Question 1.1. What are responsible for guiding the activities of a particular company in the market? (Points : 1)

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Strategic decisions

Tactical decisions

Worker majority decisions

Informative decisions

Question 2.2. Which of the following is NOT one of the three broad categories that discretionary benefits fall into? (Points : 1)

Worker’s compensation laws

Paid time off

Protection programs


Question 3.3. What US federal law established a national minimum wage for employees involved in commerce (rather than just those employed by companies working for the US government), as well as prohibit most employment of minors in oppressive child labor? (Points : 1)

The Equal Pay Act of 1963

The Civil Rights Act of 1964

The Fair Labor Standards Act of 1938

The Family and Medical Leave Act of 1993

Question 4.4. What is a systematic process for gathering, documenting, and analyzing information in order to describe jobs? (Points : 1)

Job evaluation

Internal consistency

Job analysis

Strategic analysis

Question 5.5. These are positive employer gestures that beyond what was required by law, created in part to thwart potential union activity. (Points : 1)

Employee benefit plans

Welfare practices

Scientific management practices

Compensable factors

Question 6.6. This type of pay is often given to employees upon involuntary termination, and in some cases also includes continued medical insurance under the company’s policy. (Points : 1)

Resignation pay

Sympathy pay

Continued employment pay

Severance pay

Question 7.7. What is the primary factor that will prevent companies from growing in the next decade? (Points : 1)

Increased government regulations

The inability to attract and retain employees

Caps on executive pay in some organizations

Increased global competition

Question 8.8. These describe the terms of employment that are set between management and union bargaining representatives. (Points : 1)

Employee relationship agreements

Collective bargaining agreements

Joint employment agreements

Workplace requisite agreements

Question 9.9. Which of the following would be an example of a non-monetary reward? (Points : 1)

Medical insurance


Day care assistance

All of the above

Question 10.10. Which theory states that employees’ knowledge and skills generate productive capital? (Points : 1)

Job characteristics theory

Expectancy theory

Equity theory

Human capital theory

Question 11.11. What are the revised guidelines introduced in 2004 for determining whether jobs are exempt from FLSA overtime pay provisions called? (Points : 1)

Glass Ceiling Act

Overtime Nonexempt Rules

Bennett Amendment

Fair Pay Rules

Question 12.12. Which amendment to the US Constitution made it illegal to restrict the freedom of religion, speech, and press, as well as protect the right of people to peacefully assemble? (Points : 1)

Article 1, Section 8

First Amendment

Fifth Amendment

Fourteenth Amendment, Section 1

Question 13.13. Construction contractors, working on government contracts valued at more than $2,000, must pay their laborers and mechanics what type of local area based wage according to the Davis-Bacon Act of 1931? (Points : 1)

Minimum wage

Prevailing wage

Prevalent wage

Discretionary wage

Question 14.14. According to the Equal Pay Act, which of the following are acceptable defenses for higher pay due to unequal work? (Points : 1)

A seniority system

A merit system

A system that measures earnings by quantity or quality of production

All of the above

Question 15.15. Which of the following factors explain inter-industry wage differentials? (Points : 1)

The industry’s product market

The degree of capital intensity

A large labor market

All of the above

Question 16.16. Intentionally treating women less favorably than men solely based upon their gender would be what form of discrimination? (Points : 1)

Disparate treatment

Disparate impact

Disparate causality

Situational discrimination

Question 17.17. Which of the following orders and laws do not protect federal government employees: (Points : 1)

Family and Medical Leave Act of 1993

Title VII

Executive Order 11478

American with Disabilities Act of 1990 (ADA)

Question 18.18. This was enacted in order to allow employees who are terminated, laid off, or have a change in their employment status to temporarily remain on the employer-sponsored medical insurance plan. (Points : 1)

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)

The Older Workers Benefit Protection Act (OWBPA)

The Americans with Disabilities Act of 1990 (ADA)

The Civil Rights Act of 1991

Question 19.19. A policy that applies to all company employees, but unintentionally hurts a protected group disproportionately would be what form of discrimination? (Points : 1)

Disparate treatment

Disparate impact

Disparate causality

Situational discrimination

Question 20.20. This amendment to the US Constitution gives Congress the power to regulate commerce with foreign nations, individual states, and Indian Tribes. (Points : 1)

The First Amendment

The Fourteenth Amendment, Section 1

The Fifth Amendment

Article I, Section 8

Question 21.21. Which pay system is most widely used in America today? (Points : 1)

Skill based pay

Longevity pay

Merit pay

Seniority pay

Question 22.22. This occurs when a rater generalizes good performance behavior in one aspect of the job to all aspects of the job. (Points : 1)

Similar-to-me effect

First-impression effect

Positive halo effect

Negative halo effect

Question 23.23. In 2011, employees were expected to earn average merit increases of what percent? (Points : 1)





Question 24.24. This term is defined as added pay for employees who have reached the maximum of a pay grade and who are unlikely to move into higher grades. (Points : 1)

Longevity pay

Merit pay

Seniority-based pay

Incentive pay

Question 25.25. This performance appraisal system is based on employees and supervisors identifying on-the-job behaviors and behavioral outcomes that distinguish successful from unsuccessful performances. (Points : 1)

Behaviorally anchored rating scales

Critical incident technique

Behavioral observation scales

Forced distribution system

Question 26.26. Which performance appraisal system displays illustrations only of positive behaviors shown by an employee in various job dimensions? (Points : 1)

Behaviorally-anchored rating scales (BARS)

Behavioral observation scales (BOS)

Management by objectives (MBO)

Critical incident technique (CIT)

Question 27.27. This performance appraisal system relies on many appropriate sources of information and works well for team-based work teams. (Points : 1)

Trait systems

360-degree performance appraisal

Comparison system

Critical incident technique

Question 28.28. Which performance appraisal error reflects the tendency to rate every employee at the low end of the rating scale, regardless of actual performance? (Points : 1)

Error of central tendency

Contrast errors

Negative halo error

Errors of strictness

Question 29.29. This type of performance rater’s error occurs when the rater generalizes bad behavior on one aspect of the employee’s job performance to the employee’s over-all performance. (Points : 1)

Negative impression errors

Negative leniency error

Error of strictness

Negative halo effect

Question 30.30. This term refers to the minimum pay increase that employees view as a significant change in their compensation amount? (Points : 1)

Halo effect increase

Minimal pay incident

Just-meaningful pay increase

Satisfactory compensation payment

Question 31.31. The general rule of thumb is that short-term company goals last less than how long? (Points : 1)

1 month

6 months

1 year

5 years

Question 32.32. Which of the following is a component of gain sharing programs? (Points : 1)

Employee involvement systems


A progressive leadership philosophy

All of the above

Question 33.33. With which profit sharing formula does the profit sharing pool become funded only after profits exceed a predetermined level but fall below some established maximum level? (Points : 1)

Fixed first-dollar-of-profits

Profitability threshold

Graduated first-dollar-of-profit

Equal payments

Question 34.34. On which teams is membership relatively permanent, with the members working full-time on the team? (Points : 1)

Work (process)




Question 35.35. Which of the following is true concerning incentive pay? (Points : 1)

The award is earned only when the predetermined work objective is totally completed.

Motivates employees to be more productive, but does little to control payroll costs.

Awards are granted in one-time payouts.

Incentive levels are generally subjective in nature.

Question 36.36. The concept that a hard working employee is likely to stay at an incentive pay position is better known as this. (Points : 1)

Representative effect

Structural effect

Sorting effect

Output effect

Question 37.37. This method reinforces cooperation among team members except when team members perceive differences in other members’ performances. (Points : 1)

Differential incentive payments approach

Differential payments by ratio of base pay

Equal incentives payment approach

Small group incentive plans

Question 38.38. This group incentive system was designed to provide employees with financial incentives for increasing customer satisfaction, increasing productivity, lowering costs, or improving safety. (Points : 1)

Gain Sharing

Team based

Small group

Profit sharing

Question 39.39. Profit sharing plans and employee stock option plans are incentives on what level? (Points : 1)





Question 40.40. Which gain sharing plan bases incentives on the ratio between labor costs and sales value of production (SVOP)? (Points : 1)

Rucker Plan

referral plan

Scanlon Plan


Question 41.41. Which of the following is a main reason for the increased costs associated with pay-for-knowledge programs? (Points : 1)

Higher payroll costs

Increased overhead costs

Higher training costs

All of the above

Question 42.42. This model is geared to promoting staffing flexibility in a company, by training employees in one department with some of the critical skills that are needed to perform effectively in another department. (Points : 1)

The skill blocks

The stair-step

The job-point accrual

The cross-departmental

Question 43.43. Employees would need to learn these types of skills in order to develop self-managed work teams. (Points : 1)





Question 44.44. This term refers to the degree to which the job requires the person to do different tasks that involves the use of a number of different skills, abilities, and talents. (Points : 1)

Skill variety

Job flexibility

Task flexibility

Task variety

Question 45.45. This type of pay system rewards employees for successfully acquiring new job-related knowledge. (Points : 1)

Person-focused pay

Competency-based pay

Merit pay

Incentive pay

Question 46.46. Pay-for-knowledge and skill-based pay are two types of person-focused pay programs that fall under this pay category. (Points : 1)



Service based


Question 47.47. The level of specialization or expertise an employee brings to a job are what type of skills? (Points : 1)





Question 48.48. Which company emphasizes globalization, product services, and six sigma quality improvements for corporate growth? This company also offers a renowned two-year global program for high potential HR professionals that includes the opportunity for cross-functional experience. (Points : 1)

Lincoln Electric

General Electric



Question 49.49. According to the job characteristics theory, this core characteristic refers to the amount of freedom, independence, and discretion the employee enjoys in determining how to do the job. (Points : 1)

Skill variety



Task identity

Question 50.50. When a filing clerk is trained to maintain employee attendance records, it is an example of acquiring which type of skills? (Points : 1)





Question 51.51. Which job evaluation plan is most widely used by companies due to its ability to balance internal and external market considerations? (Points : 1)



Point method

Factor comparison

Question 52.52. Developing internally consistent job structures affects the competitive strategy of a company. Which of the following is a potential constraint on competitive strategy? (Points : 1)

Internally consistent structures potentially reduce a company’s rigidity to respond to moves by the competition.

Internally consistent job structures potentially cause the definition of jobs to become less fluid.

Internally consistent job structures lead to less routinization.

Internally consistent job structures potentially create far more bureaucratization within an organization.

Question 53.53. Which job evaluation technique orders all jobs from lowest to highest according to a single criterion? (Points : 1)

Paired comparison


Point method


Question 54.54. This unit of analysis is a group of jobs, found at more than one business, in which a common set of tasks are performed. (Points : 1)

Job family



Job group

Question 55.55. Which of the following are the four “universal compensable factors?” (Points : 1)

cognitive ability, effort, responsibility, and working conditions

cognitive ability, effort, skill, and responsibility

skill, effort, responsibility, and working conditions

skill, effort, cognitive ability, and working conditions

Question 56.56. This replaced the Dictionary of Occupational Titles, and identifies 23 major occupational groups. (Points : 1)

Occupational Information Network

American Occupational Classification Network


Standard Occupational Classification System

Question 57.57. These are the salient job characteristics that are the general basis for job evaluations and are used to establish relative pay rates. (Points : 1)

Job descriptions

Compensable factors

Occupation descriptions

Ranking plans

Question 58.58. Generalized work activities, organizational context, and work context are requirements under which O*NET category? (Points : 1)




Labor market characteristics

Question 59.59. Market-based job evaluation uses which method to collect data to determine prevailing pay rates? (Points : 1)





Question 60.60. This evaluation method uses quantitative methods to assign numerical values to compensable factors that describe jobs. (Points : 1)

Classification plan

Market-based evaluation

Point method

Paired comparisons

Question 61. 61. How can incentive pay systems, when properly applied, contribute to companies meeting the goals of lowest cost and differentiation strategies? (Points : 45)

Question 62. 62. Compare and contrast the various multi skill-based pay systems – the stair-step model, the skill blocks model, the job-point accrual model, and the cross-departmental model. (Points : 45)

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