews are difficult to validate.
A)True
B)False
Q2) If two or more methods yield consistent results,the selection procedure can be described as:
A)having predictive validity.
B)being reliable.
C)being redundant.
D)having content validity.
Q3) Measures of general intelligence,such as IQ tests,are not generally regarded as good predictors of job performance across a variety of jobs.
A)True
B)False
Q4) With a compensatory model,a low score on one selection test may not eliminate a candidate if he or she gets a high score on another test.
A)True
B)False
Q5) Define the concepts of reliability and validity.
Q6) Briefly explain the different types of employment tests.
Page 8
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Chapter 7: Training and Development
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) On-the-job training is often one of the most poorly implemented training methods.
A)True
B)False
Q2) E-learning provide all the following benefits EXCEPT:
A)bringing the training to employees.
B)replacing conventional learning experiences.
C)facilitating just-in-time skill development.
D)being more cost effective.
Q3) From the broadest perspective,the goal of training is to contribute to:
A)social improvement.
B)personal growth.
C)organizational goals.
D)departmental challenges.
Q4) Identify and discuss some of the desirable traits of a trainer.
Q5) If one were using the on-the-job training method of training,the first step would be to present the operations and knowledge to the learner.
A)True
B)False
Q6) Explain the PROPER method of on-the-job training.
Page 9
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Chapter 8: Performance Management and the Employee
Appraisal Process
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137 Verified Questions
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Sample Questions
Q1) Measurable and quantifiable performance objectives are requirements for a successful MBO program.
A)True
B)False
Q2) An inappropriate interview technique in which praise serves to cushion criticism by alternating positive statements with negative statements is known as:
A)the sandwich technique.
B)the cushioning technique.
C)the rollercoaster technique.
D)sympathetic interviewing.
Q3) Which of the following is a performance appraisal approach designed to measure how frequently employees exhibit certain behaviors?
A)Management by objectives
B)Behaviorally anchored rating scale
C)Behavior observation scale
D)Trait scale
Q4) The effectiveness of the essay method is affected by the rater's writing skills.
A)True
B)False
10
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Chapter 9: Managing Compensation
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Sample Questions
Q1) A formal statement of compensation policy would typically include the rate of pay within the organization and whether it is to be above,below,or at the prevailing market rate.
A)True
B)False
Q2) Clauses in labor agreements that provide for quarterly cost-of-living adjustments in wages,basing the adjustments on changes in the consumer price index are known as:
A)maintenance clauses.
B)escalator clauses.
C)roll-up clauses.
D)guarantee clauses.
Q3) The expectancy theory of motivation predicts that one's level of motivation depends on the attractiveness of the rewards sought by employees and the probability of obtaining those rewards.
A)True
B)False
Q4) Briefly discuss the motivating value of pay equity for employees.
Q5) What are some of the factors that can influence wage rates in a firm?
Q6) Discuss some of the common goals of a strategic compensation policy.
11
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Chapter 10: Pay-For-Performance: Incentive Rewards
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Sample Questions
Q1) _____ is a bonus incentive plan which uses employee and management committees to gain cost-reduction improvements.
A)Piecework
B)The Rucker Plan
C)The Scanlon Plan
D)Improshare
Q2) The most widely used sales incentive program is the _____ plan.
A)straight salary
B)straight commission
C)combined salary and commission
D)commission plus bonus
Q3) A bonus is an incentive payment that is supplemental to base wages.
A)True
B)False
Q4) ESOPs have been criticized because a pensioner can become dependent on the stock price.
A)True
B)False
Q5) What are the pros and cons of high executive pay?
Q6) Briefly discuss three individual incentive plans.
Page 12
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Chapter 11: Employee Benefits
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139 Flashcards
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Sample Questions
Q1) Vesting guarantees:
A)withdrawal of benefits at any time.
B)automatic funding of pension plans.
C)accrued pension benefits at retirement age.
D)selection of pension options.
Q2) In order to qualify for Social Security benefits,all individuals must be at least 65 years of age.
A)True
B)False
Q3) Severance pay is considered a supplemental unemployment benefit.
A)True
B)False
Q4) Mildly ill child care facilities provide:
A)tax benefits
B)medical supervision
C)a negative investment
D)telecommuting facilities for working parents with ill children
Q5) Compensation specialists often see flexible benefits plans as ideal.
A)True
B)False
Page 13
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Chapter 12: Promoting Safety and Health
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Sample Questions
Q1) In order to help employees with emotional problems managers should attempt to play amateur psychologist and try to diagnose an employee's condition.
A)True
B)False
Q2) The Occupational Safety and Health Administration (OSHA)Hazard Communication standard is the most frequently cited OSHA standard for general industry.
A)True B)False
Q3) Inadequate recognition can be a major stressor.
A)True
B)False
Q4) According to a National Highway Traffic Safety Administration study,people who send text messages while driving are _____ times more likely to crash than other drivers.
A)twenty-three
B)thirty-five
C)five
D)ten
Q5) Discuss the four major factors that impact employee stress.
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Chapter 13: Employee Rights and Discipline
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Sample Questions
Q1) One authority has described _____ as a private discussion assisted by an impartial third party.
A)mediation
B)arbitration
C)a peer-review system
D)a step-review system
Q2) Positive discipline is based on a mutual problem-solving approach,but resolutions are still mandated by management.
A)True
B)False
Q3) The ____ applies to federal agencies and to organizations supplying goods or services to the federal government; gives individuals the right to examine references regarding employment decisions.
A)Electronic Communications Privacy Act
B)Fair Credit Reporting Act
C)Privacy Act
D)Education Rights and Privacy Act
Q4) What is progressive discipline? How does it differ from positive discipline?
Q5) Why are whistle-blowing cases troublesome for all concerned?
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Chapter 14: The Dynamics of Labor Relations
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Sample Questions
Q1) To reenergize the labor movement,some union funds are given to political candidates who specifically pledge support for prolabor legislation.
A)True
B)False
Q2) An employer's bargaining power may rest on its ability to continue its operations despite a strike by its workers.
A)True B)False
Q3) In 2012,union membership was approximately _____ of employed wage and salary workers.
A)6.9 percent
B)11.3 percent
C)15.4 percent
D)17.2 percent
Q4) The Landrum-Griffin Act was passed in 1959 in an effort by Congress to safeguard Union member rights and prevent racketeering and other similar practices by employers and union officers.
A)True B)False
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Chapter 15: International Human Resources Management
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Sample Questions
Q1) Melanie Fitzpatrick is an American expatriate assigned to England.During a business meeting in London with important local customers,one customer tells her that he wants to "table" the discussion on price.He probably means that:
A)he wants to put off discussing price until later.
B)he wants to discuss other items before discussing the price.
C)he wants to discuss the price immediately.
D)he never wants to discuss price openly.
Q2) In some countries,night shifts are taboo.
A)True
B)False
Q3) U.S.companies have been conducting business on an international basis longer than anyone else.
A)True B)False
Q4) Discuss the five essential elements of training and development programs and how they prepare employees for working internationally.
Q5) The host country is the country in which an international business operates. A)True
B)False
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Chapter 16: Creating High-Performance Work Systems
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Sample Questions
Q1) Employees who are given timely information about business plans,performance,and strategies are more likely to make good suggestions for improving businesses.
A)True
B)False
Q2) A process audit is used to determine whether a high-performance work system has been implemented as designed.
A)True
B)False
Q3) Redesigning workflow around key business processes results in a focus on employee tasks and tends to detract from teamwork.
A)True
B)False
Q4) Achieving horizontal fit means testing to make certain that all of the HR practices,work designs,management processes,and technologies complement one another.
A)True
B)False
Q5) What are the critical issues involved in implementing a high-performance work system?
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