Human Resource Development
Exam Materials
Course Introduction
Human Resource Development (HRD) explores the systematic approach to improving individual, group, and organizational performance through learning and development initiatives. The course covers foundational theories and practices in training, career development, organizational learning, and talent management. Students examine needs assessment, program design, implementation, and evaluation strategies, as well as the influence of technology and globalization on workforce development. Ethical considerations and the strategic role of HRD in achieving business objectives are emphasized, preparing students to foster continuous learning and growth within diverse organizations.
Recommended Textbook
Compensation 12th Edition by George Milkovich
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Page 2
Chapter 1: Pay-For-Performance: The Evidence
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Q1) Recent surveys show that, on average, an outstanding performer receives a _____ merit increase, an average performer a _____ merit increase, and a poor performer a 0.4% merit increase.
A)10.5%; 7%
B)8.4%; 5.2%
C)6.7%; 4.2%
D) 4.4%; 2.8%
Answer: D
Q2) Which of the following is a policy, and NOT an objective, in the pay model?
A)Ethics
B)Competitiveness
C)Efficiency
D)Fairness
Answer: B
Q3) Most U.S.firms use merit pay increases.
A)True
B)False
Answer: True
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3
Chapter 2: Strategy: The Totality of Decisions
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Q1) Comparisons on the forms of compensation used by other companies are part of
A)internal alignment
B)external competitiveness
C)employee contributions
D)corporate responsibility
Answer: B
Q2) What are the aspects of the alignment of pay strategy?
Answer: Alignment of the pay strategy includes three aspects: i.align with the business strategy, ii.align externally with the economic and sociopolitical conditions, and iii.align internally within the overall HR system.
Q3) Career growth, hierarchy, and flexible design are most closely associated with the _____ aspect of mapping a total compensation strategy.
A)objectives
B)internal alignment
C)external competitiveness
D)employee contributions
Answer: B
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Page 4
Chapter 3: Defining Internal Alignment
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Q1) The well-defined jobs at McDonald's and their small differences in pay are an example of a(n) _____ internal pay structure.
A)closely tailored
B)loosely coupled
C)very competitive
D)egalitarian
Answer: A
Q2) Pay for temporary workers is based upon
A)the internal structure of their home employer.
B)the internal structure of the temporary workplace.
C)the strict requirements set by an international workers union.
D)education only.
Answer: A
Q3) Which of the following is NOT a characteristic of aligned pay structures?
A)They support the way the work gets done.
B)They fit an organization's business strategy.
C)They are fair to employees.
D)They are designed to increase the turnover rate.
Answer: D
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Page 5
Chapter 4: R: Job Analysis
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Q1) The Americans With Disabilities Act's essential-elements requirement for hiring and promotion decisions seems to require less detail than what is required for pay decisions.
A)True
B)False
Q2) Engineering, sales, and maintenance are examples of _____.
A)tasks
B)job families
C)job dimensions
D)appraisals
Q3) In the context of work-related internal structure, job-based and person-based structures use similar methods but have different purposes.
A)True
B)False
Q4) Typical data collected for a job analysis would not include relationships with suppliers and customers.
A)True
B)False
Q5) Write a short note on Americans With Disabilities Act.
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Chapter 5: Job-Based Structures and Job Evaluation
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Q1) Paired-comparison and alternate-ranking methods may be more reliable than simple ranking.
A)True
B)False
Q2) What are the steps in designing a point plan?
Q3) Common characteristics of the point method include all of the following EXCEPT:
A)benchmark factor classes.
B)numerically scaled factor degrees.
C)factor weights.
D)compensable factors.
Q4) _____ are more likely to conduct job evaluations of senior management jobs.
A)Compensation analysts
B)Compensation managers
C)Peers
D)Junior incumbents
Q5) The NEMA plan explicitly states that the compensable factor experience should be correlated with tenure.
A)True
B)False
Q6) What are the characteristics of a benchmark job?
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Chapter 6: Person-Based Structures
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Q1) Compensable factors, skill blocks, and competency sets are used for:
A)assessing relative value.
B)collecting work content information.
C)determining what to value.
D)completely different purposes.
Q2) Skill-based pay plans can focus on both the depth and breadth of work.
A)True
B)False
Q3) How do modern organizations analyze work processes?
Q4) The scheme used in the text for classifying competencies consists of three groups.Which of the following is NOT one of them?
A)Personal characteristics
B)Team dynamics
C)Visionary
D)Organization specific
Q5) Advocates of competencies say that by focusing on optimum performance, rather than average performance, competencies can help employees maintain their marketability.
A)True
B)False
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Chapter 7: Defining Competitiveness
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Q1) Which of the following is an example of the demand side of labor?
A)Level of pay applicants will accept
B)Qualifications of applicants
C)Pay level offered by an employer
D)Locations of potential employees
Q2) An employer offering lower base pay with high bonuses is a likely signal that it is seeking risk-taking employees.
A)True
B)False
Q3) Stores that label each item's price or ads that list a job opening's starting wage are examples of bourses.
A)True
B)False
Q4) In a labor market, the demand side focuses on the actions of the employers.
A)True
B)False
Q5) What are the basic assumptions of labor market theories?
Q6) Talented individuals have a higher marginal value in larger organizations.
A)True
B)False
Page 9
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Chapter 8: Designing Pay Levels, Mix, and Pay
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Q1) Gramhold Inc., a pharmaceutical company, reduces its 10 salary grades to just three broad bands.Which of the following statements is most likely to be true in this case?
A)Gramhold will face difficulty in defining job responsibilities broadly with the new structure.
B)Gramhold will find that the new structure hinders cross-functional growth.
C)Gramhold will experience career moves within bands more than career moves between bands.
D)Gramhold will offer recognition via titles rather than through cross-functional experience and lateral progression.
Q2) A pay range exists when at least two employees in the same job are paid different rates.
A)True
B)False
Q3) Pay ranges for managerial jobs are larger than the ranges for other jobs because these jobs have greater opportunity for both discretion and performance than lower-level jobs.
A)True
B)False
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Chapter 9: Pay-For-Performance: the Evidence
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Q1) Flexible compensation is based on the idea that the organization knows what package of rewards would best suit an individual employee's needs.
A)True
B)False
Q2) When employee performance measures are ambiguous and vary from time to time, but the organization's performance is fairly stable over time, the most effective type of compensation is to offer _____.
A)a large base pay and low-incentive pay
B)an increase in base pay
C)a variety of rewards with significant incentive pay
D)monetary rewards with no benefits
Q3) _____ is employees' beliefs that requisite job performance will be rewarded by the organization.
A)Valence
B)Expectancy
C)Instrumentality
D)Utility
Q4) What are the behaviors that compensation needs to enforce?
Q5) Compare risk-sharing and success-sharing plans.
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Chapter 10: Pay-For-Performance Plans
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Q1) One common feature of all types of incentive plans is:
A)an established standard of performance that is used to determine the magnitude of the incentive pay.
B)a sharing contract between the employees and employers, which stipulates that the losses incurred by the companies will be shared by both employees and employers.
C)the established formula that specifies the maximum percentage of base pay allocated as incentives.
D)a risk-sharing plan that increases pay depending upon the turnover rate of a company.
Q2) Which of the following is an advantage of providing stock ownership options as variable pay to employees?
A)It reinforces team identity.
B)It is the simplest type of variable-pay plan.
C)It defers a portion of taxes to employees.
D)It provides a direct pay-performance link.
Q3) In the long run, merit bonuses cost employers less than merit pay.
A)True
B)False
Q4) Discuss SVOP.
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Chapter 11: Performance Appraisals
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Q1) What was Deming's major criticism against performance appraisals?
Q2) When a job involves very routine, mechanistic tasks, the most appropriate appraisal format is:
A)BARS.
B)MBO.
C)standard rating scales.
D)alternation ranking.
Q3) Which of the following statements is NOT true?
A)Workers who start out high in performance and then get worse are rated lower than workers who remain consistently low.
B)Workers whose performance improves over time are seen as more motivated.
C)Workers whose performance is consistently average are rated higher than those who perform better at the end of a rating cycle.
D)Workers whose performance varies over time are seen as less motivated.
Q4) Describe the paired-comparison ranking method.
Q5) The performance of hourly workers is more accurately tied to quantifiable measures than the performance of managerial workers.
A)True
B)False
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Chapter 12: The Benefit Determination Process
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Q1) Benefits can be an effective tool to attract and retain employees when the benefits address the needs of a target group.
A)True
B)False
Q2) The biggest cost-containment strategy in recent years is the movement to:
A)benefit limitations.
B)HMOs.
C)outsourcing.
D)higher deductibles.
Q3) What are the major disadvantages of a flexible benefits package?
Q4) A recent survey shows employees ranking employee benefits _____ in explaining job satisfaction.
A)first
B)second
C)third
D)last
Q5) Today, benefits make up about 25 percent of payroll costs.
A)True
B)False
Q6) What can administrators do to control the increasing benefits costs?
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Chapter 13: Benefit Options
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Q1) What is the central challenge of Social Security payments? How are they tackled?
Q2) What is the first question that should be asked when determining the amount of retirement income an employer should provide?
A)Should Social Security payments be factored in when considering the level of income an employee should have during retirement?
B)How should seniority be factored into the payout formula?
C)What level of retirement compensation would the employer like to set as a target, expressed in relation to pre-retirement earnings?
D)Should other postretirement income sources be integrated with the pension payment?
Q3) What is a cash balance plan?
Q4) In a _____ plan, an employer agrees to provide a specific level of retirement pension, which is expressed as either a fixed dollar or a percentage-of-earnings amount that may vary (increase) with years of seniority in the company.
A)defined benefit
B)noncontributory benefit
C)401(k)
D)shared benefit
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Chapter 14: Compensation of Special Groups
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Q1) The most popular method of providing special compensation to supervisors is by paying overtime.
A)True
B)False
Q2) Annual bonuses often play a major role in executive compensation and are primarily designed to _____.
A)motivate better short-term performance
B)reduce overtime pay
C)decrease pay differentials between supervisors and subordinates
D)increase employee turnover
Q3) In maturing markets, companies focus both on performance-based pay tied to customer satisfaction and on greater.
A)True
B)False
Q4) What is a tally sheet and what is it used for?
Q5) With easily sold products:
A)companies prefer a more aggressive sales force.
B)the base compensation tends to be more important.
C)the incentives provided in the form of commissions tend to be more important.
D)companies tend to set lower sales targets.
Page 16
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Chapter 15: Union Role in Wage and Salary Administration
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Q1) Single rates are not usually specified for workers within a particular job classification.
A)True
B)False
Q2) Pay-for-knowledge plans do all of the following EXCEPT _____.
A)make employees less expendable to their firms
B)increase the probability of work being subcontracted out to nonunion organizations
C)make each individual employee more valuable
D)pay employees more for learning a variety of different jobs or skills
Q3) Which of the following involves periodic adjustments based typically on changes in the consumer price index?
A)A COLA clause
B)A deferred wage increase
C)A reopener clause
D)An annual improvement adjustment
Q4) Lump-sum awards are added to base wages.
A)True
B)False
Q5) What is meant by automatic progression?
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Chapter 16: International Pay Systems
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Questions
Q1) MayFly Inc., a firm headquartered in Paris, France, sends one of its employees to Frankfurt, Germany and Barcelona, Spain to manage its operations in these cities.The employee would be required to alternate between the two cities every six months.Mayfly offers only a moving expense on top of the base pay as the employee would be moving only within the European Union countries.Which of the following approaches to expatriate compensation is exemplified in this situation?
A)Modified balance sheet approach
B)Localization approach
C)Local plus approach
D)Lump-sum/cafeteria approach
Q2) Understanding international compensation begins with recognizing differences and similarities and figuring out how to best manage them.
A)True
B)False
Q3) Neither works councils nor co-determination are legally required in the United States and are quite rare.
A)True
B)False
Q4) What is the balance sheet approach? What is its objective?
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Chapter 17: Government and Legal Issues in Compensation
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Q1) Regarding pay differences for different jobs, _____.
A)courts continue to rely on the use of employer opinion surveys to justify differences
B)the courts favor reliance on the use of statistical models
C)court decisions have been inconclusive
D)courts continue to uphold the use of market data to justify differences
Q2) The ADEA _____.
A)prohibits discrimination on the basis of sex, race, or color
B)was amended in 1990 to include the Older Workers Benefit Protection Act
C)was amended in 2011 to ensure that workers get two months' notice before termination
D)prohibits discrimination on the basis of national origin in any employment condition
Q3) The agency that conducts reviews and seeks remedies where insufficient compliance to Executive Order 11246 is found is the _____.
A)OSHA
B)EEOC
C)OFCCP
D)FCSS
Q4) Distinguish between access discrimination and valuation discrimination.
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Chapter 18: Management: Making It Work
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Q1) All of the following are adverse effects of layoffs EXCEPT _____.
A)decreased unemployment insurance tax rates
B)unrealized productivity
C)lower morale
D)lower financial gains than expected
Q2) The major potential advantage of outsourcing is _____.
A)increased turnover rate
B)increased compa-ratio
C)increased absenteeism
D)increased cost savings
Q3) A key reason to communicate pay information is that the goodwill engendered by the act of being open about pay may affect perceptions of pay equity.
A)True
B)False
Q4) In a totally decentralized pay system, employees are likely to be treated unequally and unfairly.
A)True
B)False
Q5) What is the turnover effect? Explain how it is calculated with an example.
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