Employment Law
Final Exam Questions
Course Introduction
Employment Law explores the legal framework governing the relationship between employers and employees. The course examines topics such as employment contracts, employee rights and duties, anti-discrimination laws, workplace health and safety, wage and hour regulations, termination procedures, and collective bargaining. Students will learn to analyze statutes, case law, and practical scenarios to understand how legal principles apply to workplace situations and how employers and workers can navigate and resolve employment-related disputes. This course is essential for anyone interested in managing legal risks in the workplace or pursuing a career in human resources, management, or legal practice.
Recommended Textbook
Strategic Compensation in 6th Canada Edition by Richard Long
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13 Chapters
591 Verified Questions
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Page 2
Chapter 1: A Road Map to Effective Compensation
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Sample Questions
Q1) Which statement best describes the key aspect of Maslow's theory of needs?
A) Extrinsic rewards are more important than intrinsic rewards.
B) Intrinsic rewards are more important than extrinsic rewards.
C) Humans tend to first satisfy their basic needs before higher order needs.
D) Self-esteem needs are more closely tied to rewards than the other needs.
Answer: C
Q2) After graduation,you were offered a position as a job analyst with a local bank.Which of the following would best describe your new job?
A) designing and implementing compensation policies
B) formulating compensation strategy and ensuring congruency with corporate objectives
C) evaluating market data from organizations of similar size and scope
D) developing job descriptions and conducting job evaluations
Answer: D
Q3) There is often one so-called best compensation system that applies to a broad spectrum of organizations.
A)True
B)False
Answer: False
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Chapter 2: A Strategic Framework for Compensation
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Sample Questions
Q1) Which managerial strategy most highly values an organization's culture?
A) classical
B) human relations
C) high involvement
D) hybrid Answer: C
Q2) Group and organizational pay systems characterize firms that use a classical managerial strategy.
A)True
B)False
Answer: False
Q3) Explain the concept of fit.
Answer: Fit is an important concept in strategic management.It refers to the alignment of strategies at various levels in an organization.There are two related concepts: vertical and horizontal fit,or vertical and horizontal integration.Vertical fit refers to the alignment between an organization's mission,vision and/or values,and the various supportive strategies that cascade down an organization.Horizontal fit refers to the alignment between and among strategies at the same level; for instance,HRM strategies such as performance management and compensation are aligned or support each other.
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Page 4
Chapter 3: A Behavioural Framework for Compensation
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Sample Questions
Q1) Which term refers to the individual's perception of how likely it is that the effort they give will lead to the successful performance of the desired behaviour?
A) valence
B) expectancy
C) instrumentality
D) salience
Answer: B
Q2) Distributive justice refers to the fairness of the process in giving rewards.
A)True
B)False
Answer: False
Q3) Terry was generously rewarded by his parents when he received excellent grades.His parents are hoping that the rewards will help Terry get similar grades in the future.Which theory helps to explain this scenario?
A) Maslow's theory
B) Herzberg's theory
C) expectancy theory
D) reinforcement theory
Answer: D
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Page 5
Chapter 4: Components of Compensation Strategy
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Sample Questions
Q1) Why might employees prefer base pay over performance pay?
A) Performance pay is more predictable.
B) Base pay is directly related to their performance level.
C) They dislike uncertainty about their compensation.
D) Market conditions are always changing.
Q2) Why can medical and dental coverage can be purchased more cheaply by the employer than the employee?
A) indexation
B) economies of scale
C) utility
D) dividends
Q3) As the owner of a large hotel,you expect your employees to be flexible,learn a variety of skills,and shift around from one job to another as needed.Which plan will best fit your needs?
A) stock options
B) skill-based pay
C) team-based pay
D) piece rates
Q4) Briefly describe the three main categories of performance pay,and provide examples for each category.
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Chapter 5: Performance Pay Choices
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Sample Questions
Q1) As a human resource specialist,you have been asked by your organization to lead a discussion on the merits of using internal promotions as a main reward mechanism.Which point would you most likely NOT raise?
A) They are an expensive process,as promotions are typically associated with pay increases.
B) They often carry both intrinsic and extrinsic rewards.
C) They recognize contributions made by strong performers.
D) They are often seen as a key motivation tool for employees.
Q2) From an employer's point of view,what is the most attractive feature of properly designed gain-sharing plans?
A) The plans are self-funding.
B) Positive work group norms develop.
C) The need for supervisory control is reduced.
D) Employees monitor each other's performance.
Q3) Which are the main types of profit sharing plans?
A) current assessment plan,deferred plan,and blended plan
B) deferred plan,cash plan,and group plan
C) combination plan,deferred plan,and current distribution plan
D) current distribution plan,combination plan,and employee plan
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Page 7
Chapter 6: Formulating the Reward and Compensation Strategy
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Sample Questions
Q1) Briefly summarize the legislative framework that compensation must comply with.
Q2) As the owner of a medium-sized engineering consulting firm,you decide to implement a compensation level policy that compensates your employees based on market rates.Which type of compensation policy have you adopted?
A) lead
B) match
C) hybrid
D) lag
Q3) In developing a compensation strategy,the two key questions that must be addressed are: "How much is to be paid?" and "When should it be paid?"
A)True
B)False
Q4) The process of formulating a compensation strategy includes five distinct yet interrelated steps.
A)True
B)False
Q5) Briefly describe the five main steps in the formulation of compensation strategy.
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Chapter 7: Evaluating Jobs: the Job Evaluation Process
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Q1) Which job analysis method is used for organizations that are being created or when new jobs are introduced?
A) observation
B) interviews
C) questionnaires
D) functional job analysis
Q2) Which term is used to describe key characteristics of jobs that are valued by organizations and differentiate jobs from one another?
A) core job dimensions
B) job facts
C) compensable factors
D) benchmarks
Q3) Which job evaluation method is like sorting books among a series of carefully labelled shelves in a bookcase?
A) ranking
B) paired comparison
C) classification
D) factor comparison
Q4) What should a job description contain if it is to be useful for job evaluation?
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Chapter 8: Evaluating Jobs: the Point Method of Job Evaluation
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Sample Questions
Q1) What does a -1 (negative one)correlation coefficient mean?
A) There is a positive relationship between job evaluation points score and pay levels.
B) There is an inverse relationship between job evaluation points score and pay levels.
C) Your regression equation has a very steep upwards slope.
D) There is very little relationship between job evaluation points score and pay levels.
Q2) A living wage is the same as the minimum wage.
A)True
B)False
Q3) Briefly describe the main pitfalls in designing a point method system of job evaluation.
Q4) Broad banding results in fewer jobs in a pay grade.
A)True
B)False
Q5) A pay grade is the same as a pay range.
A)True
B)False
Q6) What criteria are used to determine movement through the pay range?
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Chapter 9: Evaluating the Market
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Q1) Which of the following best explains why current employers do not seem to reduce wages for existing employees in the short term when the supply for a particular set of skills far outstrips the demand?
A) because of the wage compression phenomenon
B) because of the negative impact on performance and increased turnover
C) because labour budgets tend to be determined on an annual basis
D) because fewer potential employees tend to put upwards pressure on wages
Q2) What is NOT a main step in conducting a proper compensation survey?
A) identifying jobs to be surveyed
B) identifying employees to be surveyed
C) determining the information needed
D) determining how you will collect the data
Q3) A very large interquartile quotient tends to indicate that all jobs in the sample are equivalent.
A)True
B)False
Q4) Informal surveys have poor reliability and validity.
A)True
B)False
Q5) Briefly describe the process for analyzing and interpreting survey data.
Page 11
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Chapter 10: Evaluating Individuals
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Sample
Questions
Q1) Which performance appraisal method is congruent with a management approach that dictates that no more than 15 percent of employees are to be rated as excellent,commanding a top percentage increase in merit pay?
A) forced distribution
B) paired comparison
C) behaviourally anchored rating scales
D) field review
Q2) According to research cited in the textbook,which source is used by the majority of Canadian employers?
A) supervisory and self-appraisals
B) only supervisory appraisals
C) 360-degree feedback
D) supervisory,self,and peer appraisals
Q3) Which source uses many different rating groups to evaluate the employee's performance?
A) professional raters
B) tiered supervisors
C) 360-degree feedback
D) field review
Q4) Define and describe the key elements of performance management.
Page 12
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Chapter 11: Designing Performance Pay Plans
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Sample Questions
Q1) The Scanlon plan has changed over the years.A central reason for these changes is the notion that employees can reduce labour input as a function of output by increasing other costs.
A)True
B)False
Q2) Which gain-sharing plan requires that management has access to historical data so as to be able to calculate a so-called "normal labour cost"?
A) Rucker plan
B) family of measures plan
C) Scanlon plan
D) Improshare plan
Q3) Employee participation is not necessarily a component of goal-sharing plans.
A)True
B)False
Q4) In order for the Scanlon plan to work,organizations must be able to predict future cost of inputs,particularly labour.
A)True
B)False
Q5) Discuss the key issues in designing a nonmonetary reward plan.
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Chapter 12: Designing Indirect Pay Plans
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Q1) What is the first issue in developing an effective benefit system?
A) determining the tax implications
B) examining the compensation cost structure of the organization
C) establishing the administration process
D) determining the role of indirect pay in compensation strategy
Q2) Which term refers to a company pension plan that guarantees a certain benefit to retirees regardless of market conditions?
A) defined benefit plan
B) money purchase plan
C) defined contribution plan
D) Canada Pension Plan
Q3) It is not cost effective having employers purchase dental coverage on behalf of their employees instead of the employees themselves.
A)True
B)False
Q4) Firms with pension plans have higher turnover rates among employees.
A)True
B)False
Q5) Discuss the pros and cons of flexible versus fixed benefits plans.
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Chapter 13: Activating and Maintaining an Effective Compensation System
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Q1) A good employee threatens to leave your firm because she has received a higher pay offer from a competitor.The offer is well outside your company's pay range for the job the employee is performing.What should you tell the employee?
A) You will match the other offer.
B) You will beat the other offer to be sure you won't lose her.
C) You will try to get her job put into a higher pay grade.
D) You wish her all the best in her new job with the competitor.
Q2) What is NOT an advantage of outsourcing the compensation function?
A) cost savings from economies of scale
B) expertise provided by outside personnel
C) in-house managers may be able to spend more time focusing on strategic issues
D) increased internal capacity to understand the compensation system
Q3) Which statement does NOT support the notion of outsourcing some human resource functions to third-party service providers?
A) It provides internal staff with a better sense of issues facing employees.
B) It reduces costs.
C) It leverages the specialized knowledge of external experts.
D) It allows internal staff to focus on strategic human resource activities.
Q4) Identify the tasks involved in preparing to implement a compensation system.
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