QUESTION Which of the following is NOT considered part of compensation? A) perquisites B) base pay C) flextime D) bonuses E) gainsharing ANSWER Answer: C Explanation: C) Compensation consists of base pay, benefits, and incentives. Flextime is a scheduling strategy that can help motivate employees.
Date: September 3rd, 2020
QUESTION Which of the following statements is true? A) An employee’s past experience has no effect on his or her base pay. B) In most industries, the value of benefits is higher than the base pay. C) The ratio of base pay, benefits, and incentives in compensation is standard across all industries. D) Base pay […]
Date: September 3rd, 2020
QUESTION What is a job analysis, and how is one conducted? What will be an ideal response? ANSWER Answer: A job analysis determines the basic elements of an existing job in an organization. A manager or human resources staff member interviews employees currently in the job about what they do in the position, observes […]
Date: September 3rd, 2020
QUESTION Incentive programs encourage employees to improve performance. Yet, in order to be effective, they must meet certain criteria. Which of the following does NOT enhance the effectiveness of incentives? A) The incentive must be measurable. B) The incentive must be linked to performance. C) The manager must determine the appropriate incentive. D) The employee […]
Date: September 3rd, 2020
QUESTION When the Apollo spacecraft program ended in the 1970s, many companies in the U.S. aerospace industry lost substantial government contracts. Some companies even closed permanently. What happened to many of the employees working in this industry? A) They were terminated. B) They were suspended. C) They were laid off. D) They were transferred. E) […]
Date: September 3rd, 2020
QUESTION What is the rationale for companies to provide employees with bonuses, profit sharing, commissions, and stock options? A) to save money on base salaries B) to encourage better performance C) to avoid paying golden parachutes D) as an alternative to promotions E) to ensure fairness of compensation ANSWER Answer: B Explanation: B) Bonuses […]
Date: September 3rd, 2020
QUESTION Years ago, recruiting, hiring, and similar functions in a company were performed by the personnel department. Why is the more common name for this department now human resources? What will be an ideal response? ANSWER Answer: The name human resources reflects the understanding of employees as a valuable resource for a business. Explanation: […]
Date: September 3rd, 2020
QUESTION Benefits and supplemental pay, such as bonuses, account for how much of the cost of an average worker’s salary? A) less than one-quarter B) about one-quarter C) about one-third D) just over one-half E) less than two-thirds ANSWER Answer: C Explanation: C) Estimates of the costs of employee benefits range from 30 percent […]
Date: September 3rd, 2020
QUESTION Thuy works in a factory sewing children’s clothes. In addition to an hourly salary of $6.75, she earns 14 cents for every clothing item she finishes that passes quality inspection. What is Thuy’s additional incentive structure called? A) bonus B) gainshare C) commission D) piece rate E) profit share ANSWER Answer: D Explanation: […]
Date: September 3rd, 2020
QUESTION During the late 2000s, when large U.S. financial institutions were failing and required support from taxpayers, their top executives received bonuses equal to many times the annual salary of the average U.S. worker. Many Americans felt this was wrong because it broke which basic concept of incentives? A) They must satisfy individual employee needs. […]
Date: September 3rd, 2020
