Human Resource Management Chapter 11 Exam
Name: __________________________ Date: _____________
1. Which of the following is a type of incentive compensation?
A) Base pay
B) Benefits
C) Wage compression
D) Skill-based pay
E) Broadbanding
2. The job ranking method simply ranks jobs ___________________.
A) based on education attainment
B) from most- to least-desirable
C) from lowest to highest
D) based on number of job openings
3. If Brittany reaches her sales goals for this quarter, she will receive a $2,000 bonus.
This part of her compensation is considered ________.
A) base pay
B) a wage and salary add-on
C) incentive pay
D) benefits
4. Green circle jobs:
A) are paid at the midpoint for a particular class of jobs.
B) are paid above a particular class of jobs.
C) are paid below a particular class of jobs.
D) are not counted in the pay structure.
E) are benchmark jobs in the overall pay structure.
5. Kyle is exhausted from working overtime to get his projects done. His manager asked
another employee to help Kyle with his work so that Kyle can work regular hours with
no overtime. According to learning theory, this is __________.
A) positive reinforcement
B) negative reinforcement
C) punishment
D) avoidance reinforcement.
Page 1
6. Julianna is paid $60,000 a year as a computer programmer. She gets paid regardless
of how many hours she works. Julianna's pay is considered _________.
A) benefits
B) wages
C) salary
D) incentives
7. If employers misclassify employees under the FLSA:
A) they can justify it by simply showing that there was a BFOQ for the job.
B) they may be personally criminally prosecuted and can be fined up to $10,000 per
infraction.
C) the organization can be held liable and have to pay a fine of up to $11,000 per
infraction.
D) they can be personally prosecuted up to a maximum fine of $500,000.
E) they can justify it by showing both a business necessity and a BFOQ.
8. The best reason to pay above market is:
A) to attract better workers and enhance our employment brand
B) to take advantage of tax incentives
C) to keep the unemployment rates down
D) to invest in workforce development opportunities
9. All of the following are factors that fit into an organizational philosophy on pay except
one. Which one is the exception?
A) Pay for performance or longevity.
B) At/above/below the market
C) Skill or competency pay
D) Pay to attract younger or older employees
E) Pay secrecy
10. According to expectancy theory, what is the perception of the likelihood of a particular
level of performance providing the individual with the desired reward?
A) Instrumentality
B) Expectancy
C) Valence
D) Path-goal
E) Deliberation
11. The first major provision of the FLSA concerns ____________________.
A) underage employees
B) the unskilled workforce
C) new hires
D) the federal minimum wage
Page 2
12. Mad Max retail store hires workers for $8.50 per hour, which is the same hourly rate as
other nearby retail stores. Mad Max is paying _________.
A) minimum wage
B) at market
C) above market
D) below market
13. What sets the top of a particular pay level?
A) Product market competition
B) Labor market competition
C) Product labor competition
D) Spillover effect
E) Optimization function
14. Which of the following is a form of indirect compensation?
A) Base pay
B) Incentive pay
C) Add-ons
D) Benefits
E) Commission
15. Compensable factors:
A) are the determining factor in individual pay rates.
B) provide information on psychological success in a particular job.
C) provide information on physical success in a particular job.
D) would include factors such as essential functions in a job.
E) are usually identified by interviewing the individual job-holder.
16. Penalties for misclassifying employees include:
A) criminal prosecution and monetary fines per infraction
B) automatic jail sentence
C) revocation of business license for one year
D) only monetary fines
17. Conner has received steady pay increases over the years for his solid sales
performance. This year, the organization merged with another organization and money
has become tight. Conner doubts there's any money available for raises. Therefore, he
has not been motivated to work as hard. According to expectancy theory, Conner is
unmotivated because _________ is lacking.
A) valence
B) instrumentality
C) expectancy
D) significance
Page 3
18. Sometimes, _____________ is used as a justification for unethical behavior.
A) discrimination
B) expectancy
C) negotiation
D) perceived inequity
19. When Stephanie compares the work required in her job to the work required in
Heather's job, she finds that the two jobs are similar. While the work in the jobs is
different, the jobs involve similar responsibility, skills, and working conditions. However,
Heather is paid $2 an hour more than Stephanie is paid. Stephanie's findings appear to
reveal a violation of ________.
A) pay secrecy
B) comparable worth
C) equal pay
D) market rates
20. Krista's organization uses a differentiation strategy. To encourage worker to bring
knowledge, skills, and abilities to the job that can allow them to analyze problems and
come up with creative solutions, Krista might adopt a(n)________ organizational
philosophy on compensation.
A) pay secrecy
B) above-the-market
C) at-the-market
D) competency-based pay
21. Why would an organization choose to pay for longevity instead of performance?
A) They want an older workforce because older workers can mentor the younger
employees
B) Older workers are nearly always much more productive than younger workers
C) Customers may have strong relationships with employees that they have dealt
with for most of their lives.
D) People with greater organizational tenure know, and could tell others about, all of
the skeletons in the corporate closet
E) Younger workers are just not as dedicated as workers with longer tenure in the
company.
22. Morgan is working on the compensation package for bank tellers. Bank customers like
to see the same faces in the bank when they come in to talk about their money.
Therefore, Morgan needs to find a way to reduce turnover among the tellers. Adopting
a(n) _________ organizational philosophy on compensation might be a good idea.
A) below-the-market
B) at-the-market
C) pay for longevity
D) wage compression
Page 4
23. Who would typically not qualify as an exempt employee?
A) Professionals
B) Executives
C) Highly compensated employees
D) Inside sales
E) Outside sales
24. If a person works more than 60 hours a week, according to federal law what should that
person be paid for the hours above a standard 40-hour week?
A) Straight pay
B) Time and a half
C) Time and a half for hours above 40 and double time for all hours above 60
D) Double time
E) Triple time for all hours above 60 hours worked
25. Trendy Tina's tech shop pays higher wages than any other electronics store in town.
Trendy Tina's is paying ________
A) minimum wage
B) at market
C) above market
D) below market
Page 5