Compensation/Pay structure
1. Which of the following is an example of wage criteria bias?
A. Rich doesnt give Suzanne a high increase in pay becausehe feels that a woman isnt an effective employee. B. Rich doesnt give Suzanne a high increase in pay becauseSuzannes pay is already at a low rate due to a poorlydesigned job evaluation. C. Rich doesnt give Suzanne a high increase in pay becauseSuzanne hasnt performed as well as is required for herjob.D. Rich doesnt give Suzanne a high increase in pay becausetheres not enough money in the budget to give every employee a raise.
2. A skill plan thats based on depth rather than breadth focuses on the skills required to
A. manage a warehouse.B. drive a forklift.C. manage people.D. perform all of the accounting tasks for an organization.
3. Andrew is performing a job evaluation using the point method. He just created a list of the different levels of skills required for each factor. Which step did Andrew justcomplete?
A.Conduct the job analysis.B. Determine compensable factors.C. Scale the factors.D. Weigh the factors according to importance.
4. Kurt is currently working with the labor union that represents the employees in hisorganization on developing a compensation strategy. Which step of the total compensationstrategy formulation is he executing?
A. Assessing total compensation implicationsB. Mapping a total compensation strategyC. Implementing the strategyD. Reassessing the strategy
5. Teresa is developing a Web site that will explain the organizations pay and benefitspackage to its employees. Which step of the total compensation strategy formulation is she executing?
A. Assessing total compensation implicationsB. Mapping a total compensation strategyC. Implementing the strategyD. Reassessing the strategy
6. Stephanie works in the 2 -bolt manufacturing division and Christine works in the 6-bolt manufacturing division. Stephanie earns a higher wage than Christine because the 2bolts are manufactured in an area where the cost of living is much higher than the areawhere the 6 bolts are manufactured. Which of the following is this an example of?
A. Content C. Use valueB.Relative contribution D.Exchange value
7. Which of the following is an example of the ranking method being used to perform ajob evaluation?
A. Using the job definitions that are provided on the Department of Labor Web site tocreate the different levels of positions within an organizationB.Creating 16 different descriptions in which each job within the organization will fitC.Creating a list of specific tasks for each job and placing a value on each one basedon how much they contribute to the organizations missionD. Creating a list of specific skills required for each job and placing a value on eachbased on how much they contribute to the organizations mission
8. Kevin just completed a job evaluation for his organization. After presenting his findingsto the HR director, he was told that the position of vice president didnt have a highenough salary based on its level of responsibility and the position of maintenanceworker didnt have a high enough salary based on its level of responsibility. Which of the following was missing from Kevins evaluation?
A. Supports organizational strategyB.Supports work flowC.Fair to employeesD. Motivates behavior toward organizational objectives
9. Shanda is performing a job analysis, and she sent a questionnaire to all the employeesin the accounting department inquiring about the work that they perform. She noticedthat there was a great deal of variance among different people who all hold the sameposition. None of them could agree on the work that they perform. Which of the following is missing from her job analysis?
A. ReliabilityC.AcceptabilityB. ValidityD. Usefulness
10. Brittany is collecting data for a job analysis, and she just finished collecting data onhow store managers teach selling skills to their new sales associates so that they willbe able to meet their individual daily sales goals. This is an example of which kind ofinformation?
A. Identification C. Employee dataB.Content D.Essential elements
11. Which of the following is an example of higher wages based on human capital?
A. Gus earns more than Seymour because Gus is a member of a labor union andSeymour isnt.B.Gus earns more than Seymour because Gus is much better at negotiating salaryincreases than Seymour.C. Gus earns more than Seymour because Gus has been trained on all of themachines that are used on his manufacturing line.D. Gus earns more than Seymour because Gus has missed fewer days of work thanSeymour.
12. Forrest just gave his assistant a 3% raise because his assistant just took on theresponsibility of department budgeting. Which of the following policy choices didForrest just make?
A. Internal alignment C.Employee contributionsB.External competitiveness D.Management
13. Ana Lisa has a company credit card on which she is allowed to purchase gas for hercar because her job requires her to drive a lot. This is an example of which form ofpay?
A. Long-term incentive C. Benefits: work/life balanceB.Benefits: income protection D. Benefits: allowances
14. Paul works in a manufacturing plant where he is paid an hourly wage. In addition tohis hourly wage, he is also paid a bonus amount based on the amount of minutes thathe can reduce his per unit manufacturing time. Which of the following best describesPauls incentive plan?
A. The pay is a constant function of production level, and the focus is on units of production per time period.B. The pay is a constant function of production level, and the focus is on time periodper units of production.C. The pay varies as a function of production level, and the focus is on units of production per time period.D. The pay varies as a function of production level, and the focus is on time period perunits of production
15. The Jeffreys Company has a dynamic workforce that deals with constantly changingobjectives that arent always easy to understand. Its also a seasonal business, andorganizational success can change on an annual basis. For example, last year was itsbest year ever, but the year before was the worst year ever due to one season. Whatwould be the best strategy for the Jeffreys Company to pursue regarding rewards?
A. Focus on a wide range of nonmonetary rewards and include a large bonus potential. B.Focus on a wide range of nonmonetary rewards but focus on higher base pay andlower incentives.C.Focus on large monetary rewards with a large bonus potential.D.Focus on large monetary rewards but focus on higher base pay and lower incentives
16. Chuck is an appliance salesman who is considered a risk taker. Which type of compensationplan would best motivate Chuck?
A.A flat hourly wage so that Chuck is paid based on the amount of time he worksB. An annual salary so that Chuck is paid the same amount regardless of the amountof time he worksC.A pure commission schedule so that Chuck is paid based on the amount of merchandise that he sellsD.An hourly wage plus a small quarterly bonus based on store sales
17. Which of the following types of plans saw an increase in use between 1996 and 2002?
A. Special recognition plans C.Gain-sharing plansB.Cash profit-sharing plans D. Stock option plans
18. The McKinney Company can produce 200 printed shirts per day. It sells those shirts for$10 each to retailers, who then sell them for $15 each. It costs the McKinney Company$5 to produce one shirt. The McKinney Company just hired Sam as a machine operator,and it can now produce 230 shirts per day. What is the marginal revenue of Samslabor?
A.$150 C.$450B.$300 D. $2,300
19. The McKinney Company can produce 200 printed shirts per day. It then sells thoseshirts for $10 each to retailers, who then sell them for $15 each. It costs the McKinneyCompany $5 to produce one shirt. The McKinney Company just hired Sam as a Machine operator, and it can now produce 230 shirts per day. What is the marginal product of Sams labor?
A.30 shirts C. 200 shirtsB.170 shirts D. 230 shirtsCompensation/Pay structure1. Which of the following is an example of wage criteria bias?A. Rich doesnt give Suzanne a high increase in pay becausehe feels that a woman isnt an effective employee. B. Rich doesnt give Suzanne a high increase in pay becauseSuzannes pay is already at a low rate due to a poorlydesigned job evaluation. C. Rich doesnt give Suzanne a high increase in pay becauseSuzanne hasnt performed as well as is required for herjob.D. Rich doesnt give Suzanne a high increase in pay becausetheres not enough money in the budget to give every employee a raise.2. A skill plan thats based on depth rather than breadth focuses on the skills required toA. manage a warehouse.B. drive a forklift.C. manage people.D. perform all of the accounting tasks for an organization.3. Andrew is performing a job evaluation using the point method. He just created a list of the different levels of skills required for each factor. Which step did Andrew justcomplete?A.Conduct the job analysis.B. Determine compensable factors.C. Scale the factors.D. Weigh the factors according to importance.4. Kurt is currently working with the labor union that represents the employees in hisorganization on developing a compensation strategy. Which step of the total compensationstrategy formulation is he executing?A. Assessing total compensation implicationsB. Mapping a total compensation strategyC. Implementing the strategyD. Reassessing the strategy5. Teresa is developing a Web site that will explain the organizations pay and benefitspackage to its employees. Which step of the total compensation strategy formulation is she executing?A. Assessing total compensation implicationsB. Mapping a total compensation strategyC. Implementing the strategyD. Reassessing the strategy6. Stephanie works in the 2 -bolt manufacturing division and Christine works in the 6-bolt manufacturing division. Stephanie earns a higher wage than Christine because the 2bolts are manufactured in an area where the cost of living is much higher than the areawhere the 6 bolts are manufactured. Which of the following is this an example of?A. Content C. Use valueB.Relative contribution D.Exchange value7. Which of the following is an example of the ranking method being used to perform ajob evaluation?A. Using the job definitions that are provided on the Department of Labor Web site tocreate the different levels of positions within an organizationB.Creating 16 different descriptions in which each job within the organization will fitC.Creating a list of specific tasks for each job and placing a value on each one basedon how much they contribute to the organizations missionD. Creating a list of specific skills required for each job and placing a value on eachbased on how much they contribute to the organizations mission8. Kevin just completed a job evaluation for his organization. After presenting his findingsto the HR director, he was told that the position of vice president didnt have a highenough salary based on its level of responsibility and the position of maintenanceworker didnt have a high enough salary based on its level of responsibility. Which of the following was missing from Kevins evaluation?A. Supports organizational strategyB.Supports work flowC.Fair to employeesD. Motivates behavior toward organizational objectives9. Shanda is performing a job analysis, and she sent a questionnaire to all the employeesin the accounting department inquiring about the work that they perform. She noticedthat there was a great deal of variance among different people who all hold the sameposition. None of them could agree on the work that they perform. Which of the following is missing from her job analysis?A. ReliabilityC.AcceptabilityB. ValidityD. Usefulness10. Brittany is collecting data for a job analysis, and she just finished collecting data onhow store managers teach selling skills to their new sales associates so that they willbe able to meet their individual daily sales goals. This is an example of which kind ofinformation?A. Identification C. Employee dataB.Content D.Essential elements11. Which of the following is an example of higher wages based on human capital?A. Gus earns more than Seymour because Gus is a member of a labor union andSeymour isnt.B.Gus earns more than Seymour because Gus is much better at negotiating salaryincreases than Seymour.C. Gus earns more than Seymour because Gus has been trained on all of themachines that are used on his manufacturing line.D. Gus earns more than Seymour because Gus has missed fewer days of work thanSeymour.12. Forrest just gave his assistant a 3% raise because his assistant just took on theresponsibility of department budgeting. Which of the following policy choices didForrest just make?A. Internal alignment C.Employee contributionsB.External competitiveness D.Management13. Ana Lisa has a company credit card on which she is allowed to purchase gas for hercar because her job requires her to drive a lot. This is an example of which form ofpay?A. Long-term incentive C. Benefits: work/life balanceB.Benefits: income protection D. Benefits: allowances14. Paul works in a manufacturing plant where he is paid an hourly wage. In addition tohis hourly wage, he is also paid a bonus amount based on the amount of minutes thathe can reduce his per unit manufacturing time. Which of the following best describesPauls incentive plan?A. The pay is a constant function of production level, and the focus is on units of production per time period.B. The pay is a constant function of production level, and the focus is on time periodper units of production.C. The pay varies as a function of production level, and the focus is on units of production per time period.D. The pay varies as a function of production level, and the focus is on time period perunits of production15. The Jeffreys Company has a dynamic workforce that deals with constantly changingobjectives that arent always easy to understand. Its also a seasonal business, andorganizational success can change on an annual basis. For example, last year was itsbest year ever, but the year before was the worst year ever due to one season. Whatwould be the best strategy for the Jeffreys Company to pursue regarding rewards?A. Focus on a wide range of nonmonetary rewards and include a large bonus potential. B.Focus on a wide range of nonmonetary rewards but focus on higher base pay andlower incentives.C.Focus on large monetary rewards with a large bonus potential.D.Focus on large monetary rewards but focus on higher base pay and lower incentives16. Chuck is an appliance salesman who is considered a risk taker. Which type of compensationplan would best motivate Chuck?A.A flat hourly wage so that Chuck is paid based on the amount of time he worksB. An annual salary so that Chuck is paid the same amount regardless of the amountof time he worksC.A pure commission schedule so that Chuck is paid based on the amount of merchandise that he sellsD.An hourly wage plus a small quarterly bonus based on store sales17. Which of the following types of plans saw an increase in use between 1996 and 2002?A. Special recognition plans C.Gain-sharing plansB.Cash profit-sharing plans D. Stock option plans18. The McKinney Company can produce 200 printed shirts per day. It sells those shirts for$10 each to retailers, who then sell them for $15 each. It costs the McKinney Company$5 to produce one shirt. The McKinney Company just hired Sam as a machine operator,and it can now produce 230 shirts per day. What is the marginal revenue of Samslabor?A.$150 C.$450B.$300 D. $2,30019. The McKinney Company can produce 200 printed shirts per day. It then sells thoseshirts for $10 each to retailers, who then sell them for $15 each. It costs the McKinneyCompany $5 to produce one shirt. The McKinney Company just hired Sam as a Machine operator, and it can now produce 230 shirts per day. What is the marginal product of Sams labor?A.30 shirts C. 200 shirtsB.170 shirts D. 230 shirts
