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 Under a forced ranking performance review system, which employees are most likely to be terminated? A) those falling at the peak of the curve B) those falling to the left of the peak C) those falling to the right of the peak D) those falling to the far left of the peak E) those […]
Date: September 3rd, 2020
QUESTION Alex, Betty, and Celia work for a company that uses a forced ranking performance review system. After the appraisals were complete, Alex received a raise, Betty was fired, and Celia retained her position with no praise or reprimand. From left to right, how did these employees fall on the bell curve ranking? A) Celia […]
Date: September 3rd, 2020
QUESTION Which of the following would NOT derive much benefit from customer performance appraisals? A) a hotel concierge B) a waitress C) an airline pilot D) a retail salesperson E) a landscaper ANSWER Answer: C Explanation: C) Customer appraisals are valuable in service industries such as hotels and restaurants, where there is considerable employee/customer […]
Date: September 3rd, 2020
QUESTION Martin works for a company that utilizes rank-and-yank evaluation systems. At the end of the review cycle, Martin did not receive a warning or termination notice, yet he did not receive a raise or promotion. Where did he rank on the evaluation bell curve? A) at the peak of the curve B) to the […]
Date: September 3rd, 2020
