CHAPTER 12 - Managing Employee Benefits
CHAPTER 12
MANAGING EMPLOYEE BENEFITS
I. Choose the response that best completes each statement. Circle your response.
1. Statutory benefits are benefits:
a. required by law
b. given to attract senior staff
c. to maintain high status of chief executives
d. that are in line with the market
e. that are provided only to citizens
2. The following are examples of types of benefits that will serve to free employees from the
worry of rising costs and uncertain futures EXCEPT:
a. medical and hospitalisation
b. life and accident insurance
c. annual leave
d. EPF (KWSP)
e. SOCSO (PERKESO)
3. The main objectives of employees for benefits are:
a. more leave days
b. lower cost and tax benefit
c. more types of benefits
d. more insurance coverage
e. benefits to exceed market practice
4. The following are examples of pay for time not worked benefits EXCEPT:
a. public holidays
b. annual leave
c. medical leave
d. notice period for termination
e. hospitalisation insurance
5. The following are examples insurance benefits EXCEPT:
a. Death-in-service benefits
b. Personal accident insurance
c. Social Security Organisation
d. Medical and hospitalisation insurance
e. Employees Provident Fund
6. The following are areas typically covered in a pre-retirement counselling training
programme EXCEPT:
a. personal financial planning
b. managing increased leisure time
c. golden handshakes
d. health in retirement
e. local sources of information and advice
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CHAPTER 12 - Managing Employee Benefits
7. The following are examples of employee services benefits EXCEPT:
a. Housing Loans
b. Outplacement advice
c. Festival advance
d. Employee development loans
e. Subsidised transportation
8. The following are examples of intangible benefits EXCEPT:
a. Club memberships
b. Status
c. Power
d. Training and development opportunities
e. Balance of work and family responsibilities
9. A variable benefits programme where employees can choose the benefits they want, so
long as the cost does not exceed the amount of money specified is referred to as:
a. Acquisition Benefits
b. Cafeteria Benefits
c. Participation Benefits
d. Choice Benefits
e. Focus Benefits
10. Among the various costs associated with human resources the highest cost is:
a. Acquisition
b. Communication
c. Development
d. Maintenance
e. Separation
II. Answer T for true and F for false
11. Legislation constantly increases the types and amounts of benefits to employees.
12. Benefits like compassionate leave and paternity leave are required by law.
13. The cost of benefits borne by an organisation is usually written of as a business expense
for tax purposes.
14. Benefits provided by employers are free from inflation.
15. A benefit may be withdrawn by an organisation if it proves too costly.
16. Annual leave entitlements are a major benefit covered by law.
17. Labour laws provide for 90 consecutive days’ maternity leave for any female employee
who at the time of confinement has less than five surviving children.
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CHAPTER 12 - Managing Employee Benefits
18. Retirement benefits ensure that employees feel secure as they get older by providing them
with some income after retirement.
19. Pre-retirement counselling will help employees nearing retirement to be better prepared
for the trauma of not working.
20. The most common status benefits are company cars and club memberships.
21. Certain characteristics of organisations can make them more or less attractive and
worthwhile places to work in.
22. Most people work for money alone and other factors play a minor role in the decision of
which organisation to work for.
23. Besides tangible benefits, organisations need to also look at the kinds of intangible
benefits they can offer to employees.
24. An organisation with a culture where senior people praise and reinforce success in their
subordinates will find it easier to retain good employees.
25. Opportunities for career development and promotion may be considered as examples of
employee services benefits,
26. Generally more senior employees are provided more benefits.
27. An organisation wastes money if it provides benefits which are unwanted or not
appreciated by employees.
28. When an organisation does not publicise the benefits available, employees become
unaware and do not make use of them, allowing the organisation to save money.
29. The provision of a cafeteria benefits programme will substantially increase cost for the
organisation.
30. Orientation training is an example of acquisition cost of human resources.
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