

Workforce Planning and Employment
Test Questions
Course Introduction
Workforce Planning and Employment is a course designed to equip students with the knowledge and skills necessary to analyze organizational staffing needs, develop effective recruitment strategies, and ensure the optimal alignment of human resources with business goals. Topics covered include labor market analysis, forecasting workforce requirements, designing selection processes, managing talent pipelines, compliance with employment laws and regulations, and the use of technology in recruitment and workforce analytics. Students will also explore best practices in diversity and inclusion, employee retention, and succession planning to support organizational growth and adaptability in a dynamic labor market.
Recommended Textbook
Strategic Compensation A Human Resource Management Approach 9th Edition by Martocchio
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15 Chapters
641 Verified Questions
641 Flashcards
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Chapter 1: Strategic Compensation: a Component of Human Resource Systems
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Sample Questions
Q1) ________ compensation refers to the mental state of employees as a result of their performance on the job.
Answer: Intrinsic
Q2) What are the three questions that compensation professionals should answer to help determine whether they are making a strategic contribution to the company? Answer: Does compensation strategy fit well with the objectives of competitive business and HR strategies?
Does the choice and design of compensation practices fit well to support compensation strategy?
Does the implementation of compensation practices effectively direct employee behavior to enhance job performance that supports the choice of compensation practices?
Q3) Protection programs are what type of compensation benefits?
A)external
B)non-monetary
C)internal
D)monetary
Answer: B
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Chapter 2: Contextual Influences on Compensation Practice
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Sample Questions
Q1) 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 Pension Protection Act of 2006
Answer: A
Q2) Antidiscrimination laws have contributed to which of the following?
A)some of the decline in union influence
B)all of the decline in union influence
C)stronger human capital
D)spillover effect
Answer: A
Q3) The ________ of 1993 sought to provide employees with job protection in case of a medical emergency.
Answer: Family and Medical Leave Act (FMLA)
Q4) Manufacturing is considered to be a ________ intensive industry.
Answer: capital

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Chapter 3: Traditional Bases for Pay: Seniority and Merit
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Sample Questions
Q1) When companies' merit increases don't clearly reflect differences in actual job performance,they may need to provide which of the following?
A)a promise to allocate more money toward providing merit pay increases
B)an apology
C)alternative rewards such as a vacation
D)justification in a court of law
Answer: C
Q2) The concept of just-meaningful pay increases applies to ________ pay programs. Answer: merit
Q3) Which two factors should compensation professionals consider before endorsing the use of merit pay systems?
A)a supervisor's bias and stock price
B)job design and a supervisor's bias
C)job analysis and stock price
D)commitment from top management and job design
Answer: D
Q4) ________ systems evaluate a given employee's performance against the performance of other employees.
Answer: Comparison
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Chapter 4: Incentive Pay
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Sample Questions
Q1) The XYZ Manufacturing Co.uses a gain sharing plan that gives incentives to employees to finish products rather than to incentivize dollar savings.Therefore,this company measures productivity as the ratio of standard labor hours and actual labor hours.Which kind of gain sharing program does XYZ Manufacturing Co.use?
A)Improshare
B)Rucher
C)Scanlon
D)SVOP
Q2) Under which three conditions are individual incentive plans most appropriate?
Q3) Which best describes incentive pay?
A)Incentive pay is considered part of an employee's fringe compensation.
B)The criteria for judging an award tend to be objective, such as quantity produced.
C)Award levels are subjective.
D)The amount of the award paid for attainment of goals is not communicated in advance.
Q4) How do traditional pay methods differ from incentive pay methods?
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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Sample Questions
Q1) What are the two most important reasons for adopting person-focused pay?
Q2) Which of the following costs is NOT associated with the use of person-focused pay programs?
A)payroll
B)overhead
C)training
D)recruitment
Q3) Evidence suggests that person-focused pay programs lead to which of the following?
A)diminished employee commitment
B)no significant change in employee satisfaction
C)increased employee commitment
D)higher competitive advantage
Q4) Person-focused pay programs that emphasize vertical skills work well at manufacturing companies that organize work flow around which type of organization?
A)departments
B)high performance work teams
C)task forces
D)business units
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Chapter 6: Building Internally Consistent Compensation Systems
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Sample Questions
Q1) Which of the following is one of the four "universal compensable factors"?
A)cognitive ability
B)personality
C)effort
D)motivation
Q2) Which of the following is NOT true for internally consistent compensation systems?
A)Jobs that require higher qualifications and more responsibilities should be paid more than jobs that require lower qualifications and fewer responsibilities.
B)Internally consistent compensation systems are created through job analysis and job evaluation.
C)Internally consistent compensation systems may increase a company's flexibility to respond to changes in competitor's pay practices.
D)Internally consistent compensation structures result in bureaucracy.
Q3) Valid and reliable job evaluations result from which two conditions?
A)consistent results; using multiple collection methods
B)consistent results; data obtained under similar conditions
C)data from multiple sources; using multiple collection methods
D)data from multiple sources; data obtained under similar conditions
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Chapter 7: Building Market-competitive Compensation Systems
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Sample Questions
Q1) The ________ is the middle value in an ordered sequence of numerical data.
Q2) These are used as reference points for setting pay levels.
A)mean pay
B)median pay
C)market-competitive pay
D)benchmark jobs
Q3) Explain the three reasons why companies often choose not to develop their own compensation surveys.
Q4) Market match policies are generally set to which quartile in the salary survey?
A)1st
B)2nd
C)3rd
D)4th
Q5) ________ represent the fields of potentially qualified candidates for particular jobs.
Q6) How often is the Consumer Price Index calculated for the United States?
A)daily
B)weekly
C)monthly
D)twice a year Page 9
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Chapter 8: Building Pay Structures That Recognize
Individual Contributions
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Sample Questions
Q1) ________ rates pay wages higher than the maximum listed in order to help retain valued employees fielding big job offers elsewhere.
Q2) How are compa-ratios calculated?
A)the green circle rates midpoint divided by the normal pay range
B)the pay rate divided by the market line rate
C)the pay rate divided by the pay range midpoint
D)the red circle rates divided by the normal pay range
Q3) ________ makes sure that employees have at least a minimally acceptable level of skill proficiency upon completion of a training unit.
Q4) For the purpose of applying pay policies,this term refers to the groupings of jobs based on compensable factors.
A)market lines
B)market-competitive pay structures
C)pay grades
D)pay ranges
Q5) The ________ pay value is the centrally located mark between the range minimum and maximum rates.
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Q6) ________ represent the vertical dimension of pay structures.
Q7) What is broadbanding? What are its limitations?
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Chapter 9: Discretionary Benefits
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Sample Questions
Q1) How are integrated paid time off policies different than holiday,vacation,sick leave,and personal leave policies?
Q2) Which of the following do qualified plans provide?
A)matching contributions to defined contribution plans
B)substantial tax breaks to employers and employees
C)substantial tax breaks to employees
D)matching contributions to defined benefit plans
Q3) Mary works at a pharmaceutical company as a customer service representative.Her employer allows her to choose the set of benefits she will receive on top of preestablished sets of benefits,such as medical insurance and term life insurance.The company gave her credits equal to 6% of her salary with which she decided to purchase dental and vision insurance.This pharmaceutical company uses what kind of benefits plan?
A)cafeteria
B)flexible benefits
C)employee-financed
D)core plus option
Q4) In response to government-imposed wage freezes,many companies began offering ________ as an alternative to motivate employees through greater work benefits.
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Chapter 10: Legally Required Benefits
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Sample Questions
Q1) In which plan do employees possess the option to receive care from health care providers outside the designated network of physicians,paying more for the choice?
A)fee-for-service plans
B)preferred provider organizations
C)HMOs
D)point-of-service plans
Q2) ________ protects the transfer,disclosure,and use of health care information.
Q3) Starting January 1,2004,eligible individuals are allowed to establish HSAs under which law?
A)Health Maintenance Organization Act
B)Mental Health Parity Act
C)Medicare Prescription Drug, Improvement and Modernization Act
D)HIPAA
Q4) This type of account does not permit employees to carry over any remaining balance from year to year.
A)health reimbursement account
B)health savings account
C)flexible spending account
D)flexible savings account
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Chapter 11: Compensating Executives
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Sample Questions
Q1) The concept that individuals evaluate their accomplishments by comparing themselves to similar individuals is based on ________ theory.
Q2) A provision of the ________ established the say-on-pay practice.
Q3) Which of the following represent formal criteria for defining executive status?
A)board of directors and key employees
B)key employees and highly paid employees
C)CEO and highly compensated employees
D)key employees and highly compensated employees
Q4) ________ provide pay and benefits to executives after a termination that results from a change in ownership or merger.
Q5) ________ bonuses are awarded to executives by boards of directors on an elective basis.
Q6) Which of the following describes CEO compensation that is deemed ineffective?
A)pay-for-status
B)pay-for-nonperformance
C)seniority-based pay
D)person-focused pay
Q7) Are CEOs compensated commensurately with their companies' performance?
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Q8) Company stock shares are the main form of executives' ________ compensation.

Chapter 12: Compensating the Flexible Work Force:
Contingent Employees and Flexible Work Schedules
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Sample Questions
Q1) Temporary employment agencies are responsible for complying with all employment legislation,except?
A)ADA
B)FLSA
C)workers' compensation
D)ERISA
Q2) Which of the following is a limitation of engaging contingent workers?
A)Contingent workers' productivity, if not employed long enough, rates low.
B)Regular, full-time employees may reduce their productivity.
C)Contingent workers' productivity probably exceeds regular employees' productivity.
D)Productivity differences between contingent workers and regular employees are not evident.
Q3) James works at home 3 days a week and works at his office 2 days a week.His employer provides a computer,modem,and printer for him to use at home.The equipment for his off-site use is an example of ________.
Q4) What are the strategic issues involved with contingent and flexible workers for a company pursuing a lowest cost strategy?
Q5) What are three advantages to using flextime schedules?
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Chapter 13: Compensation Expatriates
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Sample Questions
Q1) Josh works at a U.S.construction company as a civil engineer.He has been working overseas for the last three years.The hypothetical tax calculated by his company turned out to be less than his actual income tax.In this situation,
A)Josh pays the taxes.
B)the employer reimburses Josh.
C)under tax equalization, neither Josh nor his employer receives a reimbursement.
D)the foreign government reimburses Josh.
Q2) Mary is a U.S.expatriate who is assigned to work in Belgium.In order to avoid double income taxation and maintaining residences in the United States and in Belgium,which approach will not place her at a financial disadvantage?
A)the balance sheet approach
B)the cost comparison approach
C)the weights and measurements approach
D)the retrospective approach
Q3) ________ nationals are foreign national citizens who work in U.S.companies' branch offices or manufacturing plants in countries other than the United States or their own home countries.
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Chapter 14: Pay and Benefits Outside the United States
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Sample Questions
Q1) 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
Q2) Which of the following describes the worth of all goods and services produced in a foreign country valued at prices prevailing in the United States?
A)real gross domestic product
B)purchasing power parity exchange rates
C)wholesale exchange rates
D)nominal gross domestic product
Q3) Which of the following countries has the highest per capita GDP?
A)United States
B)Brazil
C)Germany
D)Canada
Q4) Of the countries studied in Chapter 14,________ has the lowest hourly compensation costs.
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Chapter 15: Challenges Facing Compensation
Professionals
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Sample Questions
Q1) Offering relevant employee benefits can lead to which of the following outcomes?
A)higher return on investment
B)overutilization of employee benefits
C)lower workforce diversity
D)lower hourly wage rates
Q2) ________ is a situation in which a worker possesses more qualifications,skill,and education than is required by his/her existing job.
Q3) Many people are concerned that raising the minimum wage rate will do which of the following?
A)increase employee turnover
B)lead to higher unemployment
C)negatively influence service quality
D)result in greater onshoring activities
Q4) Which benefit might part-time workers be less likely to need?
A)life insurance
B)day care
C)health insurance
D)paid vacation

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Q5) Companies promote profits,in part,by holding down employees' ________.
Q6) What are some of the issues associated with rising wages in China?
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