Human Resource Management Review
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Course Introduction
Human Resource Management is a foundational course that explores the principles, practices, and legal frameworks involved in managing an organization's workforce. It covers key functions such as recruitment and selection, training and development, performance appraisal, compensation and benefits, employee relations, and labor law compliance. Through case studies and real-world scenarios, students gain insight into strategic HR planning, diversity and inclusion, and the role of HR in organizational success. This course equips learners with the knowledge and skills to effectively address human resource challenges in various organizational contexts.
Recommended Textbook
Strategic Compensation A Human Resource Management Approach 8th Edition by
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Page 2
Joseph J. Martocchio
Chapter 1: Strategic Compensation: a Component of Human Resource Systems
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Sample Questions
Q1) These ordered sets of jobs make it easy for compensation managers to give a clear relative value for all jobs within a company.
A)externally consistent compensation systems
B)internally consistent compensation systems
C)market-wide consistent compensation systems
D)comparably consistent compensation systems
Answer: B
Q2) Companies that are implementing ________ plans generally increase the amount of classroom and on-the-job training as these types of plans make training necessary rather than optional.
Answer: pay-for-knowledge
Q3) P&G uses a ________ strategy based on brand image and price premium in between its Iams and Eukanuba brands.
Answer: differentiation
Q4) Due to recent economic downturn,XYZ Co.decided to shut down one of its appliance manufacturing plants in the United States,and therefore around 300 workers need to be laid off.XYZ Co.will award these laid off workers with 6 months of ________ pay.
Answer: severence
Page 3
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Chapter 2: Contextual Influences on Compensation Practice
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Sample Questions
Q1) The FLSA requires that overtime be paid on all hours worked in excess of ________ hours within a period of 7 consecutive days.
Answer: 40
Q2) This act strengthened the Equal Pay Act of 1963 by requiring employers to show that pay disparities are job related rather than sex-based.This act also prohibits employers from retaliating against employees who share their salary information.
A)The Paycheck Fairness Act
B)The Civil Rights Act of 1964
C)The Age Discrimination in Employment Act of 1967
D)The Davis Act
Answer: A
Q3) What is it called when the compensation practices in non-unionized companies mirror those found in unionized settings?
A)progressive compensation
B)the spillover effect
C)concessionary bargaining
D)inter-industry compensation differentials
Answer: B
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Chapter 3: Traditional Bases for Pay: Seniority and Merit
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Q1) A manager in a company gives higher performance appraisal rating to employees whose children attend the same elementary school as his/her children than employees without any children.What kind of rater error was made by the manager?
A)negative halo effect
B)first-impression effect
C)similar-to-me effect
D)contrast errors
Answer: C
Q2) ________ systems evaluate a given employee's performance against the performance of other employees.
Answer: Comparison
Q3) Among the various performance appraisal techniques,this appraisal system is the most defensible in court because it is based on actual observable job performance behaviors.
A)behaviorally anchored rating scales
B)360 degree performance appraisals
C)paired comparison
D)forced distribution
Answer: A
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Page 5
Chapter 4: Incentive Pay
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Sample Questions
Q1) John is a design engineer working at an auto manufacturer research and development department.In addition to his normal duties,he is assigned to a team of other engineers developing a highly automated assembly line for the new model of a passenger car.What type of team is John assigned to?
A)incentive teams
B)project teams
C)work (process)teams
D)parallel teams
Q2) How do traditional pay methods differ from incentive pay methods?
Q3) This incentive plan has a buy-back provision.
A)ESOPs
B)Rucker
C)Improshare
D)Scanlon
Q4) Which of the following is another name for parallel teams?
A)task forces
B)innovation teams
C)process teams
D)work teams
Q5) Stock ________ describe an employee's right to purchase company stock.
Page 6
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Chapter 5: Person-Focused Pay
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Q1) ________ is the degree which an employee receives clear and direct information about job performance from his or her employer.
Q2) According to the job characteristics theory,this core characteristic refers to the amount of freedom,independence,and discretion the employee enjoys in determining how to do the job.
A)skill variety
B)feedback
C)autonomy
D)task identity
Q3) Which pay model promotes learning and skills development for a wide variety of jobs from different job families?
A)cross-departmental
B)job-point accrual
C)stair-step
D)skill blocks
Q4) In which settings are person-focused pay programs likely to be found?
Q5) Core ________ are often derived from the overall strategic statements of companies and are very general knowledge and skills.
Q6) ________ pay compensates employees for jobs they currently perform.
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Chapter 6: Building Internally Consistent Compensation Systems
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Q1) ________ describe preferences for work environments and outcomes.
Q2) Developing internally consistent job structures affects the competitive strategy of a company.Which of the following is a potential constraint on competitive strategy?
A)Internally consistent structures potentially reduce a company's rigidity to respond to moves by the competition.
B)Internally consistent job structures potentially cause the definition of jobs to become less fluid.
C)Internally consistent job structures lead to less routinization.
D)Internally consistent job structures potentially create far more bureaucratization within an organization.
Q3) Market-based job evaluation uses which method to collect data to determine prevailing pay rates?
A)observations
B)interviews
C)questionnaires
D)surveys
Q4) ________ skills information describes developed capacities that facilitate learning or the more rapid acquisition of knowledge.
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Chapter 7: Building Market-Competitive Compensation Systems
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Q1) ________ analyses enable compensation professionals to establish pay rates for a set of jobs that are consistent with typical pay rates for jobs in the external market.
Q2) This BLS survey provides the quarterly measure of changes in labor and compensation costs and is used as the principle economic indicator for the Federal Reserve.
A)National Compensation Survey
B)Employment Cost Index
C)Employer Costs for Employee Compensation
D)National Benefit Index
Q3) ________ represents the amount of spread or dispersion in a set of data.
Q4) HR professionals rely on ________ jobs as reference points for setting pay levels.
Q5) Which of the following are the three measures of dispersion?
A)percentile standard,deviation,arithmetic mean
B)standard deviation,quartile,percentile
C)quartile,arithmetic mean,standard deviation
D)arithmetic mean,percentile,quartile
Q6) The ________ is the middle value in an ordered sequence of numerical data.
Q7) What is an appropriate pay policy mix?
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Chapter 8: Building Pay Structures That Recognize
Individual Contributions
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Q1) With which type of sales commission plan does an employee earn a higher rate of commission for all sales made in a given period if the sales level exceeds a predetermined level?
A)commission-plus-draw plan
B)straight commission
C)multiple-tiered commission
D)graduated commission
Q2) ________ represent the vertical dimension of pay structures.
Q3) How are compa-ratios calculated?
A)dividing the green circle rates midpoint by the normal pay range
B)dividing the employee's pay rate by the market line rate
C)dividing an employee's pay rate by the pay range midpoint
D)dividing the red circle rates by the normal pay range
Q4) ________ rates pay wages higher than the maximum listed in order to help retain valued employees fielding big job offers elsewhere.
Q5) Midpoint,minimum,and maximum are values used to define which of the following?
A)pay grades
B)pay ranges
C)pay structures
D)pay levels
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Chapter 9: Discretionary Benefits
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Q1) The ________ is the time between the initial date of hire and the time that coverage in a disability insurance program begins.
Q2) This type of flexible work schedule allows employees to work four 10-hour days a week.
A)flextime
B)compressed work week
C)job sharing
D)relaxed work standards
Q3) ________ are career and personal programs designed to develop the job-hunting skills and strategies of employees being laid off or terminated.
Q4) This policy allows employees to schedule time off without having to justify the reasons and is more effective in controlling absenteeism than other types of absence control policies.
A)personal paid time off
B)social service leaves
C)sick leaves
D)integrated paid time off
Q5) Define three types of life insurance.
Q6) What are the implications of discretionary benefits for strategic compensation?
Page 11
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Chapter 10: Employer-Sponsored Retirement Plans and Health Insurance Programs
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Q1) ________ refers to an employee's nonforfeitable rights to pension benefits.
Q2) This type of defined contribution plan,also known as a CODA,permits only private sector or tax-exempt employers' employees to tax defer part of their compensation to the trust of a qualified plan.
A)401(k)plan
B)profit sharing plan
C)gain sharing plan
D)incentive plan
Q3) Which of the following is associated with 401(k)plans?
A)Employees pay taxes on their contribution.
B)Employees do not pay taxes on their contributions.
C)Investment gains are taxed.
D)Employees cannot deduct their contributions from taxable income.
Q4) Which of the following represents the most approximate percentage for private sector employees who have access to at least one employer-sponsored health insurance program in 2010?
A)20%
B)50%
C)70%
D)90%
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Chapter 11: Legally Required Benefits
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Q1) Which Medicare plan allows enrollees to use medical savings accounts?
A)Medicare Advantage
B)Medigap
C)Medicare Select
D)Medicare Prescription Drug Program
Q2) Which one of the following is a wrong belief regarding the Social Security System in the United States?
A)The viability of Social Security programs has been a subject of heated debates between Democrats and Republicans across the country.
B)The Social Security taxes paid by today's workers and their employers are used to pay the benefits for today's retirees and other beneficiaries.
C)Social Security taxes paid by employees and their employers are held in interest-bearing accounts set aside by the federal government to meet their own future retirement income needs.
D)The Social Security System is a pay-as-you-go system.
Q3) Briefly discuss the components of legally required benefits.How can HR managers minimize the costs that are associated with legally required benefits?
Q4) ________ specify insurance rates based on classifications of businesses.
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Page 13
Chapter 12: Compensating Executives
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Q1) Which of the following stock options entitle an executive to purchase company stock in the future for a predetermined price?
A)nonstatutory stock options
B)incentive stock options
C)restricted stock options
D)phantom stock options
Q2) XYZ Co.took back performance-based compensation of $1.2 million from their CEO because of his decision of the buyout of another firm that eventually lowered the overall value of the XYZ Co.Which of the following compensation agreements allowed the board of directors to take back this $1.2 million?
A)platinum parachutes
B)clawback provisions
C)phantom stock
D)golden parachute
Q3) Company stock shares are the main form of executives' ________ compensation.
Q4) ________ provide pay and benefits to executives after a termination that results from a change in ownership or merger.
Q5) The actions of executives on behalf of their own self-interest are known as the ________ problem.
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Chapter 13: Compensating the Flexible Work Force:
Contingent Employees and Flexible Work Schedules
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Q1) Contingent workers typically find employment in which of the following industries?
A)automotive
B)transportation
C)apparel manufacturing
D)heavy equipment manufacturing
Q2) The Bureau of Labor Statistics does not monitor pay levels for which type of temporary workers?
A)part-time employees
B)leased employees
C)temporary employees
D)independent contractors
Q3) John is offered to be an adjunct faculty for a semester to teach a statistics class in place of a professor,who is on a sabbatical leave.This example represents which of the following?
A)independent contractor
B)on-call arrangement
C)job sharing
D)leased employee
Q4) Explain the reasons why employers hire temporary workers.
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Chapter 14: Compensation Expatriates
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Q1) Which of the following are used by the State Department to determine the per diem schedules?
A)length of stay,family size
B)location,family size
C)cost of living,family size
D)length of stay,location
Q2) If the local index for Tel Aviv,Israel is 146,what does that mean?
A)The cost of living is 46% higher in Washington,D.C.than it is in Tel Aviv.
B)The cost of living is 146% higher in Washington,D.C.than it is in Tel Aviv.
C)The cost of living is 146% higher in Tel Aviv than Washington,D.C.
D)The cost of living is 46% higher in Tel Aviv than Washington,D.C.
Q3) What law mandates that management bargain in good faith with labor unions over terms of employment,such as wages?
A)Fair Labor Standards Act of 1938
B)National Labor Relations Act of 1935
C)North American Free Trade Agreement
D)North American Treaty Organization
Q4) Expatriates receive ________ allowances when the cost of living is higher in the country that they work in than it is in the U.S.
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Chapter 15: Pay and Benefits Outside the United States
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Q1) In which country do companies incur the highest hourly cost for employing a manufacturing worker?
A)China
B)Norway
C)United States
D)Canada
Q2) Which of the following is NOT one of the top three largest economies in Asia as of 2010?
A)Philippines
B)China
C)India
D)Japan
Q3) Brazil's workforce has over how many people?
A)92 million
B)107 million
C)115 million
D)127 million
Q4) Compare health benefits and paid time off benefits in India and People's Republic of China.
Q5) In Germany,the minimum wage rate is established by the ________.
Page 17
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Chapter 16: Challenges Facing Compensation
Professionals
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Q1) According to the Federal Reserve Bank,what is the percentage of industries that have cut back production since the beginning of the Great Recession?
A)82%
B)86%
C)90%
D)75%
Q2) ________ is a situation in which a worker possesses more qualifications,skill,and education than is required by his/her existing job.
Q3) Tim owns a fruit distribution company and hires around 100 employees.Before PPACA became a law,he did not provide health insurance coverage for the workers.After March 2010,he started to provide the coverage.However,from then on,the costs of his company have been increasing exponentially.Which of the following cannot be one of the ways to limit the rising costs of offering health care coverage?
A)lowering wages to offset the costs of health insurance
B)decreasing the size of his workforce
C)limiting the waiting periods to receive health care coverage to 90 days (for new workers)
D)imposing lifetime benefit caps at $1 million
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