Question 1

Which of the following statements is TRUE?

Accepted Answer

Employers are only required to provide government-mandated benefits to part-time employees, such as Social Security and workers' compensation. Other benefits, such as health insurance or retirement plans, are optional for the employer to offer to part-time employees.

Question 2

Common ways that benefits can impact organizational performance include all of the following EXCEPT

Accepted Answer

Minimizing grievances and complaints is more directly influenced by organizational culture, management practices, and conflict resolution mechanisms rather than by the benefits package alone. Benefits can contribute to overall satisfaction, which might indirectly affect grievances and complaints, but they are not a direct method for minimizing these issues.

Question 3

A problem with flexible benefits plans is ____,a situation in which only higher-risk employees select certain benefits,such as health insurance,and lower-risk employees do not select these benefits.

Accepted Answer

Adverse selection is a phenomenon where higher-risk employees, such as those with pre-existing medical conditions or those in physically demanding jobs, are more likely to select certain benefits like health insurance. This can lead to a concentration of risk and higher costs for the employer. Lower-risk employees may opt-out of these benefits, leading to a skewed distribution effect. Perceived invulnerability may contribute to adverse selection, but it is not the primary problem with flexible benefits plans.

Question 4

The most frequently outsourced benefits function is

Accepted Answer

The Employee Assistance Plan (EAP) is often outsourced because it requires specialized services that external providers can offer more efficiently and effectively.

Question 5

Of all the benefits paid by employers,on average ____ make up the largest proportion of costs.

Accepted Answer

According to multiple studies and surveys, including those conducted by the Bureau of Labor Statistics and the Society for Human Resource Management, health insurance consistently makes up the largest proportion of employer benefit costs.

Question 6

A flexible benefits plan

Accepted Answer

The answer of A flexible benefits plan
...

Question 7

To prevent employees from making inappropriate benefits choices in a flexible benefits plan it is recommended that

Accepted Answer

Requiring employees to select a core set of benefits helps ensure that they do not make inappropriate choices. This also ensures that employees have at least some essential benefits in their package. Providing counseling and educational resources can help guide employees in making wise benefit selections, but it may not be enough to prevent inappropriate choices. Tying benefit flexibility to seniority or denying flexible benefits to certain employee groups can lead to dissatisfaction and may not be a feasible solution for all organizations.

Question 8

The most constructive way to view benefits is

Accepted Answer

Benefits can be viewed as a tool for competitive advantage, as they can attract and retain top talent, boost employee morale and productivity, and demonstrate an employer's commitment to employee well-being. This mindset encourages employers to invest in robust and desirable benefit offerings, which ultimately benefits both the employer and employees.

Question 9

Ambrose has been recently transferred from the Ohio headquarters of his firm to the European office.He is surprised to learn that instead of the 10 days of vacation per year he receives from his employer,his European colleagues get

Accepted Answer

The passage states that Ambrose is surprised by the amount of vacation time his European colleagues receive, indicating that it is more than what he currently receives. The only option that reflects a significant increase in vacation time is option D, which states over 30 vacation days per year. Therefore, D is the best choice.

Question 10

Employee benefits are a/an

Accepted Answer

Employee benefits are indirect rewards for employees. While employers may have legal responsibilities to provide certain benefits such as healthcare under the Affordable Care Act, the majority of benefits such as retirement plans and paid time off are voluntary offerings from the employer. These offerings are designed to attract and retain talent within the company, as well as improve employee satisfaction and productivity.

Question 11

One of the main responsibilities that managers have regarding benefits administration is to

Accepted Answer

Managers often coordinate the use of time-off benefits to ensure adequate staffing and smooth operations.

Question 12

As director of HR of a company that does not presently use benefits administration software,you want to reduce the number of HR benefits staff.The first area of benefits administration to target would be

Accepted Answer

Benefits enrollment involves a lot of manual work, such as collecting and processing forms, updating information, and ensuring accuracy. Implementing a benefits administration software can simplify this process and reduce the workload of HR staff, making it an ideal area to target for reducing staff.

Question 13

Betty is interviewing for a job with two different firms in the same industry and city.The job description and salary are identical.In one company the job will be unionized.The other company is non-union.Betty can expect that

Accepted Answer

Unionized firms typically have better benefits packages as a result of collective bargaining with the labor union. The union is able to negotiate for better wages and benefits on behalf of the employees.

Question 14

In the U.S.,Japan,Germany,France and other countries,____ is/are placing significant financial pressures on government-provided retirement security plans.

Accepted Answer

An aging population refers to a higher proportion of older people in a population as a result of declining birth rates and increasing life expectancy. This puts significant financial pressure on government-provided retirement security plans as there are fewer younger workers contributing to these plans and more people who require pensions and healthcare in their retirement years.

Question 15

In most developed countries,____ provide/s most health and retirement benefits for citizens.

Accepted Answer

In most developed countries, the government is responsible for providing health and retirement benefits for citizens through programs like Medicare and Social Security in the United States, National Health Service in the United Kingdom, and Medicare in Australia. While some employers may offer additional benefits, the primary responsibility for providing these benefits falls on the government. Non-governmental organizations and workers' unions may provide some additional support, but they are not the primary source of health and retirement benefits.

Question 16

Flexible benefits plans have grown more popular because

Accepted Answer

Flexible benefits plans have grown more popular because employee family and work situations are more variable than they were in the past, requiring more personalized benefits.

Question 17

Gertie is an HR consultant who has been hired to advise a medium-sized company on how to use HR technology to make benefits administration less expensive.Gertie is amazed to find that the company's present HR system is entirely pencil-and-paper.In Gertie's discussions with the HR manager,she indicates that the greatest increase in use of technology by other companies is in

Accepted Answer

The greatest increase in use of technology by other companies is in web-based benefits enrollment, which can streamline the process and make it less expensive compared to the use of paper forms. Web-based enrollment can also provide employees with easier access to information and reduce the burden of manual data entry for HR staff.

Question 18

As the director of compensation for a multi-location retailer,Jeff is reviewing the design of his company's benefits.He must answer all of the following questions EXCEPT

Accepted Answer

Mandatory benefits are required by law and cannot be dropped, so Jeff wouldn't need to consider which mandatory benefits can be dropped without impacting employee attitudes.

Question 19

The director of HR for MCTF Industries is measuring the effectiveness of the benefits at MCTF.She will need to calculate all of the following measures EXCEPT

Accepted Answer

The director of HR at MCTF Industries needs to calculate the measures that will help her determine the effectiveness of the benefits plan. Options A, C, and D are all useful measures in assessing the benefits plan. However, comparing the total cost of benefits with competitors (option B) may not be the most relevant measure in this context as the competitiveness of benefits should not be the only factor in determining their effectiveness. Other factors such as employee satisfaction, retention, and productivity should also be considered.

Question 20

You are the director of benefits for a large,highly-profitable high-technology company widely respected as an employer-of choice.Organizational strategy requires that employees be world-class in their field.You are forming a committee to review the company's benefits design.The committee ought to focus on all of the following issues EXCEPT

Accepted Answer

The company's organizational strategy requires employees to be world-class in their field, and high pay in lieu of health insurance would not contribute to achieving this goal. The committee should focus on issues such as the flexibility and proportion of the benefits package and which mix of benefits would be most attractive to prospective employees.

Quiz 13: Managing Employee Benefits