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Chapter11:

EstablishingStrategicPayPlans

MultipleChoice

1._____referstoallformsofpayorrewardsgoingtoemployeesandarisingfromtheiremployment.

a.Reimbursement

b.Employeecompensation

c.Salary

d.Benefits

e.Remuneration

（b;easy）

2.Directfinancialpaymentsincludeallofthefollowingexcept_____.

a.wages

b.insurance

c.salaries

d.incentives

e.commissions

（b;easy）

3.Whichofthefollowingiscategorizedasanindirectpaymentportionofemployeecompensation?

a.wages

b.salaries

c.employer-paidinsurance

d.commissions

e.bonuses

（c;moderate）

4.Johisasalesrepresentativeinajewelrystore.Hetypicallyworks40hoursperweekandhispayiscompletelybasedonhissales.Heearnsacommissiononeverysalehemakes.Hispayisbasedon_____.

a.time

b.pay

c.incentives

d.bonuses

e.seniority

（b;moderate）

5.Whichofthefollowingfactorsaffectsthedesignofanypayplan?

a.legal

b.union

c.companypolicy

d.equity

e.alloftheabove

（e;easy）

6.

Ingeneral,themainissueincollectivebargainingis_____.

a.timeoffwithpay

b.wagerates

c.incomesecurity

d.cost-of-livingadjustments

e.healthcarebenefits

（b;moderate）

7.Unionsnegotiateallofthefollowingpay-relatedissuesexcept_____.

a.wagerates

b.incomesecurity

c.unpaidleavetocareforanimmediatefamilymember

d.timeoffwithpay

e.alloftheabove

（c;moderate）

8.Whenlonger-termemployees’salariesarelowerthanthoseofworkersenteringthefirmtoday,_____hasoccurred.

a.wagecurve

b.salarycompression

c.agediscrimination

d.marketexpansion

e.rewardstrategy

（b;easy）

9.Salarycompressioncanbecausedby_____.

a.recession

b.inflation

c.economicdepression

d.alloftheabove

e.noneoftheabove

（b;difficult）

10.Howarecost-of-livingdifferentialshandledbyemployerswhenemployeesaretransferredfromonelocationtoonewithahighercostofliving?

a.paymentofanonrecurring,lumpsumamount

b.paymentofadifferentialforongoingcosts

c.raiseemployee’sbasesalary

d.payanongoingdifferentialforongoingcostsplusalumpsumamount

e.alloftheabove

（e;easy）

11.Whenanemployeeistransferredtoaninternationallocationandhisorherbasesalaryreflectshisorherhomecountry’ssalarywithallowancesaddedforcost-of-livingdifferences,theemployerhasuseda_____salaryplan.

a.transfer

b.home-based

c.host-based

d.cost-of-living

e.allowancesincluded

（b;moderate）

12.Whenanemployeewhoistransferredtoanothercountryisassignedasalarybasedonthebasesalaryforthatpositioninthecountrywhereheorshewillwork,theemployerhasuseda_____salaryplan.

a.transfer

b.home-based

c.host-based

d.cost-of-living

e.allowancesincluded

（c;moderate）

13.Whousuallypaystheextrataxburdenresultingfromtaxesamanageroninternationalassignmentisliableforoverandabovethoseheorshewouldhavetopayinthehomecountry?

a.theemployee

b.theemployer

c.thehomecountry

d.thehostcountry

e.therearenoadditionaltaxburdens

（b;moderate）

14.Whattheoryofmotivationstatesthatpeoplearestronglymotivatedtomaintainabalancebetweenwhattheyperceiveastheirinputsorcontributionsandtheirrewards?

a.Maslow’shierarchyofneeds

b.Two-factortheory

c.Equitytheory

d.Learnedneedstheory

e.Expectancytheory

（c;moderate）

15.Whichofthefollowingisnotaformofequitythatshouldbeaddressedbymanagersdealingwithcompensationissues?

a.underreward

b.internal

c.external

d.individual

e.procedural

（a;moderate）

16.Whichformofequityreferstohowajob’spayrateinonecompanycomparestothejob’spayrateinothercompanies?

a.external

b.internal

c.distributive

d.individual

e.procedural

（a;easy）

17.

Whichformofequityreferstohowfairajob’spayrateis,whencomparedtootherjobswithinthesamecompany?

a.external

b.internal

c.distributive

d.individual

e.procedural

（b;easy）

18.Jakisasalesmanagerandherecentlylearnedthathumanresourcemanagerswithsimilarresponsibilitiesandspansofcontrolearnmorethanhedoes.Heisconcernedwiththe_____formofequity.

a.external

b.internal

c.distributive

d.individual

e.procedural

（b;moderate）

19.Whichformofequityreferstothefairnessofanindividual’spayascomparedwithwhathisorhercoworkersareearningforthesameorverysimilarjobswithinthecompany,basedoneachindividual’sperformance?

a.external

b.internal

c.distributive

d.individual

e.procedural

（d;easy）

20.Aminaisalawyerinamid-sizefirm.Sherecentlylearnedthatanotherlawyerwhojoinedthefirmatthesametimeearnsalowersalarythanshedoes.Aminaisexperiencingthe_____formofequity.

a.external

b.internal

c.distributive

d.individual

e.procedural

（d;easy）

21.Whichformofequityreferstotheperceivedfairnessoftheprocessesandproceduresusedtomakedecisionsregardingtheallocationofpay?

a.external

b.internal

c.distributive

d.individual

e.procedural

（e;easy）

22.

Externalequityrefersto_____.

a.howajob’spayrateinonecompanycomparesthejob’spayrateinothercompanies

b.howfairthejob’spayrateis,whencomparedtootherjobswithinthesamecompany

c.thefairnessofanindividual’spayascomparedwithwhathisorhercoworkersareearningforthesameorverysimilarjobswithinthecompany,basedoneachindividual’sperformance

d.theperceivedfairnessoftheprocessesandproceduresusedtomakedecisionsregardingtheallocationofpay

e.theuseofsalarysurveystomonitorlevelspaidforjobsindustry-wide

（a;moderate）

23.Internalequityrefersto_____.

a.howajob’spayrateinonecompanycomparesthejob’spayrateinothercompanies

b.howfairthejob’spayrateis,whencomparedtootherjobswithinthesamecompany

c.thefairnessofanindividual’spayascomparedwithwhathisorhercoworkersareearningforthesameorverysimilarjobswithinthecompany,basedoneachindividual’sperformance

d.theperceivedfairnessoftheprocessesandproceduresusedtomakedecisionsregardingtheallocationofpay

e.theuseofsalarysurveystomonitorlevelspaidforjobsindustry-wide

（b;moderate）

24.Individualequityrefersto_____.

a.howajob’spayrateinonecompanycomparesthejob’spayrateinothercompanies

b.howfairthejob’spayrateis,whencomparedtootherjobswithinthesamecompany

c.thefairnessofanindividual’spayascomparedwithwhathisorhercoworkersareearningforthesameorverysimilarjobswithinthecompany,basedoneachindividual’sperformance

d.theperceivedfairnessoftheprocessesandproceduresusedtomakedecisionsregardingtheallocationofpay

e.theuseofsalarysurveystomonitorlevelspaidforjobsindustry-wide

（c;moderate）

25.Proceduralequityrefersto_____.

a.howajob’spayrateinonecompanycomparesthejob’spayrateinothercompanies

b.howfairthejob’spayrateis,whencomparedtootherjobswithinthesamecompany

c.thefairnessofanindividual’spayascomparedwithwhathisorhercoworkersareearningforthesameorverysimilarjobswithinthecompany,basedoneachindividual’sperformance

d.theperceivedfairnessoftheprocessesandproceduresusedtomakedecisionsregardingtheallocationofpay

e.theuseofsalarysurveystomonitorlevelspaidforjobsindustry-wide

（d;moderate）

26._____isaformalandsystematiccomparisonofjobstodeterminetheworthofonejobrelativetoanother.

a.Jobanalysis

b.Jobevaluation

c.Benchmarkanalysis

d.Compensableevaluation

e.Jobranking

（b;easy）

27.Factorsthatestablishhowthejobscomparetooneanotherandsetthepayforeachjobarecalled_____.

a.compensablefactors

b.jobevaluationfactors

c.comparisonfactors

d.rankingfactors

e.analysisfactors

（a;easy）

28.Anothertermforjobclassificationis_____.

a.jobranking

b.jobgrading

c.jobcategorization

d.jobevaluation

e.noneoftheabove

（b;easy）

29.Whenusingthejobclassificationmethodofjobevaluation,raterscategorizejobsintogroupsofsimilarjobscalled_____.

a.classes

b.grades

c.sections

d.schedules

e.cohorts

（a;moderate）

30.Whenusingthejobclassificationmethodofjobevaluation,raterscategorizejobsintogroupsofjobsthataresimilarindifficultybutnotincontextcalled_____.

a.classes

b.grades

c.sections

d.schedules

e.cohorts

（b;moderate）

31.

Thepointmethodofjobevaluationentails_____.

a.identifyingseveralcompensablefactors,eachhavingseveraldegrees,andthedegreetowhicheachofthesefactorsispresentinthejob

b.rankingeachjobrelativetoallotherjobsbasedonsomeoverallfactor

c.usingraterstocategorizejobsintogroups

d.decidingwhichjobshavemoreofthechosencompensablefactors

e.noneoftheabove

（a;moderate）

32.Therankingmethodofjobevaluationentails_____.

a.identifyingseveralcompensablefactors,eachhavingseveraldegrees,andthedegreetowhicheachofthesefactorsispresentinthejob

b.rankingeachjobrelativetoallotherjobsbasedonsomeoverallfactor

c.usingraterstocategorizejobsintogroups

d.decidingwhichjobshavemoreofthechosencompensablefactors

e.noneoftheabove

（b;moderate）

33.Thejobgradingmethodofjobevaluationentails_____.

a.identifyingseveralcompensablefactors,eachhavingseveraldegrees,andthedegreetowhicheachofthesefactorsispresentinthejob

b.rankingeachjobrelativetoallotherjobsbasedonsomeoverallfactor

c.usingraterstocategorizejobsintogroups

d.decidingwhichjobshavemoreofthechosen