Question 1

Which form of pay is likely to be least expensive for employers?
A) Incentive
B) Merit pay
C) Cost-of-living adjustments
D) Base pay

Accepted Answer

A

Question 2

Recent surveys show the average merit raise for an outstanding performer is ______ and average performers receive and poor performers receive 0.4%.
A)10.5,7
B)8.4,5.2
C)6.7,4.2
D)4.4,2.8

Accepted Answer

D

Question 3

_____ would be most concerned about compensation as a major expense.
A) Managers
B) Employees
C) Society
D) Stockholders

Accepted Answer

Managers are typically most concerned about compensation as a major expense because it directly impacts the organization's budget and financial performance.

Question 4

Employees who want to be sure their good performance will be rewarded will prefer
A) merit pay.
B) team incentives.
C) individual incentives.
D) across-the-board pay increases

Accepted Answer

The answer of Employees who want to be sure their...

Question 5

Which of the following includes restrictions on executive pay that are designed to discourage executives from taking "unnecessary and excessive risks"?
A) Corporate Welfare Program
B) Employee Welfare Program
C) Troubled Asset Relief Program
D) Corporate Liability Relief Program

Accepted Answer

The Troubled Asset Relief Program (TARP) includes restrictions on executive pay that are designed to discourage executives from taking "unnecessary and excessive risks". TARP was a program implemented by the US government after the 2008 financial crisis to purchase assets and equity from financial institutions in order to strengthen the financial sector. As part of this program, executives of companies that received TARP assistance were subject to restrictions on their compensation, including limits on bonuses and other incentives.

Question 6

One of the reasons 8 in 10 working families have no health insurance is because ______
A) many large employers do not offer health insurance
B) health insurance is more costly at large employers
C) many small employers do not offer health insurance
D) most workers decline health insurance when offered by their employer

Accepted Answer

The answer of One of the reasons 8 in 10...

Question 7

The degree to which pay influences individual and aggregate motivation among the employees at any point in time is referred to as:
A) sorting effect.
B) incentive effect.
C) motivational effect.
D) directional effect.

Accepted Answer

The incentive effect refers to the degree to which pay influences individual and aggregate motivation among employees. The sorting effect refers to the ability of pay to attract and retain employees, while the motivational effect refers to the impact of non-financial factors on motivation. Directional effect is not a commonly used term in this context.

Question 8

Costco has higher labor costs than Walmart and Sam's Club.The result is Costco has better performance in all but which of the following?
A) turnover
B) profit
C) customer satisfaction
D) sales/square foot

Accepted Answer

Costco's higher labor costs result in better employee retention, customer satisfaction, and sales per square foot, but not necessarily higher profits compared to Walmart and Sam's Club.

Question 9

Employers' annual cost per employee to provide family health care coverage is approximately ______________
A) $5000 
B) $10000
C) $15000
D) $20000

Accepted Answer

According to a study conducted by the Kaiser Family Foundation in 2019, the average annual cost per employee for employers to provide family health care coverage was approximately $15000. This cost varies based on the size of the company, location, and the specific plan chosen.

Question 10

According to the text,if women had the same education,experience,and union coverage as men and also worked in the same industries and occupations,they would be expected to earn about _____ of what men earn.
A) 62%
B) 70%
C) 80%
D) 90%

Accepted Answer

The text suggests that if women had the same qualifications and worked in the same conditions as men, they would earn about 90% of what men earn, indicating a reduction in the gender pay gap under these circumstances.

Question 11

Which of the following are given as increments to the base pay in recognition of past work behavior?
A) Base pay
B) Cost-of-living adjustments
C) Merit pay
D) Incentives

Accepted Answer

Merit pay is a form of salary increase given to employees based on their past performance, productivity, or achievements. It is given as an increment to the base pay, in recognition of their work behavior. Cost-of-living adjustments (B) are changes made to the salary to adjust for inflationary pressures, and incentives (D) are rewards given to employees to motivate them to achieve specific goals.

Question 12

In China,compensation,dai yu,has come to mean
A) entitlement and benefits.
B) cash compensation.
C) returns and entitlement.
D) cash compensation and relational returns.

Accepted Answer

The answer of In China,compensation,dai yu,has come to mean
A) entitlement...

Question 13

"Say on pay" is part of a law designed to protect the interests of ___________
A) Employees
B) Managers
C) Society
D) Shareholders

Accepted Answer

"Say on pay" is a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act that requires public companies to hold a non-binding vote on executive compensation from shareholders. This is to ensure that the interests of shareholders, who are the owners of the company, are being protected by having a say in how executives are compensated. Therefore, the correct answer is D - shareholders.

Question 14

Which of the following is an example of a relational return?
A) Short-term incentives
B) Recognition and status
C) Work-life balance
D) Income protection

Accepted Answer

Recognition and status are examples of relational returns as they are non-financial rewards that employees receive from their jobs, and are based on the relationships between employees and their organizations. Short-term incentives, work-life balance, and income protection are all examples of transactional returns, which are based on the financial transactions between employers and employees.

Question 15

Variable pay may also be called
A) exempt
B) non-exempt
C) stock options
D) incentives

Accepted Answer

Variable pay is also known as incentives as it is directly linked to an employee's performance or productivity. This type of pay encourages employees to work harder and produce better results, which ultimately benefits the organization.

Question 16

The primary reason compensation is important to managers is because:
A) employees regard it as a reward.
B) it influences employee behavior.
C) it is a larger cost than benefits.
D) stock holders dislike high compensation costs.

Accepted Answer

Compensation is an important factor that can influence employee behavior, motivation, and productivity. Managers need to design and implement compensation systems that align with the organization's goals and values and that attract, retain, and motivate employees. Compensation is also a significant cost for organizations, but it is not necessarily larger than benefits. Additionally, stockholders may have different perspectives and preferences regarding compensation, so their opinions should not be the primary driver of compensation decisions.

Question 17

Which of the following is the largest component in an executive pay package?
A) Base pay
B) Stock options
C) Merit pay
D) Perks

Accepted Answer

Stock options are typically the largest component in an executive pay package. Stock options allow executives to purchase company stock at a predetermined price, giving them the potential to earn significant profits if the stock price goes up in the future.

Question 18

Employees view compensation as all but which of the following?
A) A return
B) An entitlement
C) A reward
D) An investment

Accepted Answer

Employees generally do not view compensation as an investment; rather, they see it as a return for their work, an entitlement for their position, or a reward for their performance.

Question 19

In Japanese companies,the concept of teate is consistent with which of the following?
A) Sophisticated performance appraisal systems
B) A strong emphasis on performance pay
C) Family, housing and commuting allowances
D) Rapid promotions

Accepted Answer

Teate in Japanese companies generally refer to the various allowances and benefits that employees receive, such as family support, housing allowances, and transportation allowances. These are meant to alleviate the financial burden on employees and help improve their work-life balance. Therefore, option C is the most consistent with the concept of teate.

Question 20

Employers spend ____ cents for benefits in addition to each dollar of wages or salaries.
A) 44
B) 34
C) 24
D) 14

Accepted Answer

Employers spend 44 cents for benefits in addition to each dollar of wages or salaries.

Quiz 1: The Pay Model

Which form of pay is likely to be least expensive for employers?

Recent surveys show the average merit raise for an outstanding performer is ______ and average performers receive and poor performers receive 0.4%.

_____ would be most concerned about compensation as a major expense.

Employees who want to be sure their good performance will be rewarded will prefer

Which of the following includes restrictions on executive pay that are designed to discourage executives from taking "unnecessary and excessive risks"?

One of the reasons 8 in 10 working families have no health insurance is because ______

The degree to which pay influences individual and aggregate motivation among the employees at any point in time is referred to as:

Costco has higher labor costs than Walmart and Sam's Club.The result is Costco has better performance in all but which of the following?

Employers' annual cost per employee to provide family health care coverage is approximately ______________

According to the text,if women had the same education,experience,and union coverage as men and also worked in the same industries and occupations,they would be expected to earn about _____ of what men earn.

Which of the following are given as increments to the base pay in recognition of past work behavior?

In China,compensation,dai yu,has come to mean

"Say on pay" is part of a law designed to protect the interests of ___________

Which of the following is an example of a relational return?

Variable pay may also be called

The primary reason compensation is important to managers is because:

Which of the following is the largest component in an executive pay package?

Employees view compensation as all but which of the following?

In Japanese companies,the concept of teate is consistent with which of the following?

Employers spend ____ cents for benefits in addition to each dollar of wages or salaries.