Deck 8: Rewarding and Recognizing Employees

Question 1

Which term refers to the process of determining the relative worth of jobs in order to determine pay rates?

A) job evaluation
B) job analysis
C) job determination
D) job diagnosis

Answer 1

A

Question 2

What will most likely result from determining wage increases solely based on the consumer price index?

A) Employees will be motivated in the short run.
B) A more equitable compensation system will be created.
C) Stronger pay-for-performance perceptions will occur.
D) Pay rates within a pay structure will be compressed.

Answer 2

D

Question 3

When a union negotiates an increase in "real wages", what is the impact on its members?

A) RRSP contributions are matched by the employer.
B) Pay rate is calculated at 5.7% above the national average.
C) Time-and-a-half is paid for overtime work.
D) There is an improved standard of living.

Answer 3

D

Question 4

What is the simplest system of job evaluation?

A) point
B) job classification
C) factor comparison
D) ranking

Question 5

What is a key consideration when designing and implementing a pay-for-performance plan?

A) how to announce the pay-for-performance plan
B) what funds will be available for pay increases
C) which employees are to be part of the plan
D) how this plan will be perceived by competitors

Question 6

If an organization hires better qualified employees as a result of their attractive rewards program, what financial impact might this have in other areas of the business?

A) higher employee satisfaction ratings
B) less time spent ramping up new hires
C) lower education and training costs for new hires
D) lower employee turnover rates

Question 7

Of the three types of compensation plans, which group of employees typically receives benefits as part of their compensation?

A) hourly employees
B) migrant employees
C) salaried employees
D) piecework employees

Question 8

Which term refers to the measure of the average change in prices over time in a large "basket" of goods and services purchased by Canadians?

A) the consumer price index
B) the inflation index
C) a cost of living allowance
D) a cost of living adjustment

Question 9

Which of the following is an external factor that can influence the wage rate?

A) the employer's ability to pay
B) the cost of living
C) the worth of the job
D) the employee's relative worth

Question 10

Which methods of comparison are used in a job evaluation?

A) equity and job ranking systems
B) factor comparison and point systems
C) point and equity systems
D) job classification and CPI systems

Question 11

What does employee compensation refer to?

A) certain forms of pay and rewards to employees
B) pay and rewards to employees
C) all forms of pay or rewards to employees, both direct and indirect
D) cash payments only

Question 12

Which term refers to employees who are compensated on an hourly basis?

A) hourly employees
B) salaried employees
C) piecework earners
D) commission earners

Question 13

What approaches are organizations taking to deal with a possible labour shortage, especially in key skill areas?

A) providing non-cash benefits
B) providing training to employees to upgrade their skills
C) recruiting from abroad
D) visiting trade schools to meet with potential job candidates

Question 14

Which job evaluation system compares the relative overall value of one job compared to another?

A) job grade system
B) factor comparison method
C) point system
D) job ranking system

Question 15

Under what circumstances will employees deem that compensation is equitable?

A) when the work is perceived to be equally distributed among team members
B) when the compensation is perceived to be equal to the value of the work performed
C) when the compensation system uses the same methods for all job types
D) when the work is perceived to be appropriate for their hierarchical level

Question 16

What does the equity theory explain?

A) why there is a perceived imbalance between the wages that men earn and that women earn
B) how employees respond when they believe they receive less (or more) than they deserve
C) how organizations define and build their compensation systems
D) why organizations provide direct and indirection compensation to employees

Question 17

When determining compensation, how is the relative worth of a job determined?

A) the employee's relative worth
B) area wage rates
C) job evaluation
D) labour market conditions

Question 18

When determining the size of the monetary increase, what must management take into consideration for pay-for-performance to be fully successful?

A) The employer should consider the standard of living of its employees.
B) The increase should include the opportunity to increase benefits too.
C) The increase should be variable if the employee has dependents.
D) The increase must be greater than the cost of living.

Question 19

What are organizations with formal job systems more likely to rely on to determine wage rates?

A) wage equity comparisons
B) worth analysis
C) job evaluation
D) expert opinions

Question 20

What do labour-market conditions reflect?

A) the forces of supply and demand for qualified workers within an area
B) the total amount of qualified labour available to a hiring employer
C) the wage rates for specific types of labour
D) the employer market available for those seeking employment

Question 21

Which type of compensation is intended to improve the quality of work lives and personal lives of employees?

A) commissions
B) employee benefits
C) stock options
D) financial incentives

Question 22

In which type of incentive plan does an employer pay special sums based on the organization's net income over a specified period?

A) profit-sharing plan
B) merit raises plan
C) gain sharing plan
D) individual bonus plan

Question 23

What factors are used as the basis for creating a point system for job evaluation?

A) skill factors
B) compensable factors
C) knowledge factors
D) descriptive factors

Question 24

What do skill-based pay plans encourage employees to do?

A) focus on the type of job in which they can display their specialty
B) pursue work assignments that focus on narrowly defined requirements
C) learn and perform a greater number of skills
D) leave the organization to pursue further academic credentials

Question 25

What condition must exist for an incentive plan to work well?

A) better-than-average employee/employer relations
B) clearly defined job descriptions and job classifications
C) a "clear line of sight" from employee performance to organizational performance
D) a compensation system that is designed to ensure equitable base pay rates

Question 26

What is a possible problem with using merit raises?

A) They are seldom given to front-line employees.
B) In a team environment, they may be difficult to calculate.
C) Employees have an expectation that they will receive a raise annually.
D) They are continuously given out, even if performance declines.

Question 27

What is required of managers who wish to use the point system of job evaluation?

A) rank jobs by job classification
B) select key job categories for comparison purposes
C) link point totals of job types to the wage curve
D) evaluate jobs based on compensable factors

Question 28

Regardless of the job evaluation method selected, which of the following must be followed?

A) The job incumbent is evaluated, not the job.
B) The job is evaluated based on the performance of tasks.
C) The job is evaluated as it will be in 12 months.
D) The current level of compensation associated with the job should be taken into consideration.

Question 29

What type of compensation program compensates employees for the knowledge they possess?

A) seniority-based pay plans
B) performance-based pay plans
C) competency-based pay plans
D) merit-based pay plans

Question 30

When introducing a competency-based pay structure, what should organizations consider?

A) if it's possible to link competencies to business objectives
B) how to deal with employees who do not want to increase their competencies
C) which competencies demonstrably affect performance
D) how to make the announcement to employees

Question 31

What occurs during an employee's progression through a pay range in terms of visibility?

A) increased opportunities to network
B) increased role in developing the organization's culture
C) increased tenure with the organization
D) increased service with the organization

Question 32

What is a benefit of broadbanding?

A) It eliminates the obsession with pay grades.
B) It encourages employees to stay in their current position.
C) It encourages employees to follow a clearly-defined career path.
D) It eliminates the temptation by employees to develop lateral skills.

Question 33

Which pay system would an organization likely use to establish greater workforce flexibility?

A) straight pay
B) incentive pay
C) competency-based pay
D) two-tier pay

Question 34

What would be the most likely geographic scope for a wage and salary survey for highly specialized jobs?

A) national
B) local
C) regional
D) provincial

Question 35

Which term refers to a quantitative job evaluation procedure that determines a job's relative value based on quantitative assessments of specific job elements?

A) the point system
B) the job ranking system
C) the job grade system
D) the factor comparison system

Question 36

Which job evaluation system is less precise because it assesses the value of the job overall instead of the tasks or components within the job?

A) Hay profile
B) factor comparison
C) job ranking
D) job classification

Question 37

What is a salary survey?

A) a survey of wages paid in other relevant, comparable organizations
B) a survey of wage ranges within a particular department or division
C) a survey to ensure employees who are doing equal work receive equal salary
D) a survey of employee salaries based on the employee's job title

Question 38

All job evaluation methods require varying amounts of judgment by individuals. What practice do many organizations put in place to ensure objectivity?

A) They evaluate jobs with the use of a job evaluation scale.
B) They rank jobs according to the beliefs of committee members.
C) They rely on a panel or committee for job evaluation assessments.
D) They establish a point plan to evaluate all jobs.

Question 39

What are the five most commonly used compensable factors in a factor comparison system?

A) experience, mental effort, physical effort, accountability, working conditions
B) skill, mental effort, physical effort, responsibility, working conditions
C) experience, physical effort, accountability, responsibility, working conditions
D) skill, physical effort, accountability, responsibility, working conditions

Question 40

What is an outcome of value-based healthcare?

A) better productivity and lower benefits costs
B) options for preferred healthcare benefits
C) reduced costs to the employer using a less expensive benefits provider
D) employees receive generic medicines

Question 41

If rates of pay are high, resulting in a large pool of applicants, organizations may choose to raise their selection standards and hire better-qualified employees.

Question 42

Which plan helps employees keep up to date with advances in their occupational fields?

A) career counselling
B) human capital formation program
C) educational assistance plan
D) keep-fit plan

Question 43

Which of the following is most significantly affected by "pay for time not worked"?

A) benefit costs
B) human resources plan
C) schedule of operations
D) operating plan

Question 44

Studies have demonstrated that there is no link between an integrated approach to rewards and achieving strong business results.

Question 45

Companies that make the rewards strategy a part of the overall organizational framework perform better than those that don't use the same strategy.

Question 46

Which benefit program is intended to help workers cope with a wide variety of problems that interfere with the way they perform their jobs?

A) workers' compensation
B) perquisites (perks)
C) employee assistance program
D) wellness program

Question 47

Which plan helps employees provide support to parents and other aging relatives while remaining actively at work?

A) hospitalization residential care benefit
B) old-age security benefit
C) family allowance benefit
D) eldercare benefit

Question 48

What are the three types of benefits provided under the Canada/Quebec pension plans?

A) retirement, disability, and survivor
B) retirement, survivor, and healthcare
C) retirement, vacation, and disability
D) disability, old age security, and survivor

Question 49

How is the growing number of aging Canadians impacting the family members caring for them?

A) Family members receive extra money to care for their family members.
B) Aging Canadian will receive less Canada Pension Plan (CPP) if they live with their family.
C) There is no impact felt by family members.
D) Family members may require time off from work to provide care.

Question 50

Which of the following is a benefit defined in provincial employment standards legislation?

A) extended medical insurance
B) minimum vacation pay
C) health care spending account
D) accidental death and dismemberment coverage

Question 51

The equity theory states that individuals look at their inputs (salary, benefits) compared to their outcomes (abilities, skills, and experiences) and develop a ratio based upon these measurements.

Question 52

Pay represents a reward received in exchange for an employee's contributions and therefore must be equitable, in terms of recognizing both the employee's work and the employee's work in relation to the contributions of others.

Question 53

Pay equity legislation requires that companies use a "gender-neutral" system, comparing jobs based on the skills, effort, and responsibility required to perform the job.

Question 54

Which government-sponsored benefit program provides weekly benefits to an employee on parental leave?

A) employment insurance
B) severance pay
C) sick pay
D) termination pay

Question 55

Salaried employees are those whose compensation is computed on the basis of weekly, biweekly, or monthly pay periods.

Question 56

Compensation should be tailored to the needs of the organization, not its employees.

Question 57

Research has shown that employees increase output by an average of 50 percent after installation of a pay-for-performance program.

Question 58

How are wellness programs intended to benefit employees?

A) They help employees to manage their well-being.
B) They provide diagnosis, limited counselling, and referral services.
C) They provide subsidies for professional development.
D) They compensate employees during periods of illness.

Question 59

Improving employee's focus on achieving business goals is a significant objective influencing reward changes.

Question 60

Which of the following are voluntary employee benefits?

A) statutory holidays
B) minimum vacation pay
C) educational assistance plan
D) overtime premiums

Question 61

The rates at which employees are paid are influenced by external factors only, such as the economy and labour market conditions.

Question 62

When determining wage rates in a specific geographical area, employers can check with professional associations for wage guidance.

Question 63

Employers can purchase salary survey data from organizations such as the Conference Board of Canada and Gallup.

Question 64

When completing a point system job evaluation, the first step is determining what factors or elements a group of jobs is expected to possess.

Question 65

Using salary information from other organizations allows an employer to maintain internal equity.

Question 66

Because of the many problems in the way the CPI is calculated, wage setters feel that it is not important.

Question 67

The job classification system is a quantitative job evaluation procedure that determines a job's relative value by calculating the total points assigned to it.

Question 68

The legal requirement of minimum hourly wage means that an employer cannot pay any worker less than the per-hour rate.

Question 69

Real wages represent the positive difference between wage increases and cost-of-living increases.

Question 70

The employer's ability to pay is an external factor influencing the wage mix.

Question 71

Employers can obtain meaningful market wage rates by sampling a number of different employing organizations.

Question 72

The consumer price index measures globally the cost of living.

Question 73

A factor comparison system is typically used for legislated pay equity purposes.

Question 74

HR professionals establish predetermined wage grades as a basis for evaluating jobs in the job classification system of job evaluation.

Question 75

The point system of job evaluation permits jobs to be evaluated quantitatively based on compensable factors.

Question 76

The sole purpose of job evaluation systems is to set wages.

Question 77

The worth of a job is determined formally through the wage and salary survey.

Question 78

Competency is defined as measurable and observable skills, abilities, or knowledge that an employee requires before being promoted.

Question 79

In the factor comparison system, the five compensable factors that key jobs are evaluated against are skill, mental effort, physical effort, responsibility, and working conditions.

Question 80

Wage compression can be avoided by granting wage increases solely based on the CPI.