Question 1

Appropriate steps employers can take to reduce employee health care costs include all of the following EXCEPT:
A)offer training programs in health and wellness.
B)increase employee contributions to health care costs.
C)increase annual health insurance deductibles.
D)terminate employees who experience significant illness or injury.

Accepted Answer

Terminating employees who experience significant illness or injury is not an appropriate or ethical step to reduce health care costs and could lead to legal issues.

Question 2

A disadvantage of incentive plans such as profit-sharing, gain-sharing, and Scanlon plans is that:
A)such plans tend to minimize employee commitment to the organization.
B)most employees are not eligible to participate until they are ready to retire.
C)the link between individual effort and organizational reward is not always clear.
D)the plans only benefit executive management.

Accepted Answer

Incentive plans like profit-sharing, gain-sharing, and Scanlon plans often distribute rewards based on overall organizational performance, making it difficult for employees to see a direct connection between their individual efforts and the rewards they receive.

Question 3

An employee benefit that provides employees with counseling and/or treatment for problems such as stress or alcoholism is:
A)an employee assistance program.
B)a defined benefit program.
C)an employee wellness program.
D)a Scanlon plan.

Accepted Answer

An employee assistance program (EAP) is designed to help employees deal with personal problems that might adversely impact their work performance, health, and well-being, including stress and alcoholism.

Question 4

With regard to employee health care benefits for workers over age 65:
A)employers do not have to provide benefits to workers over age 65 because such workers are eligible for Medicare.
B)workers over age 65 are not eligible for employer health care benefits.
C)employers may include workers over age 65 in the company's health plan, but the older workers must pay the entire cost of the benefit.
D)employers must provide the same health care benefits to workers over 65 as they provides to younger workers.

Accepted Answer

Employers are required by law to provide the same health care benefits to workers over 65 as they do to younger workers, ensuring no discrimination based on age.

Question 5

In considering compensation policies for expatriate workers, HR professionals should note that:
A)expatriate employees are generally paid on a weekly basis.
B)cost-of-living pay increases are rarely offered to expatriate workers.
C)living costs can vary widely from one county to another.
D)expatriates are generally willing to take a significant pay cut in exchange for the opportunity to live in another country.

Accepted Answer

Living costs can vary widely from one country to another, and this is a crucial factor HR professionals must consider when determining compensation for expatriate workers.

Question 6

A "paid time off" policy that gives each employee a total figure for annual time off including vacation, sick leave, and personal days to be used at the employee's discretion will likely result in:
A)sharply increased compensation costs.
B)decreased unscheduled absences.
C)increased costs to administer the policy.
D)increased need for temporary and part-time employees.

Accepted Answer

A "paid time off" policy allows employees to manage their own time off, which can lead to fewer unscheduled absences as employees plan their time off more effectively.

Question 7

The most commonly used approach to formulating an expatriate worker's pay is to equalize the employee's purchasing power across countries. This practice is known as:
A)pay for performance.
B)a cost-benefit analysis.
C)an international profit and loss statement.
D)a balance sheet approach.

Accepted Answer

The balance sheet approach is used to equalize the purchasing power of expatriates by providing allowances and adjustments to maintain their standard of living across different countries.

Question 8

The provisions of the Family and Medical Leave Act (FMLA)stipulate that:
A)the leave need not be paid by the employer.
B)employees may take up to four weeks leave in a 12-month period.
C)the leave may be for employee illness, or the illness of an employee's spouse or child, but not an employee's parent.
D)workers in organizations of 250 or more employees are eligible for the leave.

Accepted Answer

The FMLA allows eligible employees to take unpaid leave for specified family and medical reasons.

Question 9

A major compensation consideration for expatriate workers that is NOT generally a consideration for U.S. based employees is:
A)the use of incentive plans.
B)decreased compensation costs for international employees.
C)geographical pay differentials based on cost of living.
D)wage compression.

Accepted Answer

Expatriate workers often receive geographical pay differentials to account for the cost of living in a foreign country, which is not typically a consideration for U.S.-based employees.

Question 10

Methods of reducing workers' compensation costs would include all of the following EXCEPT:
A)conducting employee safety programs.
B)disciplining employees who file claims for workers' compensation.
C)eliminating accident-causing conditions in the workplace.
D)getting employees back on the job as quickly as possible after an injury or illness.

Accepted Answer

Disciplining employees who file claims for workers' compensation is not a legitimate or ethical method for reducing costs and could lead to legal issues.

Question 11

Non-cash incentives provided to a company's executives are known as:
A)boardroom bonuses.
B)"platinum purses."
C)insider trades.
D)perquisites or "perks."

Accepted Answer

Perquisites or "perks" are non-cash incentives provided to executives, such as company cars, club memberships, or other benefits.

Question 12

One of the major employer advantages in contracting with health maintenance organizations (HMO's)to deliver employee health care is:
A)employees have greater choice in selecting a physician.
B)the employer receives copies of all employee medical records.
C)premiums remain stable for a five-year period.
D)reduced costs.

Accepted Answer

HMOs typically offer lower premiums and reduced healthcare costs for employers compared to traditional health insurance plans, making them a cost-effective option for providing employee health benefits.

Question 13

A benefit intended to augment unemployment insurance so that the employee may maintain his or her standard of living is called:
A)a cost of living allowance.
B)a Scanlon plan.
C)workers' compensation.
D)supplemental unemployment benefits.

Accepted Answer

Supplemental unemployment benefits are designed to provide additional financial support to unemployed workers, helping them maintain their standard of living while they search for new employment.

Question 14

As the workforce ages, more employees will likely need of which of the following benefits?
A)mental health benefits
B)employer-sponsored cafeterias
C)child care services
D)long-term care benefits

Accepted Answer

As the workforce ages, employees are more likely to need long-term care benefits to address health and care needs associated with aging.

Question 15

Groups of health care providers that contract with employers and insurance companies to deliver health care services are termed:
A)insurers of last resort.
B)fee-for-service providers.
C)health maintenance organizations.
D)preferred provider organizations.

Accepted Answer

The answer of Groups of health care providers that contract...

Question 16

Employers generally favor defined contribution pension plans over defined benefit pension plans because:
A)defined benefit plans include costs for health insurance benefits.
B)they offer retirees a guaranteed fixed sum at retirement.
C)the employees' retirement income benefits are predetermined by the employer.
D)they are easier to administer.

Accepted Answer

Defined contribution plans are generally easier to administer because they do not require the employer to manage the investment risk or ensure a specific payout at retirement, unlike defined benefit plans.

Question 17

All of the following are essential to the implementation of an effective incentive plan EXCEPT:
A)employees must determine the amount of the incentive per unit of work output.
B)employees must be able to exert control over the work output.
C)units of work output must be easily measured.
D)employees must perceive a clear relationship between effort and reward.

Accepted Answer

Employees determining the amount of the incentive per unit of work output is not essential for an effective incentive plan. The other options are crucial as they ensure that employees can influence their output, measure it, and see a clear link between their efforts and the rewards they receive.

Question 18

Which of the following administrative positions would be considered an "exempt" position under the FLSA?
A)clerk
B)entry-level bookkeeper
C)word processor
D)office manager

Accepted Answer

An office manager typically exercises discretion and independent judgment in significant matters, meeting the criteria for an "exempt" position under the FLSA.

Question 19

Benefits plans that allow employees to choose from a variety of benefit options are known collectively as:
A)flexible benefits plans or cafeteria plans.
B)employee assistance plans or EAPs.
C)health care spending accounts.
D)unrestricted benefits plans.

Accepted Answer

Flexible benefits plans or cafeteria plans allow employees to choose from a variety of benefit options, tailoring their benefits package to best meet their individual needs.

Question 20

A variable pay plan in which a corporation annually contributes shares of stock which are then distributed to employees when they retire or leave the company is known as a(n):
A)individual stock option plan.
B)profit-sharing plan.
C)flexible benefit plan.
D)employee stock ownership plan.

Accepted Answer

An employee stock ownership plan (ESOP) is a program that provides a company's workforce with an ownership interest in the company, often through the allocation of stock shares, which are distributed to employees upon retirement or departure from the company.

Quiz 18: HR Management and Organizational Strategy: Key Concepts and Considerations

Appropriate steps employers can take to reduce employee health care costs include all of the following EXCEPT:

A disadvantage of incentive plans such as profit-sharing, gain-sharing, and Scanlon plans is that:

An employee benefit that provides employees with counseling and/or treatment for problems such as stress or alcoholism is:

With regard to employee health care benefits for workers over age 65:

In considering compensation policies for expatriate workers, HR professionals should note that:

A "paid time off" policy that gives each employee a total figure for annual time off including vacation, sick leave, and personal days to be used at the employee's discretion will likely result in:

The most commonly used approach to formulating an expatriate worker's pay is to equalize the employee's purchasing power across countries. This practice is known as:

The provisions of the Family and Medical Leave Act (FMLA) stipulate that:

A major compensation consideration for expatriate workers that is NOT generally a consideration for U.S. based employees is:

Methods of reducing workers' compensation costs would include all of the following EXCEPT:

Non-cash incentives provided to a company's executives are known as:

One of the major employer advantages in contracting with health maintenance organizations (HMO's) to deliver employee health care is:

A benefit intended to augment unemployment insurance so that the employee may maintain his or her standard of living is called:

As the workforce ages, more employees will likely need of which of the following benefits?

Groups of health care providers that contract with employers and insurance companies to deliver health care services are termed:

Employers generally favor defined contribution pension plans over defined benefit pension plans because:

All of the following are essential to the implementation of an effective incentive plan EXCEPT:

Which of the following administrative positions would be considered an "exempt" position under the FLSA?

Benefits plans that allow employees to choose from a variety of benefit options are known collectively as:

A variable pay plan in which a corporation annually contributes shares of stock which are then distributed to employees when they retire or leave the company is known as a(n) :