Personnel Management
Chapter Exam Questions
Course Introduction
Personnel Management is a foundational course that explores the principles and practices involved in managing an organizations workforce. Students will examine core human resource functions such as recruitment and selection, training and development, performance appraisal, compensation, and employee relations. The course emphasizes the legal and ethical aspects of personnel management while fostering skills in effective communication, motivation, and conflict resolution. Through case studies and practical exercises, students will gain insight into how thoughtful personnel practices contribute to organizational success and employee well-being.
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Strategic Compensation A Human Resource Management Approach 8th Edition by Joseph
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Page 2
J. Martocchio
Chapter 1: Strategic Compensation: a Component of Human Resource Systems
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Q1) Which of these actions would HR seek to encourage in attempting to create a lowest-cost competitive strategy?
A)an employee's long-term focus
B)unpredictable employee behavior
C)high concern for the quantity of output
D)high concern for the quality of output
Answer: C
Q2) Strategic management involves distinguishing between ________ and ________ in attempting to achieve company goals,thus making strategic management an imprecise process.
Answer: threats,opportunities
Q3) 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
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Chapter 2: Contextual Influences on Compensation Practice
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Q1) Melissa has been working in XYZ Company for the last 8 years.She got a very attractive job offer from another company in the same industry and decided to leave her current company.She is one hundred percent vested.Which of the following acts guarantees that she cannot lose the pension benefits after she leaves her job in XYZ Company?
A)HIPAA
B)ADA
C)COBRA
D)ERISA
Answer: D
Q2) Which of these was given as a reason why union influence has diminished?
A)foreign automobile manufacturers producing higher quality vehicles
B)union companies demonstrating lower profits than non-union companies
C)technological advances
D)all of the above
Answer: D
Q3) The ________ in Employment Act of 1967 was passed by Congress in order to protect workers 40 years of age and older from unlawful discrimination.
Answer: Age Discrimination
Page 4
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Chapter 3: Traditional Bases for Pay: Seniority and Merit
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Q1) There are 15 animal keepers working for the XYZ Company.Their supervisor is required to rate the performance of these workers based on the following criteria: 30% of the animal keepers will be rated as below-average,40% of the animal keepers will be rated as average,and 30% of the animal keepers will be rated as above average.What type of performance appraisal is used?
A)paired comparison
B)forced distribution
C)critical incident technique
D)behavioral observation scale
Answer: B
Q2) A manager expects high levels of performance from a newly hired employee,Ashley,as she graduated from a prestigious Ivy League university.A year later,the manager rates Ashley's job performance higher than her actual performance due to his initial belief.What kind of rater error was made by the manager?
A)negative halo effect
B)first-impression-effect
C)positive halo effect
D)contrast errors
Answer: B
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Chapter 4: Incentive Pay
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Q1) Stock ________ describe an employee's right to purchase company stock.
Q2) XYZ Company pays a portion of company profits to its employees.The management offers this incentive plan as one kind of retirement program.What kind of companywide incentive plan does XYZ Co.offer?
A)employee stock ownership plan
B)deferred profit sharing plan
C)current profit sharing plan
D)employee stock option plan
Q3) Which of the following is true about the level of risk involved with incentive pay?
A)The level of risk decreases as incentive pay represents a greater proportion of total core compensation.
B)The level of risk is lower for higher-level employees than those who are lower in the job structure.
C)The level of risk depends on the extent to which employees control the attainment of a desired goal.
D)The level of risk is dependent on subjective performance appraisals.
Q4) Briefly describe the three categories of incentive pay plans and give an example of each.
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Chapter 5: Person-Focused Pay
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Q1) Which pay plan generally rewards employees for acquiring job-related competencies,knowledge,or skills rather than for demonstrating successful job performance?
A)knowledge-based
B)incentive
C)merit
D)person-focused
Q2) Jamie earned a raise in pay when he finished the training for the Technician 2 position.He will receive another raise when he finishes the training for the Technician 3 position.The company is probably using which type of pay program?
A)the stair-step model
B)the skill blocks model
C)the job-point accrual model
D)the cross-departmental model
Q3) ________ skills are those skills typically considered supervisory.
Q4) ________ pay compensates employees for jobs they currently perform.
Q5) ________ of skills is the level of expertise or specialization an employee brings to a job.
Q6) Both unions and contractors,who employ carpenters,use ________ pay plans.
Page 7
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Chapter 6: Building Internally Consistent Compensation Systems
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Q1) ________ skills information describes developed capacities that facilitate learning or the more rapid acquisition of knowledge.
Q2) These are the salient job characteristics that are the general basis for job evaluations and are used to establish relative pay rates.
A)job descriptions
B)compensable factors
C)occupation descriptions
D)ranking plans
Q3) ________ are the social context or physical environment where work will be performed.
Q4) A reliable ________ yields consistent results under similar conditions,when multiple analysts reach the same conclusion about the major duties that comprise a position.
Q5) These indicate the name of each job within a company's job structure.
A)job specifications
B)job summaries
C)position headings
D)job titles
Q6) ________ describe preferences for work environments and outcomes.
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Chapter 7: Building Market-Competitive Compensation Systems
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Q1) Elaborate on the link between a company's pay level policy and its strategic mandate.
Q2) The market ________ policy distinguishes a company from competition by compensating employees less than most competitors.
Q3) This causes compensation survey data to become obsolete fairly quickly.
A)the lag time between when the data was collected and used
B)pay compression
C)changes in the unemployment rate
D)changes in the geographic location of the company
Q4) ________ represent the fields of potentially qualified candidates for particular jobs.
Q5) The ________ is the most commonly used method for tracking cost changes throughout the United States.
Q6) The Consumer Price Index represents the average price changes for the price of goods and services in how many regions?
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Chapter 8: Building Pay Structures That Recognize
Individual Contributions
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Q1) ________ is a form of compensation based upon a percentage of the selling price of a product or service.
Q2) Which of the following would NOT be considered as an advantage of broadbanding?
A)elimination of narrow bands broadens employees' job duties and responsibilities
B)reduced organizational hierarchies that support job promotions
C)reduced management layers that promotes quicker decision making cycles
D)greater responsibility for supervisors for administering each employee's compensation within the confines of the broadbands
Q3) Richard's job has a compa-ratio of 0.85.What does this ratio tell about Richard's pay rate?
A)Richard's pay is highly competitive with the market.
B)Richard's pay is not competitive with the market.
C)There is no way to judge the competitiveness of Richard's pay.
D)You need more information to be able to judge Richard's pay.
Q4) ________ represent the vertical dimension of pay structures.
Q5) ________ rates pay wages higher than the maximum listed in order to help retain valued employees fielding big job offers elsewhere.
Page 10
Q6) What is pay compression and how can companies minimize the occurrence of it?
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Chapter 9: Discretionary Benefits
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Q1) Which of the following is a strategic purpose fulfilled by discretionary benefits?
A)accommodating a diverse workforce
B)becoming similar to competing firms
C)encouraging employee entitlements
D)keeping a fixed workforce
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) ________ replaces income for employees who become unable to work because of sicknesses or accidents.
Q4) The giving of one's time to support a meaningful cause is better known as what?
A)volunteerism
B)self-service
C)cause-oriented efforts
D)social empowerment
Q5) Define three types of life insurance.
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Chapter 10: Employer-Sponsored Retirement Plans and Health Insurance Programs
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Q1) Which of the following types of insurance plans provides protection against health care expenses in the form of cash benefits paid to the insured or directly to the provider after the services are rendered?
A)point-of-service plans
B)managed care plans
C)fee-for-service plans
D)health savings accounts
Q2) A company uses graduated first-dollar-of-profits formula for their profit-sharing plans.They choose to share 4% of the first $10 million of after-tax profits and 7% of the after-tax profits in excess of that level.If this company's after-tax profit were $15 million last year,how much of this profit would be distributed to the employees?
A)$1,200,000
B)$1,000,000
C)$750,000
D)$600,000
Q3) Fixed first-dollar-of-profits,graduated first-dollar-of-profits,and profitability threshold formulas establish ________ contributions.
Q4) Distinguish between qualified and nonqualified retirement plans.
Page 12
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Chapter 11: Legally Required Benefits
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Q1) ________ occurs when a worker has his or her job status negatively affected or is terminated as a result of filing a workers' compensation claim.
Q2) ________ plans emphasize cost control by limiting an employee's choice of doctors and hospitals and often pay a higher level of benefits if health care is received from approved providers.
Q3) In 2013,how much would you have to earn to qualify for one quarter of credit for OASDI coverage?
A)$625 for each quarter
B)$760 for each quarter
C)$920 for each quarter
D)$1,126 for each quarter
Q4) As of September 2012,how much did U.S.companies spend per employee on average to provide legally required benefits?
A)$4,950
B)$495
C)$7,300
D)$730
Q5) ________ specify insurance rates based on classifications of businesses.
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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) When he became CEO,Duane was given a stock option that does not require him to exercise his options in order to receive income.Which plan is it?
A)stock appreciation rights
B)discount stock
C)restricted stock
D)golden parachute
Q3) What does the IRS use the term "key employees" for?
A)for non-discrimination rules in retirement benefits
B)for non-discrimination rules in health insurance benefits
C)to determine the necessity of top-heavy provisions in employer-sponsored qualified retirement plans
D)to determine the necessity of top-heavy provisions in employer-sponsored health insurance plans
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Chapter 13: Compensating the Flexible Work Force:
Contingent Employees and Flexible Work Schedules
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Q1) Who is responsible for compensating on-call employees?
A)the independent contractor
B)the hiring company
C)the temporary agency
D)the government
Q2) What are the strategic issues involved with contingent and flexible workers for a company pursuing a lowest cost strategy?
Q3) For part-time employees to be eligible to be in a company's retirement plan,which two qualifications must be met?
A)age 21 or older and worked 2000 hours in a year of service
B)age 21 or older and worked 1000 hours in a year of service
C)age 18 or older and worked 2000 hours in a year of service
D)age 18 or older and worked 1000 hours in a year of service
Q4) ________ allows for an alternative work arrangement in which employees are able to work at home or at an alternate location besides the office.
Q5) A special kind of part-time employment agreement,whereby two or more part-time employees perform a full-time job,is better known as ________.
Page 15
Q6) Explain the reasons why employers hire temporary workers.
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Chapter 14: Compensation Expatriates
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Q1) ________ nationals are foreign citizens that work in U.S.companies' branch offices or manufacturing plants in their home countries.
Q2) AT&T plans on sending R.J.to Peru to work for at least 3 years.They will probably use which method to set his base pay?
A)host-country-based B)home-country-based C)headquarters-based D)third-country based
Q3) Juanita was told that on her first overseas assignment she would be getting a foreign service premium.That probably means she will be there at least how long?
A)12 months
B)6 months
C)3 months
D)24 months
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.
Q5) ________ benefits allow for expatriates to take paid time off back in the United States.
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Chapter 15: Pay and Benefits Outside the United States
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Q1) The ________ is a unique international organization that aims at becoming an economic superpower,while still retaining such practices as high levels of employment,social welfare protection,and strong trade unions.
Q2) In which country do companies incur the highest hourly cost for employing a manufacturing worker?
A)China
B)Norway
C)United States
D)Canada
Q3) What percentage of their gross earnings do Brazilian employees put towards social insurance?
A)1)5%
B)3)7%
C)6)5%
D)8)5%
Q4) In Germany,the minimum wage rate is established by the ________.
Q5) Canada has two state-run pension plans: one for ________ provincial residents only and one for the rest of Canada.
Q6) Identify the countries that are part of NAFTA and its main provisions.
Page 17
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Chapter 16: Challenges Facing Compensation Professionals
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Q1) The U.S.Supreme Court ruling that struck down Section 3 of the Defense of Marriage Act now requires that
A)every gay couple receive company sponsored health insurance.
B)federal benefits be provided to married gay couples in states where gay marriage is legal.
C)every state outlaws marriage between same-sex individuals.
D)state benefits be provided to married gay couples.
Q2) ________ is a situation in which a worker is forced to work part-time due to economic situations although she/he is willing to work full-time.
Q3) During which timeframe did the U.S.economy experience the longest recession after World War II?
A)between February 2005 and July 2008
B)between December 2008 and January 2010
C)between April 2007 and December 2009
D)between December 2007 and June 2009
Q4) ________ refers to a general slowdown in economic activity.
Q5) Briefly discuss the uncertainties brought by health care reform and changing workforce demographics.
Q6) ________ measures the purchasing power of a dollar.
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