Compensation and Benefits Practice Exam
Course Introduction
This course provides an in-depth exploration of compensation and benefits as integral components of human resource management. Students will examine theories and practices behind designing equitable compensation structures, job evaluations, and pay-for-performance systems. The course also covers compliance with legal regulations, strategic benefit planning, and the impact of compensation and benefits on employee motivation, retention, and organizational effectiveness. Case studies and real-world examples are used to highlight contemporary challenges and trends, equipping students with the analytical and practical skills necessary to develop and manage effective total rewards programs.
Recommended Textbook
Human Resource Management 15th Edition by Gary Dessler
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18 Chapters
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Page 2
Chapter 1: Introduction to Human Resource Management
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Sample Questions
Q1) Strategic human resource management refers to ________.
A)formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve strategic aims
B)planning the balance of internal strengths and weaknesses with external opportunities and threats to maintain competitive advantage
C)emphasizing the knowledge, education, training, skills, and expertise of a firm's workers
D)extending a firm's sales, ownership, and manufacturing to new markets
Answer: A
Q2) All of the following are major areas in which an HR manager assists and advises line managers EXCEPT ________.
A)recruiting
B)hiring
C)strategic business planning
D)compensation
Answer: C
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Chapter 2: Equal Opportunity and the Law
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Sample Questions
Q1) Judy was up for a promotion at Simpson Consulting when her supervisor, Will, encouraged her to develop a sexual relationship with him. He suggested that her promotion would be a sure thing if they were involved. When Judy declined his advances, Will fired her. Which of the following would Judy most likely be able to prove in court if she decided to sue Simpson Consulting?
A)hostile environment created by supervisors
B)hostile environment created by co-workers
C)disparate treatment
D)quid pro quo
Answer: D
Q2) Which type of disability accounts for the greatest number of ADA claims?
A)drug-related
B)mental
C)vision
D)hearing
Answer: B
Q3) The first step of the EEOC enforcement process is to serve notice.
A)True
B)False
Answer: False
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Chapter 3: Human Resource Management Strategy and Analysis
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Sample Questions
Q1) A firm's functional strategies identify the broad activities that each ________ will do in order to help the business accomplish its strategic goals.
A)supplier
B)department
C)executive
D)employee
Answer: B
Q2) HR audits typically review a firm's recruiting, testing, and training methods to ensure compliance with government and organization regulations.
A)True
B)False
Answer: True
Q3) Human resource audits and benchmarking are two critical tools used by managers who implement an evidence-based approach to human resource management.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Job Analysis and the Talent Management Process
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Sample Questions
Q1) Questionnaires developed for the purpose of job analysis are always structured in the form of checklists so that the information can easily be entered into a database.
A)True
B)False
Q2) Quantitative approaches for collecting job analysis data are more appropriate than qualitative approaches when a manager seeks to compare jobs for pay purposes.
A)True
B)False
Q3) While performing the fifth step of a job analysis, it is essential to confirm the validity of collected data with the ________.
A)EEOC representative
B)HR manager
C)legal department
D)worker
Q4) What are the advantages and disadvantages of using interviews to collect job analysis data?
Q5) In a brief essay, compare and contrast job descriptions and job specifications.
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Chapter 5: Personnel Planning and Recruiting
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Sample Questions
Q1) Which of the following refers to company records showing present performance and promotability of inside candidates for a firm's top positions?
A)yield pyramids
B)trend analysis charts
C)succession planning tools
D)personnel replacement charts
Q2) Why is effective recruiting a challenge for many employers? What methods can employers use to effectively recruit a more diverse workforce?
Q3) Succession planning requires making forecasts of in three steps: ________, develop inside candidates, assess and choose those who will fill the key position.
A)identify key needs
B)job specifications
C)global trends
D)labor relations
Q4) What are the differences between the two types of executive recruiters? How do firms benefit from using executive recruiters?
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Chapter 6: Employee Testing and Selection
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Sample Questions
Q1) Mike Simmons recently applied for a position with Pfizer Pharmaceuticals. Which personality trait most likely has the strongest correlation to Mike's success as a pharmaceutical sales representative?
A)extroversion
B)agreeableness
C)conscientiousness
D)openness to experience
Q2) ________ is used as an estimate of reliability and involves administering a test with x number of items designed to assess a topic and then statistically analyzing the degree to which responses to the items vary together.
A)Retest estimate
B)Equivalent form estimate
C)Content validity estimate
D)Internal comparison estimate
Q3) What is the difference between criterion validity and content validity? Which one is more difficult to demonstrate?
Q4) Concurrent validation is the most dependable way to validate a selection test.
A)True
B)False
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Chapter 7: Interviewing Candidates
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Sample Questions
Q1) Which of the following interview formats will most likely result in the highest validity?
A)structured, situational
B)unstructured, situational
C)structured, behavioral
D)unstructured, behavioral
Q2) Which of the following statements is representative of what might be asked in a situational interview?
A)"Tell me about a time you showed leadership in a difficult situation."
B)"Suppose you were confronted with an angry customer who threatened to sue the company. What would you do?"
C)"Can you think of a time when you were especially proud of your management skills? Tell me about that."
D)"In this position, you are responsible for hiring and firing subordinates. Have you ever fired anyone before? Describe how you handled the situation."
Q3) In a brief essay, discuss the effect of modern communications technology on interviews.
Q4) 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) MTR Enterprises failed to provide adequate safety training to one of its employees. As a result, the employee harmed a customer. A court would most likely find MTR liable for
A)discrimination
B)negligent training
C)occupational fraud
D)hazardous training
Q2) Which of the following enables management trainees to work full-time analyzing and solving problems in other departments?
A)management games
B)action learning
C)role playing
D)job rotation
Q3) Which organizational development application involves methods like performance appraisals, reward systems, and diversity programs?
A)human process
B)strategic applications
C)technostructural
D)human resource management
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Page 10
Chapter 9: Performance Management and Appraisal
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Sample Questions
Q1) Which of the following terms refers to a performance appraisal based on surveys from peers, supervisors, subordinates, and customers?
A)360-degree feedback
B)team appraisals
C)upward feedback
D)rating committee
Q2) Which of the following is most likely NOT a role played by the HR department in the performance appraisal process?
A)conducting appraisals of employees
B)monitoring the appraisal system's effectiveness
C)providing performance appraisal training to supervisors
D)ensuring the appraisal system's compliance with EEO laws
Q3) When a supervisor must criticize a subordinate in an appraisal interview, it is most important for the supervisor to ________.
A)limit negative feedback to once every year
B)provide specific examples of critical incidents
C)acknowledge the supervisor's personal biases in the situation
D)hold the meeting with other people who can document the situation
Q4) What are the essential steps of the performance appraisal process?
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Chapter 10: Employee Retention, Engagement, and Careers
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Sample Questions
Q1) Tanya accused a male superior of sexual harassment. Later, Tanya was turned down for a promotion because the accused superior persuaded Tanya's current supervisor not to promote Tanya. This is most likely an example of ________.
A)demotion
B)retaliation
C)dissonance
D)defensive behavior
Q2) A(n)________ describes the criteria by which the firm awards promotions.
A)job posting policy
B)employee qualification databank
C)formal promotion policy
D)9-box plot
Q3) Which of the following is primarily the role of the manager in an employee's career development?
A)providing career information
B)seeking development opportunities
C)providing academic assistance programs
D)providing accurate performance feedback
Q4) What are the 4 major grounds for dismissal?
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Chapter 11: Establishing Strategic Pay Plans
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Sample Questions
Q1) Jason is an information systems technician in a town in North Carolina with a population of 100,000. He receives an annual salary of $35,000. He recently found out that a nearby town with a similar population pays people in the same position $40,000 annually. With which form of equity is Jason most concerned?
A)distributive
B)procedural
C)internal
D)external
Q2) 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
Q3) Which of the following gives employees the right to organize, bargain collectively, and engage in concerted activities for the purpose of collective bargaining?
A)Equal Pay Act
B)Civil Rights Act
C)Fair Labor Standards Act
D)National Labor Relations Act
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13
Chapter 12: Pay for Performance and Financial Incentives
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Sample Questions
Q1) Most firms link employees' pay to performance because financial incentives are extremely successful at motivating employees to perform above required standards.
A)True
B)False
Q2) According to Herzberg's Hygiene-Motivator theory, which of the following factors will most likely satisfy employees' higher-level needs?
A)base salary
B)achievement
C)incentive pay
D)co-worker relationships
Q3) The most common eligibility determinant for bonuses is:
A)salary grade
B)job title
C)officer status
D)base salary
Q4) Explain the advantages and disadvantages of using piecework as a pay plan.
Q5) Explain the advantages of employee stock ownership plans.
Q6) Describe what a Scanlon Plan is and its 5 major elements.
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Chapter 13: Benefits and Services
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Sample Questions
Q1) Who contributes funds for workers' compensation benefits?
A)state governments
B)federal government
C)insurance providers
D)employers
Q2) Which of the following occupations is commonly subjected to compressed workweeks?
A)engineer
B)attorney
C)teacher
D)pilot
Q3) To be eligible for leave under the Family and Medical Leave Act, an employee must have worked ________ hours during the past twelve consecutive months.
A)850
B)1000
C)1250
D)1600
Q4) What are vested funds? What is the difference between cliff vesting and graded vesting?
Q5) What are the three types of benefits provided by Social Security?
Page 15
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Chapter 14: Building Positive Employee Relations
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Sample Questions
Q1) Unfortunately, employers have no tools for measuring the ethics of an individual during the applicant screening process, so employers do not realize they have hired an unethical person until it is too late.
A)True
B)False
Q2) ________ means society's accepted standards of behavior and always involves basic questions of right and wrong.
A)Society assessment
B)Non-normative statement
C)Morality
D)Distributive assessment
Q3) A firm's code of ethics outlines its mission, vision, appraisal system, and hiring policies.
A)True
B)False
Q4) What is the Electronic Communications Privacy Act? What are its two primary exceptions?
Q5) What is organizational justice? How does it related to performance appraisal?
Q6) What can you do as an HR manager to ensure that you hire ethical employees?
Page 16
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Chapter 15: Labor Relations and Collective Bargaining
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Sample Questions
Q1) What is the first step in the union drive process?
A)obtaining authorization cards from employees
B)making initial contact with employees
C)holding an initial organization hearing
D)campaigning for employee votes
Q2) It is legal for union organizers to solicit employees for membership as long as the effort does not endanger the performance or safety of the employees.
A)True
B)False
Q3) The Taft-Hartley Act amended the National Labor Relations Act by prohibiting unfair union labor practices and specifying the rights of both employers and employees.
A)True
B)False
Q4) What third-party interventions are available to handle an impasse during collective bargaining? Discuss each type of intervention in a brief essay.
Q5) You are a supervisor at a large manufacturing firm. What should and shouldn't you do during organizing and preelection campaigns?
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17
Chapter 16: Safety, Health, and Risk Management
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Sample Questions
Q1) Which of the following accounts for one-third of all industrial accidents?
A)forklifts and wheelbarrows
B)woodworking machines
C)pulleys and flywheels
D)ladders and scaffolds
Q2) Many employers today are banning mandatory overtime due to the increased likelihood of a workplace accident caused by employee fatigue.
A)True
B)False
Q3) Which term refers to systematically identifying and eliminating workplace dangers by focusing on the relationship between the worker, the task, the tools, and the work environment?
A)occupational safety program
B)job hazard analysis
C)operational safety review
D)risk management
Q4) What class of risk do employers have to manage? How do employers manage such risk?
Q5) Discuss what a job hazard analysis is and how it can be conducted.
Q6) What steps are involved in a basic industrial hygiene program?
Page 18
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Chapter 17: Managing Global Human Resources
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Sample Questions
Q1) ________ are noncitizens of the countries in which they are working.
A)Home-country nationals
B)Third-country nationals
C)Expatriates
D)Locals
Q2) Before departing for an overseas assignment, an employee would most likely benefit from ________ training.
A)technical
B)interpersonal
C)cross-cultural
D)career development
Q3) A corporation that believes that only host country managers can ever really understand the culture and behavior of the host country market would be referred to as ________.
A)polycentric
B)ethnocentric
C)geocentric
D)monocentric
Q4) Explain the balance sheet approach to formulating expatriate pay.
Q5) What are the major steps in establishing a global pay system?
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Chapter 18: Managing Human Resources in Small and Entrepreneurial Firms
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Sample Questions
Q1) Research indicates that entrepreneurs tend to crave control.
A)True
B)False
Q2) Small businesses frequently use PEOs because they lack dedicated HR managers.
A)True
B)False
Q3) What work-life benefits are offered by small firms that are not available with large firms? If given a choice, would you rather work for a small or a large firm? Use specific details to support your argument.
Q4) Elliot owns a catering business and employs 30 people. Elliot is uncertain about when to pay overtime and how to calculate overtime wages. The Web site of which of the following would be the most useful to Elliot?
A)Office of Personnel Management
B)Department of Labor
C)Department of Commerce
D)Equal Employment Opportunity Commission
Q5) You are the owner of a small business and feel overwhelmed by the paperwork. You have decided to use a PEO. What are the issues you must address to determine which PEO is best for your company?
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