Compensation Management Exam Solutions
Course Introduction
Compensation Management focuses on the strategies, policies, and practices organizations use to reward employees fairly and competitively. The course examines the critical role of compensation in attracting, motivating, and retaining talent, exploring topics such as job evaluation, pay structures, incentive systems, benefits, and legal compliance. Students will learn how to design and administer direct and indirect compensation packages, align compensation strategies with organizational goals, and evaluate the effectiveness of compensation programs in a dynamic business environment. Throughout, real-world case studies and practical exercises provide hands-on experience in addressing contemporary compensation challenges.
Recommended Textbook
Employee Benefits A Primer for Human Resource Professionals 5th Edition by Joseph J. Martocchio
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12 Chapters
661 Verified Questions
661 Flashcards
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Chapter 1: Introducing Employee Benefits
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61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/63363
Sample Questions
Q1) Which of the following are considered the five core compensation elements? (Adjustments to Core Compensation)
A)COLAs, seniority pay, merit pay, incentive pay, person-focused pay
B)Merit pay, seniority pay, COLAs, incentive pay, base pay
C)Seniority pay, person-focused pay, incentive pay, base pay, COLAs
D)Base pay, person-focused pay, merit pay, incentive pay, seniority pay
Answer: A
Q2) Which is the following is NOT the reason for companies to adopt various benefits plans? (Defining and Exploring Employee Benefits)
A)Government regulation/mandates
B)Favorable tax treatments
C)Attracting and retaining best employees
D)Reducing labor cost
Answer: D
Q3) Incentive-pay rewards employees for completely attaining predetermined work objectives. (Adjustments to Core Compensation)
A)True
B)False
Answer: False
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Page 3
Chapter 2: The Psychology and Economics of Employee Benefits
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63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/63362
Sample Questions
Q1) Benefits administration costs are usually miniscule and not considered when measuring economies of scale. (Cost Advantage)
A)True
B)False
Answer: False
Q2) Violations of psychological contracts are basically the same as unmet expectations. (Psychological Contract Violation)
A)True
B)False
Answer: False
Q3) According to insurance statistics,women have higher average medical expenses than men. (Cost Advantage)
A)True
B)False
Answer: True
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Page 4
Chapter 3: Regulating Employee Benefits
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66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/63361
Sample Questions
Q1) Workers are classified as key employees if they meet one of which three criteria? (The Internal Revenue Code)
A)An officer making over $150,000, an employee who for 2012 is either a 5% owner or 2% owner of the business that makes more than $150,000
B)An officer making over $165,000, an employee who for 2012 is either a 3% owner or 1% owner of the business that makes more than $150,000
C)An officer making over $150,000, an employee who for 2012 is either a 5% owner or 1% owner of the business that makes more than $150,000
D)An officer making over $165,000, an employee who for 2012 is either a 5% owner or 1% owner of the business that makes more than $150,000
Answer: D
Q2) According to FLSA guidelines,employees are entitled to pay at a rate of one-and-one-half times their regular pay,when they work over 8 hours in a work day. (The Fair Labor Standards Act of 1938)
A)True
B)False
Answer: False
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Page 5
Chapter 4: Employer-Sponsored Retirement Plans
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55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/63360
Sample Questions
Q1) Briefly discuss the origins and trends in retirement plans in the US. (Defining Retirement Plans)
Q2) The 133<sup>1/3</sup><sup> </sup>% rule refers to what? (Defined Benefit Plans)
A)The annual accrual rate for defined benefits plans
B)The annual accrual rate for defined contribution plans
C)The annual accrual rate for qualified benefit plans
D)The annual accrual rate for qualified contribution plans
Q3) The present value of benefits based on a designated date is known as accumulated benefit obligation. (Defined Benefit Plans)
A)True
B)False
Q4) In 2011,41% employees participated in defined contribution plans. (Trends in Retirement Plan Coverage and Costs)
A)True
B)False
Q5) Accrual rules specify the rate participants can accumulate benefits. (Qualified Plans)
A)True
B)False
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Chapter 5: Employer-Sponsored Health Insurance Programs
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62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/63359
Sample Questions
Q1) Flexible spending accounts permit employees to pay for health costs covered by an employer's insurance plan. (Consumer-Driven Health Care)
A)True
B)False
Q2) This federal law requires group health plans to provide medical and surgical benefits for mastectomies. (The Employee Retirement Income Security Act of 1974 (ERISA))
A)Women's Health and Cancer Rights Act
B)Health Insurance Portability and Accountability Act
C)Pregnancy Discrimination Act
D)Women with Disabilities Act
Q3) Medical care has risen about how much since 1984? (Health Insurance Coverage and Costs)
A)1224%
B)433%
C)220%
D)860%
Q4) Discuss and compare multiple-payer versus single-payer systems the US. (Defining and Exploring Health Insurance Programs)
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Chapter 6: Employer-Sponsored Disability Insurance,life Insurance,and
Workers Compensation Programs
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58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/63358
Sample Questions
Q1) An employee's pregnancy is covered under a company's short-term disability insurance program. (Short-Term Disability Insurance Programs)
A)True
B)False
Q2) AD&D does not pay survivor benefits in the case of death by illness. (Accidental Death and Dismemberment Insurance)
A)True
B)False
Q3) Under partial self-funding of disability insurance,employers pay claims from their assets invested in a trust fund,for a limited period or up to a maximum dollar amount. (Funding Disability Insurance Programs)
A)True
B)False
Q4) An Administrative Services Only plan is a disability insurance funding plan that is handled through a third-party claims management company. (Funding Disability Insurance Programs)
A)True
B)False
Page 8
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Chapter 7: Government-Mandated Social Security Programs
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45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/63357
Sample Questions
Q1) OASDI taxes are subject to a taxable wage base.What was the taxable wage base for everyone in 2012? (OASDI Programs)
A)$80,100
B)$110,100
C)$120,100
D)$140,100
Q2) The Medicare tax is subject to a taxable wage base. (Medicare Programs)
A)True
B)False
Q3) In 2012,approximately,what was the average monthly survivor benefit for a widowed and two children? (Survivor Benefit Amount Determination)
A)$1,500
B)$2,000
C)$2,500
D)$3,000
Q4) The net job gains between March to June 2011 offset the net job losses during the 2007-2009 recession. (Unemployment Insurance)
A)True
B)False
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Chapter 8: Paid Time-Off and Flexible Work Schedules
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48 Verified Questions
48 Flashcards
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Sample Questions
Q1) Personal leave provisions are taxed just like regular income. (Personal Leave)
A)True
B)False
Q2) This Act gives individuals the right to employment by the company they worked for prior to military service. (Military Leave)
A)Fair Labor Standards Act
B)Uniformed Services Employment and Reemployment Rights Act
C)Military Reemployment Act
D)Military Services Reemployment Act
Q3) Effective paid time-off bank policies include a use-it-or-lose-it provision,rather than a carryover provision. (Integrated Paid Time-Off Policies or Paid Time-Off Banks)
A)True
B)False
Q4) In 2011,private industry paid leave benefit costs were highest for management,professional,and related occupations,accounting for 8.5% of total compensation. (Defining and Exploring Paid Time-Off Programs)
A)True
B)False
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10
Chapter 9: Accommodation and Enhancement Benefits
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45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/63355
Sample Questions
Q1) The Drug Free Workplace Act of 1988 applies to all workplaces. (Employee Assistance Programs)
A)True
B)False
Q2) In-house EAPs services have to be located on the employer's work facilities. (EAP Delivery Options)
A)True
B)False
Q3) These programs provide technical and emotional support to employees who are being terminated. (EAP Services)
A)Reemployment assistance
B)Outplacement assistance
C)Job search assistance
D)Employment assistance
Q4) Which one of the following is not a wellness program? (Wellness Programs)
A)Telecommuting
B)Stress management
C)Smoking cessation
D)Back care
Q5) Briefly discuss the issue of back care as a wellness program. (Back Care)
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Chapter 10: Managing the Employee-Benefits System
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53 Verified Questions
53 Flashcards
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Sample Questions
Q1) Waiting periods specify the number of years and employee must wait after applying for a benefit to become eligible for it. (Managing the Costs of Employee Benefits)
A)True
B)False
Q2) If all employees are offered health insurance and retirement benefits,but then get to select the rest of their benefits package,then they're being offered what type of cafeteria plan? (Core-Plus-Option Plans)
A)Core-plus-option
B)Mix-and-match
C)Modular
D)Flexible spending
Q3) Discuss the concept of "good business sense" of benefits communication. (The "Good Business Sense" of Benefits Communication)
Q4) To more effectively communicate a benefits package to employees,more companies are having new employees meet one-on-one with benefits counselors. (The "Good Business Sense" of Benefits Communication)
A)True
B)False
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12
Chapter 11: Nonqualified Deferred Compensation Plans for Executives
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50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/63353
Sample Questions
Q1) A stock option is a company's offering of stock to an employee. (Basic Terminology)
A)True
B)False
Q2) Which of the following ERISA Title I parts does not apply to nonqualified plans? (Supplemental Executive Retirement Plans (SERPs))
A)Funding
B)Reporting and disclosure
C)Fiduciary responsibility
D)Administration and enforcement
Q3) Which one of the following is not a feature of corporate owned life insurance? (Corporate-Owned Life Insurance)
A)Employers use it to recover cost of qualified plans
B)Designated amount paid to designated beneficiaries of deceased
C)The goal is to purchase policies that match the amount of deferred compensation promised to executives
D)Using it does not create a funded plan
Q4) Briefly discuss the issue of mandatory retirement age with regard to nonqualified plans. (Mandatory Retirement Age)
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Chapter 12: Global Employee Benefits at a Glance
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55 Verified Questions
55 Flashcards
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Sample Questions
Q1) Which one of the following is not a plan that workers can use in the UK to supplement their state provided pensions? (United Kingdom,Pensions)
A)State Second Pension
B)National Insurance Contributions
C)Personal Pension
D)Stakeholder Pension
Q2) French law provides more flexible rules for management level employees. (France,Other Benefits)
A)True
B)False
Q3) NAFTA regulates labor conditions in North America. (North America)
A)True
B)False
Q4) Briefly discuss paid time-off policies in People's Republic of China (People's Republic of China,Paid Time-Off Benefits)
Q5) Canada has one state pension plan for all its residents. (Canada,Pensions and Retirement Benefits)
A)True
B)False
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