Compensation Management
Final Test Solutions
Course Introduction
Compensation Management is a comprehensive course that explores the strategies, policies, and practices involved in designing and administering employee compensation systems within organizations. The course examines key concepts such as job evaluation, internal and external equity, wage and salary structures, incentive and performance-based pay, and benefits administration. Students will analyze current trends, legal requirements, and ethical considerations affecting compensation decisions, and will develop skills to create competitive compensation packages that align with organizational goals and employee motivation. Through case studies and practical applications, participants learn to address challenges in compensation management and support effective human resource strategies.
Recommended Textbook Management of Human Resources The Essentials 4th Canadian Edition by Gary Dessler
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1119 Verified Questions 1119 Flashcards
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Chapter 1: The Strategic Role of Human Resources Management
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Sample Questions
Q1) The goal of HRM is to align people practices with organizational strategy to produce behaviours required to achieve organizational goals.
A)True
B)False
Answer: True
Q2) External environmental influences having a direct or indirect influence on HRM include which of the following?
A) increasing empowerment
B) decreasing workforce diversity
C) labour market conditions
D) organizational climate
E) organizational culture
Answer: C
Q3) Define and briefly describe the term "human resources management."
Answer: Five points recommended:2 for a definition that is close to the textbook ("management of people in organizations") and 3 for being able to identify something close to "formulating and implementing HRM systems (such as recruitment, performance appraisal, and compensation) that are aligned with the organization's strategy "
Page 3
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Chapter 2: The Changing Legal Emphasis: Compliance and Impact on Canadian Workplaces
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Sample Questions
Q1) The advancement of women into senior management positions has been hindered by the existence of a "glass ceiling."
A)True
B)False
Answer: True
Q2) The Royal Canadian Mounted Police has a requirement that guards be of the same sex as prisoners being guarded.This is an example of
A) a violation of a bona fide occupational requirement.
B) reasonable accommodation.
C) intentional and indirect discrimination.
D) a bona fide occupational requirement.
E) systemic discrimination.
Answer: D
Q3) What is a bona fide occupational requirement (BFOR)? Define the term and give an example of a BFOR for a truck driver.
Answer: A bona fide occupational requirement is a justifiable reason for discrimination based on business necessity.
For a truck driver, a BFOR would be corrected vision of approximately 20/20.
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Chapter 3: Designing and Analyzing Jobs
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Sample Questions
Q1) Organizations that want to implement a high-performance work system will tend not to use traditional job descriptions in favour of using competency analysis.Outline the three reasons why competency analysis is preferred in a high-performance work system and given one example of a core competency.
Answer: Three points for each of the main reasons:competency-based jobs support work performed in teams, competency analysis is strategically aligned with key competencies identified by an organization for its success, and competency analysis supports an organization's performance management process. One point for an example of a core competency from the description on
Q2) The section of the job description in which the major functions or activities are briefly identified is the
A) job summary.
B) job identification.
C) working conditions.
D) relationships.
E) job duties.
Answer: A
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Chapter 4: Human Resources Planning and Recruitment
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Sample Questions
Q1) Human resource centres are used primarily to help skilled tradespersons. supervisory employees. union employees. unemployed individuals. technical employees.
Q2) In general terms, the lower the rate of unemployment,
A) the more difficult it is to recruit employees.
B) the easier it is to fill positions.
C) the harder it is to fill skills-shortage positions.
D) the larger the labour supply.
E) the less competition there is for employees.
Q3) Regression analysis determines the line of best fit. A)True B)False
Q4) External supply is one source of human resources supply.
A)True B)False
Q5) Describe human resources planning (HRP) (4 points) and explain its connection to strategic planning using an example (6 points).
Page 6
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Chapter 5: Selection
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Sample Questions
Q1) Which of the following statements is true?
A) The HR department staff members generally screen and test applicants, perform reference checking, and make the final selection decision.
B) The types of selection instruments and screening devices used are fairly standardized.
C) Selection strategies should be continually refined, regardless of cost.
D) The organization's strategic plan places major constraints on selection decisions.
E) Selection plays a relatively minor role in the achievement of employment equity goals.
Q2) Which of the following statements about personality testing is true?
A) The "Big Five" personality dimensions include extroversion, emotional stability, agreeableness, conscientiousness, and openness to experience.
B) Attainment of the full potential of personality testing relates primarily to the careful analysis of test results.
C) Personality tests are not very useful for hiring purposes.
D) The predictive power of personality tests is generally quite low.
E) Extroversion is a valid predictor of performance for all occupations.
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Chapter 6: Orientation and Training
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Sample Questions
Q1) You have been hired as the new executive director of a child and family services agency and are considering implementing an employee orientation program at this organization.The benefits that this new program will likely bring to the organization include
A) legal compliance.
B) affirmative action.
C) making employees more productive more quickly.
D) making employees more productive more quickly and establishing a foundation for ongoing performance management.
E) promoting workforce diversity.
Q2) Harold is the recently hired CEO of a telecommunications company.He wishes to create a learning organization.Activities that are necessary for this to occur include making effective promotion decisions. making effective termination decisions. transferring knowledge. making effective transfer decisions. establishing a career development program.
Q3) Identify and briefly describe five different training techniques.
Q4) Identify and briefly describe 5 career anchors.
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Chapter 7: Performance Management
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Sample Questions
Q1) All of the following are advantages of various appraisal tools except that
A) alternation ranking is simple to use.
B) forced distribution results depend on the adequacy of the original choice of cutoff points.
C) BARS is very accurate.
D) a graphic rating scale is simple to use.
E) MBO is tied to jointly agreed goals.
Q2) When using a graphic rating scale, the central tendency error occurs when raters rate people too high.
A)True
B)False
Q3) When preparing for the appraisal interview, there are three things to do.First, assemble the data, second, prepare the employee, and finally,
A) choose the time and place.
B) prepare the appraisal examination.
C) do the performance appraisal.
D) lay out an action plan.
E) document all information to be discussed in the interview.
Q4) Identify and briefly describe five different performance appraisal methods.
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Chapter 8: Strategic Pay Plans
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Sample Questions
Q1) Compensation policies are usually written by the HR or compensation manager together with A) supervisors.
B) employees.
C) stockholders.
D) compensation consultants.
E) senior management.
Q2) With skill/competency-based pay, employees are paid for the range, depth, and type of skills and knowledge they are capable of using, rather than for the job currently held.
A)True
B)False
Q3) The problem with having a wage structure with underpaid employees can be solved through raising their wages to
A) another pay grade.
B) the midrange of an employee's pay grade.
C) the minimum of the rate range for their pay grade.
D) the maximum of the rate range for their pay grade.
E) be competitive with other jobs in the firm.
Q4) Identify and briefly describe the five components of total rewards.
Page 10
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Chapter 9: Employee Benefits and Services
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Sample Questions
Q1) The biggest issue facing benefits managers in Canada today is
A) workers' compensation costs.
B) pension funding.
C) AIDS coverage.
D) retiree benefits.
E) increasing health care benefit costs.
Q2) Accidental death and dismemberment coverage provides annuity payments in addition to life insurance benefits when death is accidental.
A)True
B)False
Q3) The EI benefit is generally 55% of average earnings during the last 14 to 26 weeks of the
A) qualifying period.
B) previous calendar year.
C) probationary period.
D) previous 52 weeks.
E) benefit period.
Q4) Identify and briefly describe five employee services including at least two from personal services and two job-related services.
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Chapter 10: Occupational Health and Safety
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Sample Questions
Q1) Canadian corporate executives and directors may be held directly responsible for workplace injuries.
A)True
B)False
Q2) Most safety experts agree that safety commitment must begin with
A) the rank-and-file employee.
B) work teams.
C) the line supervisor.
D) top management.
E) middle management.
Q3) You are the new human resources professional at a plastics manufacturing company.In improving the workplace health and safety program, which basic activities should you focus on?
A) policies and procedures within the department
B) turmoil and morale in the plant
C) healthy labour-management relations
D) pro-union or non-union voting
E) reducing unsafe conditions and unsafe acts
Q4) Briefly discuss the three basic causes of accidents in the workplace.
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Chapter 11: Managing Employee Separations: Foundations
of Employee Engagement Communication and Turnover Management
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Sample Questions
Q1) The following issues should all be included in a set of rules and regulations regarding discipline except
A) transfer of one's job.
B) theft.
C) insubordination.
D) destruction of company property.
E) drinking on the job.
Q2) Leading or participating in an effort to undermine and remove the boss from power would not be considered an act of insubordination.
A)True
B)False
Q3) The following are all progressive penalties an employer may use for effective discipline except
A) loss of vacation.
B) suspension from the job.
C) written warnings.
D) oral warnings.
E) discharge from the job.
Q4) Identify the three conditions that should be present when a layoff occurs.
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Chapter 12: Labour Relations
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Sample Questions
Q1) A union steward is
A) a union member who is appointed by management to act as the union representative.
B) a union member elected by workers in a particular area of a firm to act as their union representative.
C) a union member elected by management to act as the union representative.
D) a union member working with an airline.
E) a management member elected by workers in an area of a firm to act as their union representative.
Q2) Speaking out on proposed legislative reforms is most closely associated with A) social unionism.
B) business unionism.
C) pre-strike activity.
D) political unionism.
E) information picketing.
Q3) Discuss in detail any two aspects of the impact of unionization on HRM.
Q4) The grievance procedure provides the opportunity for the interpretation of contract language.
A)True
B)False
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Chapter 13: Managing Human Resources in a Global Business
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Sample Questions
Q1) Determining equitable wage rates in many countries is a simple matter.
A)True
B)False
Q2) International EAPs can help expatriates with mental health, which is often affected by the stressful relocation process.
A)True
B)False
Q3) Wide-ranging customs that vary from country to country demanding corresponding differences in HR practices among a company's foreign subsidiary are
A) cultural differences.
B) trade deficits.
C) balance of payments.
D) trade surpluses.
E) foreign trade.
Q4) Expatriates are noncitizens of the countries in which they are working.
A)True
B)False
Q5) Discuss steps that can be taken to assist in the repatriation process.
Page 15
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