Deck 1: Strategic Compensation: a Component of Human Resource Systems

Question 1

In GE's human resource leadership program (HRLP),successful participants will achieve which of the following?

A)gain an understanding of the depth of specialization for each (HR)function
B)gain an understanding of HR and the production and service sides of the business and help to determine the strategic capabilities of the company's workforce
C)gain an understanding of the depth of specialization for each HR function
D)gain an understanding of HR from a generalist's perspective

Answer 1

B

Question 2

Which of these actions would HR encourage in attempting to create a lowest-cost competitive strategy?

A)an employee's long-term focus
B)unpredictable employee behavior
C)high concern for the quantity of output
D)high concern for the quality of output

Answer 2

C

Question 3

Compensation represents both the intrinsic and extrinsic rewards employees receive for performing their jobs.Together,both intrinsic and extrinsic compensation describe a company's total compensation system.Briefly describe both types of rewards and indicate the professionals who are responsible for managing them.

Answer 3

Intrinsic compensation reflects employees' psychological mind-sets that result from performing their jobs.Extrinsic compensation includes both monetary and nonmonetary rewards.Organizational development professionals promote intrinsic compensation through effective job design.Compensation professionals are responsible for extrinsic compensation.Extrinsic compensation includes both monetary and nonmonetary rewards.Compensation professionals establish monetary compensation programs to reward employees according to their job performance levels or for learning job-related knowledge or skills.Nonmonetary rewards include protection programs (e.g.,medical insurance),paid time off (e.g.,vacations),and services (e.g.,day care assistance).Most compensation professionals refer to nonmonetary rewards as employee benefits.

Question 4

Discerning threats and opportunities is the main focus of which activity?

A)human resource planning
B)environmental scanning
C)job evaluation
D)job analysis

Question 5

Protection programs are what type of compensation benefits?

A)external
B)non-monetary
C)internal
D)monetary

Question 6

Ryanair uses one type of aircraft in its fleet and requires their passengers to carry their luggage to the plane.Which of the following competitive strategies does Ryanair use?

A)differentiation strategy
B)high quality strategy
C)brand notoriety
D)lowest-cost strategy

Question 7

Since the economic recession (2007-2009)ended,fewer companies have offered pay increases and,those that do,are offering lower amounts.Approximately,how much have pay increases been?

A)less than 2 percent
B)2 percent up to 2.9 percent
C)3 percent up to 3.9 percent
D)4 percent or more

Question 8

________ compensation refers to the mental state of employees as a result of their performance on the job.

Question 9

Which of the following is an example of a monetary reward?

A)medical insurance
B)vacations
C)day care assistance
D)spot bonus

Question 10

A company using this competitive strategy seeks to offer a product or service that is completely unique from other competitors in their market segment.

A)differentiation strategy
B)defender strategy
C)prospector strategy
D)lowest-cost strategy

Question 11

________ refers to the design and implementation of compensation systems to reinforce the objectives of both HR strategies and competitive business strategies.

A)Extrinsic compensation
B)Strategic compensation
C)Strategic analysis
D)Intrinsic compensation

Question 12

Saudi Arabia,which is one of the top oil producing countries in the world,continues to pump crude oil even as demand for oil decreases.This activity is considered to be a(n)________ to other oil producing countries such as the United States.

Question 13

This term suggests that a loss is likely for the firm,and that the individual will be left with little control.

A)reverse opportunity
B)negative equity
C)threat
D)foreclosure

Question 14

This concept describes a company's success when the company acquires or develops capabilities that facilitate outperforming the competition.

A)differentiation
B)capital
C)compensation practices
D)competitive advantage

Question 15

________ and ________ programs are key to giving employees the necessary knowledge and skills to use new workplace technology effectively.

Question 16

Which of following enables companies to generate income,higher company stock prices,economic value,strong positive brand identity,and reputation?

A)capital
B)assets
C)competency
D)human capital

Question 17

As a strategic business partner,HR and compensation professionals today need to think most like whom?

A)vice president of human resources
B)chief financial officer (CFO)
C)chief executive officer (CEO)
D)comptroller

Question 18

Which of the following competitive strategies does Apple Computer use?

A)lowest-cost strategy
B)differentiation strategy
C)total quality management strategy
D)human capital strategy

Question 19

Which of the following refers to the planned use of company resources-financial capital,equipment capital,and human capital-to promote and sustain competitive advantage?

A)strategic analysis
B)comparative analysis
C)360 degree analysis
D)competitive business strategy

Question 20

Cash and equipment such as a mass spectrometer in a research lab are examples of which of the following?

A)non liquid assets
B)organizational structure
C)capital
D)liquid assets

Question 21

The demand for human resource professionals is ________.

Question 22

What do compensation managers use to recognize differences in the relative worth of jobs and to establish pay differentials based upon management priorities?

A)job evaluation
B)internal consistency
C)job analysis
D)strategic analysis

Question 23

Which of the following represents the pay rate differences for jobs and employee contributions of unequal worth to a company?

A)merit pay
B)incentive pay
C)retention pay
D)pay structures

Question 24

This group is directly involved in producing goods and delivering services for a company.

A)staff employees
B)line employees
C)managers
D)executives

Question 25

Employment ________ occurs when an employee's agreement to perform work is ended,whether it is voluntarily or involuntarily.

Question 26

Jason works at a call center for an insurance company,and he has been answering calls regarding auto insurance.Recently,he started to attend a training program about home insurance.Upon successful completion of this training program,Jason will be able to handle home insurance questions and queries as well.If this insurance company has a compensation policy that rewards Jason's completion of this training,then what type of pay system does it employ?

A)incentive pay
B)merit pay
C)seniority pay
D)pay-for-knowledge

Question 27

This law made it illegal to pay women less for performing equal work as men.

A)Equal Pay Act of 1963
B)Civil Rights Act of 1964
C)Davis - Bacon Act of 1931
D)Fair Labor Standards Act of 1938

Question 28

Companies that implement ________ and ________ plans generally increase the amount of classroom and on-the-job training as these types of plans make training necessary rather than optional.

Question 29

What are the three goals of compensation professionals?

Question 30

Cost-of-living adjustments (COLAs)are typically based on which index?

A)Producer Price Index
B)Consumer Price Index
C)Employment Cost Index
D)Employee Benefit Index

Question 31

This agreement describes the terms of employment that are set between management and union bargaining representatives.

A)employee relationship agreement
B)collective bargaining agreement
C)joint employment agreement
D)workplace requisite agreement

Question 32

Sandra's position changed from supervisor at the planning department to supervisor at the new projects department.In terms of career development,which of the following describes Sandra's situation?

A)maintaining focus with less responsibilities
B)making a lateral move across the company's hierarchy
C)moving upward through a company's hierarchy
D)maintaining the focus and assuming greater responsibilities

Question 33

These compensation systems go a long way in attracting and retaining the most qualified employees and are based upon market and compensation surveys.

A)internally consistent compensation systems
B)market-competitive pay systems
C)job evaluation compensation systems
D)externally consistent compensation systems

Question 34

Strategic management involves distinguishing between ________ and ________ in attempting to achieve company goals,thus making strategic management an imprecise process.

Question 35

Oftentimes,companies use this method to trim their payroll responsibilities by encouraging higher paid workers with more seniority to voluntarily leave the company earlier than previously planned.

A)resignation plans
B)severance plans
C)early retirement programs
D)employee expenditure plans

Question 36

Apple Computer's use of a differentiation strategy promotes both ________ and ________.

Question 37

Due to the recent economic downturn,XYZ Co.decided to shut down one of its appliance manufacturing plants in the United States,and therefore around 300 workers were laid off.XYZ Co.has chosen to award laid-off workers 6 months of ________ pay.

Question 38

What type of pay system rewards employees for partially or completely attaining a predetermined work objective?

A)seniority pay
B)merit pay
C)incentive pay
D)skill-based pay

Question 39

Which type of professional is involved in the compensation functions such as building job structures,market competitive pay systems,and merit pay structures?

A)compensation generalist
B)HR specialist
C)compensation specialist
D)HR generalist

Question 40

What are the three questions that compensation professionals should answer to help determine whether they are making a strategic contribution to the company?

Question 41

What is a constituency? How does it affect the HR department?

Question 42

Which of the following group is a stakeholder within a company?

A)Equal Employment Opportunity Commission
B)Department of Labor
C)prospective employees
D)line managers

Question 43

The success of HR departments depends on how well they serve the interests of which of the following stakeholder groups?

A)employees, line managers, executives, unions, and the U.S. government
B)unions and the U.S. government
C)executives and shareholders
D)employees and line managers

Question 44

Which stakeholder group turns to compensation professionals for advice about appropriate pay rates for jobs?