Deck 12: Healthcare Compensation Practices

Question 1

When an employer pays wages that are above market,they are paying in the __________ quartile.

A) First
B) Second
C) Third
D) Fourth

Answer 1

First

Question 2

An effective compensation program addresses which of the following objectives?

A) Legal compliance
B) Equity for employees
C) Cost-effectiveness
D) All of the above

Answer 2

All of the above

Question 3

If a person is considered non-exempt under the Fair Labor Standards Act,then the employer is responsible for overtime pay at a rate of __________ for any hours worked over 40 in a one-week period.

A) Half pay
B) One x base rate
C) Time plus half
D) Double time

Answer 3

Time plus half

Question 4

Which of the following federal laws requires employers to identify the essential functions of a job?

A) FLSA
B) ADA
C) EPA
D) None of the above

Question 5

Many organizations use team rewards as what type of pay added to base pay?

A) Variable
B) Market based
C) Competency based
D) Industry based

Question 6

The following is used to determine compensation using the Total Rewards Approach:

A) Age
B) Competence
C) Seniority
D) Gender

Question 7

One of the simplest methods of job evaluations is __________.

A) Ranking
B) Classification
C) Point
D) Benchmark

Question 8

If an employer chooses a second quartile strategy,that means __________.

A) 75% of firms are paying above; 25% below
B) 25% of firms are paying above; 75% below
C) 50% of firms are paying above; 50% below
D) None of the above

Question 9

The most widely used job evaluation method,which breaks down jobs into various compensable factors and then places weights or points on them,is the __________.

A) Ranking method
B) Point method
C) Classification approach
D) Factor method

Question 10

If you are given a reward just for being hired into the organization,you are being given __________.

A) A bonus
B) A perk
C) A benefit
D) An incentive

Question 11

FLSA does not require overtime pay for __________.

A) Computer-related occupations
B) Health care occupations
C) Child care occupations
D) Financial related occupations

Question 12

Indirect compensation commonly consists of __________.

A) Base Pay
B) Stock options
C) Employee benefits
D) Variable pay

Question 13

Which is not a basic approach to healthcare compensation?

A) Market-based pay
B) Competency based-pay
C) Variable pay
D) Team pay

Question 14

Pay differences can not be justified on __________.

A) Bases of merit
B) Seniority
C) Quantity or quality of work
D) Gender

Question 15

Using the Factor Comparison method,the __________ step involves evaluating all other jobs in the organization by comparing them with benchmark jobs.

A) 1st
B) 2nd
C) 3rd
D) Final

Question 16

When using comp-time,what is given in lieu of payment for extra time worked?

A) Overtime
B) Compensatory time off
C) Sick time
D) Vacation

Question 17

Which of the following is true about independent contractors?

A) They can quit at any time without incurring liability
B) They have a continuing relationship with the employer
C) They usually are paid by the job or on straight commission
D) They normally are furnished the tools and materials by the employer

Question 18

Healthcare employers must keep accurate time records and maintain these records for __________.

A) 2 years
B) 3 years
C) 6 years
D) 7 years

Question 19

Which of the following provides a systematic basis for determining the relative worth of jobs within an organization?

A) Job security
B) Job evaluation
C) Job analysis
D) Job description

Question 20

Employees and managers who subscribe to the entitlement philosophy believe that individuals who worked another year are entitled to __________.

A) An increase in base pay
B) Continuation of benefits
C) An increase in benefits
D) All of the above

Question 21

Pay information kept secret in "closed" systems includes how much others make,what raises others have received,and what pay grades and ranges exist in the organization.

Question 22

An entitlement approach to compensation factors in elements such as how much an employee knows when determining compensation.

Question 23

When the pay differences among individuals with different levels of experience and performance becomes small,this is referred to as __________.

A) Pay compression
B) Benchmark jobs
C) Factor comparison
D) Pay adjustment matrix

Question 24

The minimum wage provision of the Fair Labor Standards Act does not apply to "tipped" employees.

Question 25

Base pay and variable pay are the most common forms of direct compensation.

Question 26

The Equal Pay Act of 1963 prohibits using different wage scales for men and women if they are performing substantially the same jobs,even if seniority differs.

Question 27

Extrinsic rewards are tangible and only take non-monetary forms.

Question 28

Intrinsic rewards do not include praise for completing a project or meeting performance objectives.

Question 29

In most healthcare organizations,who is the major policy-setting entity?

A) CEO
B) Human resources department
C) The board
D) The shareholders

Question 30

An individual who is paid above the range set for his/her job is a __________.

A) Red-circled employee
B) Blue-circled employee
C) Green-circled employee
D) Orange-circled employee

Question 31

Properly using wage surveys from various credible sources requires which of the following questions to be addressed:

A) Who are the survey participants?
B) Is the survey appropriately broad-based?
C) Are there adequate job matches?
D) All of the above

Question 32

Classifying someone as an independent contractor rather than an employee allows the employer to avoid paying Social Security,unemployment,and workers compensation.

Question 33

Regardless of how well constructed a pay structure is,there are usually a few individuals whose pay is lower than the minimum or higher then the maximum. How often do these situations tend to happen when organizations have had an informal pay system and develop a new system?

A) Always
B) Frequently
C) Seldom
D) Never

Question 34

An individual whose pay is below the range for his/her position is a __________.

A) Red-circled employee
B) Blue-circled employee
C) Green-circled employee
D) Orange-circled employee

Question 35

Variable pay is compensation linked directly to individual,team,or organizational performance.

Question 36

Pay adjustments based on what are often set as automatic steps once a person has been employed the required length of time are referred to as __________.

A) Age adjustments
B) Seniority
C) Tasks
D) Productivity

Question 37

When a healthcare organization moves to a competency based system,considerable time must be spent identifying limitations in training and competency.

Question 38

The advantage to using lump sum increases is that __________.

A) it doesn't raise the employee's base salary
B) it does not have to be documented
C) employees receive a break on taxes
D) it perpetuates the issue of an employee paid below market

Question 39

Employers who use broadbanding are probably doing so to __________.

A) Limit the amount of internal transfers within the organization
B) Encourage development of specific skills
C) Create a more flexible organization
D) Create a more structured organization

Question 40

Common components of executive compensation are __________.

A) Salaries and annual bonuses
B) Long-term incentives
C) Supplemental benefits and perquisites
D) All of the above

Question 41

Boards need not worry about linking organizational performance with variable pay rewards for executives because they are not motivated by them.

Question 42

Performance-based incentives attempt to tie executive compensation to the short-term growth and success of the organization.

Question 43

Advocates of pay equity view the disparity in pay between men's jobs and women's jobs as evidence of gender discrimination.

Question 44

Setting a range for each pay grade gives flexibility by allowing individuals to progress within a grade.

Question 45

Numerous studies have revealed that the consumer price index understates the actual cost of living.