Compensation and Benefits Management Exam
Materials
Course Introduction
Compensation and Benefits Management explores the strategies, policies, and practices used by organizations to reward employees for their contributions. The course covers key concepts such as job evaluation, pay structures, incentive programs, and employee benefits, including health insurance, retirement plans, and legally required benefits. Students learn how to develop competitive compensation packages that attract, motivate, and retain talent while ensuring internal and external equity and compliance with relevant laws. The course also examines recent trends in compensation and benefits, pay equity, and the impact of globalization and technology on compensation practices.
Recommended Textbook
Managing Human Resources 8th Global Edition by David B Balkin
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17 Chapters
2337 Verified Questions
2337 Flashcards
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Page 2
Chapter 1: Meeting Present and Emerging Strategic Human Resource Challenges
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134 Verified Questions
134 Flashcards
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Sample Questions
Q1) Forces external to a firm that affect the firm's performance but are beyond the control of management are called ________.
Answer: environmental challenges
Q2) Town House Publishing is implementing a new HR strategy, and to give it the best chance of succeeding, the HR department should most likely:
A)increase diversity in the environment.
B)ensure managers' commitment to the strategy.
C)create a back-up strategy to implement in case the initial strategy fails.
D)centralize management in order to communicate more effectively with employees.
Answer: B
Q3) Carson is gathering information for an HR audit. With which of the following areas should he be concerned?
A)Work teams
B)Turnover rate
C)Available technology
D)Employee interdependence
Answer: B
Q4) ________ are the characteristics that give a firm a competitive edge.
Answer: Distinctive competencies
3
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Chapter 2: Managing Work Flows and Conducting Job Analysis
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144 Verified Questions
144 Flashcards
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Sample Questions
Q1) The three psychological states central to the job characteristics theory include:
A)meaningfulness of the job.
B)control of job outcomes.
C)task significance.
D)task identity.
Answer: A
Q2) You are job-sharing with a co-worker, Dave. Which of the following is true about this working arrangement?
A)You and Dave divide the job's responsibilities, hours, and benefits between the two of you.
B)You and Dave work for a temporary agency, which splits assignments between the two of you.
C)You and Dave are responsible for managing yourselves and your assigned projects.
D)You and Dave divide the job's responsibilities but neither of you receives any health benefits.
Answer: A
Q3) ________ is time during which employees can choose not to be at work.
Answer: Flextime
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Chapter 3: Understanding Equal Opportunity and the Legal Environment
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) If a woman has been subjected to undesirable and offensive sexual behavior by customers in the workplace, she has most likely been a victim of:
A)quid pro quo sexual harassment.
B)harassment.
C)discrimination.
D)hostile work environment sexual harassment.
Answer: D
Q2) A charter bus company requires drug tests of all its drivers prior to every charter. As a consequence of this testing, accident rates have fallen by 75%. This test seems to screen out more young minority males than any other group or protected class. This drug test is most likely:
A)an example of disparate treatment.
B)illegal because of adverse impact on a protected class.
C)a prima facie case of discrimination based on race.
D)legally defensible as a reasonable business necessity.
Answer: D
Q3) Fines awarded to a plaintiff in order to punish the defendant are called ________.
Answer: punitive damages
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Chapter 4: Managing Diversity
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) Latinos are expected to account for about ________% of the growth of the U.S. labor force between now and 2030.
A)65
B)50
C)35
D)20
Q2) Homosexuals are extended the same employment discrimination rights as other protected-class groups under the Civil Rights Act of 1991.
A)True
B)False
Q3) Senior mentoring and apprenticeships are two tools used by corporations to improve diversity and the understanding of diversity.
A)True
B)False
Q4) The cultural relativity concept of management encourages flexibility in management practices related to the diversity of the given workforce.
A)True
B)False
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Page 6
Chapter 5: Recruiting and Selecting Employees
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134 Verified Questions
134 Flashcards
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Sample Questions
Q1) After an extensive recruiting effort, your company has contacted 225 interested individuals. At the application deadline, you have received 75 applications. What is your contact-to-applicant ratio?
A)1:2
B)2:3
C)1:3
D)3:1
Q2) A study conducted by the U.S. Postal Service regarding drug testing:
A)showed that drug testing is a valid predictor of job performance.
B)showed that drug testing does not correlate with on-the-job performance.
C)revealed that most job candidates can "beat" a drug test.
D)has been struck down by the Supreme Court.
Q3) According to research, why do firms experience lower turnover rates when they fill positions with current and former employees?
A)Effective socialization skills among workers
B)Realistic job expectations of workers
C)Applicable training in college
D)Flexible demands at the firm
Q4) ________ is how many workers the organization will need in the future.
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Chapter 6: Managing Employee Separations, Downsizing, and Outplacement
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139 Verified Questions
139 Flashcards
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Sample Questions
Q1) Dixon Enterprises needs to reduce its long-term workforce. The firm wants to reduce the scale and scope of its business to improve financial performance. The company is most likely:
A)conducting a layoff.
B)downsizing.
C)buying out the workforce.
D)rightsizing.
Q2) The least disruptive way to cut labor costs is through: A)layoffs.
B)attrition.
C)job redesign.
D)hiring freezes.
Q3) A firm can best manage participation in an early retirement program by:
A)restricting the program to areas of the business with a redundancy of employees.
B)outsourcing highly skilled employees to competing firms.
C)offering the program only to employees with poor performance appraisals.
D)requiring participating employees to sign no-compete agreements.
Q4) The termination of an employee's membership in an organization is referred to as
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Chapter 7: Appraising and Managing Performance
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) Managers using a rational perspective to appraise performance believe that:
A)the goal of an appraisal is accuracy.
B)the employee is an active participant in the process.
C)the focus of the process is management of performance.
D)the assessment of specifics follows the overall assessment of the worker.
Q2) The performance appraisal system should praise and criticize past behavior and focus on the future in terms of how workers will achieve their potential.
A)True
B)False
Q3) Refer to Additional Case 7.3. Which of the following questions would be LEAST relevant for Chris and Gena to ask when faced with employee performance problems?
A)Is the employee's performance erratic?
B)Is the employee's performance lower on all tasks?
C)Have all workers received 360-degree feedback?
D)Are performance problems occurring with all workers?
Q4) ________ is an aspect of performance that determines effective job performance.
Q5) An error in performance appraisals that reflects consistent biases on the part of the rater is referred to as ________.
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Chapter 8: Training the Workforce
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137 Flashcards
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Sample Questions
Q1) Cross-functional training involves training employees to perform operations in areas other than their assigned jobs.
A)True
B)False
Q2) An accounting firm discovers that its junior accountants are not properly completing IRS forms on the new computer system when preparing customers' income taxes. This problem can best be resolved through:
A)retraining.
B)skills training.
C)cross-functional training.
D)creativity training.
Q3) ________ is the process of informing new employees about what is expected of them in the job and helping them cope with the stresses of transition.
Q4) The most common type of training is customer service training.
A)True
B)False
Q5) A creativity training technique in which participants are given the opportunity to generate ideas openly, without fear of judgment is referred to as ________.
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Chapter 9: Developing Careers
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135 Verified Questions
135 Flashcards
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Sample Questions
Q1) For career paths to be helpful, they need to contain information about:
A)pay and benefits at each level.
B)employee interests, education, and abilities.
C)qualifications and time between steps.
D)criteria for selecting applicants.
Q2) Communication skills and the ability to resolve problems are keys to career advancement.
A)True
B)False
Q3) Career development assessment is primarily for helping employees to do all of the following EXCEPT:
A)select a realistically obtainable career.
B)choose a career that is a good fit for them.
C)identify corporations that value career development.
D)determine the weaknesses they need to overcome in order to reach career goals.
Q4) A promotability forecast:
A)projects the advancement potential of employees.
B)analyzes the strengths and weaknesses of employees.
C)predicts the need for managers over a specified period.
D)reviews key employees' underlying skills and interests.
Page 11
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Chapter 10: Managing Compensation
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146 Verified Questions
146 Flashcards
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Sample Questions
Q1) The package of quantifiable rewards an employee receives for his/her labors is called ________.
Q2) The Hay Guide Chart Profile Method of weighing compensable factors in a job is best used when establishing a:
A)skill-based compensation system.
B)job-based compensation system.
C)performance-centered compensation system.
D)variable pay compensation system.
Q3) When conducting a job evaluation, it is most important to remind employees that:
A)your focus is on the value of the tasks, not their individual performances.
B)you are looking at their individual performance in specific jobs.
C)external data is needed to establish the job's position in the job hierarchy.
D)knowledge and skill are equally important in your assessment.
Q4) A membership-contingent compensation system pays employees:
A)for the number of hours during which they perform their assigned jobs.
B)on the basis of the value of the job they perform.
C)on the basis of the skills used to perform their jobs.
D)for how well they do their particular job.
Q5) A job that is similar or comparable in content across firms is called a(n)________.
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Chapter 11: Rewarding Performance
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140 Verified Questions
140 Flashcards
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Sample Questions
Q1) Resources, Inc. has recently increased its emphasis on pay-for-performance. Within the last several months, there has been a sharp increase in employee competition and the sabotaging of projects. The incentive plan has most likely:
A)expanded the credibility gap.
B)decreased personal motivation.
C)discouraged employee cooperation.
D)diminished managerial powers over subordinates.
Q2) A key assumption behind pay-for-performance compensation is that:
A)the importance of the job needs to be weighed in figuring the incentive.
B)the organization's performance depends on individuals' performance.
C)teams are not suitable "vehicles" for most corporate incentive programs.
D)accurate job evaluations and market surveys are critical to calculate incentives.
Q3) In general, perquisites are:
A)part of team-based pay-for-performance plans.
B)offered to top-performing employees at all levels.
C)nonmonetary incentives awarded to executives.
D)are not well received by most executives.
Q4) ________ is an increase in base pay, normally given once a year.
Q5) ________ are noncash incentives given to a firm's executives.
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Chapter 12: Designing and Administering Benefits
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Sample Questions
Q1) ________ is a government program that provides income for retirees, the disabled, and survivors of deceased workers, and health care for the aged through the Medicare program.
Q2) Cheyanne is a recent widow. She is the mother of a 19-year-old daughter and the care-provider of her mother-in-law who is 60 years old. Cheyanne is eligible for survivor benefits.
A)True
B)False
Q3) The United States provides the fewest vacation days of any country in the world. A)True B)False
Q4) All of the following are characteristics of PPOs EXCEPT: A)flexibility.
B)managed health care.
C)limited physician choice.
D)fixed fee medical services.
Q5) What are the three areas that an employer needs to consider when establishing a benefits plan? How can HR use technology to ensure that employees clearly understand an employer's benefits plan?
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Chapter 13: Developing Employee Relations
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143 Flashcards
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Sample Questions
Q1) Which of the following is intended to keep employees up-to-date on important events and provide inspirational stories about employee and team contributions to the firm?
A)Employee handbook
B)Managerial memo
C)Company financial report
D)Company newsletter
Q2) The most difficult problem managers have with e-mail is that:
A)workers fail to protect sensitive documents.
B)employees assume that e-mail is their private property.
C)workers don't understand how to use the system properly.
D)employees don't use the reply-all option with regularity.
Q3) A group of employees are discussing a notice on the bulletin board. "This is great! They finally recognize our need for childcare here. Boy, will this make life easier." For the employees, this is an example of:
A)factual communication.
B)communication of feelings.
C)upward communication.
D)noise.
Q4) ________ is the practice of favoring relatives over others in the workplace.
Page 15
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Chapter 14: Respecting Employee Rights and Managing Discipline
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Sample Questions
Q1) Managing difficult employees is an important part of the discipline process. Identify three common employee problems that managers must deal with and the questions or issues managers should consider with each.
Q2) An employee who holds his employer accountable for improper conduct by informing the proper authorities is involved in:
A)whistleblowing.
B)a breach of contract.
C)a psychological contract.
D)due process of the law.
Q3) When managers deal with poor attendance problems, they must treat each infraction the same regardless of the circumstances because of the current legal climate.
A)True
B)False
Q4) ________ is a series of management interventions that gives employees opportunities to correct undesirable behaviors before being discharged.
Q5) Your text gives four mistakes that managers should avoid when administering discipline to employees. What are they?
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Chapter 15: Working With Organized Labor
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Sample Questions
Q1) Union membership is increasing in the public sector while declining among private employers.
A)True
B)False
Q2) Refer to Additional Case 15.4. Karsten most likely believes in a strategy of:
A)union avoidance.
B)union substitution.
C)union acceptance.
D)union suppression.
Q3) Why do companies typically prefer a nonunion workforce? How does a unionized workforce affect HRM and its policies?
Q4) The union acceptance strategy is most likely to:
A)take hold in small companies.
B)prevent employees from joining unions.
C)foster distrust among management and employees.
D)result in cooperation between unions and employers.
Q5) Discuss at least two types of strikes and explain the costs that management and employees may face during a strike. What is the significance of the Railway Labor Act as it relates to strikes?
Q6) A company's overall plan for dealing with labor relations is its ________.
Page 17
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Chapter 16: Managing Workplace Safety and Health
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Sample Questions
Q1) Fatal occupational injury rates are highest in the logging industry according to the Bureau of Labor Statistics.
A)True
B)False
Q2) What roles do OSHA and the ADA play on AIDS/HIV in the workplace?
Q3) OSHA offers a free consultation service to help businesses identify workplace hazards and improve safety management.
A)True
B)False
Q4) Workers' compensation law has evolved over time to its present form. What common law principles governed employer responsibilities to injured employees in the past? What are the current principles that guide today's employers?
Q5) All of the following are uses of Haz-Map EXCEPT:
A)filing complaints about hazardous chemical usage.
B)determining substance toxicity levels.
C)identifying occupational diseases.
D)preventing toxic exposures.
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Page 18
Chapter 17: International HRM Challenge
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Sample Questions
Q1) The fourth stage of internationalization is marked by the company:
A)moving some of its operations out of the home country.
B)having production facilities in several countries of the world.
C)having highly decentralized operations and showing little allegiance to the country of origin.
D)expanding into foreign markets but retaining its production facilities in the home country.
Q2) The ________ is an approach to managing international operations in which top management and other key positions are filled by people from the home country.
Q3) According to the text, what is the most challenging task for expatriates dealing with global issues?
A)Modifying technology
B)Anticipating political risks
C)Monitoring foreign currencies
D)Negotiating with local governments
Q4) Performance is more important than seniority as a criterion for advancement in South Korean firms.
A)True
B)False
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