Deck 1: Introducing Employee Benefits

Question 1

Cost-of-living adjustments (COLAs)are based on changes in prices as indexed by the consumer price index.(Adjustments to Core Compensation)

Answer 1

True

Question 2

Core compensation programs reward employees according to their job performance levels or for acquiring job-related knowledge or skills.(Employee Benefits in the Total Compensation Scheme)

Answer 2

True

Question 3

Flexible work schedules are considered part of accommodation and enhancement benefits packages.(The Fundamental Roles and Sources of Employee Benefits)

Answer 3

True

Question 4

Employee benefits represent compensation other than wages or salaries.(Employee Benefits in the Total Compensation Scheme)

Question 5

The top-down approach to strategic benefits planning is a reactive process that evaluates the benefits program only after problems arise.(Approaches to Strategic Benefit Planning)

Question 6

Unemployment insurance is funded solely by the Federal Unemployment Tax Act (FUTA).(Government Regulation of Employee Benefits)

Question 7

The Social Security Act was enacted due to the effects of WWII.(The Social Security Act of 1935)

Question 8

The Fair Labor Standards Act first legitimized bargaining for employee benefits.(Origins of Employee Benefits)

Question 9

The Federal Insurance Contributions Act (FICA)helps support the Old-Age,Survivor,and Disability Insurance (OASDI).(Government Regulation of Employee Benefits)

Question 10

Employees' knowledge and skills are said to generate human capital for firms and are the basis for incentive-pay.(Adjustments to Core Competition)

Question 11

Total compensation represents bothcore compensation and employee benefits.(Employee Benefits in the Total Compensation Scheme)

Question 12

Merit-pay rewards employees according to their job performance.(Adjustments to Core Compensation)

Question 13

Incentive-pay only rewards employees for completely attaining predetermined work objectives.(Adjustments to Core Compensation)

Question 14

Competitive strategy refers to the series of judgments,made under uncertainty,that companies direct toward making strategic decisions.(Basic Strategic Planning Concepts)

Question 15

Benefits professionals usually designate wellness programs as a protection program.(The Fundamental Roles and Sources of Employee Benefits)

Question 16

Employer-sponsored disability insurance is less encompassing than workers' compensation.(Discretionary Benefits)

Question 17

Flexible benefits plans enable employees to choose from among a set of benefits and different levels of these benefits.(Basic Design Considerations for Discretionary Benefits)

Question 18

Defined benefits plans,defined contribution plans and hybrid plans are types of health carefunding plans.(Discretionary Benefits)

Question 19

Strategicbenefit plans describe the use of compensation and benefits practices that support both HR strategies and competitive strategies.(Basic Strategic Planning Concepts)

Question 20

Workers' compensation insurance programs,run by the federal government,are designed to cover employee expenses incurred in work-related accidents and injuries.(State Compulsory Disability Laws (Workers' Compensation))

Question 21

When paying for discretionary benefits,contributory financing is when the company and its employees share the costs.(Basic Design Considerations for Discretionary Benefits)

Question 22

Benefits are defined as compensation that includes wages and salary as well as other services.(Defining Employee Benefits)

Question 23

Workers' compensation laws are state laws.(State Compulsory Disability Laws (Workers' Compensation))

Question 24

Benefits professionals craft benefits strategies based on information contained in strategic benefit plans.(Basic Strategic Planning Concepts)

Question 25

The planned use of company resources to promote and sustain competitive advantage is referred to as competitive strategy.(Basic Strategic Planning Concepts)

Question 26

Vacations are a type of accommodation benefit.(Paid TimeOff)

Question 27

Person-focused pay rewards employees with periodic additions to base pay,according to length of service.(Adjustments to Core Compensation)

Question 28

Total compensation strategies detail different scenarios that may affect the company,emphasizing long-term changes in how a company's benefit plan operates.(Basic Strategic Planning Concepts)

Question 29

Employees are most likely to endorse benefits that fulfill their needs.(Changing Demographics of the Labor Force)

Question 30

Employers are free to offer discretionary benefits but specific laws influence the application of these practices.(Legal and Regulatory Influences on Discretionary Benefits Practices)

Question 31

Protection programs most closely parallels legally required benefits.(Discretionary Benefits)

Question 32

Union workers cannot negotiate paid time off benefits.(Paid TimeOff)

Question 33

Voluntary benefits are supplemental benefits companies off on an employee-financed basis.(Basic Design Considerations for Discretionary Benefits)

Question 34

Under the Patient Protection and Affordable Care Act,dental care is included under the required health care offered to employees.(The Patient Protection and Affordable Care Act of 2010)

Question 35

Life insurance programs protect employees' families in the event of untimely illness.(Protection Programs)

Question 36

During the 1940s and 1950s,companies expanded their discretionary benefits as an alternative to wage increases or as a motivational tool.(Origins of Employee Benefits)

Question 37

Incentive-pay is a permanent increase of compensation based on individual goal achievement.(Adjustments to Core Compensation)

Question 38

Health care was a discretionary benefit until passage of the Family and Medical Leave Act in 1993.(The Fundamental Roles and Sources of Employee Benefits)

Question 39

In financing discretionary benefits,employers always pay the total cost incurred.(Basic Design Considerations for Discretionary Benefits)

Question 40

The existence of labor union has limited the use of welfare practices by companies.(Origins of Employee Benefits)

Question 41

Which is the following is NOT one of the fundamental roles characterizing benefits programs? (Defining and Exploring Employee Benefits)

A)Accommodation and enhancement
B)Paid time-off
C)Protection programs
D)Total compensation

Question 42

Which two are the possible approaches that can be used in strategic benefits planning? (Approaches to Strategic Benefit Planning)

A)Backing-out & top-down
B)Backing-in & top-down
C)Backing-up & top-in
D)Backing-down & top-in

Question 43

The Social Security Act of 1935 set up which two programs? (The Social Security Act of 1935)

A)Retirement income & unemployment insurance
B)Medicare & disability insurance
C)Disability insurance & retirement income
D)Unemployment insurance & Medicare

Question 44

Discretionary benefits can be categorized into programs that (Discretionary Benefits)

A)Protect health and income,provide job security,provide accommodation and enhancement benefits
B)Provide job security,protect health and income,allow for paid time-off
C)Protect health and income,allow for paid time-off,provide accommodation and enhancement benefits
D)Provide job security,allow for paid time-off,provide accommodation and enhancement benefits

Question 45

Which three are the three fundamental roles that characterize discretionary benefits? (Discretionary Benefits)

A)Protection programs,paid time-off,retirement programs
B)Protection programs,paid time-off,accommodation and enhancement programs
C)Paid time-off,accommodation and enhancement programs,retirement programs
D)Retirement programs,protection programs and accommodation and enhancement programs

Question 46

Which of the following laws does not mandate legally required employee benefits? (Legally Required Benefits)

A)Social Security Act
B)Family and Medical Leave Act
C)Civil Rights Act
D)Patient Protection and Affordable Care Act

Question 47

Which of the following are the three main types of retirement programs that companies can offer? (Income Protection Programs)

A)Employee-financed plans,defined benefits plans,hybrid plans
B)Hybrid plans defined contribution plans employee-financed plans
C)Defined contribution plans,employee-financed plans,defined benefits plans
D)Defined contribution plans,defined benefits plans,hybrid plans

Question 48

Which of the following adjustments to core compensation rewards employees for acquiring new knowledge and skills through designated curricula sponsored by an employer? (Adjustments to Core Compensation)

A)Merit-pay
B)Person-focused pay
C)Seniority-pay
D)Incentive-pay

Question 49

In which social context were workers' compensation laws enacted? (State Compulsory Disability Laws (Workers' Compensation))

A)Post Depression
B)Post WWII
C)Industrial expansion in the early 1900s
D)The end of the 19th century when no laws ensured worker safety

Question 50

Which two make up the internal environmental factors? (Internal Environment)

A)Labor force demographics,governmental regulations
B)Mergers and acquisitions,labor force demographics
C)Governmental regulations,collective bargaining agreements
D)Workforce demographics,collective bargaining agreements

Question 51

Which of the following are considered the five core compensation adjustment elements? (Adjustments to Core Compensation)

A)COLAs,seniority pay,merit pay,incentive pay,person-focused pay
B)Merit pay,seniority pay,COLAs,incentive pay,base pay
C)Seniority pay,person-focused pay,incentive pay,base pay,COLAs
D)Base pay,person-focused pay,merit pay,incentive pay,seniority pay

Question 52

Profit sharing payments are examples of which type of core compensation package? (Adjustments to Core Compensation)

A)Incentive pay
B)Merit pay
C)Person-focused pay
D)Seniority pay

Question 53

The Family and Medical Leave Act (FMLA)permits employees which of the following? (The Family and Medical Leave Act of 1993)

A)12 work weeks of paid leave during any 12-month period
B)10 work weeks of paid leave during any 12-month period
C)12 work weeks of unpaid leave during any 12-month period
D)10 work weeks of unpaid leave during any 12-month period

Question 54

Companies can generally choose from which four programs for financing their discretionary benefits plans.(Basic Design Considerations for Discretionary Benefits)

A)Noncontributory,contributory,employee-financed,a combination of the other three
B)Alternative managed care,contributory,employee-financed,a combination of the other three
C)Employee-financed,contributory ,alternative managed care,a combination of the other three
D)Alternative managed care,contributory,employee-financed,noncontributory

Question 55

Which is the following is NOT an example of a discretionary benefit? (Discretionary Benefits)

A)Retirement plans
B)Workers' compensation
C)Life insurance
D)Paid vacations

Question 56

Flexible benefits allow employees to do which of the following? (Basic Design Considerations for Discretionary Benefits)

A)Choose which benefits they want and at what level
B)Only choose the level of benefits they want
C)Only choose which benefits they want
D)Choose whether they want all base pay or pay and benefits

Question 57

What are the four main classes of health insurance programs that employers have to choose from to offer its' employees? (The Patient Protection and Affordable Care Act of 2010)

A)Fee-for-service plans,alternative managed care plans,point-of-service plans,consumer-driven plans
B)Consumer-driven plans,point-of-service plans,alternative managed care plans,fee-for-service plans,person-focused plans
C)Fee-for-service plans,person-focused plans,point-of-service plans,point-of-service plans
D)Point-of-service plans,consumer-driven plans,alternative managed care plans,person-focused plans

Question 58

Which common feature of a benefits plan allows companies to limit benefit participation to current employees? (Basic Design Considerations for Discretionary Benefits)

A)Noncontributory financing
B)Point-of-service plans
C)Eligibility provisions
D)Wellness programs

Question 59

Information for strategic benefits planning comes from these two environments.(Information Used in Strategic Benefit Planning)

A)External company & internal market
B)External market & internal company
C)Internal market & external market
D)Internal company & external company

Question 60

Employer choice of discretionary benefits does not depend on: (Government Regulation of Employee Benefits)

A)Economic considerations
B)Adequacy of legally required benefits
C)Employee expectations
D)Government mandates

Question 61

Benefits accounted for what percentage of total compensation costs in the private sector? (Employer Costs for Compensation and Benefits)

A)30.3%
B)25.5%
C)20.3%
D)10.7%

Question 62

Which of the following is not an example of an accommodation and enhancement program? (Accommodation and Enhancement Programs)

A)Disability insurance
B)Tuition reimbursement
C)Family assistance
D)Stress management

Question 63

Which of the following is an internal environment factor used for strategic benefits planning? (External Environment)

A)Government regulation of employee benefits
B)Employer costs for compensation and benefits
C)Changing demographics of the labor force
D)Workforce demographics

Question 64

In 2016,about how many million persons were employed by private-sector companies? (Legal and Regulatory Influences on Discretionary Benefits Practices)

A)90 million
B)122 million
C)118 million
D)125 million
Essay Questions

Question 65

Briefly describe various legal and regulatory influences on discretionary benefits.(Legal and Regulatory Influences on Discretionary Benefits Practices)

Question 66

Which of the following is not a fundamental employee goal? (Legal and Regulatory Influences on Discretionary Benefits Practices)

A)High wages
B)Leadership
C)Job security
D)Safe working conditions

Question 67

Briefly describe the origins of employee benefits in the US.(Origins of Employee Benefits)

Question 68

Briefly discuss the adjustments to core compensation a company may choose to provide for its employees.(Adjustments to Core Compensation)

Question 69

Discuss the influence of external marketconditions on strategic benefits planning of companies.(External Environment)