Rewards Management Test Questions
Course Introduction
Rewards Management explores the strategies, policies, and practices organizations use to design and implement effective reward systems for employees. The course examines both financial and non-financial rewards, including base pay, incentives, benefits, recognition programs, and development opportunities. Students will analyze how reward systems align with organizational goals, motivate performance, attract and retain talent, and comply with legal and ethical standards. Through case studies and real-world applications, the course develops critical skills in evaluating reward structures and crafting comprehensive rewards strategies that support a diverse and high-performing workforce.
Recommended Textbook
Compensation 11th Edition by George Milkovich
Available Study Resources on Quizplus
18 Chapters
1611 Verified Questions 1611 Flashcards
Source URL: https://quizplus.com/study-set/3205 Page 2
Chapter 1: The Pay Model
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/63457
Sample Questions
Q1) The U.S.has the highest hourly compensation costs for manufacturing workers of any industrialized nation.
A)True
B)False
Answer: False
Q2) A major challenge facing most employers is the rising cost of health care benefits.
A)True
B)False
Answer: True
Q3) Total compensation includes relational returns,cash compensation and benefits.
A)True
B)False
Answer: False
Q4) What are the different ways in which employees see compensation?
Answer: Employees see compensation as a return in an exchange between their employer and themselves,as an entitlement for being an employee of the company,or as a reward for a job well done.
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Strategy: The Totality of Decisions
Available Study Resources on Quizplus for this Chatper
84 Verified Questions
84 Flashcards
Source URL: https://quizplus.com/quiz/63456
Sample Questions
Q1) The social,competitive and regulatory environment factors are most important for which type of strategy?
A) Corporate
B) Business unit
C) HR
D) Strategic compensation
Answer: D
Q2) Among unconventional benefits,U.S.workers in the Hudson's survey rated _____ as their most preferred.
A)more supplemental insurance
B)more job training
C)a more flexible work schedule
D)more personal days and family leave
Answer: C
Q3) All organizations that pay their employees have a compensation strategy even though it may not be stated or written.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Defining Internal Alignment
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/63455
Sample Questions
Q1) When employees compare the fairness of their pay,they focus primarily on how their job compares with similar jobs in other organizations.
A)True
B)False
Answer: False
Q2) The need to explain the rationale for compensation choices to employees is consistent with ____________ theory.
A) equity
B) tournament
C) institutional
D) marginal productivity
Answer: A
Q3) When cooperation is important for successful organization performance,the best form of pay is _____.
A) tournament
B) egalitarian
C) hierarchical
D) institutional
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Job Analysis
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/63454
Sample Questions
Q1) Professional/managerial jobs often have less detailed job descriptions since their jobs have more discretion and latitude.
A)True
B)False
Q2) Discrepancies in job analysis information may indicate that more than one job has been lumped under one title.
A)True
B)False
Q3) If several incumbents,supervisors and peers respond in similar ways to job analysis questionnaires,this suggests the results are _____.
A) reliable
B) valid
C) convergent
D) acceptable
Q4) The Position Analysis Questionnaire analyzes jobs in terms of _____.
A) job data
B) duties and responsibilities
C) job elements and tasks
D) employee data
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Job-Based Structures and Job Evaluation
Available Study Resources on Quizplus for this Chatper
92 Verified Questions
92 Flashcards
Source URL: https://quizplus.com/quiz/63453
Sample Questions
Q1) Compensable factors and weights are derived using all the jobs in the job family to which the pay structure will be applied.
A)True
B)False
Q2) In the classification method,total points for each job determines its position in the structure.
A)True B)False
Q3) When an organization changes its strategy and goals,job evaluation helps workers understand what is important in their work.
A)True
B)False
Q4) How does job evaluation aid in the process of establishing an internally aligned pay structure?
Q5) Using policy capturing and the committee a priori approach for developing pay structures yield the same pay structure.
A)True B)False
Q6) Discuss the two methods of ranking.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Person-Based Structures
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/63452
Sample Questions
Q1) There is far greater uniformity in the use of terms in person-based plans than there is in job-based plans.
A)True
B)False
Q2) Reliability of job evaluations may be measured by:
A)determining if different evaluators produce similar results.
B)asking the question: "What does the evaluation measure?"
C)determining "hit rates."
D)surveying employee attitudes about the evaluation.
Q3) A _____ approach controls costs by paying only as much as the work performed is worth,regardless of any greater skills the employee may possess.
A) performance-based
B) competency-based
C) job-based
D) skill-based
Q4) Briefly discuss skill-based plans.
Q5) Does skill-based pay systems reduce the requirement for supervision?
Q6) How are organizations redefining the original definition of competencies?
Q7) What is the relevance of certification in a multiskill system?
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Defining Competitiveness
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/63451
Sample Questions
Q1) Segmenting sources of labor is a means of reducing labor costs.
A)True
B)False
Q2) Employers tend to underestimate the importance of pay to employees and over estimate the role of relationships with the supervisor.
A)True
B)False
Q3) All of the following are true regarding efficiency wage theory research except
A) higher wages is associated with fewer disciplinary layoffs.
B) fewer supervisors are required.
C) higher wages reduces profits.
D) more applicants apply for jobs.
Q4) The pay policy associated with increased productivity is the _____ policy.
A) lead
B) match
C) hybrid
D) employer of choice
Q5) Does an above-market wage guarantee a better workforce?
Q6) What explains the upward sloping supply under the human capital theory?
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Designing Pay Levels, mix, and Pay Structures
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/63450
Sample Questions
Q1) Which of the following is often used to set pay ranges?
A) Median
B) Weighted mean
C) Quartiles and percentiles
D) Standard deviation
Q2) Explain the concept of pay ranges.
Q3) Pay ranges:
A) are flexible enough to deal with differences in quality, but not with the productivity or value of these quality variations.
B) usually lead to an increase in employee turnover.
C) reflect the differences in performance or experience that an employer wishes to recognize with pay.
D) cause employees to believe that their compensation can increase by only a limited amount.
Q4) The measure of central tendency that minimizes distortion is the mode.
A)True
B)False
Q5) Explain the difference between standard deviation and quartiles and percentiles.
Q6) How is a relevant labor market defined?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Pay-For-Performance: the Evidence
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/63449
Sample Questions
Q1) Security in terms of compensation refers to the predictability of one's paycheck from one time to another.
A)True
B)False
Q2) In the formula (behavior = f (M,A,E)),M standards monetary incentives.
A)True
B)False
Q3) Line of sight is highest in individual incentive plans.
A)True
B)False
Q4) Maslow's theory suggests that performance-based pay can be de-motivating.
A)True
B)False
Q5) _____ involves identifying what is important to a person and offering it to them in exchange for some desired behavior.
A) Conditioning
B) Goal setting
C) Empathy
D) Motivation
Q6) What are the behaviors that compensation ought to enforce?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Pay-For-Performance Plans
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/63448
Sample Questions
Q1) Which of the following is not a long-term incentive plan?
A) ESOPs
B) Broad-based option plans (BBOPs)
C) Improshares
D) Performance plans
Q2) The Rowan plan uses a standard that is purposefully set high requiring high performance levels.
A)True
B)False
Q3) While interest in teams and team compensation has grown significantly,most companies are not happy with their team compensation systems.
A)True
B)False
Q4) Hoarding star performers,reluctance to accept new team members and resistance to transferring team members are examples of which team-related compensation problem?
A) Level
B) Large variety of teams
C) Pay plan complexity
D) Control
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Performance Appraisals
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/63447
Sample Questions
Q1) Which is the most popular appraisal method which uses outcomes as a standard?
Q2) Performance-dimension training provides raters with a standard of comparison or frame of reference for making appraisals.
A)True
B)False
Q3) All of the following are steps to creating a good performance appraisal process except:
A) performance dimensions are linked to the strategic plan.
B) use experienced consultants to develop the rating process.
C) train raters in use of the system.
D) diagnose performance problems in advance.
Q4) Of the many factors affecting supervisors' ratings of subordinates,the major influence is actual performance.
A)True
B)False
Q5) What are the various factors that influence performance ratings?
Q6) Why is it pertinent to define behavioral expectations for highly routine tasks?
Q7) In most Asian cultures,employees do not welcome performance feedback.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: The Benefit Determination Process
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/63446
Sample Questions
Q1) A _____ is an employer-provided subsidized basic medical plan with buy-up options.
A) full-defined contribution
B) menu-driven health-care plan
C) managed competition
D) health savings account
Q2) A type of benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called _____ plan.
A) a select choice
B) a no-deductible
C) flexible benefit
D) flat dollar benefit
Q3) _____ is/are not a method of determining employee benefit preferences.
A) Demographic data
B) Competitor pay surveys
C) Employee surveys
D) A cafeteria plan
Q4) Today,benefits are twenty-five percent of payroll costs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Benefit Options
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/63445
Sample Questions
Q1) Explain the coverage of the FMLA.
Q2) Contingent workers receive _____ benefits than regular workers; contingent workers' benefits cost employers _____ than regular workers.
A) more, less
B) fewer, more
C) more, more
D) fewer, less
Q3) An account set up to cover part of a high health care deductible is a:
A) POS.
B) flexible spending account.
C) PCA.
D) PPO.
Q4) What is the purpose of the HIPAA?
Q5) The Employee Retirement Security Act states that employers must offer a retirement plan to their employees if they work at least 1250 hours per year.
A)True
B)False
Q6) Explain the eligibility for unemployment insurance.
Q7) What is the central challenge of social security payments? How are they tackled?
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Compensation of Special Groups
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/63444
Sample Questions
Q1) An advantage of using stock options to motivate executives is that there is no downside risk.
A)True
B)False
Q2) If the business goal is to increase sales growth,an organization might use a _____.
A) percentage account erosion
B) gross margin on sales or price per unit
C) customer satisfaction index
D) volume measure
Q3) _____ is (are)a relatively uncommon form of board of directors' pay.
A) Approximately $55,000 in cash
B) Long-term incentives
C) Both cash and long-term incentives
D) Tying pay to stock performance
Q4) Formal job or competency-based evaluations play the most important role in determining executive salaries.
A)True
B)False
Q5) List the components of an executive compensation package.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Union Role in Wage and Salary Administration
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/63443
Sample Questions
Q1) Union employees in the public sector earn,on average,about _____ more than their nonunion counterparts.
A) 40 percent
B) 5 percent
C) 14 percent
D) 22 percent
Q2) In a two-tier wage system,employees hired after a specific date are placed in a higher wage scale than those hired prior to that date.
A)True
B)False
Q3) For the past 10 years,a stable _____ of all major collective bargaining agreements in the private sector have contained a provision for lump-sum payouts.
A) three-fourths
B) one-half
C) one-quarter
D) one-third
Q4) Briefly summarize the impact of unions on general wages levels.
Q5) Briefly describe profit-sharing plans.
Q6) Briefly summarize lump-sum awards and ESOPs.
Page 17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: International Pay Systems
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/63442
Sample Questions
Q1) Companies in the United States,United Kingdom,and some central European countries will most likely have centralized wage bargaining.
A)True
B)False
Q2) A Japanese employee who receives "A" performance ratings will move to the next class faster than an employee who receives "C" or "D" ratings.
A)True
B)False
Q3) Base pay for a Japanese employee of a major company varies between 60 and 80 percent of monthly pay.
A)True
B)False
Q4) How do the differences in the ownership and financing of companies around the world impact international pay?
Q5) What are the basic components of Japanese pay systems? Explain at least one of them.
Q6) Briefly explain the tariff agreements used in the traditional German pay systems.
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 17: Government and Legal Issues in Compensation
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/63441
Sample Questions
Q1) Pay differences for equal work may be justified for demonstrably business-related reasons.
A)True
B)False
Q2) All of the following are criteria used in determining exempt status for executives regarding overtime pay provisions except _____.
A) engage in semi-routine activities
B) primarily undertake management duties
C) supervise two or more employees
D) authority to hire or fire other employees
Q3) Legislation does not always achieve what it intends nor achieves what it achieves.
A)True
B)False
Q4) In cases of equal pay,the formal job description is more important than the actual work performed.
A)True
B)False
Q5) What is the Fair Labor Standards Act of 1938? What are its major provisions?
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Management: Making It Work
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/63440
Sample Questions
Q1) If Philadelphia has a CPI of 165 and Houston has a CPI of 145,this means _____.
A) prices have risen faster in Philadelphia since the base year than in Houston
B) it essentially costs more to live in Philadelphia than Houston
C) it costs less to live in Houston than Philadelphia
D) pay in Philadelphia is, on average, 20 percent higher than in Houston
Q2) The compa-ratio reflects the _____.
A) rate paid for satisfactory performance
B) relationship of actual salaries to the midpoint of the going rates in the market
C) relationship of the midpoint of each range to actual salaries
D) relationship of actual salaries in each range to the midpoint of the range
Q3) The most important components of a pay communication program are the business- and work-related rationales on which the system is based.
A)True
B)False
Q4) What is the top-down method of budgeting?
Q5) The CPI measures the cost of living.
A)True
B)False
Q6) What are red circle rates?
Page 20
To view all questions and flashcards with answers, click on the resource link above.