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Human Resource Management
Dr. Peter Villanova
Exam 4
125 Points
MULTIPLE CHOICE: Select the BEST answer for each of the following questions. (2.5 points each)
1. A ________ is comprised of jobs of approximately equal difficulty or importance as established
by job evaluation.
a. Pay group
b. benchmark
c. pay grade
d. class
2. The ________ shows the pay rates currently paid for jobs in each pay grade, relative to the points
or rankings assigned to each job or grade by the job evaluation.
a. Pay group
b. Pay grade
c. Class
d. Wage curve
3. What is the purpose of the wage curve?
a. to show the relationship between the
value of the job as determined by one of
the job evaluation methods and the
current average pay rates for your
grades
b. to equate jobs of approximately equal
difficulty or importance as established by
job evaluation
c. to assign pay rates to pay grades
d. to choose benchmark jobs within each
pay grade
4. Which of the following is NOT a step in creating a competitive market-pay plan?
a. Job Evaluation
c. Cost Analysis
b. Salary Survey
d. Develop Rate Ranges
5. Which regulation covers pension plans and requires employers to have written plan documents
that establish terms such as eligibility and participation?
a. Employee Retirement Income Security
c. Newborn Mother's Protection Act
Act (ERISA)
d. Health Insurance Portability and
b. Economic Growth and Tax Relief
Accountability Act
Conciliation Act
6. The full retirement age according to Social Security for individuals born in 1960 or later is
________.
a. 62
c. 67
b. 65
d. 70
7. When an employer makes all of the contributions to the pension plan, the pension plan is
classified as ________.
a. qualified
b. non-qualified
c.
d.
defined contribution
non-contributory
8. ________ provides benefits if a person is unable to work through no fault of his or her own.
a. Supplemental pay benefits
c. Retirement
b. Unemployment insurance
d. Health insurance
9. Which of the following benefits is required by federal or state law?
a. disability insurance
c. paid time off for vacations and holidays
b. workers' compensation
d. Pensions
10. A company using competency-based pay compensates for all of the following except an
employee's ________.
a. range of skills
c. depth of knowledge
b. job title
d. type of skills
11. ________ means collapsing salary grades and ranges into just a few wide levels or bands, each of
which contains a relatively wide range of jobs and salary levels.
a. Comparable worth
c. Broadbanding
b. Strategic compensation
d. Job grading
12. Total rewards encompass the traditional compensation components, but also things such as the
following except which one?
a. recognition
c. health and well-being programs
b. telecommuting programs
d. supplemental pay benefits
13. ______ are demonstrable personal characteristics such as knowledge, skills, and behaviors.
a. Qualities
c. Competencies
b. Achievements
d. Incentives
14. What refers to all forms of pay or rewards going to employees and arising from their
employment?
a. Employee Compensation
c. Salary
b. Direct Financial Payments
d. Minimum wage
15. The ________ states that employees of one sex may not be paid wages at a rate lower than that
paid to employees of the opposite sex for roughly equivalent work.
a. 1962 Civil Rights Act
c. 1964 Civil Rights Act
b. 1963 Equal Pay Act
d. 1938 Fair Labor Standards Act
16. The aim of a compensation plan should be to produce a/an _______.
a. Aligned Reward Strategy
c. Fair Wage and Benefits
b. Motivated Worker
d. All Of the Above
17. According to our book the minimum wage in 2012 was ______.
a. $6.25
b. $7.25
HRM: EXAM 4
c. $8.25
3
d. $9.25
18. Approximately how many paid vacation days went unused in 2013?
a. 58,000,000
c. 18,000,000
b. 1,000,000
d. 580,000,000
19. An incentive plan is:
a. a type of benefit plan
b. a bonus added onto a salary or wage
20. What are the two categories of Incentive Plans?
a. Departmental Incentives and Individual
Incentive Plans
b. Team-Based Incentives and Managerial
Incentive Plans
c. a bonus given to an employee at the
time of hire
d. a type of retirement plan
c. Individual Incentive Plans and TeamBased Incentives
d. Managerial Incentive Plans and
Individual Incentive Plans
21. Which of the following is NOT one of the 5 building blocks to an effective incentive plan?
a. Be scientific.
c. Test your incentive plan.
b. Link the Incentive with your strategy.
d. Set complete standards.
True (A) or False (B): Is the statement true or not? (2.5 points each)
1. There is no limit to the amount an employee can contribute pre-tax into a 401(k) plan each
year.
2. The primary advantage of broadbanding is that it provides greater flexibility into employee
assignments.
3. Title VII of the Civil Rights Act makes it unlawful for an employer to discriminate against any
individual with respect to hiring because of race, color, religion, sex, or national origin.
4. Incentive plans can include financial rewards and/or recognition-based awards
Please check to see that you have signed this exam. Each exam must be returned with a student signature.
HRM: EXAM 4
Compensating Employees Test Key / Team C
1. C
2. D
3. A
4. C
5. A
6. C
7. D
8. B
9. B
10. B
11. C
12. D
13. C
14. A
15. B
16. A
17. B
18. D
19. B
20. C
21. C
True/false
1. False
2. True
3. True
4. True
4