Question 1

Which term refers to the process of determining the relative worth of jobs in order to determine pay rates?
A) job evaluation
B) job analysis
C) job determination
D) job diagnosis

Accepted Answer

Job evaluation is the process of determining the relative worth of jobs based on factors such as skill, effort, responsibility, and working conditions. This is done in order to establish a systematic and fair approach to setting pay rates for different jobs within an organization. Job analysis, on the other hand, involves a detailed study of the tasks, duties, and responsibilities of a particular job in order to describe its essential functions and requirements. Job determination and job diagnosis are not terms typically used in connection with compensation practices.

Question 2

What will most likely result from determining wage increases solely based on the consumer price index?
A) Employees will be motivated in the short run.
B) A more equitable compensation system will be created.
C) Stronger pay-for-performance perceptions will occur.
D) Pay rates within a pay structure will be compressed.

Accepted Answer

If wage increases are determined solely based on the consumer price index, pay rates within a pay structure will be compressed. This is because everyone will receive the same increase, regardless of their current pay rate, which could result in lower differentials between pay levels.

Question 3

When a union negotiates an increase in "real wages", what is the impact on its members?
A) RRSP contributions are matched by the employer.
B) Pay rate is calculated at 5.7% above the national average.
C) Time-and-a-half is paid for overtime work.
D) There is an improved standard of living.

Accepted Answer

When a union negotiates an increase in "real wages", it means that the increase is adjusted for inflation. This results in an improved standard of living for union members as their purchasing power increases. Therefore, the best choice is D - There is an improved standard of living.

Question 4

What is the simplest system of job evaluation?
A) point
B) job classification
C) factor comparison
D) ranking

Accepted Answer

Ranking is the simplest system of job evaluation as it involves comparing jobs and ranking them in order of their worth to the organization. It does not require any complex math or analysis and is easy to understand and implement. However, it may not be as accurate or reliable as other more complex systems such as factor comparison or point methods.

Question 5

What is a key consideration when designing and implementing a pay-for-performance plan?
A) how to announce the pay-for-performance plan
B) what funds will be available for pay increases
C) which employees are to be part of the plan
D) how this plan will be perceived by competitors

Accepted Answer

One key consideration is determining what funds will be available for pay increases. This will help ensure that the pay-for-performance plan is financially feasible and sustainable. Other factors, such as which employees are included in the plan and how it is communicated, are also important but may be secondary to the financial considerations. Perceptions of competitors may also be important in some industries, but this is not a universal consideration for all pay-for-performance plans.

Question 6

If an organization hires better qualified employees as a result of their attractive rewards program, what financial impact might this have in other areas of the business?
A) higher employee satisfaction ratings
B) less time spent ramping up new hires
C) lower education and training costs for new hires
D) lower employee turnover rates

Accepted Answer

The answer of If an organization hires better qualified employees...

Question 7

Of the three types of compensation plans, which group of employees typically receives benefits as part of their compensation?
A) hourly employees
B) migrant employees
C) salaried employees
D) piecework employees

Accepted Answer

Salaried employees typically receive benefits as part of their compensation package such as health insurance, retirement plans, and paid time off. Hourly employees and piecework employees may also receive some benefits, but they are typically less comprehensive. Migrant employees may not receive benefits at all, depending on their employment status and the laws of the country in which they work.

Question 8

Which term refers to the measure of the average change in prices over time in a large "basket" of goods and services purchased by Canadians?
A) the consumer price index
B) the inflation index
C) a cost of living allowance
D) a cost of living adjustment

Accepted Answer

The term referring to the measure of the average change in prices over time in a large "basket" of goods and services purchased by Canadians is the consumer price index.

Question 9

Which of the following is an external factor that can influence the wage rate?
A) the employer's ability to pay
B) the cost of living
C) the worth of the job
D) the employee's relative worth

Accepted Answer

The cost of living is an external factor that can influence the wage rate as it reflects the general level of prices in an economy and can impact purchasing power and the standard of living for both employers and employees. The other factors listed are internal to the employer-employee relationship and may not be directly influenced by external factors.

Question 10

Which methods of comparison are used in a job evaluation?
A) equity and job ranking systems
B) factor comparison and point systems
C) point and equity systems
D) job classification and CPI systems

Accepted Answer

The two main methods of job evaluation are factor comparison and point systems, with each using a different approach to assign value to different jobs based on factors such as skills, responsibilities, education, and experience. Equity and job ranking systems, point and equity systems, and job classification and CPI systems may be used as supplementary methods, but they are not the primary methods used in job evaluation.

Question 11

What does employee compensation refer to?
A) certain forms of pay and rewards to employees
B) pay and rewards to employees
C) all forms of pay or rewards to employees, both direct and indirect
D) cash payments only

Accepted Answer

Employee compensation refers to all forms of pay or rewards to employees, both direct and indirect. This includes salary, bonuses, benefits, and any other forms of compensation that an employee may receive for their work. It is not limited to just cash payments.

Question 12

Which term refers to employees who are compensated on an hourly basis?
A) hourly employees
B) salaried employees
C) piecework earners
D) commission earners

Accepted Answer

Hourly employees are compensated based on the number of hours they work, whereas salaried employees receive a set salary regardless of the number of hours worked. Piecework earners are paid based on the amount of work they produce, and commission earners are compensated based on the sales they generate.

Question 13

What approaches are organizations taking to deal with a possible labour shortage, especially in key skill areas?
A) providing non-cash benefits
B) providing training to employees to upgrade their skills
C) recruiting from abroad
D) visiting trade schools to meet with potential job candidates

Accepted Answer

The answer of What approaches are organizations taking to deal...

Question 14

Which job evaluation system compares the relative overall value of one job compared to another?
A) job grade system
B) factor comparison method
C) point system
D) job ranking system

Accepted Answer

The job ranking system involves comparing the overall value of one job to another to establish a hierarchy of jobs based on their relative worth.

Question 15

Under what circumstances will employees deem that compensation is equitable?
A) when the work is perceived to be equally distributed among team members
B) when the compensation is perceived to be equal to the value of the work performed
C) when the compensation system uses the same methods for all job types
D) when the work is perceived to be appropriate for their hierarchical level

Accepted Answer

Employees are likely to perceive compensation as equitable when it is perceived to be equal to the value of the work performed. This means that they believe their pay corresponds to the effort and skill level required for their job, as well as the value they bring to the organization. Other factors, such as the perception of fairness in the distribution of work and the appropriateness of hierarchical levels, may also impact perceptions of equity, but they are not as directly related to compensation.

Question 16

What does the equity theory explain?
A) why there is a perceived imbalance between the wages that men earn and that women earn
B) how employees respond when they believe they receive less (or more) than they deserve
C) how organizations define and build their compensation systems
D) why organizations provide direct and indirection compensation to employees

Accepted Answer

The equity theory explains how employees respond when they believe they receive less (or more) than they deserve. It suggests that employees compare their input-to-output ratio (such as effort and performance to compensation and rewards) to that of others in similar positions, and if they perceive an imbalance, they may become demotivated or change their behavior.

Question 17

When determining compensation, how is the relative worth of a job determined?
A) the employee's relative worth
B) area wage rates
C) job evaluation
D) labour market conditions

Accepted Answer

The relative worth of a job is determined through job evaluation, which involves analyzing and comparing job duties, responsibilities, and requirements to determine its relative worth within the organization. This process is typically conducted by a professional job evaluator who assigns a point value to various job factors to determine the job's overall value or worth. Area wage rates and labor market conditions may be taken into consideration during the compensation process, but they do not directly determine the relative worth of the job. Ultimately, the job evaluation process helps ensure that employees are being compensated fairly and equitably for the work they perform.

Question 18

When determining the size of the monetary increase, what must management take into consideration for pay-for-performance to be fully successful?
A) The employer should consider the standard of living of its employees.
B) The increase should include the opportunity to increase benefits too.
C) The increase should be variable if the employee has dependents.
D) The increase must be greater than the cost of living.

Accepted Answer

In order for pay-for-performance to be fully successful, the increase must be greater than the cost of living. This ensures that employees are being rewarded for their performance and that their compensation is keeping up with inflation. While it is important for employers to consider the standard of living of their employees and offer opportunities for increased benefits, these factors are not as crucial to the success of pay-for-performance as ensuring that the increase is significant enough to motivate employees to perform at their best. The increase does not need to be variable based on dependents, as pay-for-performance is typically based on individual performance rather than family status.

Question 19

What are organizations with formal job systems more likely to rely on to determine wage rates?
A) wage equity comparisons
B) worth analysis
C) job evaluation
D) expert opinions

Accepted Answer

Organizations with formal job systems are more likely to rely on job evaluation to determine wage rates. Job evaluation is a systematic way of determining the relative worth of jobs within an organization by evaluating the duties, responsibilities, skills required and other relevant factors of each job. This helps ensure that wages are allocated in a fair and consistent manner based on job duties and responsibilities rather than other factors like personal connections or subjective opinions.

Question 20

What do labour-market conditions reflect?
A) the forces of supply and demand for qualified workers within an area
B) the total amount of qualified labour available to a hiring employer
C) the wage rates for specific types of labour
D) the employer market available for those seeking employment

Accepted Answer

Labour-market conditions reflect the forces of supply and demand for qualified workers within an area. This includes factors such as the number of available jobs, the number of qualified workers seeking employment, and the wage rates that are being offered.

Quiz 8: Rewarding and Recognizing Employees

Which term refers to the process of determining the relative worth of jobs in order to determine pay rates?

What will most likely result from determining wage increases solely based on the consumer price index?

When a union negotiates an increase in "real wages", what is the impact on its members?

What is the simplest system of job evaluation?

What is a key consideration when designing and implementing a pay-for-performance plan?

If an organization hires better qualified employees as a result of their attractive rewards program, what financial impact might this have in other areas of the business?

Of the three types of compensation plans, which group of employees typically receives benefits as part of their compensation?

Which term refers to the measure of the average change in prices over time in a large "basket" of goods and services purchased by Canadians?

Which of the following is an external factor that can influence the wage rate?

Which methods of comparison are used in a job evaluation?

What does employee compensation refer to?

Which term refers to employees who are compensated on an hourly basis?

What approaches are organizations taking to deal with a possible labour shortage, especially in key skill areas?

Which job evaluation system compares the relative overall value of one job compared to another?

Under what circumstances will employees deem that compensation is equitable?

What does the equity theory explain?

When determining compensation, how is the relative worth of a job determined?

When determining the size of the monetary increase, what must management take into consideration for pay-for-performance to be fully successful?

What are organizations with formal job systems more likely to rely on to determine wage rates?

What do labour-market conditions reflect?