Course Introduction
Organizational Behavior Exam Materials
Organizational Behavior explores the study of how individuals, groups, and structures interact within organizations to influence performance, motivation, job satisfaction, and culture. This course examines key concepts such as perception, attitudes, communication, leadership, power, conflict, decision-making, and organizational change. Students learn to analyze workplace dynamics and apply behavioral science principles to solve organizational problems, foster effective teamwork, and promote a positive work environment, preparing them for leadership and management roles in various organizational settings.
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Compensation 11th Edition by George Milkovich
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Chapter 1: The Pay Model
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Q1) In China,compensation,dai yu,has come to mean
A) entitlement and benefits.
B) cash compensation.
C) returns and entitlement.
D) cash compensation and relational returns.
Answer: C
Q2) The R<sup>2</sup> is different form correlation in that it tells us what percentage of the variation is accounted for by the variables we are using to predict or explain.
A)True
B)False
Answer: False
Q3) Employers spend ____ cents for benefits in addition to each dollar of wages or salaries.
A) 44
B) 34
C) 24
D) 14
Answer: A
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Chapter 2: Strategy: The Totality of Decisions
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Q1) What is strategy? How is it defined?
Answer: Strategy refers to the fundamental directions that an organization chooses.An organization defines its strategy through the tradeoffs it makes in choosing what to do and what not to do.
Q2) A compensation system focusing on system control and work specifications is most closely associated with _____ strategy.
A) global
B) customer-focused
C) cost-cutter
D) differentiated
Answer: C
Q3) What are the different steps in formulating a total compensation strategy? List them in their order of occurrence.
Answer: There are four steps in formulating a total compensation strategy.They are:
i.Assess Total Compensation Implications
ii.Map a Total Compensation Strategy
iii.Implement Strategy
iv.Reassess
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Chapter 3: Defining Internal Alignment
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Q1) Victoria says,"I don't like it that those jobs that are a lot like mine pay more than my job." Victoria is expressing concern about _____.
A) external equity
B) exchange value
C) procedural justice
D) distributive justice
Answer: D
Q2) The most common bases for determining internal structures are:
A) work content and its value
B) seniority and experience
C) use value and exchange value
D) pay surveys and job evaluation
Answer: A
Q3) Greater pay dispersion is related to lower turnover among executives.
A)True
B)False
Answer: False
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Chapter 4: Job Analysis
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Q1) One of the best ways to increase employee acceptance for job analysis is to
A) reduce costs.
B) meet Fair Labor Standards Act requirements.
C) increase reliability.
D) increase the involvement of employees.
Q2) An increasingly common method of job analysis is quantitative job analysis conducted on a website.
A)True
B)False
Q3) Do all tasks come under a job family? How is a task linked to a job family?
Q4) Which of the following statements regarding reliability of job analyses is not true?
A)Reliability is higher when analysts are professionals.
B) Differences in performance across incumbents affects reliability.
C) Gender and race of analysts affects reliability.
D) Reliability is higher for specific tasks than general ones.
Q5) Write a short note on Americans with Disabilities Act.
Q6) How is validity important in judging job analysis?
Q7) Write a short note on offshoring and the susceptibility of job analysis to offshoring.
Page 6
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Chapter 5: Job-Based Structures and Job Evaluation
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Q1) Views of job evaluation include all except __________
A) negotiation
B) measurement
C) legal mandate
D) external market link
Q2) The beginning of job evaluation is most closely associated with
A) negotiation
B) measurement
C) legal mandate
D) external market link
Q3) Discuss the two methods of ranking.
Q4) The primary reason for documenting employee and supervisor views of compensable factors is to meet requirements of the Equal Pay Act.
A)True
B)False
Q5) How differently is job evaluation seen among managers?
Q6) What are the steps in designing a point plan?
Q7) What are the characteristics of a benchmark job?
Q9) What are the major decisions in a job evaluation process? Page 7
Q8) What are some of the challenges of the classification system?
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Chapter 6: Person-Based Structures
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Q1) How do skill-based plans motivate employees?
Q2) Compared to an on-demand review of certifications,scheduling fixed review points makes it easier to budget and control payroll increases.
A)True
B)False
Q3) Leadership,customer orientation and functional expertise are examples of which group of competencies?
A) Personal characteristics
B) Visionary
C) Organization specific
D) Team dynamics
Q4) Skill-based plans become increasingly economical as the majority of employees become certified at the highest pay levels.
A)True
B)False
Q5) The main appeal of competencies is the direct link to the organization's strategy.
A)True
B)False
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Chapter 7: Defining Competitiveness
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Q1) Which of the following is not a factor explaining differences in pay offered to graduating college students?
A) grades and interview skills
B) location of company
C) type of work
D) industry
Q2) Pay forms is the same concept as pay mix
A)True
B)False
Q3) In a labor market,the demand side focuses on the actions of the employers.
A)True
B)False
Q4) Graduating students usually find themselves in a quoted-labor market.
A)True
B)False
Q5) What is the significance of marginal revenue?
Q6) Segmenting sources of labor is a means of reducing labor costs.
A)True
B)False
Q7) What is the principal argument of the compensating differentials theory?
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Chapter 8: Designing Pay Levels, mix, and Pay Structures
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Q1) The measure of central tendency that minimizes distortion is the mode.
A)True
B)False
Q2) A relevant labor market includes all employers who compete in one or more of the following areas except _____.
A) employees in the same geographic area
B) the same occupations or skills
C) the same products and services
D) pay similar wages
Q3) Turnover and organizational revenues are examples of survey data collected to gather competitive intelligence.
A)True
B)False
Q4) All of the following are examples of potential anomalies except _____.
A) outliers
B) a large variation in base pay for a job at one company
C) one company dominates the results
D) a large variation in average base pay for a job across companies
Q5) Explain the difference between standard deviation and quartiles and percentiles.
Page 11
Q6) What is broad banding? What are some of its advantages?
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Chapter 9: Pay-For-Performance: the Evidence
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Q1) _____ theory argues that performance-based pay is best for complex jobs where monitoring employee performance is difficult.
A) Reinforcement
B) Goal setting
C) Agency
D) Expectancy
Q2) The key to designing a pay-for-performance system rests on standards.Specifically,managers need to be concerned about the:
A) objectives, structure, eligibility, and funding.
B) strategy, measures, structure, and equity.
C) structure, efficiency, equity, and funding.
D) objectives, measures, eligibility, and funding.
Q3) Company X pays for performance.Allan,an employee of the company,is not in favor of this reward system and,therefore,leaves Company X in search of another company with different rules for getting rewards.This is an example of the:
A) design effect.
B) compensation effect.
C) sorting effect.
D) incentive effect.
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Chapter 10: Pay-For-Performance Plans
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Q1) Which of the following is not true about individual spot awards?
A) Smaller companies may be more casual about recognition.
B) Someone in the organization alerts top management to the exceptional performance.
C) A majority of companies do not feel that these awards are effective.
D) Smaller companies are more subjective about deciding the size of the award.
Q2) The Rowan plan uses a standard that is purposefully set high requiring high performance levels.
A)True
B)False
Q3) Many of the disadvantages of individual incentives are due to both a fear production standards may be changed and workers' focus on maximizing output.
A)True
B)False
Q4) ( p.336)Pay-for-performance plans are used for more than three-quarters of all exempt,clerical,and administrative employees.
A)True
B)False
Q5) How can merit pay systems be better managed?
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Chapter 11: Performance Appraisals
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Q1) Bosses who are in a good mood give higher performance ratings than those who are grumpy.
A)True
B)False
Q2) The traditional performance component of the balanced scorecard is__________
A) customer satisfaction,
B) employee internal growth and commitment,
C) operational efficiency in internal processes, and
D) financial
Q3) Performance-dimension training provides raters with a standard of comparison or frame of reference for making appraisals.
A)True
B)False
Q4) The question,"Does the instrument lend itself well to validating employment tests?" applies to which criterion of appraisal formats?
A) Validity
B) Administrative
C) Cost
D) Personnel research
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Chapter 12: The Benefit Determination Process
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Q1) Which of the following benefits has been found to increase productivity in organizations?
A) Child care
B) Employee stock options
C) Health care
D) No benefit has been found to increase productivity.
Q2) Advantages of employer sponsored life and health insurance include all of the following except:
A) favorable tax treatment.
B) lower rates.
C) employees can choose coverage levels.
D) easy qualifying standards.
Q3) Employees' preferences for various benefits can be predicted well from demographic data.
A)True
B)False
Q4) The "bandwagon" effect is when an employer offers a new benefit offered by a competitor without careful consideration.
A)True
B)False
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Chapter 13: Benefit Options
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Q1) Dental insurance is provided by _____ percent of all employers with above 500 employees.
A) 30
B) 90
C) 70
D) 85
Q2) The Pension Benefit Guarantee Corporation protects vested benefits of people in terminated pension plans.
A)True
B)False
Q3) For an employee to gain lifetime coverage under Social Security,they must have worked for_____ quarters during which they were covered by the Act.
A) 20
B) 30
C) 40
D) 50
Q4) What are the areas covered as part of the no-fault insurance under workers' compensation?
Q5) Which are the benefits required by statutory law?
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Chapter 14: Compensation of Special Groups
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Q1) Incentive stock options may be deducted as a company expense.
A)True
B)False
Q2) Discuss the types of conflict faced by professional employees with an example.
Q3) (p.478)Engineers in almost all companies are treated as special compensation cases due to their education and training.
A)True
B)False
Q4) Members of boards of directors are not categorized as candidates for special compensation.
A)True
B)False
Q5) A _____ is a cash or stock award determined by an increase in stock price at a fixed future date.
A) phantom stock plan
B) performance share/unit plan
C) stock appreciation right
D) nonqualified stock option
Q6) What is a tally sheet and what is it used for?
Q7) Describe the types of long-term incentives for executives.
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Chapter 15: Union Role in Wage and Salary Administration
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Q1) Strong management efforts to lower the impact a union has on wages have been successful in recent years.
A)True
B)False
Q2) Describe the strategy for moving employees through wage ranges based on merit.
Q3) Lump-sum awards are added to base wages.
A)True
B)False
Q4) Basically a phenomenon of the union sector,two-tier wage structures differentiate pay based upon the _____.
A) type of work
B) hiring date
C) place of work
D) length of contract, if applicable
Q5) The largest gains for public sector employees are reported for _____.
A) teachers' unions
B) firefighters
C) telecommunication unions
D) postal services
Q6) Briefly summarize lump-sum awards and ESOPs.
Page 18
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Chapter 16: International Pay Systems
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Q1) Explain the dimensions of national cultural attributes proposed by Hofstede.
Q2) Uncertainty avoidance is _____.
A) the distribution of emotional roles between the genders
B) the extent to which a culture programs its members to accept delayed gratification of their material needs
C) the extent to which the less powerful members of organizations accept and expect that power is distributed unequally
D) the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations
Q3) How do the differences in the ownership and financing of companies around the world impact international pay?
Q4) In MNC's,the influence of the local culture on policies and practices may be less for higher level jobs than lower level ones.
A)True
B)False
Q5) What is the balance sheet approach? What is its objective?
Q6) What were the "three pillars" of Japan's employment relationships?
Q7) Compare and contrast the pay objectives of Japanese,German and U.S.pay systems.
Page 19
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Chapter 17: Government and Legal Issues in Compensation
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Q1) The _____ Act requires workers are given a number of breaks during the workday.
A) Portal-to-Portal
B) Occupational Safety and Health
C) Fair Labor Standards
D) Equal Pay
Q2) _______ require(s)companies set policies to take back executive compensation if it was based on financial information that did not comply with accounting standards.
A) The Executive Compensation Disclosure
B) TARP
C) The financial Accounting Standards Board Statement 123R
D) Clawbacks
Q3) All employees are covered by the Fair Labor Standards Act of 1938 and its amendments.
A)True
B)False
Q4) Pay differences for equal work may be justified for demonstrably business-related reasons.
A)True
B)False
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Chapter 18: Management: Making It Work
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Q1) A _____ rate is when an employee is paid more than the maximum of their pay grade.
A) red circle
B) yellow circle
C) blue circle
D) green triangle
Q2) Less than 10 percent of compensation professionals strongly agree that employees know their own pay range and the one above them.
A)True
B)False
Q3) Sometimes referred to as "churn" or "slippage," the _____ recognizes the fact that when people leave an organization,they typically are replaced by employees who earn a lower wage.
A) productivity effect
B) conflict effect
C) turnover effect
D) morale effect
Q4) The is the average actual pay divided by the midpoint of the pay grade.
A)True
B)False
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