Deck 8: Total Rewards

Question 1

A comprehensive approach to selecting and training employees is known as total rewards.

Answer 1

False

Question 2

A value proposition considers the total value,current or prospective,employees receive in exchange for contributing their time and energy to the company.

Answer 2

True

Question 3

A pension plan that guarantees a specific level of retirement income is called a defined contribution plan.

Answer 3

False

Question 4

A drawback of merit pay from the employer's perspective,is that it can quickly become expensive because it gets rolled into base pay.

Question 5

Incentive pay is a form of pay that is linked to an employee's performance as an individual,group member,or organization member.

Question 6

Flexible benefits plans have the advantage of being less costly.

Question 7

Broadbanding increases the number of levels in the organization's job structure.

Question 8

Performance bonuses,like merit pay becomes part of base pay.

Question 9

Employment Insurance (EI)is federally mandated program.

Question 10

A pay policy line demonstrates the relationship between indirect compensation and pay rates.

Question 11

In terms of compensation,benchmarking involves the use of pay surveys.

Question 12

Total rewards influence the kinds of employees that are attracted to (and remain with)the organization.

Question 13

Under profit sharing,employees are more likely to cooperate and less likely to focus on narrow self-interest.

Question 14

Public sector employees are more likely to have a defined benefits plan than private sector employees.

Question 15

Job evaluation provides the basis for decisions about the relative internal worth of jobs in an organization.

Question 16

The most frequently cited reason for firms developing a total rewards strategy is to control costs.

Question 17

By offering an employee wellness program,the organization may lower the cost of health insurance.

Question 18

Employers in Canada generally limit the benefits they provide to employees to those benefits that are required by law.

Question 19

Direct compensation describes the financial rewards employees receive for their work.

Question 20

Gainsharing is a type of organizational incentive.

Question 21

Organizations should evaluate pay as:

A)a cost.
B)more than a cost.
C)an investment that can generate returns in attracting,retaining,and motivating a high-quality workforce.
D)as optimal when the organization pays at or below the market rate.
E)both "b" and "c".

Question 22

The procedure through which an organization compares its own practices to those of successful competitors is known as:

A)gainsharing.
B)commercial intelligence.
C)benchmarking.
D)profiling.
E)none of the abovE.

Question 23

The organization's pay structure helps the organization achieve goals related to:

A)employee motivation.
B)cost control.
C)the ability to attract employees.
D)the ability to retain employees.
E)all of the choices are correct.

Question 24

Pay structures are developed based on which of the following?

A)Legal requirements
B)Market forces
C)Organization's goals
D)All of the above.
E)"b" and "c" only.

Question 25

Piecework rates are _________ suitable for __________ jobs with output that is easy to measure.

A)least;routine
B)most;routine
C)not;routine
D)most;complex
E)somewhat;motivating

Question 26

________ compensation refers to the financial rewards employees receive in exchange for their work.

A)Base pay
B)Indirect
C)Direct
D)Total
E)Traditional

Question 27

The pay policy line shows the _____________ relationship between job evaluation points and pay rate.

A)predicted
B)planned
C)hypothetical
D)mathematical
E)conceptual

Question 28

Managers play a significant role in communicating total rewards to employees.

Question 29

.This is an example of:

A)piecework rate.
B)a commission plan.
C)gainsharing.
D)straight salary plan.
E)standard hour plan.

Question 30

Incentive pay is also referred to as:

A)piecework rate.
B)market rate.
C)variable pay.
D)pay for performance.
E)both "c" and "d".

Question 31

A comprehensive approach to compensating and rewarding employees is frequently referred to as:

A)total compensation.
B)total rewards.
C)total benefits.
D)complete compensation.
E)total direct compensation.

Question 32

Many organizations group jobs into sets of jobs having similar worth or content called:

A)pay grades.
B)hourly rates.
C)pay policy groups.
D)pay ranges.
E)broadbands.

Question 33

Job structure consists of the _________ for different jobs within the organization.

A)relative pay
B)fixed pay
C)incentive plans
D)pay levels
E)base pay

Question 34

Which of the following is a disadvantage associated with competency-based pay systems?

A)Changing technology requires employees to continually widen and deepen their knowledge.
B)They help make organizations more flexible and innovative.
C)It rewards employees for acquiring skills that they may not use.
D)All of the above.
E)None of the abovE.

Question 35

What type of pay system sets pay according to the employee's level of skill or knowledge and what they are capable of doing?

A)Broadbanding
B)Pay for individual performance
C)Competency-based pay system
D)Variable pay
E)Standard hour plan

Question 36

Reducing the number of pay ranges in the organization's job structure is called:

A)red-circling.
B)broadbanding.
C)green-circling.
D)job evaluation.
E)none of the abovE.

Question 37

The balanced-scorecard approach is useful in designing executive pay.

Question 38

Job evaluation provides the basis for decisions about the relative ________ of a job.

A)external worth
B)internal worth
C)market worth
D)job analysis
E)benchmark

Question 39

A pay range includes which of the following?

A)Minimum
B)Midpoint
C)Maximum
D)All of the choices are correct.
E)"a" and "b" only.

Question 40

The __________ and services employees receive in exchange for their work is called _________________.

A)pay;direct compensation
B)benefits;direct compensation
C)commission;pay
D)benefits;indirect compensation
E)training;total rewards

Question 41

Discuss and describe the economic influences on pay.

Question 42

Employers ____________ to offer retirement plans beyond CPP/QPP.

A)are required
B)have no obligation
C)try not to
D)are encouraged by stockholders
E)may be required

Question 43

At the present time,which of the following is not a widely-offered benefit?

A)Paid sabbaticals
B)Paid leave for vacations that exceed the legally required minimum
C)Life insurance
D)Medical insurance
E)Retirement plans

Question 44

Organizations that want employees to focus on efficiency may adopt a _________ program,which measures increases in productivity and effectiveness and distributes a portion of each gain to employees.

A)commission
B)piecework
C)gainsharing
D)merit pay
E)bonus

Question 45

Which of the following statements about communicating total rewards to employees is TRUE?

A)Managers play an insignificant role in communicating total rewards to employees.
B)Employees require only a general overview of their rewards.
C)Less organizations are using technology for communicating total rewards to employees due to privacy concerns.
D)Communication is often a "weak link" in total rewards programs.
E)Employers have a limited number of ways to communicate total rewards.

Question 46

What is the name for a set of communications,activities,and facilities designed to change health-related behaviours in ways that reduce health risks?

A)Health spending account
B)Employee assistance program
C)Workers' compensation
D)Defined contribution plan
E)Employee wellness program

Question 47

Profit sharing involves awarding pay:

A)that becomes part of employees' base pay,in a manner similar to merit pay.
B)in order to discourage employees from thinking like owners.
C)that is a percentage of the organization's profits.
D)based on individual performance.
E)all of the abovE.

Question 48

What type of program provides confidential counselling services to employees experiencing personal problems?

A)Employee wellness program
B)Disability insurance
C)Health spending account
D)Employee assistance program
E)Family-friendly benefits and services

Question 49

To encourage learning and attract the kinds of employees who wish to develop their knowledge and skills,many organizations offer:

A)wellness programs.
B)medical examinations.
C)tuition reimbursement.
D)career counselling.
E)family-friendly benefits and services.

Question 50

Which of the following is a way to communicate total rewards information to employees?

A)Question-and-answer meetings
B)Online total rewards statements
C)Intranet pages
D)Brochures
E)All of the choices are correct.

Question 51

A significant portion of executive compensation and rewards comes in the form of:

A)tickets to cultural and sporting events.
B)gainsharing.
C)team rewards.
D)company stock.
E)base salary.

Question 52

The Canada Pension Plan (CPP)and the Quebec Pension Plan (QPP)are:

A)optional plans.
B)mandatory plans.
C)contributory plans.
D)all of the choices are correct.
E)"b" and "c" only.

Question 53

Employees have come to expect that benefits will help them maintain:

A)financial freedom.
B)job satisfaction.
C)equity and fairness.
D)economic security.
E)none of the abovE.

Question 54

Which of the following statements about Workers' Compensation is FALSE?

A)Workers' Compensation is a provincial program.
B)An injured employee needs to show that the employer was grossly negligent in order to receive compensation.
C)Is entirely funded by employers.
D)Workers' Compensation operates under a principle of "no-fault liability".
E)Benefits include wage-loss benefits,medical services,and rehabilitative services.

Question 55

Stock ownership plans:

A)make employees part owners of the organization.
B)are intended to encourage employees to focus on the success of the organization as a whole.
C)may not have a strong effect on individuals' motivation.
D)usually take the form of stock options or employee stock ownership plans.
E)all of the choices are correct.

Question 56

A gradual transition into full retirement by reducing hours or job responsibility is called:

A)defined retirement.
B)flexible retirement.
C)deferred retirement.
D)phased retirement.
E)paced retirement.

Question 57

What type of issues may arise when executive compensation is linked to the company's stock performance?

A)Financial
B)Customer service
C)Ethical
D)Social
E)Union

Question 58

Which of the following statements about employee benefits is FALSE?

A)Benefits contribute to attracting,retaining,and motivating employees.
B)The variety of available benefits also helps employers tailor their offerings to the kinds of employees they need.
C)A large employer without health and retirement benefits would have difficulty competing in the labour market.
D)Benefits are expected by many of today's employees.
E)Actually,all of the statements are truE.

Question 59

A defined ____________ plan offers a guaranteed level of retirement income.

A)contribution
B)non-contributory
C)benefit
D)retirement
E)spending

Question 60

Which of the following is NOT an emerging benefit expected to be one of the most popular over the next few years?

A)Flexible work hours
B)Flexible benefits
C)Subsidized fitness membership
D)Time off for community and charitable activities
E)Sick leave

Question 61

What conditions help ensure the success of gainsharing plans?

Question 62

Discuss flexible benefits plans,including their nature,purpose,advantages and disadvantages.

Question 63

Identify and discuss three of the five popular approaches to pay for individual performance.

Question 64

How do employee stock ownership plans (ESOPs)differ from stock option plans?

Question 65

What types of benefits are legally required?