Compensation and Benefits Practice Exam
Course Introduction
This course explores the fundamental concepts, principles, and practices involved in developing and administering compensation and benefits programs within organizations. Students learn how to design salary structures, incentive programs, and employee benefits packages that align with organizational strategy, legal requirements, and market competitiveness. The course covers job evaluation, internal and external equity, pay-for-performance systems, and the impact of compensation and benefits on employee motivation, retention, and organizational effectiveness. Practical case studies and current trends in compensation management are also examined, equipping students with the skills to develop strategic and fair compensation solutions.
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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Chapter 1: Human Resource Management in Organizations
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Josh, a human resource executive, works with AmPro Inc. Recently, he moved from a generalized role in the HR department to a senior role. Which of the following skills does Josh have to build to succeed in his new role?
A) Administrative capabilities
B) Operational knowledge
C) Ability to guide others during changes
D) Legal capabilities
Answer: C
Q2) Which of the following identifies a challenge faced by overseas locations when dealing with a merger?
A) Currency conversion
B) Succession planning
C) Adequate equipment
D) Manufacturing costs
Answer: B
Q3) About 50% of the U.S. workforce is female.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Human Resources Strategy and Planning
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Sample Questions
Q1) Which of the following is best classified as a regiocentric policy of strategic approaches to international staffing?
A) Managers from headquarters staff key positions.
B) Host-country nationals staff key positions.
C) An international cadre of skilled managers are assigned to global subsidiaries regardless of nationality.
D) Key positions are filled by individuals from the same geographic area as the subsidiary.
Answer: D
Q2) Assigning an international cadre of skilled managers to global subsidiaries regardless of their nationality is known as the polycentric policy of global staffing strategies.
A)True
B)False
Answer: False
Q3) Organizational strategy is independent of Human Resource management.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Equal Employment Opportunity
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Sample Questions
Q1) Explain protected characteristics.
Answer: Protected characteristics is an attribute about an individual that is protected under EEO laws and regulations. Some examples are age, color, disability, nationality, gender, and religion.
Q2) Title VII of the Civil Rights Act states that it is illegal for an employer to fail or refuse to hire or discharge any individual because of such individual's national origin.
A)True
B)False
Answer: True
Q3) The Immigration Reform and Control Act (IRCA) requires employers to verify the employment status of all employees, while not discriminating because of national origin or ethnic background.
A)True
B)False
Answer: True
Q4) Define bona fide occupational qualification.
Answer: A bona fide occupational qualification provides a legitimate reason why an employer can exclude persons on otherwise illegal bases of consideration.
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Page 5
Chapter 4: Workforce, Jobs, and Job Analysis
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Sample Questions
Q1) _____ list the knowledge, skills, and abilities (KSAs) an individual needs to perform a job satisfactorily.
A) Job analyses
B) Job descriptions
C) Job specifications
D) Job reviews
Q2) A _____ identifies the tasks, duties, and responsibilities of a job.
A) job analysis
B) job description
C) job specification
D) job review
Q3) Which of the following is true of the labor force participation rate?
A) It is the percentage of the population working or seeking work.
B) It is the percentage of the population that is eligible to work legally.
C) It is the percentage of the population that is constantly changing jobs.
D) It is the percentage of the population with graduate degrees.
Q4) Job enrichment involves broadening the scope of a job by expanding the number of different tasks to be performed.
A)True
B)False
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Chapter 5: Individual/Organization Relations and Retention
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Sample Questions
Q1) According to Maslow's need theory, which of the following needs will a person strive to fulfill first?
A) Physiological needs
B) Safety and security needs
C) Actualization needs
D) Belonging and love needs
Q2) What are the three major factors that affect individual performance in organizations?
Q3) Alice, an efficient waitress at a moderately-priced family restaurant, consistently gets the lowest tips from customers. She announces that she is quitting to take another job at a newly-opened casino. This best exemplifies a(n) _____ turnover.
A) functional
B) controllable
C) involuntary
D) positive
Q4) It is common for turnover to be high among newer employees during their first year.
A)True
B)False
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Chapter 6: Recruiting and Labor Markets
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Sample Questions
Q1) John's Medical is recruiting for the post of an oncology nurse practitioner. It would be most effective for John's Medical to advertise_____.
A) on a microblogging site like Twitter
B) online recruitment videos on a general job board such as Monster.com or CareerTV
C) on the Web site of the oncology nurse practitioner professional organization
D) on a social networking site such as Facebook
Q2) Which of the following statements is true about employees of employee leasing companies?
A) They have employment contracts and are not at-will employees.
B) They increase the costs on benefits and HR administration on the part of the employer.
C) They are supplied by contract to employers with jobs.
D) They can be regarded as self-employed for IRS purposes.
Q3) Recruiting should be viewed as a type of organizational marketing and should be consistent with an organization's overall presentation of its image.
A)True
B)False
Q4) What is involved in strategic recruiting?
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Page 8
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 statements is true about medical examinations and inquiries?
A) A company may require applicants to take a drug test even before a conditional job offer has been made.
B) A preemployment health checklist can be required of applicants before a job offer is made, but physical medical exams cannot be requested until a job has been conditionally offered.
C) A drug test is considered a medical exam and cannot be administered unless a conditional job offer has been made.
D) Companies may ask questions about an applicant's current medical condition but not about past medical problems, even after a conditional job offer has been made.
Q2) John has a minor hand tremor which affects his ability to write legibly. This hand tremor would most likely lower John's score on the MacQuarie Test for Mechanical Ability and disqualify him for jobs requiring fine manual dexterity.
A)True
B)False
Q3) Identify the sources of background information for job applicants.
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Chapter 8: Training Human Resources
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Sample Questions
Q1) Cole, the director of training for a manufacturer of heavy equipments, is designing a training program for new sales representatives. The sales representatives need to be able to memorize and recall the exact details from the company catalog regarding types of equipment, their functions, their appropriate and inappropriate uses, pricing, and financing packages. Cole's training program would be most effective if it used_____.
A) active training
B) overlearning
C) behavioral modeling
D) passive listening
Q2) On-the-job training is by far the most commonly used form of training, because it can be smoothly integrated into the regular work flow.
A)True
B)False
Q3) Unions view cross training unfavorably primarily because_____.
A) it threatens job jurisdiction
B) it adds supervisory roles to part-time employees' duties
C) it reduces effective wages per hour
D) it increases worker productivity, and thus threatens job security
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Page 10
Chapter 9: Talent, Careers, and Development
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Sample Questions
Q1) A plateaued employee who is capable of meeting performance expectations is a good candidate for a lateral move.
A)True
B)False
Q2) 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.
Q3) What should the end result of succession planning be?
Q4) Careers are not predictably linear but cyclical.
A)True
B)False
Q5) What does presupervisor training mean?
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Chapter 10: Performance Management and Appraisal
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Sample Questions
Q1) Describe the appraisal interview.
Q2) Employee attitude is classified as trait-based information. A)True
B)False
Q3) Which of the following statements is true of developing a performance-focused culture throughout the organization?
A) Firms with performance-focused cultures have more positive performance than those with a maintenance-orientation culture.
B) In firms with a performance-focused culture, performance appraisal activities are seen as having few ties to performance and are primarily regarded as a "bureaucratic exercise."
C) Firms with performance-focused cultures do not usually provide training to managers and employees.
D) In firms with a performance-focused culture, adequate performance and stability dominate the firm.
Q4) Describe the features required in an effective performance management system.
Q5) Describe performance-focused organizational cultures.
Q6) Describe subjective and objective measures of performance appraisals.
Q7) Describe graphic rating scale.
Page 12
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Chapter 11: Total Rewards and Compensation
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Sample Questions
Q1) A pay adjustment matrix considers two factors:the employee's level of performance as rated in an appraisal and the employee's position in the pay range, which is often related to experience and tenure.
A)True
B)False
Q2) Which of the following is typically the immediate next step after job analysis in the compensation administration process?
A) Compensation philosophy
B) Job evaluation
C) Internal focus
D) External focus
Q3) A _____ is a report based on research of compensation rates for workers performing similar jobs in other organizations.
A) pay survey
B) pay analysis
C) pay scale
D) pay grade
Q4) Define offshoring.
Q5) Describe performance-based pay increases.
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Chapter 12: Variable Pay and Executive Compensation
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Sample Questions
Q1) A corporation gives a golden parachutes to encourage anexecutive to stay with the company.
A)True
B)False
Q2) In a straight piece-rate system, wages are determined by_____.
A) dividing the number of units produced by the piece rate for one unit
B) multiplying the number of units produced by the piece rate for one unit
C) adding the piece rate for one unit by the number of units produced
D) dividing the piece rate for one unit by the number of units produced
Q3) Under a straight piece-rate system, wages are determined by dividing the number of units produced by the piece rate for one unit.
A)True
B)False
Q4) Describe the two primary ways of distributing work unit/team incentives.
Q5) 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
Q6) Describe the different types of sales compensation plans.
Page 14
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Chapter 13: Managing Employee Benefits
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Sample Questions
Q1) A flexible benefits plan typically_____.
A) allows employees to contribute a percentage of their basic pay to buy benefits in addition to the employer's basic package
B) continuously updates the benefit options provided by an employer according to the demands and requirements of employees
C) provides flexibility in choosing the time of the year when employees would like to make use of the benefits provided to them
D) allows employees to select the benefits they prefer from options established by the employer
Q2) A vendor that provides administrative services to an organization is referred to as _____.
A) part-time employee.
B) whistle-blower.
C) mediator.
D) third-party administrator
Q3) What are the family oriented benefits offered by employers? Which of these are mandated by the federal government?
Q4) Discuss the financial benefits that companies commonly offer their employees.
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Chapter 14: Risk Management and Worker Protection
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Sample Questions
Q1) A security audit typically begins with_____.
A) a discussion with selected employees in an organization
B) a background check of all the security personnel of a company
C) a review of the disaster plans of a company
D) a survey of the area around a company
Q2) Ergonomics can provide economic value for employers by reducing injuries.
A)True
B)False
Q3) What are the four categories of recordable injury defined byOSHA?
Q4) 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
Q5) Which of the following statements is true of the Americans with Disabilities Act?
A) Those addicted to legal prescription drugs are not considered disabled.
B) Recovering substance abusers are considered disabled.
C) Illegal drug users are considered disabled.
D) Addiction to alcohol is not considered a disability.
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Chapter 15: Employee Rights and Responsibilities
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Q1) In the United States, the right of protection from unreasonable search and seizure_____.
A) protects an individual only against searches and seizure by agents of the government B) has been eliminated by the USA Patriot Act
C) protects all employees from unreasonable searches and seizures by employers in the workplace
D) protects only those individuals employed in the private sector
Q2) After a personality conflict with his manager, Will is asked by the manager to work for extra hours every day. Will is given the toughest assignments and is often ignored and even insulted during team meetings and discussions. Will considers quitting the job owing to the intolerable work conditions. Will's manager can be held responsible for
A) whistle-blowing
B) due process
C) constructive discharge
D) involuntary turnover
Q3) The employment-at-will doctrine overrides implied contracts.
A)True
B)False
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Page 17
Chapter 16: Union/Management Relations
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Sample Questions
Q1) A union steward is a full-time union official who operates the union office and assists union members.
A)True
B)False
Q2) During a contract negotiation, the negotiator for a union brings up the issue of changing the manner in which work is scheduled. Which of the following is true of this situation?
A) The management need not negotiate on this issue because it is a permissive issue.
B) The management needs to negotiate on this issue as it is a mandatory issue.
C) This is a non-negotiable issue because scheduling is part of the management's rights.
D) This is an illegal issue and the management may refuse to negotiate.
Q3) The practice whereby union or worker representatives are given positions on a company's board of directors is called_____.
A) collusion
B) cooperation
C) codetermination
D) tripartite negotiation
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