Strategic Human Resource Management
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Course Introduction
Strategic Human Resource Management explores the integration of human resource practices with organizational strategy to achieve long-term business goals. This course examines how HR professionals align recruitment, development, performance management, and employee relations initiatives with broader organizational objectives. Students analyze key concepts such as talent management, workforce planning, change management, and the role of HR in fostering organizational culture and competitive advantage. Through case studies and real-world examples, the course emphasizes evidence-based approaches and ethical considerations in formulating and implementing HR strategies within dynamic and globally competitive environments.
Recommended Textbook
Strategic Compensation A Human Resource Management Approach 7th Edition by
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668 Verified Questions
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Joseph J. Martocchio
Chapter 1: Strategic Compensation: A Component of Human Resource Systems
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Sample Questions
Q1) What is pay-for-knowledge plan? Explain the role of training in pay-for-knowledge plans.
Answer: Pay-for-knowledge programs reward managerial,service,or professional workers for successfully learning specific curricula.This type of pay systems reward employees for the range,depth,and types of knowledge they are capable of applying to their jobs.Designing and implementing training programs are crucial in the success of pay-for-knowledge programs.Through training programs,employees learn the necessary skills and knowledge for performing their job,and this in turn increases their pay.In this type of pay systems,training is necessary rather than optional.
Q2) Employment ________ occurs when an employee's agreement to perform work is ended,be it voluntarily or involuntarily.
Answer: termination
Q3) What is the primary factor that will prevent companies from growing in the next decade?
A) increased government regulations
B) the inability to attract and retain employees
C) caps on executive pay in some organizations
D) increased global competition
Answer: B
Page 3
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Chapter 2: Contextual Influences on Compensation Practice
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Q1) During the ________,which took place in the 1930s,a great number of businesses failed and unemployment soared,forcing the government to intervene.
Answer: Great Depression
Q2) This act strengthened the Equal Pay Act of 1963 by now 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) The ________ generation was born between roughly 1946 and 1964,and represents a big swell in the American population as the workforce gets progressively older.
Answer: baby boom
Q4) The ________ of 1963 makes it illegal to pay one sex more than the other for equal work performed.
Answer: Equal Pay Act
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Chapter 3: Traditional Bases for Pay: Seniority and Merit
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Q1) The collective bargaining system was established by passage of which federal Act?
A) National Labor Regulations Act
B) National Labor Relations Act
C) Union Labor Regulations Act
D) Union Labor Relations Act
Answer: B
Q2) With these errors,supervisors tend to rate employees' performances lower than they would be if compared against objective criteria.
A) critical errors
B) leniency errors
C) strictness errors
D) contrast errors
Answer: C
Q3) The General Schedule (GS)classifies federal government jobs into ________ classifications based on such factors as skill,education,and experience levels.
Answer: 15 fifteen
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Page 5
Chapter 4: Incentive Pay
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Q1) Individual incentive plans help to promote the relationship between pay and ________.
Q2) This formula for determining the amount available for profit sharing uses a specific percentage of annual profits contingent upon the successful attainment of a specified profit goal.
A) fluctuating first-dollar-of-profits
B) differed first-dollar-of-profits
C) graduated first-dollar-of-profits
D) fixed first-dollar-of-profits
Q3) The concept that a hard working employee is likely to stay at an incentive pay position is better known as this.
A) representative effect
B) structural effect
C) sorting effect
D) output effect
Q4) The ________ effect refers to a worker's willingness to work diligently to produce more quality output rather than simply attending work without putting in the effort.
Q5) The main disadvantage of group incentive compensation is employee ________.
Q6) Another name for incentive pay is ________ pay.
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Chapter 5: Person-Focused Pay
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Q1) 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
Q2) Which of the following is a reason many European and Japanese employees are better skilled and able to work more productively than American workers?
A) Both European and Japanese economies provide a higher quality of academic preparation and workplace learning for the non-college portions of their work forces.
B) Partnerships between public educators and employers are much stronger in the United States.
C) Learning is accorded a higher standing in the operations of the U.S. economy than the European and Japanese economies.
D) Americans do not have equal access to educational opportunities.
Q3) Compare and contrast horizontal skills,vertical skills,and depth of skills.
Q4) ________ skills are those skills typically considered supervisory.
Q5) ________ pay compensates employees for jobs they currently perform.
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Chapter 6: Building Internally Consistent Compensation Systems
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Q1) In an auto manufacturing company installing a windshield on the assembly line represents a ________.
Q2) ________ information describes physical and social factors that influence the nature of work.
Q3) Compare and contrast job analysis and job evaluation.
Q4) 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.
Q5) ________ describe preferences for work environments and outcomes.
Q6) A ________ is a collection of tasks constituting the total work assignment of a single worker.
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Chapter 7: Building Market-Competitive Compensation Systems
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Q1) Explain market pay line.How is it used in the context of pay level policies such as market lead,market lag,and market match?
Q2) XYZ Inc.pursues a low-cost strategy in its industry and generally needs lower skilled employees.As a result,their management team decided to establish a compensation policy that pays less than the marketplace.In recent years the company became susceptible to labor shortages and high turnover.What kind of pay level policy does XYZ Inc.follow?
A) market match
B) market lag
C) market lead
D) market pay line
Q3) This term refers to the distance of each salary figure from the mean.
A) standard deviation
B) quartile
C) percentile
D) deviated mean
Q4) ________ refers to a group of two or more jobs that are based on similar work characteristics,duties,and responsibilities.
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Q5) The ________ is the middle value in an ordered sequence of numerical data.
Chapter 8: Building Pay Structures that Recognize
Individual Contributions
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Q1) This theory suggests that an employee must regard his own ratio of merit increase pay to performance as similar to the ratio for other comparably performing people in the company.
A) comparable ratio theory
B) comparable pay theory
C) equality theory
D) equity theory
Q2) What types of companies are most likely to utilize two-tier wage systems?
A) unionized firms
B) sales firms
C) public sector companies
D) private sector companies
Q3) ________ makes sure that employees have at least a minimally acceptable level of skill proficiency upon completion of a training unit.
Q4) Money that covers the basic living expenses of sales professionals is better known as a ________,
Q5) ________ assign different pay rates for jobs of unequal worth,and provide the basic framework for recognizing differences in individual's contributions.
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Chapter 9: Discretionary Benefits
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Q1) XYZ Company provides a program for its employees who need help dealing with the effects of domestic violence.XYZ Company can offer this kind of service through which of the following programs?
A) family assistance program
B) employee assistance program
C) wellness program
D) employer assistance program
Q2) Outplacement assistance programs are best suited for which condition?
A) new plant openings
B) mergers and acquisitions
C) workforce increases
D) global operations
Q3) In 2010,discretionary benefits accounted for as much as what percentage of an employer's total payroll costs?
A) 30.5%
B) 50.0%
C) 60.5%
D) 75.0%
Q4) Employers sponsor ________ to promote employees' physical and psychological health.
Page 11
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Chapter 10: Employer-Sponsored Retirement Plans and Health Insurance Programs
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Q1) What specifies the rate at which participants accumulate benefits?
A) accrual rules
B) combination procedures
C) Sarbanes-Oxley
D) build-up rules
Q2) ________ physicians determine when patients need the care of specialists,and help to control costs by reducing the number of unnecessary visits to specialists.
Q3) What are the two types of fee-for-service plans?
A) health savings accounts, indemnity plans
B) health savings accounts, health reimbursement plans
C) health reimbursement plans, indemnity plans
D) indemnity plans, self-funded plans
Q4) 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
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Chapter 11: Legally Required Benefits
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Q1) Medicare Select is one of the choices under which Medicare Plan?
A) Medicare Prescription Drug Program
B) Medicare Advantage
C) Medigap
D) Medicare+Choice
Q2) The first 4 quarters of the last 5 completed calendar quarters in the previous year is the base period for which benefit?
A) OASDI
B) Medicare Part A
C) unemployment insurance
D) workers' compensation
Q3) In 2011,the OASDI tax rate was reduced by 2% for employees,which leads to a ________ percent effective tax rate for employees.
Q4) Medicare Part A is based on what type of health care option?
A) preferred provider plan
B) medical savings account
C) managed care plan
D) fee-for-service
Q5) ________ specify insurance rates based on classifications of businesses.
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Chapter 12: Compensating Executives
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Q1) Discuss the six forms of deferred (stock)compensation.
Q2) The SEC requires compensation information on the CEO and how many of the highest paid executives?
A) 10
B) 7
C) 4
D) 2
Q3) This is the difference between the stock price at the time of purchase and the lower stock price at the time an executive receives the stock option.
A) disposition value
B) discounted value
C) fair market value
D) capital gains
Q4) Which executive bonus amount varies with the extent to which a pre-established minimum performance level is met?
A) target plan
B) predetermined allocation
C) performance-contingent
D) discretionary
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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) To be covered by FLSA overtime and minimum wage provisions,seasonal employees must work for a company that is open how many months in a year?
A) 4
B) 7
C) 11
D) 12
Q3) How many days will Jamal have to work to complete a "year of service"?
A) 125
B) 100
C) 185
D) 270
Q4) Carlos works at XYZ Innovations Inc.as a computer scientist.________ schedules enable Carlos working four 10-hour days.
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Chapter 14: Compensation Expatriates
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Q1) Expatriates receive ________ allowances when the cost of living is higher in the country that they work in that it is in the U.S.
Q2) Which of the following would be considered a hardship location (due to dangerous conditions)?
A) Bagdat, Iraq
B) Basel, Switzerland
C) Oslo, Norway
D) Brisbane, Australia
Q3) Benjamin is going on his first expatriate assignment to a country considered a hardship location.About how much will you have to increase his base pay?
A) 50% - 70%
B) 5% - 35%
C) 20% - 40%
D) 40% - 50%
Q4) ________ premiums reward employees for moving from one assignment to another.
Q5) An ________ is the price at which one country's currency can be swapped for another.
Q6) The ________ allowance compensates expatriates for their sacrifices while on assignment.
Page 16
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Chapter 15: Pay and Benefits Outside the United States
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Q1) In 2008,hourly compensation costs in Brazil were less than that in the United States by how much?
A) 50%
B) 18%
C) 45%
D) 74%
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) The People's Republic of China Labor Law of 1995 resulted in which of the following?
A) shift to state-owned enterprises
B) collective contracts
C) state controlled benefits
D) break from "iron rice bowl" employment
Q4) Compare health benefits and paid time off benefits in India and People's Republic of China.
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Chapter 16: Challenges Facing Compensation Professionals
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Q1) List the four challenges for compensation professionals.Among these,describe the challenges brought by wage issues in China.
Q2) How did General Motors and Chrysler respond to lower consumer demand during Great Recession?
A) by cutting production levels
B) by introducing new models
C) by advertising more aggressively
D) by merging with other companies
Q3) Which one of the following is NOT one of the direct or indirect reasons of rising wages in China?
A) Chinese policy makers' support of increased wages
B) one-child policy
C) labor shortages
D) increasing cost of exports
Q4) During when did the U.S.economy experienced 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
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