Question 1

The two most common compensation methods for teams are:

Accepted Answer

Skill-based pay rewards team members for acquiring and mastering new skills, while gain-sharing involves distributing a portion of any financial gains or cost savings achieved by the team. These methods motivate team members to work efficiently and collaboratively and reward them for their contributions to the team's success.

Question 2

Tyrone recently earned his license to sell real estate in Indiana,and has interviewed with several agencies in an attempt to find a job.All have told him that his income will be based on a percentage of his real estate sales for the month.Tyrone will be paid:

Accepted Answer

Tyrone will be paid based on a percentage of his real estate sales for the month, which means he will be paid on a commission basis. This is a common payment method for real estate agents, where they earn a percentage of the sale price or commission on each sale they make, rather than a fixed salary or hourly wage.

Question 3

Companies place a considerable amount of attention on compensation plans because:

Accepted Answer

Compensation packages are a critical tool companies use to attract and retain top talent. A competitive compensation package can provide a competitive advantage for companies in attracting and retaining the best employees.

Question 4

A common way of compensating teams is a ___________ system,in which bonuses are based on improvements over a previous performance baseline.

Accepted Answer

The system being described is the gain-sharing system, in which bonuses are tied to improvements in performance. Commission is a payment for a sale or transaction, stock options are a form of compensation in which employees are granted the option to purchase company stock at a certain price, and skill-based compensation is based on an employee's level of expertise or mastery of a certain skill. None of these are necessarily tied to improvements in performance over a baseline.

Question 5

A problem with the Hay system of compensating workers is that:

Accepted Answer

The Hay system evaluates jobs based on specific factors such as skill and responsibility, and assigns point values to those factors. This can lead to differences in pay between employees who have worked for the company longer but may not be as productive as newer employees who perform better. This can create resentment among employees who feel they are not being fairly compensated for their performance.

Question 6

This is Anne's year! She finally broke through the glass ceiling - meaning she has reached an executive level position with her company,with a salary upwards of $200,000.Recently a competitor firm has approached her offering her $15,000 less in salary,but the job would come with an upgraded car,memberships in two country clubs of her choice,an additional two weeks paid vacation with use of the company's villa in Jamaica,and paid financial counseling.With respect to compensation,Anne:

Accepted Answer

Fringe benefits like upgraded car, country club memberships, and additional vacation can provide non-monetary value and potential tax advantages, making the offer attractive despite the lower salary.

Question 7

When workers are a part of a team their compensation should be:

Accepted Answer

When workers are a part of a team, their compensation should be based on team performance with additional rewards for those workers who make outstanding individual contributions. This approach encourages teamwork and cooperation while still recognizing and rewarding individual contributions. Measuring individual performance in a team environment can be difficult, so it's important to place emphasis on the team's overall success.

Question 8

Although the skills learned do not always translate into profits for the company,______ pay rewards the growth of both the individual and team participation.

Accepted Answer

Skill-based pay rewards individuals for the skills and competencies they acquire, which encourages both personal growth and team participation, even if those skills do not directly translate into immediate profits for the company.

Question 9

Today,fringe benefits account for approximately ______ percent of total payroll costs.

Accepted Answer

The answer of Today,fringe benefits account for approximately ______ percent...

Question 10

Sick-leave pay,vacation pay,pension plans,and health plans that provide additional compensation to employees are called:

Accepted Answer

These benefits, such as sick-leave pay, vacation pay, pension plans, and health plans, are considered as additional compensation to employees beyond their regular salary or wages. They are often used by employers as incentives for employees to stay with the company and can also help attract new talent. These benefits are commonly referred to as fringe benefits. Therefore, choice A is the correct answer.

Question 11

A major advantage of a piecework pay system is that it:

Accepted Answer

Piecework pay system pays employees according to the number of units they produce or tasks they complete. This motivates employees to work more efficiently and increase their productivity to earn more. In this way, it creates a powerful incentive for employees to work hard and be more productive.

Question 12

Dan works for ElekTek,a firm producing sophisticated electronic equipment used in state-of-the-art security systems.Dan is happy to see that the value of ElekTek's stock has reached $47 per share,because certain employees including Dan)have the opportunity to buy a given number of shares of its stock for $30 per share for the next year regardless of how high the market price goes.ElekTek is offering some employees a:

Accepted Answer

ElekTek is offering its employees the opportunity to buy shares of its stock at a fixed price for a limited period of time, regardless of the current market price. This is known as a stock option plan.

Question 13

Many firms now offer their employees ___________ benefits,such as on-site haircuts and free breakfasts,which help employees maintain a balance between work and family life.

Accepted Answer

The term "soft benefits" refers to employee benefits that are not directly linked to an employee's salary, such as on-site haircuts and free breakfasts. Real-time, situational, and break time do not accurately describe the type of benefits being offered.

Question 14

According to the material in the Reaching Beyond Our Borders box for Chapter 11,which of the following statements about working with employees from different countries is most accurate?

Accepted Answer

The Reaching Beyond Our Borders box for Chapter 11 states that currency rate differences and different laws with respect to fringe benefits such as health insurance and time-off offer challenges for HR management when working with employees from different countries. The other options are inaccurate. A is incorrect as cultural differences still exist despite the globalization of markets and media. C is incorrect as U.S. laws do not require American firms to hire, train, and pay employees in other countries the same way their U.S. employees are hired, trained, and paid. D is incorrect as it is not always more efficient to staff key positions in foreign facilities with American workers, and American firms must be careful not to display ethnocentrism when hiring in foreign countries.

Question 15

Human resource managers at Tri Max,Inc.want to encourage teamwork and are looking for a better way to compensate members of teams.One approach they are considering is a skill-based system.Which of the following statements about this type of pay system is most accurate?

Accepted Answer

A skill-based pay system provides additional compensation to employees who have acquired new skills that are relevant to their jobs. In the case of teams, a skill-based pay system can be implemented by providing additional compensation to all team members if the team as a whole acquires new skills. This approach encourages teamwork because it rewards the team as a whole for acquiring new skills, rather than individuals working in isolation. Therefore, option D is the most accurate statement.

Question 16

Which of the following statements about team pay is the most accurate?

Accepted Answer

This statement correctly acknowledges the importance of recognizing individual contributions but also highlights the potential negative effects of strictly individual pay plans on team cohesion. The other options either present an overly positive or negative view of team pay plans without acknowledging their potential benefits and challenges.

Question 17

This year,International Accountants,Inc.implemented a new benefits system that gives employees the flexibility to choose among different benefit options,as long as the total cost of the benefits does not exceed a certain amount.The type of benefits package offered to International Accountants employees is an):

Accepted Answer

The benefits system implemented by International Accountants, Inc. allows employees to choose among different benefit options, which is characteristic of a cafeteria-style fringe benefits plan. This allows for greater flexibility and customization in the benefits package for each employee.

Question 18

Dana is a supervisor at a small manufacturing plant.Her pay starts at $635 per week.Dana is paid on an):

Accepted Answer

Dana is paid a set amount of $635 per week, which indicates a salary pay system where the employee is paid a fixed amount on a regular basis. Commission pay plans are typically used for sales jobs, and rolling rate systems and income averaging plans are not commonly used in the context of regular pay.

Question 19

The most likely reason a firm would pay its sales representatives a commission rather than a salary is that it wants to:

Accepted Answer

Paying sales representatives a commission provides them with a strong incentive to generate more sales for the company. This is because their earnings are directly tied to the amount of sales they make. A commission structure also aligns the interests of the sales representative with those of the company, as both benefit from increased sales.

Question 20

A fringe benefit plan where employees choose the package of benefits they want up to a certain dollar amount is called a __________ plan.

Accepted Answer

A cafeteria-style plan is one where employees can pick and choose from a variety of benefits up to a certain dollar amount. This allows employees to customize their benefit package to fit their individual needs and preferences. The other choices, variable lifestyle, 401K, and flexible spending, do not accurately describe this type of fringe benefit plan.

Quiz 11: Human Resource Management: Finding and Keeping the Best Employees