Compensation and Benefits
Pre-Test Questions
Course Introduction
This course explores the strategic role of compensation and benefits in attracting, motivating, and retaining employees within organizations. Students will examine the fundamental principles of designing and administering compensation systems, including job evaluation, pay structures, incentive programs, and legal considerations. The course also covers employee benefits such as health insurance, retirement plans, paid time off, and emerging trends in total rewards. Through case studies and practical exercises, students will develop the skills necessary to align compensation and benefits programs with organizational goals and comply with regulatory requirements.
Recommended Textbook
Human Resource Management 6th Edition by H. John Bernardin
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14 Chapters
794 Verified Questions
794 Flashcards
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Page 2
Chapter 1: Strategic Human Resource Management in a Changing Environment
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53 Verified Questions
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Sample Questions
Q1) The major domains of HRM are:
A)selection, training, performance management, and compensation.
B)human resources planning, job and work analysis, organizational restructuring, job design, team building, computerization, and worker-machine interfaces.
C)organizational design, staffing, performance management and appraisal, employee training and organizational development, and reward systems, benefits, ad compliance.
D)HR design, planning, downsizing, and restructuring.
E)recruitment, employee orientation, selection, promotion, and termination.
Answer: C
Q2) It is necessary to use quantitative analysis to determine the ______ of HRM methodology.This allows managers to know if a methodology is predicting something important.
A)validity,
B)efficiencies
C)scorecard
D)global reach
E)expectations
Answer: A
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Chapter 2: The Role of Globalization in HR Policy and Practice
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Sample Questions
Q1) A(n)__________ involves the purchase of an up-and-running business that has established suppliers and customers.
A)Start-up operation Acquisition
B)Alliance
C)Strategic alliance
D)Sole ownership
E)Acquisition
Answer: E
Q2) Large corporations such as Walmart,are generally successful when they decide to embark on ventures within foreign markets,and because of their size,do not need to be concerned about the complexities associated with international HR issues within smaller companies.
A)True
B)False
Answer: False
Q3) A licensee leases the right to use intellectual property of another firm.
A)True
B)False
Answer: True
Page 4
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Chapter 3: The Legal Environment of Hrm: Equal Employment Opportunity
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Sample Questions
Q1) You are a manager with a U.S.company working in a division of the company that is located in Germany.You report to a Director,who is from Germany.You are due for a raise; however,your manager has indicated that you will only receive the increase in salary if you agree to start dating.Whish of the following is correct.
A)As a U.S. citizen working outside the United States, you are only covered by local law, and if there is no local law, you will need to decide if you really want the raise.
B)U)S. citizens working outside the United States are subject to Title VII and therefore you would be legally protected from the harassment
C)With the exception of the Americans with Disabilities Act, the employees of a U.S. company working outside of the borders of the United States are subject to local law.
D)You have a potential case of sexual harassment, and you will need to return to the United States to file the claim and pursue legal action.
E)Multinational employers are required to engage in mediation to resolve all issues of employment discrimination.
Answer: B
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Page 5
Chapter 4: Work Analysis and Design
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Sample Questions
Q1) In the qualitative method,job is described in a descriptive,nonnumerical manner.
A)True
B)False
Q2) List the seven general style categories into which O*NET classifies jobs.
Q3) Types of information assessed by using the Position Analysis Questionnaire (PAQ)include all of the following EXCEPT:
A)Mental processes
B)Information input
C)Relationships with other people
D)Traits analysis
E)Job context
Q4) Job specifications define the job in terms of its content and scope.
A)True
B)False
Q5) What do critical incidents describe?
Q6) Explain why work analysis is important to an organization and especially to the HR manager.Use examples to illustrate.
Q7) Explain three products of job analysis information.
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Q8) List the chronological steps in effective work analysis.
Q9) How might work analysis data vary?
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Page 7
Chapter 5: Human Resource Planning and Recruitment
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Sample Questions
Q1) All of the following are examples of internal factors that can influence HR planning EXCEPT:
A)strategic business planning
B)diversification
C)legal environment
D)projected staff availability
E)recruitment planning
Q2) Discuss the advantages and disadvantages of internal versus external recruitment sources.
Q3) List a few steps recommended by Dr.Cascio for enhancing the effectiveness of restructuring and downsizing.
Q4) HR planning is a task that is accomplished without regard or connection to the business plan.
A)True
B)False
Q5) List the three essential steps for recruitment planning.
Q6) List the actions organizations can take to manage diversity effectively.
Q7) List the six steps in trend analysis.
Q8) When are private agencies most effective?
Page 8
Q9) List a few methods available for external recruiting.
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Page 9
Chapter 6: Personnel Selection
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Sample Questions
Q1) As part of its selection process,Techno industries requires that each applicant be interviewed by the department manager,direct supervisor,and human resource director,all at the same time.This type of interview format is known as __________.
A)panel interview
B)serialized interview
C)structured interview
D)behavioral interview
E)semi-structured interview
Q2) The level of reliability can be represented by a consistency of measurement.
A)True
B)False
Q3) There is no way that a hiring manager can predict that one candidate will remain in the job any longer than the other candidates.
A)True
B)False
Q4) List the five-factor model (FFM)to describe personality.
Q5) Personnel selection applies only for promotions. A)True
B)False
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Chapter 7: Performance Management and Appraisal
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Sample Questions
Q1) Which of the following statements about MBO is FALSE?
A)It compares quantifiable target goals with actual results achieved by an employee.
B) It has been shown to be useful for defining individual or unit performance related to strategic plans.
C)It is recommended as a method for comparing people or units.
D)It is a popular method of managerial appraisal.
E)It may be effective approach to motivating and improving employee performance.
Q2) Performance refers to:
A)Brief descriptions of the traits, personal characteristics, or competencies of the performer.
B)A process that requires raters to rank ratees on the basis of quantifiable goals.
C)Efforts to control rating bias by requiring raters to indicate how frequently the ratee has performed listed behaviors.
D)Comparison between specific, quantifiable target goals and the actual results achieved by an employee.
E)Record of outcomes produced on a specified job function or activity during a specified period of time.
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Chapter 8: Training and Development
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Sample Questions
Q1) One of the objectives of employee orientation programs is to assist the new employee in adjusting to the organization and feeling comfortable and positive about the new job.
A)True
B)False
Q2) What can be done to maximize transfer of training back to one's job?
Q3) Assume you are conducting a training program.What types of data should you collect to evaluate the training?
Q4) The one-group pretest-posttest design is useful when it is difficult to collect criteria measures on individuals prior to offering them the training.
A)True
B)False
Q5) A difference between the desired production rate and the actual production rate could be an indication that training is needed.
A)True
B)False
Q6) List the two categories into which training methods are divided.Define each method with examples.
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Chapter 9: Career Development
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Sample Questions
Q1) Describe several career development programs that are methods for evaluating employees' potential for growth and development within an organization.
Q2) One of the guidelines for effective job posting systems is posting all permanent promotion and transfer opportunities for at least one week before recruiting outside the organization.
A)True
B)False
Q3) One way to motivate managers to effectively perform the role of career counselor for their employees is to link their compensation to positive employee development outcomes.
A)True
B)False
Q4) Psychological assessment is used by the organization to make early identifications of individuals with exceptionally high career potential.
A)True
B)False
Q5) List a few trends adopted by organizations to improve work-family balance.
Q6) List a few tips to help managers be more effective as coaches.
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Chapter 10: Compensation: Base Pay and Fringe Benefits
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Sample Questions
Q1) You have a business in south Florida.The minimum wage under the FLSA is $7.50/hour.Florida has set its minimum wage at $8.00/hour.You are required to pay your secretary:
A)Base pay of $7.50 plus benefits
B)Market rate regardless of if it is lower than either minimum standard
C)Base pay of $8.00/hour and minimum of $7.50/hour in medical benefits
D)Premium pay of $7.50/hour
E)Base pay of $8.00/hour
Q2) The most common traditional pay structure involves grouping similar jobs into pay grades and assigning a salary range,with a minimum,midpoint,and maximum. A)True
B)False
Q3) Uniform allowances and merit increases are examples of fringe compensation. A)True
B)False
Q4) Foreign service premiums are provided with the intention to offer an incentive to take an expatriate assignment.
A)True
B)False
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Chapter 11: Rewarding Performance
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Sample Questions
Q1) When there is relatively little differential pay associated with using merit pay systems,one of the major problems that arise is:
A)company has a problem tracking payroll costs.
B)best performers perceive it as inequitable.
C)middle performers complain.
D)poor performers become worse.
E)top management takes the opportunity to give itself raises.
Q2) Incentives that are not permanently tied to an individual's base pay are easier to manage in terms of budgets when performance declines.
A)True
B)False
Q3) The standard hourly rate is calculated by dividing the base wage by the standard.
A)True B)False
Q4) What are the three major questions to be answered for designing a PFP system?
Q5) Winsharing combines gain sharing with profit sharing.
A)True B)False
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Chapter 12: Managing the Employment Relationship
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Sample Questions
Q1) Discuss the pros and cons of each of the four forms of organizational exit.What are some best practices associated with each?
Q2) The more you introduce an employee to the culture of the company before their first day of work the more confused they will be.It is best to wait until the first day of work to begin orientation.
A)True
B)False
Q3) Ethical thinking programs emphasize evaluating a situation objectively and evaluating the anticipated and unintended consequences of each possible action.
A)True
B)False
Q4) The decision to retire can be influenced by both economic conditions and personal characteristics.
A)True
B)False
Q5) What are the two internal forces governing the ongoing working relationship? Explain how each affects the maintenance of the employment relationship.
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Page 16
Chapter 13: Labor Relations and Collective Bargaining
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Sample Questions
Q1) Which of the following statements is TRUE regarding the U.S.labor relations system relative to systems in most other countries?
A)The U.S. is unusual in that more than one union may represent the same workers.
B)The U.S. government plays a more active role in labor relations and dispute resolution compared to other countries.
C)In other countries the relationship between the union and management is generally adversarial, while in the U.S. the relationship is more cooperative.
D)In the U.S. there is decentralized collective bargaining, while other countries rely primarily on industry-wide negotiation.
E)In the U.S. the unions emphasize political issues to a greater degree.
Q2) Grievance procedures generally establish the specified number of working days within which the grievance must be taken to the next step in the hearing.
A)True
B)False
Q3) The NLRA has described what constitutes unfair labor practices by employers.List a few of these prohibited activities.
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Chapter 14: Employee Health and Safety
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Sample Questions
Q1) Worker's compensation is based upon the principle that,victims of a work-related injury or illness:
A)are granted benefits regardless of who is responsible for the accident, injury, or illness.
B)must prove that the employer directly or indirectly caused the accident, injury, or illness in order to receive benefits.
C)must sue the company in order to receive benefits.
D)are most likely to sue OSHA for wrongful-doing.
E)should be granted compensation only at the discretion of the employer and the union.
Q2) Which of the following has the top priority for OSHA inspection?
A)Random inspections
B)Re-inspections
C)High hazard industries
D)Imminent danger
E)Employee complaints
Q3) List the activities a COSHO is authorized to carry out.
Q4) Highlight some of the Workers' Compensation law applying to employers.
Q5) Discuss some of the major responsibilities of OSHA.
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