Compensation and Benefits Practice Exam
Course Introduction
This course provides an in-depth exploration of the principles and practices of employee compensation and benefits within organizations. Students will analyze the strategic role of compensation in attracting, motivating, and retaining talent, while examining various pay structures, incentive systems, and benefit programs. The course covers job evaluation methods, market compensation surveys, legal considerations, and current trends in rewards management. Special emphasis is placed on designing competitive total rewards packages that align with organizational goals and comply with regulatory frameworks, preparing students to address real-world compensation and benefits challenges in the workplace.
Recommended Textbook
Human Resource Management 13th Edition by
Robert L. Mathis
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16 Chapters
2091 Verified Questions
2091 Flashcards
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Page 2
Chapter 1: Human Resource Management in Organizations
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) Flexible hours,job-sharing,child-care referral services,and flexible leave programs are all examples of
A) executive perks.
B) retention programs based on work/family concerns.
C) anti-unionization programs.
D) programs mandated by the Equal Employment Opportunity Act.
Answer: B
Q2) Even though business is conducted globally by multi-national organizations,there are still significant differences among nations in the laws governing business.
A)True
B)False
Answer: True
Q3) When HR professionals from different organizations work together to solve shared business problems they are engaging in
A) collusive HR.
B) collaborative HR.
C) operational HR.
D) professional HR.
Answer: B
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Page 3
Chapter 2: Strategic HR Management and Planning
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115 Flashcards
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Sample Questions
Q1) A polycentric approach to international staffing reduces mistakes due to lack of understanding of the host-country's culture.
A)True
B)False
Answer: True
Q2) Gloriosa Technologies has experienced steady growth in its product lines in the last 20 years.Recently,a new product has become a huge seller,and Gloriosa finds itself short of experienced employees with the needed skill sets.These skills are not available in the labor market because the Gloriosa's production process is unique to it.Until Gloriosa can hire new employees,it should consider all of the following EXCEPT
A) require current employees to work overtime.
B) hire contingent employees.
C) contact retired Gloriosa employees and persuade them to come back.
D) offer current employees retention bonuses for staying with Gloriosa.
Answer: B
Q3) Effectiveness compares inputs and costs to outputs and benefits.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Equal Employment Opportunity
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Sample Questions
Q1) In Washington v.Davis
A) since the reading comprehension test contained actual material that the applicants would have to learn during a training program, the fact that fewer women and minorities passed the test did not result in illegal discrimination.
B) fewer women and minorities passed a reading comprehension test. If this test had been designed with the intent to discriminate, this would be a case of disparate impact.
C) if the police department had required a high school diploma as evidence of reading skills, instead of the reading comprehension test, the police department would not have been vulnerable to a charge of discrimination against women and minorities.
D) the plaintiffs had the burden of proof to show that the reading comprehension test did not support a business necessity.
Answer: A
Q2) An argument for affirmative action is that it reduces the effects of historical discrimination.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Workers,Jobs,and Job Analysis
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136 Verified Questions
136 Flashcards
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Sample Questions
Q1) ____ indicate what the job accomplishes and how performance is measured in key areas of the job description.
A) Employee specifications
B) Job criteria
C) Performance standards
D) Employee competencies
Q2) The ability to do an entire unit of work from start to finish contributes to the worker's ____ the job.
A) knowledge of results of B) experienced meaningfulness of
C) experienced responsibility for D) sense of autonomy over
Q3) Job analysis refers to organizing tasks,duties,and responsibilities into a productive unit of work.
A)True
B)False
Q4) What are some of the alternatives to the traditional work schedule of a full-time,eight-hour day at the employer's place of business? Why have these alternatives become increasingly popular?
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Chapter 5: Human Resource Planning and Retention
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114 Flashcards
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Sample Questions
Q1) Turnover rates vary by industries,so it is impossible to prescribe the ideal level of turnover that would apply to all companies.
A)True
B)False
Q2) The executive committee of the firm is concerned with the high rate of turnover among their most promising engineers between 25 and 35 years old.They ask you,as the new director of HR,what suggestions you have for retaining these individuals.You suggest ____ as the most appropriate response to this retention problem.
A) accepting that this age group is naturally high turnover
B) evaluating whether realistic job previews are necessary
C) motivational seminars and retreats
D) employee recognition programs
Q3) All of the issues below are drivers of retention to which organizations can affect EXCEPT
A) employee personality.
B) work/life balance.
C) employee/supervisor relationships.
D) compensation and benefits..
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Chapter 6: Recruiting and Labor Markets
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125 Flashcards
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Sample Questions
Q1) Companies facing future shortages of engineers sometimes start their recruiting efforts in high schools.
A)True
B)False
Q2) Sally,a recruiter for Boswell-Swift,Inc.,in Oregon,made an offer to Kurt,a high-potential graduating college senior in Florida.Sally was positive that Kurt was excited about the job offer,but two days after the offer he rejected the offer.In a follow-up phone call,Sally learned that Kurt had learned about a nasty internal political situation at Boswell-Swift,and he did not want to work in such a tense atmosphere.Which of the following statements is most likely to be true?
A) Kurt probably learned of this situation when he made his brief on-site visit to the company.
B) This information was likely on a blog connected with Boswell-Swift's official web site.
C) Kurt probably found out about this situation on a social networking site.
D) This kind of information is frequently revealed in realistic job previews, which Kurt was given.
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Chapter 7: Selecting Human Resources
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Sample Questions
Q1) In selection,a predictor is a characteristic that the person must have to perform the job successfully.
A)True
B)False
Q2) Beckenkall Consulting is a rapidly-growing management consulting firm.As it expands,it needs to hire a number of new consultants every year.The failure rate of new consultants has been too high.The director of HR has decided to see if the success rate of new hires can be increased by selecting applicants who not only have all the technical qualifications,but also have the same personality as successful consultants now working in the firm.Consequently,the HR director gives all the high-performing consultants the MMPI.She sees that there is one dominant type of personality in this group.Now,she has told the manager of recruitment to give the MMPI to applicants as one of the hurdles they must clear before being hired.This is an example of
A) a test of reliability.
B) post-hoc validity.
C) a concurrent validity approach.
D) a predictive validity approach.
Q3) What are the purposes of the application form? What legal issues are involved with application forms?
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Page 9
Chapter 8: Training Human Resources
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Sample Questions
Q1) In the ____ phase of the training process,organizational and employee performance issues are considered to determine if training can help.
A) needs assessment
B) implementation
C) evaluation
D) design
Q2) The director of training is evaluating whether an e-learning method should be used for a supervisor-development program.The director should consider all the following factors EXCEPT
A) whether supervisors who need training are in distant locations.
B) whether current training materials can be easily adapted to an e-learning format.
C) if the supervisors are self-motivated enough to work through the training program alone.
D) whether current supervisor training is meeting organizational goals.
Q3) A strategic mind-set leads top management to understand that training is the answer to most employee and organizational performance problems.
A)True
B)False
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Chapter 9: Talent Management
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142 Flashcards
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Sample Questions
Q1) Which of the following has been identified as a problem with mentoring?
A) Women executives are reluctant to serve as mentors either to other women or to men because they themselves received little help..
B) Young minority managers frequently report difficulty finding mentors.
C) The relationship between mentor and protégé is frequently marked by a "break-up" when the protege advances in the hierarchy.
D) The most successful managers are too busy to be effective mentors, so junior managers are often mentored by less-talented senior managers.
Q2) If an organization limits its intensive talent management efforts to its high-potential employees,employees not selected may be resentful that their career opportunities have been limited.
A)True
B)False
Q3) Psychological testing can furnish useful information to employers about an employee's intelligence,mathematical reasoning ability,leadership style,and interpersonal response traits.
A)True
B)False
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Chapter 10: Performance Management and Appraisal
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146 Flashcards
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Sample Questions
Q1) Ambrose was rated as having average performance levels when he worked in the design department of the Midwestern region of the company.Last year Ambrose was transferred to the Northeastern region where he holds the same job.Although Ambrose's production numbers have been consistent,he has been rated as an outstanding performer this year.It is most likely that Ambrose's varying performance appraisals have been affected by the ____ error.
A) central tendency
B) primacy
C) halo
D) contrast
Q2) All of the following are common criteria of employee performance EXCEPT A) meeting deadlines.
B) achieving quality standards.
C) being present at work.
D) acting in accordance with ethical principles.
Q3) The trend is for HR performance management specialists to conduct performance appraisals for exempt-level employees because of widespread problems with supervisor-rater bias.
A)True
B)False
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Chapter 11: Total Rewards and Compensation
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148 Flashcards
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Sample Questions
Q1) As HR director,you are discussing the implementation of a competency-based compensation system with the company's CEO.You point out that in order for the competency system to be effective
A) the company must place its base pay in the third quartile.
B) the company's pay structure must be broad-banded.
C) the company must invest heavily in employee training programs.
D) the company must implement work teams.
Q2) What are exempt and non-exempt jobs? How are exempt and non-exempt jobs identified in the organization? What are independent contractors and why is it important for the organization to identify who is a contractor and who is an employee?
Q3) In a competency-based pay system employees are paid
A) on the skills and knowledge they have, whether they use these or not.
B) according to their job performance, measured either by quality or quantity.
C) on the basis of their scores on annual competency tests.
D) on whether they have added value to the organization in the last year.
Q4) What are the two major compensation philosophies and how to they affect employee attitudes and behavior?
Q5) What is meant by equity? Is equity an important consideration in compensation?
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Chapter 12: Incentive Plans and Executive Compensation
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Sample Questions
Q1) What is the role of a compensation committee of the Board of Directors?
A) To assist the HR unit in developing overall pay and benefit programs for the organization.
B) To develop a compensation package that ties the organization's overall compensation system to the organization's goals and objectives..
C) To make recommendations to the shareholders on the compensation formula for members of the board of directors.
D) To make recommendations to the Board of Directors on overall pay policies, salaries for top officers, stock options, and additional perks for executives.
Q2) Jessica works for one of the largest corporations in the U.S..She makes the average pay of workers in this organization,$30,000.It would be a good guess that the CEO of Jessica's company makes
A) $300,000.
B) $1,500,000
C) $3,000,000.
D) $10,500,000.
Q3) Describe the various methods of compensating sales employees.
Q4) What factors will contribute to a successful variable pay plan?
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Page 14
Chapter 13: Managing Employee Benefits
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150 Flashcards
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Sample Questions
Q1) Angela,who lives in Alabama,recently turned down an attractive job offer as director of marketing from a firm in Oregon because it would not provide assistance in finding a job for her husband or assistance in buying a new home in Oregon,where house prices are much higher than in Alabama.It appears that the Oregon firm
A) has an entitlement benefits philosophy.
B) does not have a relocation assistance program.
C) does not offer benefits for domestic partners.
D) is discriminating against women.
Q2) Maxine is a single mother with an entry-level management job.She needs to consider her 3-year-old child's future welfare if she should die before her child is self-supporting.Maxine has learned that her company offers group life insurance at the typical level of coverage most companies offer.Maxine will be ____,because the typical level of coverage is ____.
A) somewhat disappointed, 10 years of annual salary
B) very disappointed, one-and-one-half years of annual salary.
C) pleased, 20 years of annual salary.
D) pleased, full annual salary until the dependent is 18.
Q3) How can employers improve employees understanding of and appreciation of their benefits?
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Page 15
Chapter 14: Risk Management and Worker Protection
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Sample Questions
Q1) The purpose of OSHA's lock out/tag out regulations is to
A) prevent accidental start-up of defective machinery during repair or adjustment.
B) deny access to the workplace by unauthorized individuals.
C) ensure that hazardous substances are kept under lock and key when not being used.
D) close down a workplace judged unsafe by an OSHA inspector.
Q2) Under the Americans with Disabilities Act,
A) those addicted to legal prescription drugs are not considered disabled.
B) recovering substance abusers are considered disabled.
C) current illegal drug users are considered disabled.
D) addiction to alcohol is not considered a disability.
Q3) Who provides the funds for workers' compensation?
A) employers through insurance premiums
B) employees through paycheck deductions
C) the federal government through taxes
D) state and local government through taxes
Q4) OSHA regulations ban all smoking in the workplace.
A)True
B)False
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16
Chapter 15: Employee Rights and Responsibilities
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Sample Questions
Q1) Which pieces of information SHOULD be filed in an employee's confidential file?
A) the employee's current compensation records
B) the supervisor's evaluation of the employee's promotability completed 12 months ago
C) discipline records for the last 10 years
D) the employee's request for medical leave for chemotherapy treatments
Q2) Employment-at-will is a common-law doctrine holding that
A) an employee must provide a minimum of two weeks' notice before quitting a job.
B) there are no legal restrictions preventing employers from firing any employee, as long as that employee is not covered by a union contract or an employment contract.
C) employees are free agents, but employers must have just cause for termination.
D) an employer has the right to hire, fire, demote, or promote whomever it chooses except as limited by law or contract.
Q3) Since employee rights based on tradition,they are timeless and unchanging.
A)True
B)False
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Chapter 16: Union/Management Relations
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Sample Questions
Q1) The Landrum-Griffin Act makes the U.S.Secretary of Labor the watchdog of union conduct including the democratic rights of union members.
A)True
B)False
Q2) Estimated union membership in the U.S.is roughly ____ of the private sector workforce.
A) under 10%
B) about 20%
C) about 35%
D) over 40%
Q3) Which of the following statements is TRUE?
A) The main motivator for employees who support unions is hostility toward management.
B) Although unionized workers typically have higher benefits than non-union workers, their wages are approximately the same.
C) Unions sometimes result in higher productivity.
D) Management discretion in handling employee issues is essentially the same whether the company is unionized or not.
Q4) What are the advantages of a union grievance procedure?
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