Posted: December 14th, 2015

MGT 132 Exam 4 Human Resources Management

MGT 132 Exam 4

Q1. When managers ask “how can I construct a total portfolio of reward programs that link to both short and long-term business success, drive shareholder value, encourage desired behaviors, and deliver value to our employees,” they are seeking to produce a(n) ________.
    a. wage curve
b. strategic compensation package
c. labor relations board
d. aligned reward strategy

2. pay-for-performance program

   Q2. Portability rights refer to the ability for an employee to transfer his or her vested rights from one organization to another.
   a. true
   b. false

   Q3. Historically, the main issue in collective bargaining is ________.
       a. time off with pay
   b. wage rates
   c. income security
   d. cost-of-living adjustments
   e. health care benefits

   Q4. Who usually pays the extra tax burden resulting from taxes a manager on international assignment is liable for over and above those he or she would have to pay in the home country?
       a. the employee
   b. the employer
   c. the home country
   d. the host country
   e. there are no additional tax burdens

   Q5. Broadbanding refers to the requirement to pay men and women equal wages for jobs of comparable value to the employer.
       a. true
   b. false

   Q6. Internal equity refers to ________.
       a. how a job’s pay rate in one company compares the job’s pay rate in other companies
   b. how fair the job’s pay rate is, when compared to other jobs within the same company
   c. the fairness of an individual’s pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on each individual’s performance
   d. the perceived fairness of the processes and procedures used to make decisions regarding the allocation of pay
   e. the use of salary surveys to monitor levels paid for jobs industry-wide

   Q7. Which job evaluation method entails deciding which jobs have more of the chosen compensable factors?
       a. ranking method
   b. point method
   c. factor comparison
   d. job grading method
   e. job classification method

   Q8. When using the job classification method of job evaluation, raters categorize jobs into groups of similar jobs called ________.
       a. classes
   b. grades
   c. sections
   d. schedules
   e. cohorts

   Q9. Performance-based pay is more popular than time-based pay.
       a. true
   b. false

   Q10. Because the minimum wage is set by the Fair Labor Standards Act, all states adhere to that wage.
       a. true
   b. false

   Q11. Factors that establish how the jobs compare to one another and set the pay for each job are called ________.
       a. compensable factors
   b. job evaluation factors
   c. comparison factors
   d. ranking factors
   e. analysis factors

   Q12. Competencies are demonstrable characteristics of a person including knowledge, skills, and behaviors that enable performance.
       a. true
   b. false

   Q13. When an employee transferred to an international location and his or her base salary reflects his or her home country’s salary with allowances added for cost-of-living differences, the employer has used a ________ salary plan.
       a. transfer
   b. home-based
   c. host-based
   d. cost-of-living
   e. allowances included

   Q14. External equity refers to ________.
       a. how a job’s pay rate in one company compares the job’s pay rate in other companies
   b. how fair the job’s pay rate is, when compared to other jobs within the same company
   c. the fairness of an individual’s pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on each individual’s performance
   d. the perceived fairness of the processes and procedures used to make decisions regarding the allocation of pay
   e. the use of salary surveys to monitor levels paid for jobs industry-wide

   Q15. Which of the following is true for employers who use independent contractors?
       a. Fair Labor Standards Act regulations do not apply
   b. Social Security taxes are higher than for regular employees
   c. Federal income taxes are charged at a reduced rate
   d. State income taxes are charged at a higher rate
   e. Social Security taxes are charged at a higher rate

   Q16. The ________ prohibits discriminating against employees who are 40 years of age and older in all aspects of employment, including compensation.
       a. Fair Labor Standards Act
   b. Civil Rights Act
   c. Employer Retirement Income Security Act
   d. Equal Pay Act
   e. Age Discrimination in Employment Act

   Q17. Individual equity refers to ________.
       a. how a job’s pay rate in one company compares the job’s pay rate in other companies
   b. how fair the job’s pay rate is, when compared to other jobs within the same company
   c. the fairness of an individual’s pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on each individual’s performance
   d. the perceived fairness of the processes and procedures used to make decisions regarding the allocation of pay
   e. the use of salary surveys to monitor levels paid for jobs industry-wide

   Q18. Instrumentality in Vroom’s theory of motivation refers to the ________.
       a. probability that effort will lead to success
   b. perceived relationship between successful performance and obtaining a desired reward
   c. perceived value a person attaches to a reward
   d. luck associated with each person
   e. degree of optimism a person has

   Q19. The Scanlon plan is an incentive plan that ________.
       a. engages many or all employees in a common effort to achieve a company’s productivity objectives with any resulting cost-savings gains shared among employees and the company
   b. focuses on the sharing of benefits between employer and employees
   c. contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm’s stock for employees
   d. provides tax advantages for employees by deferring income taxes, often until the employee retires
   e. involves the firm distributing total annual profits each year among employees based on their merit rating

   Q20. The Hygiene-Motivator theory is also called the ________.
       a. two-factor theory
   b. learned needs theory
   c. equity theory
   d. theory of extrinsic motivation
   e. hierarchy of needs

   Q21. Intrinsically motivated behaviors are those behaviors that are motivated by the underlying need for competency and self-determination.
       a. true
   b. false

   Q22. With the ________ form of stock options, the exercise price is higher than the stock’s closing price on the date of the grant.
       a. nonqualified stock options
   b. indexed options
   c. premium priced options
   d. key employee programs
   e. discount priced options

   Q23. ________ award shares of stock for the achievement of predetermined financial targets such as profit or growth in earnings per share.
       a. Nonqualified stock options
   b. Stock appreciation rights
   c. Performance achievement plans
   d. Phantom stock plans
   e. Restricted stock plans

   Q24. Herzberg’s Hygiene-Motivator theory of motivation suggests that extrinsic factors like ________ cause dissatisfaction.
       a. advancement
   b. responsibility
   c. respect
   d. working conditions
   e. recognition

   Q25. The chronic problem with stock options is that firms have traditionally used them to reward managers for even lackluster performance.
       a. true
   b. false

   Q26. Which of the following is true of recognition programs?
       a. they have a positive impact on performance and they are expensive to administer
   b. they are expensive to administer
   c. they reduce intrinsic motivation
   d. they reduce extrinsic motivation
   e. they have a positive impact on performance

   Q27. With a ________, the firm usually awards shares without cost to the executive so that the employee can sell the stock but is restricted from do so for a set period of time.
       a. nonqualified stock options
   b. stock appreciation rights
   c. performance achievement plans
   d. phantom stock plans
   e. restricted stock plans

   Q28. How does merit pay differ from a bonus?
       a. merit pay becomes part of an employee’s base pay, but a bonus does not
   b. a bonus becomes part of an employee’s base pay, but merit pay does not
   c. merit pay is linked to individual performance, while a bonus is not
   d. a bonus is linked to individual performance, while merit pay is linked to company performance
   e. a bonus is a type of gift

   Q29. People tend to react similarly to incentives.
       a. true
   b. false

   Q30. Managers should consider the work of motivation experts when designing incentive pay plans.
       a. true
   b. false

   Q31. Vroom’s theory points out that when valence is very high, people will exert effort despite low expectancies of success.
       a. true
   b. false

   Q32. IRS regulations preclude companies from deducting golden parachute payments made to executives and the executive must pay a 20% excise tax on the golden parachute payments.
       a. true
   b. false

   Q33. All merit increases are cumulative in that they become a part of an employee’s base salary.
       a. true
   b. false

   Q34. Robert Katz popularized the use of financial incentives for workers whose production exceeds some predetermined standard.
       a. true
   b. false

   Q35. Federal law requires private sector employers to grant a minimum amount of paid vacation leave.
       a. true
   b. false

   Q36. ________ provides benefits if a person is unable to work through no fault of his or her own.
       a. Supplemental pay benefits
   b. Unemployment insurance
   c. Retirement
   d. Health insurance
   e. Family and Medical Leave Act

   Q37. Malcolm is interviewing for a new job and he is evaluating the quality of the pension plans offered for each company he is considering. One company offers a pension plan in which the company will make all contributions to the plan and will base his pension benefit on a formula linked to his pay at the time of retirement and the number of years he was with the firm. This pension plan could be classified as ________.
       a. qualified, defined benefit
   b. non-contributory, defined benefit
   c. non-contributory, defined contribution
   d. contributory, qualified
   e. contributory, defined benefit

   Q38. Which flexible work arrangement helps to prevent company layoffs by allowing a group of employees to take a temporary reduction in work hours?
       a. flextime
   b. compressed workweek
   c. job sharing
   d. work sharing
   e. telecommuting

   Q39. Women affected by pregnancy and childbirth are eligible for the same benefits as disabled employees.
       a. true
   b. false

   Q40. According to the Bureau of Labor Statistics, part-time work is defined as less than ________ hours per week.
       a. 15
   b. 20
   c. 30
   d. 35
   e. 40

   Q41. Which flexible work arrangement allows two or more people to share a single full-time job?
       a. flextime
   b. compressed workweek
   c. job sharing
   d. work sharing
   e. telecommuting

   Q42. The Job Creation and Worker Assistance Act ________.
       a. provides guidelines regarding what rates of return employers should use in computing their pension plan values
   b. covers pension plans and requires employers to have written plan documents that establish terms such as eligibility and participation
   c. prohibits an employer’s health plan from using incentives to encourage employees to leave the hospital after childbirth after less than the legislatively-determined minimum stay
   d. limits the ability of health plans to set annual or lifetime maximums on mental and nervous disorder benefits
   e. sets minimum requirements for protecting individuals’ health-care data accessibility and confidentiality

   Q43. ________ provide services like personal legal and financial counseling, child care referrals, elder care referrals adoption assistance, mental health counseling, and life event planning.
       a. Social Security programs
   b. Pension plans
   c. Employee assistance programs
   d. Family-friendly benefits
   e. Benefit management systems

   Q44. A strategy designed to minimize health care costs for employers by including the cost of absenteeism in the overall cost of health care is called ________.
       a. cost containment
   b. disease management
   c. absence management
   d. wellness management
   e. on-site primary care

   Q45. Flexible work schedules tend to have negative effects on employee productivity, job satisfaction, and absenteeism.
       a. true
   b. false

   Q46. The Comprehensive Omnibus Budget Reconciliation Act ensures that employers are not responsible for making health benefits available to terminated or retired employees and their families.
       a. true
   b. false

   Q47. Jenny’s pension plan encourages her to contribute at least 5% of her annual salary in addition to the set amount that her company contributes. She is given choices regarding how the money is invested. When she retires, the amount she has available will depend on how much she invested herself, and the rate of return on the investments she chose. This pension plan could be classified as ________.
       a. qualified, defined benefit
   b. non-contributory, defined benefit
   c. contributory, defined contribution
   d. contributory, qualified
   e. contributory, defined benefit

   Q48. Employee benefits account for about one-third of wages and salaries.
       a. true
   b. false

   Q49. Holidays, vacations, jury duty, funeral leave, military duty, personal days, sick leave, sabbatical leave, and maternity leave are classified as ________ benefits.
       a. supplemental pay
   b. insurance
   c. retirement
   d. services
   e. premium

   Q50. The ________ sets minimum requirements for protecting individuals’ health-care data accessibility and confidentiality.
       a. Employee Retirement Income Security Act (ERISA)
   b. Economic Growth and Tax Relief Conciliation Act
   c. Job Creation and Worker Assistance Act
   d. Newborn Mother’s Protection Act
   e. Health Insurance Portability and Accountability Act