Question 1

You are a young employee who consistently meets performance expectations. You also expect to stay with your company another 10 years. Which type of pay increase system would most likely be to your personal financial benefit?

Accepted Answer

A)  broadbanding
B)  lump-sum increases
C)  second quartile approach
D)  across-the-board raises

Question 2

What are the names of the two orientations at opposite ends of a continuum of compensation philosophies?

Accepted Answer

A)  time; productivity
B)  exempt; non-exempt
C)  union; non-union
D)  entitlement; performance

Question 3

Which of the following statements provides the best assessment of a compensation system based on job descriptions, job evaluations, pay ranges, and pay grades when the system is put in the context of other types of compensation systems?

Accepted Answer

A)  It is more legally defensible.
B)  It is less likely to be viewed as fair by employees.
C)  It is more appropriate for dynamic companies and industries.
D)  It is more effective at retaining top performing employees.

Question 4

Typically, where will organizational policies first direct an employee who wants to complain about his/her pay?

Accepted Answer

A)  to the person's supervisor
B)  to the HR department
C)  to the Employment Equity Committee
D)  to co-workers

Question 5

Which of the following represents the most successful use of team-based compensation?

Accepted Answer

A)  equal pay for each team member based on team performance
B)  skill-based pay plus a percentage of base pay
C)  team-based variable pay on top of base pay
D)  individual pay-for-performance based on team member input

Question 6

Which of the following is NOT a type of job evaluation ranking method?

Accepted Answer

A)  ordered
B)  straight
C)  alternation
D)  paired-comparison

Question 7

The first main thing the Pay Equity Act requires is that jobs be evaluated. What is the second main thing?

Accepted Answer

A)  that work is compared regardless of gender
B)  that types of work traditionally performed by men are compared
C)  that types of work traditionally performed by women are compared
D)  that work traditionally performed by men is compared to work performed mostly by women

Question 8

Which of these areas generates the most often noted criticism about merit pay?

Accepted Answer

A)  size of the increase
B)  internal equity of the increase
C)  performance appraisal method used
D)  link between pay and performance

Question 9

Which of the following is NOT a step in establishing a pay structure?

Accepted Answer

A)  developing compensation strategy
B)  identifying different pay structures
C)  developing a market line
D)  establishing pay grades

Question 10

An employee or group of employees may receive an indirect reward for being part of the organization. Which of the following terms best applies?

Accepted Answer

A)  motivator
B)  perk
C)  benefit
D)  incentive

Question 11

For an employer, there are advantages to classifying a worker as an independent contractor. Which of the following is a primary advantage?

Accepted Answer

A)  The penalties for misclassifying an employee as an independent contractor are mild.
B)  It saves the costs associated with employment insurance, workers' compensation, and the Canada Pension Plan.
C)  Independent contractors typically have better work ethics and higher qualifications than do regular employees.
D)  Independent contractors are typically more productive than regular employees are.

Question 12

Simon is outraged that Missy was given a raise because she is related to the chair of the board. His sense of fairness has been violated. Which of the following is at issue?

Accepted Answer

A)  compensatory equity
B)  external equity
C)  distributive justice
D)  procedural justice

Question 13

The relative value of jobs within an organization is established by evaluating every job in the organization according to various criteria. Which of the following options represents the criteria?

Accepted Answer

A)  the nature of job tasks, duties, responsibilities, and competencies
B)  the skill, effort, responsibility, and working conditions
C)  the mental demands of the job
D)  the physical difficulty of the job

Question 14

Which of the following is a term usually associated with a group of jobs having common organizational characteristics?

Accepted Answer

A)  benchmark group
B)  job family
C)  market band
D)  occupational category

Question 15

The Hay system of job evaluation is most often used for professional, managerial, and executive employees.

Accepted Answer

A) True 
 B)False

Question 16

A competency-based pay system rewards employees who are more versatile and have continued to develop their skills.

Accepted Answer

A) True 
 B)False

Question 17

Junior Birdman Children's Clothing and Toy Company must employ the most creative and talented children's designers available on the market. It must use a "meet the market" compensation-quartile strategy.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following best explains what a third-quartile approach is?

Accepted Answer

A)  a strategy for paying below market compensation.
B)  a team-based approach
C)  a strategy in which the company pays more than the competition
D)  a useful strategy when lower-skilled employees are required

Question 19

Why do organizations conduct job evaluations?

Accepted Answer

Job evaluation provides a systematic bas...

Question 20

In the last decade, the pressures of the Canadian economy have dictated that all private-sector, for-profit organizations adhere to a pay-for-performance compensation philosophy.

Accepted Answer

A) True 
 B)False

Exam 10: Compensation Strategies and Practices

Typically, where will organizational policies first direct an employee who wants to complain about his/her pay?

Correct AnswerverifiedShow Answer

Which of the following is a term usually associated with a group of jobs having common organizational characteristics?

Correct AnswerverifiedShow Answer

Simon is outraged that Missy was given a raise because she is related to the chair of the board. His sense of fairness has been violated. Which of the following is at issue?

Correct AnswerverifiedShow Answer

Which of the following represents the most successful use of team-based compensation?

Correct AnswerverifiedShow Answer

Junior Birdman Children's Clothing and Toy Company must employ the most creative and talented children's designers available on the market. It must use a "meet the market" compensation-quartile strategy.

Correct AnswerverifiedShow Answer

Which of the following best explains what a third-quartile approach is?

Correct AnswerverifiedShow Answer

Which of the following is NOT a type of job evaluation ranking method?

Correct AnswerverifiedShow Answer

What are the names of the two orientations at opposite ends of a continuum of compensation philosophies?

Correct AnswerverifiedShow Answer

An employee or group of employees may receive an indirect reward for being part of the organization. Which of the following terms best applies?

Correct AnswerverifiedShow Answer

The Hay system of job evaluation is most often used for professional, managerial, and executive employees.

Correct AnswerverifiedShow Answer

Which of the following statements provides the best assessment of a compensation system based on job descriptions, job evaluations, pay ranges, and pay grades when the system is put in the context of other types of compensation systems?

Correct AnswerverifiedShow Answer

Which of these areas generates the most often noted criticism about merit pay?

Correct AnswerverifiedShow Answer

The first main thing the Pay Equity Act requires is that jobs be evaluated. What is the second main thing?

Correct AnswerverifiedShow Answer

For an employer, there are advantages to classifying a worker as an independent contractor. Which of the following is a primary advantage?

Correct AnswerverifiedShow Answer

Why do organizations conduct job evaluations?

Correct AnswerverifiedJob evaluation provides a systematic bas...View AnswerShow Answer

A competency-based pay system rewards employees who are more versatile and have continued to develop their skills.

Correct AnswerverifiedShow Answer

The relative value of jobs within an organization is established by evaluating every job in the organization according to various criteria. Which of the following options represents the criteria?

Correct AnswerverifiedShow Answer

Which of the following is NOT a step in establishing a pay structure?

Correct AnswerverifiedShow Answer

You are a young employee who consistently meets performance expectations. You also expect to stay with your company another 10 years. Which type of pay increase system would most likely be to your personal financial benefit?

Correct AnswerverifiedShow Answer

In the last decade, the pressures of the Canadian economy have dictated that all private-sector, for-profit organizations adhere to a pay-for-performance compensation philosophy.

Correct AnswerverifiedShow Answer

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Job evaluation provides a systematic bas...
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