1) This federal Act requires contractors with federal contracts worth over $2,000 to pay wages at least equal to those prevailing in the area where the work is being done.

A) Fair Labor Standards Act

B) Davis-Bacon Act

C) Equal Pay Act

D) Civil Rights Act of 1964

2) What represents the relationship between a company's valuation of jobs based on job evaluation and the valuation of jobs within the external market, as assessed by compensation surveys?

A) market-competitive pay structure

B) pay grade

C) pay range

D) market pay line

3) This term refers to the groupings of jobs based on compensable factors, for the purpose of applying pay policies.

A) market lines

B) market-competitive pay structures

C) pay grades

D) pay ranges

4) When these are used to develop pay grade widths, the grades are based on a set number of job evaluation points for each grade that increases as an employee moves up the pay structure.

A) pay rate spreads

B) percentage-based job evaluation point spreads

C) pay range spreads

D) absolute job evaluation points spreads

15) These represent the horizontal dimension of pay structures.

A) pay ranges

B) pay grades

C) job evaluation points

D) pay spreads

6) Midpoint, minimum, and maximum are values used to define which of the following?

A) pay grades

B) pay ranges

C) pay structures

D) pay levels

7) In establishing pay grades, which pay rate is established first?

A) minimum pay rate

B) midpoint

C) third quartile

D) maximum pay rate

8) If the company adopts a market lead policy, how will that company's pay range midpoint compare to the market average?

A) The midpoint will be the same as the market average.

B) not enough information to determine

C) The midpoint will be higher than the market average.

D) The midpoint will be lower than the market average.

9) If the company adopts a market lag policy, how will that company's pay range midpoint compare to the market average?

A) The midpoint will be the same as the market average.

B) not enough information to determine

C) The midpoint will be higher than the market average.

D) The midpoint will be lower than the market average.

10) Which term is used to describe the situation where the pay spread between newly hired employees and more qualified job incumbents is small?

A) pay structures

B) pay compression

C) red circle pay rates

D) green circle pay rates

11) John is just hired by a software company as a programmer. He is also a part-time student at the local college and needs just a few credits to graduate from this college. A college degree is required in order to work as a programmer in this software company. Therefore, John receives below-minimum pay rate until he graduates from college. What type of pay rate does John receive?

A) green circle rates

B) red circle rate

C) midpoint pay rate

D) two-tier pay rate

12) This type of pay rate applies to an employee who is demoted but is paid more than the maximum rate for the pay grade he is now in.

A) graduated pay

B) green circle

C) red circle

D) multi-tier pay

13) How are compa-ratios calculated?

A) dividing the green circle rates midpoint by the normal pay range

B) dividing the employee's pay rate by the market line rate

C) dividing an employee's pay rate by the pay range midpoint

D) dividing the red circle rates by the normal pay range

14) 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.

15) 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

 

16) With which sales compensation plan does the level of pay not vary when sales volume does?

A) commission-only plan

B) salary-only (base pay) plan

C) salary (base pay)-plus-bonus plan

D) salary (base pay)-plus-commission plan

17) Which scenario would be appropriate for using a salary-only plan?

A) the salesperson is selling high-priced products with long lead times

B) the salesperson has substantial influence over sales

C) the company is looking to save money due to budget constraints

D) the company is looking to create competition among its sales staff

18) This type of sales incentive compensation plan offers the sales person a salary and further compensation if they meet a specific, exceptional sales goal.

A) salary-plus-bonus

B) salary-plus-commission

C) salary-plus-draw

D) salary-plus-graduated commission

19) Jasmine Black believes that the company should share part of the risk for her sales position. Which sales compensation plan should she pursue?

A) salary-plus-bonus plan

B) salary-plus-commission plan

C) commission-plus-draw plan

D) commission-only plan

20) A recently opened car dealer uses an incentive compensation plan for its sales people. The dealer provides money to its salespeople to cover basic living expenses and then shares a fixed percentage of the selling price of each car that a salesperson sells. However, the salesperson should repay the subsistence pay component within a year; otherwise he/she cannot continue in the employment of this dealer. What type of sales compensation plan does this dealer adopt?

A) salary-plus-bonus

B) salary-plus-commission

C) commission-plus-draw

D) commission only

21) This is a loan from the company to the employee that is carried forward indefinitely until the employee sells enough to repay it.

A) commission-plus-draw plan

B) a recoverable draw

C) a non-recoverable draw

D) an interest-free loan

22) This type of commission draw acts as a salary because employees are not obligated to repay the loans if they do not sell enough to cover the amount.

A) nonrecurring draw

B) safe draw

C) nonrecoverable draw

D) graduated draw

23) With which type of sales commission plan does an employee earn a higher rate of commission for all sales made in a given period if the sales level exceeds a predetermined level?

A) commission-plus-draw plan

B) straight commission

C) multiple-tiered commission

D) graduated commission

24) In which situation is a commission-only plan best suited?

A) The salesperson has little influence over the sales.

B) The company is following a lowest-cost strategy.

C) Extensive training or expertise is required.

D) The sales cycle is long.

25) A company adopting a commissions-oriented sales compensation plan would most likely be pursing which type of competitive strategy?

A) highest quality

B) lowest-cost

C) differentiation

D) fairest-price

26) This term describes a set of skills necessary to perform a specific job or a group of similar jobs.

A) skill range

B) skill grade

C) skill block

D) skill structure

27) The HR manager of a company thinks that they have too many narrow pay grades within the organization. By getting the support from upper management, they decided to consolidate existing pay grades and ranges into fewer pay grades and broader pay ranges in order to create a flatter organization in terms of compensation. This is an example of which pay structure variation?

A) broad banding

B) two-tier pay system

C) pay compression

D) multiple-tier pay system

28) Which of the following would NOT be considered as an advantage of broad banding?

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 broadband

29) Alejandro Martinez is responsible for setting up the pay structure for his company. He believes that newly hired employees should not be paid as much as established employees. Accordingly, what type of pay structure should Mr. Martinez use?

A) broad banding

B) sales incentives

C) two-tiered

D) merit pay

30) 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

31) ________ assign different pay rates for jobs of unequal worth, and provide the basic framework for recognizing differences in individual's contributions.

32) ________ represent the vertical dimension of pay structures.

33) The ________ pay value is the halfway mark between the range minimum and maximum rates.

34) A ________ is the difference between the maximum and minimum pay rates of a given pay grade.

35) ________ rates pay wages higher than the maximum listed in order to help retain valued employees fielding big job offers elsewhere.

 

36) ________ describe the allocation of monetary resources to fund pay structures.

37) ________, or lump sum bonuses, lend themselves well to cost containment, since these bonuses are not permanent percentage increases on worker base pay levels.

38) ________ is a form of compensation based upon a percentage of the selling price of a product or service.

39) Money that covers the basic living expenses of sales professionals is better known as a ________,

40) ________ makes sure that employees have at least a minimally acceptable level of skill proficiency upon completion of a training unit.

41) Compare and contrast merit pay systems and sales compensation.

42) Briefly discuss designing job-based pay system (i.e. merit pay, sales incentive pay) and person-focused programs. What considerations arise when making a transition from using a job-based pay system to using pay-for-knowledge?

43) What is broadbanding? What are its limitations?

 

 

Question 1

Asking trainees to provide examples of how the knowledge being trained relates to what they already know facilitates


Question 2

Which of the following statements is true regarding punishment?


Question 3

Who is responsible for development of Expectancy theory?


Question 4

Which of following statements about expectancy theory is true?


Question 5

Which of the following statements about learning is not true


Question 6

Which of the following is not true about studying motivation from a behaviorist approach?


Question 7

Anticipatory learning is


Question 8

Which of the following is not true about good theories?


Question 9

Which of the following statements is true regarding expectancy theory?


Question 10

Which of these statements is inaccurate?


Question 11

Which of the following statements best explains the relationship between training and self-efficacy?


Question 12

Which of the following statements regarding self-efficacy is not true?


Question 13

What are the factors that interact to determine performance?


Question 14

Stimulus leads to response which leads to consequence, best illustrates which theory?


Question 15

Who laid the foundation for reinforcement theory?

1) 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

2) Protection programs are what type of compensation benefits?

A) external

B) non-monetary

C) internal

D) monetary

3) Which of the following would be an example of a non-monetary reward?

A) medical insurance

B) vacations

C) day care assistance

D) all of the above

4) This law made it illegal to pay women less for performing equal work as men.

A) Equal Pay Act of 1963

B) Civil Rights Act of 1964

C) Davis — Bacon Act of 1931

D) Fair Labor Standards Act of 1938

5) What is the typical annual Cost-of-living adjustments (COLAs) in recent years?

A) 0 to 1 percent

B) 2 to 3 percent

C) 3 to 5 percent

D) 8 to 10 percent

 

6) What type of pay system rewards employees for partially or completely attaining a predetermined work objective?

A) seniority pay

B) merit pay

C) incentive pay

D) skill-based pay

7) Jason works at a call center for an insurance company and he has been answering calls regarding auto insurance. Recently, he started to attend a training program about home insurance. Upon successful completion of this training program, Jason will be able to handle home insurance questions and queries as well. If this insurance company has a compensation policy that rewards Jason's completion of this training, then what type of pay system does it employ?

A) incentive pay

B) merit pay

C) seniority pay

D) pay-for-knowledge

8) Which of the following is NOT one of the three broad categories that discretionary benefits fall into?

A) worker's compensation laws

B) paid time off

C) protection programs

D) services

9) Samuel is a recently hired HR professional working at XYZ Motor Co. His current project involves recording the time it takes assembly workers to complete their tasks. With the help of industrial engineers in the manufacturing plant, the aim of this project is to identify the most effective ways of assembly operations. Which of the following is NOT related to Samuel's project?

A) scientific management practices

B) time-and-motion studies

C) job analysis

D) welfare practices

10) These are positive employer gestures that beyond what was required by law, created in part to thwart potential union activity.

A) employee benefit plans

B) welfare practices

C) scientific management practices

D) compensable factors

 

11) A company's ability to sustain market share and profitability for several years running is referred to by what term?

A) differentiation

B) personnel administration

C) compensation practices

D) competitive advantage

12) This term suggests that a loss is likely for the firm, and that the individual will be left with little control.

A) reverse opportunity

B) negative equity

C) threat

D) foreclosure

13) What strategy describes the use of benefit and compensation packages in order to support both HR and competitive strategies?

A) worker welfare strategies

B) total compensation strategies

C) total quality management strategies

D) worker satisfaction strategies

14) Ryanair uses one type of aircraft in its fleet and requires their passengers to carry their luggage to the plane. Ryanair's decisions exemplify which of the following competitive strategies?

A) differentiation strategy

B) high quality strategy

C) brand notoriety

D) lowest-cost strategy

15) A company using this competitive strategy seeks to offer a product or service that is completely unique from other competitors in their market segment.

A) differentiation strategy

B) defender strategy

C) prospector strategy

D) lowest-cost strategy

 

16) Which of these actions would HR seek to encourage in attempting to create a lowest-cost competitive strategy?

A) an employee long-term focus

B) unpredictable employee behavior

C) high concern for the quantity of output

D) high concern for the quality of output

17) This group is directly involved in producing goods and delivering services for a company.

A) staff employees

B) line employees

C) managers

D) executives

18) These describe the terms of employment that are set between management and union bargaining representatives.

A) employee relationship agreements

B) collective bargaining agreements

C) joint employment agreements

D) workplace requisite agreements

19) Sandra's position changed from supervisor at the planning department to supervisor at the new projects department. In terms of career development, which of the following is more applicable to Sandra's situation?

A) maintaining focus with less responsibilities

B) a lateral move across the company's hierarchy

C) moving upward through a company's hierarchy

D) maintaining the focus and assume greater responsibilities

20) Which of these is a company sponsored program that provides income to workers throughout their retirement?

A) pension plans

B) severance plans

C) loyalty plans

D) longevity plans

 

21) This is a way in which companies often trim their payroll responsibilities by encouraging higher paid workers with more seniority to voluntarily leave the company earlier than previously planned.

A) resignation plans

B) severance plans

C) early retirement programs

D) employee expenditure plans

22) What U.S. federal law established a national minimum wage for employees involved in commerce (rather than just those employed by companies working for the U.S. government), as well as prohibit most employment of minors in oppressive child labor?

A) The Equal Pay Act of 1963

B) The Civil Rights Act of 1964

C) The Fair Labor Standards Act of 1938

D) The Family and Medical Leave Act of 1993

23) 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

24) What is a systematic process for gathering, documenting, and analyzing information in order to describe jobs?

A) job evaluation

B) internal consistency

C) job analysis

D) strategic analysis

25) What do compensation managers use to recognize differences in the relative net worth of jobs and to establish pay differentials based upon management priorities?

A) job evaluation

B) internal consistency

C) job analysis

D) strategic analysis

 

26) These compensation systems go a long way in attracting and retaining the most qualified employees, and are based upon market surveys and compensation surveys.

A) internally consistent compensation systems

B) market-competitive pay systems

C) job evaluation compensation systems

D) externally consistent compensation systems

27) This allows business professionals to determine where they currently stand in the market based on both the external market context and internal factors.

A) market analysis

B) comparative analysis

C) 360 degree analysis

D) strategic analysis

28) What represents the pay rate differences for jobs and employee contributions of unequal worth to a company?

A) merit pay

B) incentive pay

C) retention pay

D) pay structures

29) These build upon pay grades, and include maximum, minimum, and mid-point pay rates for jobs in particular pay grades.

A) pay ranges

B) pay slopes

C) piece rates

D) pay determinates

30) Which of the following are stakeholders within a company?

A) line managers

B) executives

C) unions

D) all of the above

 

31) ________ compensation refers to the mental state of employees as a result of their performance on the job.

32) ________ pay systems reward employees with base pay raises according to their length of service on the job.

33) ________ decisions are made in order to support the fulfillment of strategic decisions.

34) Strategic management involves distinguishing between ________ and ________ in attempting to achieve company goals, thus making strategic management an inexact process.

35) Competitive ________ is the use of company resources (such as capital, technology, and human resources) to promote and sustain competitive advantage.

 

36) P&G uses ________ strategy based on brand image and price premium in between its Iams and Eukanuba brands.

37) Human resource professionals are ________ employees, because they exist to provide support services for line employees.

38) Companies that are implementing ________ plans generally increase the amount of classroom and on-the-job training, as these types of plans make training necessary rather than optional.

39) Employment ________ occurs when an employee's agreement to perform work is ended, be it voluntarily or involuntarily.

40) Due to recent economic downturn, XYZ Co. decided to shut down one of its appliance manufacturing plants in the United States and therefore around 300 workers need to be laid off. XYZ Co. will award these laid off workers with 6 months of ________ pay.

 

41) What is merit pay? Explain the role of performance appraisals in merit pay programs.

42) What is pay-for-knowledge plan? Explain the role of training in pay-for-knowledge plans.

43) What is a constituency? How does it affect the HR department?

.

 

1) This amendment to the U.S. Constitution gives Congress the power to regulate commerce with foreign nations, individual states, and Indian Tribes.

A) The First Amendment

B) The Fourteenth Amendment, Section 1

C) The Fifth Amendment

D) Article I, Section 8

2) Which amendment to the U.S. Constitution made it illegal to restrict the freedom of religion, speech, and press, as well as protect the right of people to peacefully assemble?

A) Article 1, Section 8

B) First Amendment

C) Fifth Amendment

D) Fourteenth Amendment, Section 1

3) Which branch of the federal government is responsible for interpreting laws?

A) Service branch

B) Legislative branch

C) Executive branch

D) Judicial branch

4) These programs granted income to workers who were unable to work due to injuries sustained while on the job.

A) sick leave

B) FMLA

C) workforce restitution

D) workers' compensation

5) Which one of these issues is NOT addressed by the Fair Labor Standards Act of 1938?

A) minimum wage

B) overtime pay

C) executive compensation

D) child labor provisions

 

6) An employee has a regular hourly rate equal to $12. According to FLSA, how much should her/his employer pay this employee for each additional hour worked beyond the regular 40 hours within a period of 7 consecutive days?

A) $12

B) $14

C) $16

D) $18

7) An employee has a regular hourly rate equal to $10? S/he works 45 hours within a period of 7 consecutive days. How much should her/his employer pay this employee for 45 hours in total?

A) 425

B) 450

C) 475

D) 500

8) What are the revised guidelines introduced in 2004 for determining whether jobs are exempt from FLSA overtime pay provisions called?

A) Glass Ceiling Act

B) Overtime Nonexempt Rules

C) Bennett Amendment

D) Fair Pay Rules

9) Which of the following example is NOT considered as a compensable work activity?

A) a fireman who plays checkers while waiting for an alarm

B) an employee attends an employer-mandated training

C) an employee travels from home before the regular workday and returns to his/her home at the end of the workday

D) an employee takes a 15-minute rest during work time

10) Based upon the FLSA child labor provisions, what is the minimum age that a child must be in order to be legally employed?

A) 10

B) 12

C) 14

D) 19

 

11) Which of the following is NOT a protected characteristic by Title VII of the Civil Rights Act of 1964?

A) sexual orientation

B) race

C) national origin

D) gender

12) Intentionally treating women less favorably than men solely based upon their gender would be what form of discrimination?

A) disparate treatment

B) disparate impact

C) disparate causality

D) situational discrimination

13) A policy that applies to all company employees, but unintentionally hurts a protected group disproportionately would be what form of discrimination?

A) disparate treatment

B) disparate impact

C) disparate causality

D) situational discrimination

14) 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

15) The "equal benefit or equal cost principle" is part of which Act?

A) The Older Workers Benefits Protection Act (OWBPA)

B) The Americans with Disabilities Act (ADA)

C) The Employee Retirement Income Security Act of 1974 (ERISA)

D) The Fair Labor Standards Act of 1938 (FLSA)

16) As a result of this law enacted by Congress, employers must now show that employment practices that create disparate impact are a business necessity. This law also made it legal for U.S. citizens working abroad for U.S. companies to file suit.

A) Americans with Disabilities Act of 1990

B) Executive Order 11246

C) The Civil Rights Act of 1991

D) The Older Workers Benefit Protection Act

17) This law makes it illegal to discriminate against people with physical and mental disabilities both within and outside employment settings, including public transportation, public accommodations, and employment.

A) Americans with Disabilities Act of 1990

B) Executive Order 11246

C) The Civil Rights Act of 1991

D) The Older Workers Benefit Protection Act

18) The Americans with Disabilities Act of 1990 (ADA) applies to companies that employ at least how many workers?

A) 50

B) 25

C) 15

D) 100

19) Jennifer works as a clerk in a company. The essential function of her job is producing memoranda using word processing software. If she develops crippling arthritis, which act requires her employer to make reasonable accommodations such as providing a voice-recognition input device?

A) Family and Medical Leave Act of 1993

B) Americans with Disability Act of 1990

C) Davis-Bacon Act of 1931

D) Occupational Safety and Health Act of 1970

20) Construction contractors, working on government contracts valued at more than $2,000, must pay their laborers and mechanics what type of local area based wage according to the Davis-Bacon Act of 1931?

A) minimum wage

B) prevailing wage

C) prevalent wage

D) discretionary wage

21) This law was established in order to regulate the implementation of various employee benefits and pension programs.

A) The Older Workers Benefit Protection Act (OWBPA)

B) The Americans with Disabilities Act of 1990 (ADA)

C) The Employee Retirement Income Security Act of 1974 (ERISA)

D) The Fair Labor Standards Act of 1938

22) 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

23) This was enacted in order to allow employees who are terminated, laid off, or have a change in their employment status to temporarily remain on the employer-sponsored medical insurance plan.

A) The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)

B) The Older Workers Benefit Protection Act (OWBPA)

C) The Americans with Disabilities Act of 1990 (ADA)

D) The Civil Rights Act of 1991

24) Title VII and ADEA do not protect federal government employees. Which one of the following executive orders and/or laws gives similar protection to federal government employees?

A) Family and Medical Leave Act of 1993

B) Executive Order 11478

C) Executive Order 11935

D) The Rehabilitation Act

25) This provision mandates that federal government agencies take affirmative action in providing jobs for individuals with disabilities.

A) The Rehabilitation Act

B) ADA

C) Executive Order 11478

D) The Government Employee Rights Act of 1991

26) PPACA and its amendment Health Care and Education Reconciliation Act of 2010 are considered to be the basis for health care reform in the United States. Which of the following is NOT considered to be one of the goals of this health care reform?

A) to reduce the number of uninsured U.S. residents

B) to help more children get health coverage

C) to increase the fund for the Medicare program

D) to give patients access to recommended preventive services without cost

27) What is it called when the compensation practices in non-unionized companies mirror those found in unionized settings?

A) progressive compensation

B) the spillover effect

C) concessionary bargaining

D) inter-industry compensation differentials

28) 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

29) This type of bargaining occurs when unions shift from bargaining for large pay increases to simply bargaining for greater job security.

A) guarded

B) concessionary

C) heightened

D) compensationary

30) Which of the following factors explain inter-industry wage differentials?

A) the industry's product market

B) the degree of capital intensity

C) a large labor market

D) all of the above

31) Congress creates and passes laws within the ________ branch of the American government.

32) During the ________, which took place in the 1930s, a great number of businesses failed and unemployment soared, forcing the government to intervene.

33) The FLSA requires that overtime be paid on all hours worked in excess of ________ hours within a period of 7 consecutive days.

34) The ________ of 1963 makes it illegal to pay one sex more than the other for equal work performed.

35) The ________ Amendment allows female employees to charge employers with Title VII violations regarding pay only when the employer has violated the Equal Pay Act of 1963.

36) The ________ in Employment Act of 1967 was passed by Congress in order to protect workers 40 years of age and older from unlawful discrimination.

37) The ________ generation was born between roughly 1946 and 1964, and represents a big swell in the American population as the workforce gets progressively older.

38) The ________ of 1978 was put in place to prohibit disparate impact discrimination from occurring against pregnant women in all employment practices, as well as to ensure that pregnancy was treated the same as any other form of disability.

39) The ________ of 1993 sought to provide employees with job protection in case of a family or medical emergency.

40) ________ refers to an employee acquiring non forfeitable rights to an employer's contribution to fund benefits.

41) How would the compensation system change if the minimum wage provision of the Fair Labor Standards Act of 1938 were repealed?

42) Distinguish between disparate treatment and disparate impact in a compensation context.

.

43) Explain interindustry wage differentials and discuss the role of unionization on the interindustry differentials.