Compensation and Benefits Question
Bank
Course Introduction
This course provides an in-depth exploration of the principles and practices related to employee compensation and benefits within organizations. Students will learn about the development and administration of base pay systems, incentive plans, and benefits programs, including health insurance, retirement plans, and legally required benefits. The course covers job evaluation, market pricing, internal and external equity, pay-for-performance, and strategic alignment of total rewards with organizational goals. Legal considerations, trends in compensation, and the global context of benefits administration are also discussed. Through case studies and practical applications, students will gain the skills necessary to design and manage effective compensation and benefits systems that attract, motivate, and retain talent.
Recommended Textbook
Human Resource Management 14th Edition by Robert L. Mathis
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16 Chapters
1615 Verified Questions
1615 Flashcards
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Page 2
Chapter 1: Human Resource Management in Organizations
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Sunny, a human resources executive at FlyHi Inc., is moving from a strategic role in the human resources department to an administrative role. Which of the following best describes Sunny's change of role?
A) Moving from processing legal paperwork to serving as a "champion" of employee concerns
B) Moving from serving as a "champion" of employee concerns to helping define the strategy to manage human capital
C) Moving from helping define the strategy to manage human capital to serving as a "champion" of employee concerns
D) Moving from helping define the strategy to manage human capital to processing legal paperwork
Answer: D
Q2) Intellectual property is the collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce. A)True
B)False
Answer: False
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Chapter 2: Human Resources Strategy and Planning
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99 Verified Questions
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Sample Questions
Q1) A(n) _____ refers to the judgmental method of HR forecasting that requires experts to meet face to face.
A) simulation model
B) estimate
C) nominal group
D) regression analysis
Answer: C
Q2) The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers to disclose the ages of both terminated and retained employees in layoff situations, and waiver of rights to sue for age discrimination must meet certain requirements.
A)True
B)False
Answer: False
Q3) During mergers and acquisitions, risk must be assessed _____.
A) post integration
B) after making the deal
C) before making the deal
D) during integration
Answer: C
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Page 4
Chapter 3: Equal Employment Opportunity
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Which of the following scenarios is considered illegal according to the Civil Rights Act of 1964?
A) Segregating employees on the basis of their educational qualification
B) Segregating employees on the basis of their gender
C) Segregating employees on the basis of their work experience
D) Segregating employees on the basis of their skill sets
Answer: B
Q2) The Equal Employment Opportunity Commission and Federal Court cases have ruled that sex discrimination under title VII applies to a person's gender at the time of _____.
A) birth
B) discrimination
C) employment
D) litigation
Answer: A
Q3) 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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Chapter 4: Workforce, Jobs, and Job Analysis
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Sample Questions
Q1) Workflow analysis is the study of the way work moves through an organization.
A)True
B)False
Q2) A job is a grouping of tasks, duties, and responsibilities that constitutes the total work assignment for an employee.
A)True
B)False
Q3) Reviewing drafts with managers and employees is a subtask of _____.
A) developing job descriptions
B) conducting the job analysis
C) planning the job analysis
D) preparing for and introducing the job analysis
Q4) What is telework?
Q5) Drafting job descriptions and specifications is typically the first step in the job analysis process.
A)True
B)False
Q6) Explain the various stages in the job analysis process.
Q7) Describe the characteristics of jobs to consider in design.
Q8) What is a job description?
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Chapter 5: Individualorganization Relations and Retention
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99 Verified Questions
99 Flashcards
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Sample Questions
Q1) The average time lost per absent employee during a specified period of time is known as the:
A) inactivity rate.
B) incidence rate.
C) severity rate.
D) compensation rate.
Q2) What is meant by job satisfaction and organizational commitment? What are the advantages of a satisfied and committed workforce?
Q3) Insufficient pay is one of the reasons that lead to employee turnover.
A)True
B)False
Q4) It is common for turnover to be high among newer employees during their first year. A)True
B)False
Q5) Describe the main differences between engaged and disengaged employees in an organization.
Q6) Describe three methods used to control absenteeism in organizations.
Q7) What are the three major factors that affect individual performance in organizations?
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Chapter 6: Recruiting and Labor Markets
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Sample Questions
Q1) Angela is a self-employed graphic artist. She is usually hired by companies for special projects that lasts from a week to six months. Angela can be best described as a(n):
A) independent contractor.
B) undocumented worker.
C) regular employee.
D) full-time employee.
Q2) Why is it important to formally evaluate and measure recruiting? What are some methods that can be used to evaluate recruiting?
Q3) Which of the following is true of internal recruitment?
A) Inbreeding of employees typically result in a more diverse workforce
B) It can aid succession planning, future promotions, and career development.
C) Family connections moderate the normal political maneuvering that occurs in firms.
D) This process fails to motivate current employees to perform better.
Q4) Rerecruiting former employees is a way of avoiding "inbreeding" while still using an internal recruiting source.
A)True
B)False
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Chapter 7: Selecting Human Resources
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104 Flashcards
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Sample Questions
Q1) Ability, intelligence, and conscientiousness are all examples of:
A) elements of job performance.
B) selection criteria.
C) predictors of selection criteria.
D) soft skills.
Q2) Discuss the usefulness of honesty and integrity tests as selection tests.
Q3) What are the purposes of the application form? What disclaimers should application forms contain?
Q4) Which of the following types of selection interviews is unstructured?
A) Behavioral interview
B) Situational interview
C) Competency interview
D) Nondirective interview
Q5) 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
Q6) List the employment functions that organizations need to be concerned with.
Page 9
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Chapter 8: Training Human Resources
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Sample Questions
Q1) Which of the following best exemplifies cooperative training?
A) A medical school that uses simulations where the students can perform operations without harming real patients
B) An e-learning program on corporate leadership in which the trainee interacts with the trainer and other trainees via a blog
C) On-the-job training in an IT firm wherein a supervisor works closely and continuously with subordinates
D) A community college program in solar panel installation partnering with solar panel installation companies providing internships
Q2) Cross training occurs when:
A) people are trained to do more than one job.
B) the training takes place outside the employing organization.
C) e-learning is used as the primary mode for delivering the content of a training.
D) the training occurs through interactions and feedback among employees.
Q3) E-learning cannot be paired with simulation.
A)True
B)False
Q4) What are some of the common classifications of training?
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Chapter 9: Talent, Careers, and Development
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Sample Questions
Q1) The modeling process involves only straightforward imitation and copying.
A)True
B)False
Q2) Which of the following is a common mistake made by organizations during succession planning?
A) Including the boards of directors, along with the HR in the process of CEO succession
B) Focussing on the other employees apart from the top management
C) Allowing the CEO to direct the planning process
D) Looking externally as well as internally for succession candidates
Q3) Which of the following statements is true of training and development?
A) Training is for hourly employees; development is for managers and professionals.
B) Training focuses on the long-run performance of an employee.
C) Development is typically assessed with a cost-benefit analysis.
D) Capabilities learned in development may not apply to the employee's current job.
Q4) Why does the development of certain competencies require redevelopment of employees?
Q5) How do assistant positions work as a job-site development method?
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Chapter 10: Performance Management and Appraisal
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Sample Questions
Q1) The _____ is the tendency to rate people relative to one another rather than against performance standards.
A) halo effect
B) horns effect
C) contrast error
D) similar-to-me error
Q2) What are the common employee performance measures?
Q3) A major concern for managers in performance management is how to emphasize the positive aspects of the employee's performance while still discussing ways to make needed improvements.
A)True
B)False
Q4) Menu up-selling by a waiter is classified as behavior-based information.
A)True
B)False
Q5) Describe the entitlement approach and the performance-driven approach.
Q6) Discuss supervisory rating of subordinates.
Q7) Describe performance-focused organizational cultures.
Page 12
Q8) Describe the different types of rater errors.
Q9) What is multisource rating?
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Chapter 11: Total Rewards and Compensation
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Sample Questions
Q1) Procedural justice is the perceived fairness in how rewards are distributed.
A)True
B)False
Q2) Describe the two different compensation philosophies.
Q3) Average annual salary increase = _____.
A) the average salary increase of all employees divided by the number of full-time equivalents
B) the number of full-time equivalents divided by the total salary increase of all employees
C) the total salary increase of all employees divided by the number of full-time equivalents
D) the number of full-time equivalents divided by the average salary increase of all employees
Q4) What is a lump-sum increase?
Q5) The child labor provisions of the FLSA set the minimum age for employment with unlimited hours at 19 years.
A)True B)False
Q6) Describe two motivation theories and their relationship with compensation.
Q7) Define competency-based pay.
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Chapter 12: Variable Pay and Executive Compensation
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Sample Questions
Q1) Which of the following statements is true of group/team incentives?
A) They ensure that members of a group are not put under social pressure.
B) They are always distributed equally among team members.
C) They can foster cohesiveness among team members.
D) They are in the form of cash bonuses and cannot be given in the form of nonmonetary incentives.
Q2) The most prevalent forms of organization-wide incentives are piece-rate systems, sales commissions, and individual bonuses.
A)True
B)False
Q3) Which of the following is the most commonly used frequency of distributing team/group incentives?
A) Monthly
B) Semiannually
C) Annually
D) Quarterly
Q4) Cost reduction is classified as a group/team incentive.
A)True
B)False
Q5) Describe the primary objectives of profit sharing plans.
Page 15
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Chapter 13: Managing Employee Benefits
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Sample Questions
Q1) The concept of no-fault insurance implies that an injured worker would not receive benefits if the accident was the employee's fault.
A)True
B)False
Q2) Most benefits, except for paid time off, are taxed as income to employees.
A)True
B)False
Q3) Which of the following is true of defined benefit retirement plans?
A) The investment risk is borne by the employee.
B) The amount of benefit paid at retirement is pre-determined.
C) They are most common in private sector and nonunionized workforces.
D) They typically do not guarantee benefits.
Q4) Discuss the financial benefits that companies commonly offer their employees?
Q5) Legally required benefits make up more than half of the total cost of benefits.
A)True B)False
Q6) Increases in employer expenditures for benefits are growing faster than increases in wages for employees.
A)True
B)False
Page 16
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Chapter 14: Risk Management and Worker Protection
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Sample Questions
Q1) The Occupational Safety and Health Review Commission (OSHRC) has been established to address disputes between OSHA and employers that have been cited by OSHA inspectors.
A)True
B)False
Q2) Which of the following acts would be violated if a majority of the members of a safety committee is composed of managers?
A) The Occupational Safety and Health Act
B) The Wagner Act
C) The Americans with Disabilities Act
D) The Family and Medical Leave Act
Q3) Organizational assessment during disaster planning includes the establishment of a disaster planning team.
A)True
B)False
Q4) Employers can be sued and held liable if they ignore the pleas for help from employees and the employees later become victims of domestic violence.
A)True B)False
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Chapter 15: Employee Rights and Responsibilities
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Sample Questions
Q1) The Employee Polygraph Protection Act:
A) allows employers to fire an employee accused of a crime in the workplace if the employee refuses to take a polygraph test.
B) requires employees to be advised of their rights to refuse to take the test.
C) allows polygraphs to be used to screen new applicants in selected industries.
D) requires law enforcement personnel to be present when a polygraph test is being administered in the workplace.
Q2) A pharmaceutical research firm prohibits the employees who leave the firm from soliciting business from former customers or clients for a period of two years. This best exemplifies the _____ clause.
A) identification
B) noncompete
C) nonpiracy
D) nonsolicitation
Q3) One industry in which dress and appearance codes and policies are important is the retail industry.
A)True
B)False
Q4) What is the final step in the disciplinary process?
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Chapter 16: Unionmanagement Relations
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Sample Questions
Q1) The United Mine Workers of America (UMWA) is a union that consists of members holding various types of jobs in the American mining industry. The UMWA is an example of a(n) _____.
A) craft union
B) industrial union
C) federation
D) international union
Q2) Which of the following is true in the context of a union representation election?
A) The Railway Labor Act places certain restrictions on the activities of the unions and managements before an election.
B) Supervisors cannot be included in bargaining units for unionization purposes, except in industries covered by the Railway Labor Act.
C) A union should gain 50% of the votes to be named as the representative of all the employees.
D) The larger is the number of employees in a bargaining unit, the higher is the likelihood that the union will win.
Q3) Describe two union security provisions that organizations commonly provide.
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