Question 1

Which of these is a company sponsored program that provides income to workers throughout their retirement?
A) pension plans
B) severance plans
C) loyalty plans
D) longevity plans

Accepted Answer

Pension plans are specifically designed to provide income to workers throughout their retirement. Severance plans provide compensation to employees who are laid off or terminated, but they do not provide retirement income. Loyalty plans and longevity plans are not commonly used terms in the context of retirement benefits.

Question 2

Protection programs are what type of compensation benefits?
A) external
B) non-monetary
C) internal
D) monetary

Accepted Answer

Protection programs are non-monetary compensation benefits that help to protect employees from financial losses due to unforeseen circumstances such as illness or injury. These programs include health insurance, disability insurance, and life insurance.

Question 3

Which of the following is NOT one of the three broad categories that discretionary benefits fall into?
A) worker's compensation laws
B) paid time off
C) protection programs
D) services

Accepted Answer

Worker's compensation laws are not a discretionary benefit, as they are required by law and provide benefits to employees who are injured or become ill as a result of their work. The three broad categories of discretionary benefits are paid time off, protection programs, and services.

Question 4

Samuel is a recently hired HR professional working at XYZ Motor Co.His current project involves recording the time it takes assembly workers to complete their tasks.With the help of industrial engineers in the manufacturing plant,the aim of this project is to identify the most effective ways of assembly operations.Which of the following is NOT related to Samuel's project?
A) scientific management practices
B) time-and-motion studies
C) job analysis
D) welfare practices

Accepted Answer

Welfare practices are not related to Samuel's project, as his project focuses on identifying effective ways of assembly operations through analyzing the time it takes for workers to complete their tasks. Scientific management practices, time-and-motion studies, and job analysis are all relevant to this project as they involve analyzing and streamlining work processes.

Question 5

A company using this competitive strategy seeks to offer a product or service that is completely unique from other competitors in their market segment.
A) differentiation strategy
B) defender strategy
C) prospector strategy
D) lowest-cost strategy

Accepted Answer

The differentiation strategy is focused on offering a unique product or service that stands out from the competition. This can be achieved through innovation, design, quality, or other factors that set the company apart.

Question 6

What is the typical annual Cost-of-living adjustments (COLAs)in recent years?
A) 0 to 1 percent
B) 2 to 3 percent
C) 3 to 5 percent
D) 8 to 10 percent

Accepted Answer

In recent years, the typical annual cost-of-living adjustments (COLAs) have been in the range of 2 to 3 percent. While there have been some years with lower or higher COLAs, this range is a good average for recent times.

Question 7

What strategy describes the use of benefit and compensation packages in order to support both HR and competitive strategies?
A) worker welfare strategies
B) total compensation strategies
C) total quality management strategies
D) worker satisfaction strategies

Accepted Answer

Total compensation strategies focus on designing and implementing benefit and compensation packages that align with both HR and competitive strategies. This approach seeks to attract and retain top talent while also ensuring that the company can remain competitive in the marketplace.

Question 8

This term suggests that a loss is likely for the firm,and that the individual will be left with little control.
A) reverse opportunity
B) negative equity
C) threat
D) foreclosure

Accepted Answer

The answer of This term suggests that a loss is...

Question 9

A company's ability to sustain market share and profitability for several years running is referred to by what term?
A) differentiation
B) personnel administration
C) compensation practices
D) competitive advantage

Accepted Answer

A company's ability to sustain market share and profitability for several years running is referred to as competitive advantage. It is the unique advantage that a company has over its competitors that allows it to generate higher sales or margins and/or acquire more customers. This sustainable advantage can be achieved through various means, such as superior product quality, innovative technology, efficient supply chain management, or cost leadership.

Question 10

What type of pay system rewards employees for partially or completely attaining a predetermined work objective?
A) seniority pay
B) merit pay
C) incentive pay
D) skill-based pay

Accepted Answer

The type of pay system that rewards employees for partially or completely attaining a predetermined work objective is incentive pay. Incentive pay is designed to motivate employees to achieve specific goals or targets, and it is often tied to performance metrics or key performance indicators (KPIs). Incentive pay can be awarded as a bonus, commission, or profit-sharing, among other options. It is different from merit pay, which is based on an employee's individual performance or contribution to the organization over time, and from seniority pay, which is based on an employee's length of service. Skill-based pay, on the other hand, rewards employees for developing new skills or acquiring new knowledge.

Question 11

These are positive employer gestures that beyond what was required by law,created in part to thwart potential union activity.
A) employee benefit plans
B) welfare practices
C) scientific management practices
D) compensable factors

Accepted Answer

Welfare practices are employer initiatives that go beyond legal requirements to improve employee well-being and can be used to discourage unionization.

Question 12

Which of the following would be an example of a non-monetary reward?
A) medical insurance
B) vacations
C) day care assistance
D) all of the above

Accepted Answer

All of the above options (medical insurance, vacations, day care assistance) are non-monetary rewards as they do not involve direct payment in cash to the employee. These rewards are provided to employees to enhance their work experience and improve their quality of life, which in turn can lead to increased job satisfaction and productivity.

Question 13

What is the primary factor that will prevent companies from growing in the next decade?
A) increased government regulations
B) the inability to attract and retain employees
C) caps on executive pay in some organizations
D) increased global competition

Accepted Answer

One of the primary factors that will prevent companies from growing in the next decade is the inability to attract and retain employees. In a highly competitive job market, companies need to offer competitive salaries, benefits, and a positive work culture to retain their employees. Failure to do so can result in high turnover rates and difficulty in filling open positions, hindering a company's growth potential. While increased government regulations, caps on executive pay, and increased global competition can also pose challenges, the ability to attract and retain employees is a crucial factor for a company's success in the long run.

Question 14

Sandra's position changed from supervisor at the planning department to supervisor at the new projects department.In terms of career development,which of the following is more applicable to Sandra's situation?
A) maintaining focus with less responsibilities
B) a lateral move across the company's hierarchy
C) moving upward through a company's hierarchy
D) maintaining the focus and assume greater responsibilities

Accepted Answer

The answer of Sandra's position changed from supervisor at the...

Question 15

Ryanair uses one type of aircraft in its fleet and requires their passengers to carry their luggage to the plane.Ryanair's decisions exemplify which of the following competitive strategies?
A) differentiation strategy
B) high quality strategy
C) brand notoriety
D) lowest-cost strategy

Accepted Answer

Ryanair's decision to use only one type of aircraft and require passengers to carry their own luggage demonstrates a focus on the lowest-cost strategy. By standardizing their fleet and minimizing additional services, they are able to keep their costs low and offer cheaper fares to customers.

Question 16

This group is directly involved in producing goods and delivering services for a company.
A) staff employees
B) line employees
C) managers
D) executives

Accepted Answer

Line employees are directly involved in the production of goods and delivery of services for a company. Staff employees are support personnel, managers oversee the work of both line and staff employees, and executives are responsible for the overall direction and strategy of the company.

Question 17

Jason works at a call center for an insurance company and he has been answering calls regarding auto insurance.Recently,he started to attend a training program about home insurance.Upon successful completion of this training program,Jason will be able to handle home insurance questions and queries as well.If this insurance company has a compensation policy that rewards Jason's completion of this training,then what type of pay system does it employ?
A) incentive pay
B) merit pay
C) seniority pay
D) pay-for-knowledge

Accepted Answer

The pay system that rewards Jason's completion of the training program is called pay-for-knowledge. This system is designed to compensate employees based on their acquired knowledge and skills, rather than their job title or seniority. It encourages employees to develop their skills and knowledge to meet the changing needs of the organization, like in this case where Jason will be able to handle home insurance queries as well after completing the training program.

Question 18

These describe the terms of employment that are set between management and union bargaining representatives.
A) employee relationship agreements
B) collective bargaining agreements
C) joint employment agreements
D) workplace requisite agreements

Accepted Answer

Collective bargaining agreements are agreements negotiated between management and union bargaining representatives, which establish terms of employment for unionized workers. These agreements cover topics such as wages, benefits, working conditions, and grievance procedures.

Question 19

This law made it illegal to pay women less for performing equal work as men.
A) Equal Pay Act of 1963
B) Civil Rights Act of 1964
C) Davis - Bacon Act of 1931
D) Fair Labor Standards Act of 1938

Accepted Answer

The Equal Pay Act of 1963 was specifically aimed at eliminating the wage gap between men and women by prohibiting employers from paying women less than men for performing the same job. The Civil Rights Act of 1964 and Davis-Bacon Act of 1931 address other issues related to discrimination, while the Fair Labor Standards Act of 1938 sets minimum wage and other labor standards.

Question 20

Which of these actions would HR seek to encourage in attempting to create a lowest-cost competitive strategy?
A) an employee long-term focus
B) unpredictable employee behavior
C) high concern for the quantity of output
D) high concern for the quality of output

Accepted Answer

HR would seek to encourage a high concern for the quantity of output in attempting to create a lowest-cost competitive strategy. This means that employees would be expected to produce as much as possible, which would help keep costs low. An employee long-term focus and a high concern for the quality of output may lead to higher costs and do not necessarily align with a lowest-cost competitive strategy. Unpredictable employee behavior can also lead to inefficiencies and higher costs.

Quiz 1: Strategic Compensation: A Component of Human Resource Systems

Which of these is a company sponsored program that provides income to workers throughout their retirement?

Protection programs are what type of compensation benefits?

Which of the following is NOT one of the three broad categories that discretionary benefits fall into?

A company using this competitive strategy seeks to offer a product or service that is completely unique from other competitors in their market segment.

What is the typical annual Cost-of-living adjustments (COLAs) in recent years?

What strategy describes the use of benefit and compensation packages in order to support both HR and competitive strategies?

This term suggests that a loss is likely for the firm,and that the individual will be left with little control.

A company's ability to sustain market share and profitability for several years running is referred to by what term?

What type of pay system rewards employees for partially or completely attaining a predetermined work objective?

These are positive employer gestures that beyond what was required by law,created in part to thwart potential union activity.

Which of the following would be an example of a non-monetary reward?

What is the primary factor that will prevent companies from growing in the next decade?

Sandra's position changed from supervisor at the planning department to supervisor at the new projects department.In terms of career development,which of the following is more applicable to Sandra's situation?

Ryanair uses one type of aircraft in its fleet and requires their passengers to carry their luggage to the plane.Ryanair's decisions exemplify which of the following competitive strategies?

This group is directly involved in producing goods and delivering services for a company.

These describe the terms of employment that are set between management and union bargaining representatives.

This law made it illegal to pay women less for performing equal work as men.

Which of these actions would HR seek to encourage in attempting to create a lowest-cost competitive strategy?