Listen

A mechanic replaces an automobile transmission in three hours and is paid for four hours because four hours is the standard time established for replacing a transmission. This is an example of a:

Question 1 options:

	Piecework bonus.
	Merit Raise.
	Production bonus.
	Commission bonus.
	Piecework rate.

Question 2 (1 point)

Listen

Jack hands in his resignation at the end of day after learning that Joan, the new mechanic with less experience, is getting a higher hourly rate than he is after 5 years on the job. This example illustrates an important aspect of compensation, namely that:

Question 2 options:

	When new mechanics are hired, it is best to tell them you have a pay secrecy policy.
	People will do anything to get a raise, so it is important to anticipate problems when hiring new employees.
	Pay secrecy policies are very important, especially when new people come on board.
	When compensation is perceived to be inadequate, employers may lose employees.
	The longer employees have been on the job, the higher their expectations will be.

Question 3 (1 point)

Listen

Sources of wage and salary data include all the following EXCEPT:

Question 3 options:

	Canadian Human Resource Centres.
	Employment and Social Development Canada.
	Employee trade associations.
	Private consultants.
	Job evaluations.

Question 4 (1 point)

Listen

Regardless of various trade-offs employers must occasionally make, there is one compensation objective that overrides all others, which is:

Question 4 options:

	Employers simply have to pay above market rate when labour is scarce.
	Employers must ensure that equal numbers of men and women are hired.
	Employers must comply with the law.
	Employers must ensure they have enough staff to run the business.
	Employers must meet the financial needs of their employees.

Question 5 (1 point)

Listen

A company in a remote location with low turnover and a large labour pool might set a __________ compensation philosophy.

Question 5 options:

	lead.
	match.
	control cost.
	minimum wage.
	lag.

Question 6 (1 point)

Listen

At Left Shoe Inc. a work team may be offered a bonus for exceeding predetermined production levels or may receive a per-unit incentive that results in a group piece rate. This is an example of what type of team-based incentive plan?

Question 6 options:

	Team Results Plan.
	Production Incentive Plan.
	Cost-reduction Plan.
	Profit-Sharing Plan.
	ESOPS.

Question 7 (1 point)

Listen

Which of the following is NOT an incentive system?

Question 7 options:

	Piecework.
	Production bonuses.
	Merit Raise.
	Stock options.
	Commissions.

Question 8 (1 point)

Listen

To allocate points to various jobs at her company, Joan may want to assess what types of compensable factors?

Question 8 options:

	Skill, responsibilities, effort, working conditions.
	Skill, responsibilities, benchmark value, working conditions.
	Benchmark value, responsibilities, effort, working conditions.
	Skill, benchmark value, effort, working conditions.
	Skill, responsibilities, effort, benchmark value.

Question 9 (1 point)

Listen

The inclusion of everything that the company provides an employee in exchange for working refers to what?

Question 9 options:

	Total compensation.
	Variable pay.
	Compensation and benefits.
	Direct pay.
	Base pay and all forms of incentive pay.

Question 10 (1 point)

Listen

All job evaluation techniques result in a ranking of jobs based upon their:

Question 10 options:

	Absolute worth.
	Worth to employees.
	Job satisfaction worth.
	Relative worth.
	External worth.

Question 11 (1 point)

Listen

When Stanley realizes he will need to offer a premium wage to attract applicants from his firm's competitors, he is thinking about which of the following objectives of an effective compensation system?

Question 11 options:

	acquiring qualified personnel.
	retaining present employees.
	complying with legal regulation.
	rewarding desired behaviour.
	ensuring equity.

Question 12 (1 point)

Listen

Which of the following is a condition that justifies paying workers more than they contribute back into the firm through productivity?

Question 12 options:

	Error.
	Public sector.
	Health and safety.
	Leadership potential.
	Scarcity.

Question 13 (1 point)

Listen

Internal equity requires that pay be related to the __________ worth of jobs.

Question 13 options:

	absolute.
	consistent.
	relative.
	external.
	competitive.

Question 14 (1 point)

Listen

Once job evaluation techniques have produced a ranking of relative worth of jobs, most firms rely on __________ to determine how much they should pay relative to their competitors.

Question 14 options:

	job classification.
	job grading.
	point system.
	job ranking.
	wage and salary surveys.

Question 15 (1 point)

Listen

The concept of __________ describes the principle of equal pay for men and women in jobs with comparable content, based on criteria of skill, effort, responsibility, and working conditions.

Question 15 options:

	equal pay for equal work.
	the gender wage gap.
	equal work.
	equal pay for work of equal value.
	pay equity.