412715RR Compensating Human Resources 1. If employees conclude that they're underrewarded, they're likely to make up the difference in three of the following ways. Which is not a way in which employees who feel underrewarded are likely to make up the difference? A. Reducing their inputs B. Refusing to cooperate C. Withdrawing by leaving the organization D. Finding a way to reduce their outcomes 2. An organization is adjusting pay to better match a local labor market in which the cost of living is rising sharply. These adjustments are called A. rank-and-file adjustments. B. bonuses. C. green-circle rates. D. pay differentials. 3. The Scanlon plan is a variation of which type of incentive? A. Merit pay B. Profit sharing C. Gainsharing D. Individual 4. Three of the following are objectives of the unemployment insurance program. Which is not an objective of the unemployment insurance program? A. To offset lost income during involuntary unemployment B. To provide an incentive for employers to stabilize employment C. To offset lost income during a labor dispute D. To preserve investments in worker skills by providing income during short-term layoffs 5. Since the 1990s, the trend in larger public companies is to grant stock options to A. only top management. B. all employees. C. all exempt employees. D. all top and middle managers. 6. Three of the following are types of defined-contribution pension plans. Which of the following is not a type of defined-contribution pension plan? A. Money purchase plan B. Section 401(k) plan C. Employee stock option plan D. Gainsharing plan 7. Which level of child care is most frequently provided by organizations with 100 or more employees? A. The organization supplies and helps employees collect information about the cost and quality of available child care. B. The organization offers no support within this area. C. The organization provides vouchers or discounts for employees to use at existing child-care facilities. D. The organization operates a day-care center at or near the workplace. 8. Which of the following is a false statement about Social Security benefits? A. Employers and employees share the cost of the program through a payroll tax. B. Eligibility rules must be met to receive benefits. C. Benefits are taxed as ordinary income at both the federal and state level. D. Workers who meet requirements receive retirement benefits according to age and earnings history. 9. Why are growing numbers of employers opting for defined-contribution plans? A. Employers are free from the risk of poor performance of the plans. B. They guarantee a specified level of retirement income. C. PGBC makes annual contribution of $33 per participant. D. Defined-contribution plans are required by ERISA 10. Which of the following is a false statement about the Fair Labor Standards Act? A. The overtime rate under the FLSA is one and a half times the employee's hourly rate, including any bonuses and piece-rate payments. B. The FLSA requires federal contractors to pay prevailing wage rates. C. Nonexempt employees are covered by FLSA and include most hourly workers. D. The FLSA permits a subminimum training wage equal to 85 percent of the minimum wage. 11. Which of the following is not an advantage of a balanced scorecard? A. Communicating a balanced scorecard helps employees understand the organization's goals and how they might contribute to these goals. B. A balanced scorecard links external pay rates with internal job structures, allowing organizations to gain both internal and external pay equity. C. A balanced scorecard allows for a combination of performance measures that are directed toward both the company's long- and short-term objectives. D. A balanced scorecard balances the disadvantages of one type of incentive pay with the advantages of another type. 12. Which act permits a lower training wage, which employers may pay to workers under the age of 20 for a period of up to 90 days? A. FLSA B. FMLA C. ADA D. ERISA 13. Quality guru W. Edwards Deming advocates the use of A. group incentives. B. stock options. C. merit-pay systems. D. piecework incentives. 14. Three of the following are vesting rights. Which is not a vesting right? A. The right to a pension at retirement B. In most cases, a waiting period of no more than five years or a three- to seven-year period, with 20 percent in the third and each year thereafter C. A guarantee that the employer won't switch the pension plan from defined-benefit to definedcontribution plan D. The right to a pension regardless of whether or not the employee remains with the employer until retirement 15. Employees who have met the enrollment and length-of-service requirements to receive a pension at retirement, regardless of whether they remained with the employer until that time, are said to be A. vested. B. retirees. C. expatriates. D. pensioners. 16. Which of the following is an advantage of group incentives? A. Encouraging team members to compete with each other so they can achieve their goal B. Groups trying to outdo one another in satisfying customers C. Rewarding the performance of all employees at a facility D. Group more likely using a broad range of performance measures 17. Due to increasing diversity within the workplace, many employers are extending benefits to A. independent contractors. B. domestic partners. C. anyone living within the employee's household. D. extended-family members. 18. Organizations being squeezed between labor and product markets need to A. couple pay policies with creative HR, production, and marketing management to make workers' contributions more valuable and products more profitable. B. move from job-based pay structures to skill-based pay systems, where employees are empowered and jobs are more enriched. C. move their operations overseas. D. change their strategic mission and direction, moving to more attractive industries. 19. In response to the growing concern over ethical issues surrounding incentive pay for executives, three of the following actions have been taken. Which action has not been taken in response to the growing concern over ethical issues? A. Limiting the amount companies may deduct for executive and performance-related pay to no more than $1 million B. Imposing strict limits on insider trading C. Requiring companies to more clearly report executive compensation levels and the company's performance relative to that of competitors D. Using the balanced-scorecard to design executive pay and incentives 20. A system in which an employer pays a worker specifically for each unit produced is known as A. hourly wage. B. gross pay. C. piecework rate. D. salary. 412715RR Compensating Human Resources 1. If employees conclude that they're under rewarded, they're likely to make up the difference in three of the following ways. Which is not a way in which employees who feel under rewarded are likely to make up the difference? A. Reducing their inputs B. Refusing to cooperate C. Withdrawing by leaving the organization D. Finding a way to reduce their outcomes 2. An organization is adjusting pay to better match a local labor market in which the cost of living is rising sharply. These adjustments are called A. rank-and-file adjustments. B. bonuses. C. green-circle rates. D. pay differentials. 3. The Scanlon plan is a variation of which type of incentive? A. Merit pay B. Profit sharing C. Gainsharing D. Individual 4. Three of the following are objectives of the unemployment insurance program. Which is not an objective of the unemployment insurance program? A. To offset lost income during involuntary unemployment B. To provide an incentive for employers to stabilize employment C. To offset lost income during a labor dispute D. To preserve investments in worker skills by providing income during short-term layoffs 5. Since the 1990s, the trend in larger public companies is to grant stock options to A. only top management. B. all employees. C. all exempt employees. D. all top and middle managers. 6. Three of the following are types of defined-contribution pension plans. Which of the following is not a type of defined-contribution pension plan? A. Money purchase plan B. Section 401(k) plan C. Employee stock option plan D. Gainsharing plan 7. Which level of child care is most frequently provided by organizations with 100 or more employees? A. The organization supplies and helps employees collect information about the cost and quality of available child care. B. The organization offers no support within this area. C. The organization provides vouchers or discounts for employees to use at existing child-care facilities. D. The organization operates a day-care center at or near the workplace. 8. Which of the following is a false statement about Social Security benefits? A. Employers and employees share the cost of the program through a payroll tax. B. Eligibility rules must be met to receive benefits. C. Benefits are taxed as ordinary income at both the federal and state level. D. Workers who meet requirements receive retirement benefits according to age and earnings history. 9. Why are growing numbers of employers opting for defined-contribution plans? A. Employers are free from the risk of poor performance of the plans. B. They guarantee a specified level of retirement income. C. PGBC makes annual contribution of $33 per participant. D. Defined-contribution plans are required by ERISA 10. Which of the following is a false statement about the Fair Labor Standards Act? A. The overtime rate under the FLSA is one and a half times the employee's hourly rate, including any bonuses and piece-rate payments. B. The FLSA requires federal contractors to pay prevailing wage rates. C. Nonexempt employees are covered by FLSA and include most hourly workers. D. The FLSA permits a subminimum training wage equal to 85 percent of the minimum wage. 11. Which of the following is not an advantage of a balanced scorecard? A. Communicating a balanced scorecard helps employees understand the organization's goals and how they might contribute to these goals. B. A balanced scorecard links external pay rates with internal job structures, allowing organizations to gain both internal and external pay equity. C. A balanced scorecard allows for a combination of performance measures that are directed toward both the company's long- and short-term objectives. D. A balanced scorecard balances the disadvantages of one type of incentive pay with the advantages of another type. 12. Which act permits a lower training wage, which employers may pay to workers under the age of 20 for a period of up to 90 days? A. FLSA B. FMLA C. ADA D. ERISA 13. Quality guru W. Edwards Deming advocates the use of A. group incentives. B. stock options. C. merit-pay systems. D. piecework incentives. 14. Three of the following are vesting rights. Which is not a vesting right? A. The right to a pension at retirement B. In most cases, a waiting period of no more than five years or a three- to seven-year period, with 20 percent in the third and each year thereafter C. A guarantee that the employer won't switch the pension plan from defined-benefit to definedcontribution plan D. The right to a pension regardless of whether or not the employee remains with the employer until retirement 15. Employees who have met the enrollment and length-of-service requirements to receive a pension at retirement, regardless of whether they remained with the employer until that time, are said to be A. vested. B. retirees. C. expatriates. D. pensioners. 16. Which of the following is an advantage of group incentives? A. Encouraging team members to compete with each other so they can achieve their goal B. Groups trying to outdo one another in satisfying customers C. Rewarding the performance of all employees at a facility D. Group more likely using a broad range of performance measures 17. Due to increasing diversity within the workplace, many employers are extending benefits to A. independent contractors. B. domestic partners. C. anyone living within the employee's household. D. extended-family members. 18. Organizations being squeezed between labor and product markets need to A. couple pay policies with creative HR, production, and marketing management to make workers' contributions more valuable and products more profitable. B. move from job-based pay structures to skill-based pay systems, where employees are empowered and jobs are more enriched. C. move their operations overseas. D. change their strategic mission and direction, moving to more attractive industries. 19. In response to the growing concern over ethical issues surrounding incentive pay for executives, three of the following actions have been taken. Which action has not been taken in response to the growing concern over ethical issues? A. Limiting the amount companies may deduct for executive and performance-related pay to no more than $1 million B. Imposing strict limits on insider trading C. Requiring companies to more clearly report executive compensation levels and the company's performance relative to that of competitors D. Using the balanced-scorecard to design executive pay and incentives 20. A system in which an employer pays a worker specifically for each unit produced is known as A. hourly wage. B. gross pay. C. piecework rate. D. salary