HRM531 HRM/531 WEEK 2 QUIZ

1. Narrowing pay ratios between jobs or pay grades in a firm’s pay structure is

pay inequality

pay secrecy

pay compression

pay security

2. Which act covers private-sector employees over age 21 enrolled in noncontributory (100% employer-paid) retirement plans that have 1-year service?

ADA (1990)

ERISA (1974)

HIPAA (1996)

COBRA (1985)

3. ___________bridge the gap between organizational objectives and individual expectations and aspirations.

Employment practices 

Corporate compensation systems

Rewards

Financial systems

4. In labor economics, __________________ theory holds that unless an employee can produce a value equal to the value received in wages, it will not be worthwhile to hire that worker.

the percent of company offerings

the concern with pay for position

the willingness to reduce the size of the workforce

the marginal productivity 

5. The type of private pension plan in which an employer promises to pay a retiree a stated pension is a

defined-benefit plan

defined-contribution plan

defined-retirement plan

defined-performance plan

6. In the United States, salary discussions among employees are protected under

the Fair Labor Standards Act (1938)

the Equal Pay Act (1963)

Salary.com

the National Labor Relations Act (1935)

7. One downside of team incentives is that 

it does nothing to educate employees about the factors of business success and capitalism

it does not provide retirement income to employees

managers do not feel that incentives motivate employees equally

most employees do not feel that their jobs have a direct impact on profits

8. Evidence indicates that the perceived value of benefits rises when employers introduce

flexible supervisors

higher salaries

choice through a flexible benefits package

more jobs

9. What is driving the increasing costs of healthcare?

Aging population and an increase in obesity

Rising cost of childcare

Passage of the health care exchanges

Increasing numbers of legal immigrants

10. Which of the following laws established the first national minimum wage?

Walsh–Healey Act (1936)

Fair Labor Standards Act (1938)

Davis–Bacon Act (1931)

McNamara–O'Hara Service Contract Act (1965)

11. One strategic issue that should influence the design of benefits is an organization’s

shareholder’s form

plan to pay panel

stage of development

value to employees

12. The Sarbanes–Oxley Act of 2002 requires that

the Securities and Exchange Commission meet annually to discuss bonuses

companies can seek repayment for incentives paid that were later found to be materially inaccurate

executives cannot retain bonuses or profits from selling company stock if they mislead the public about the financial health of the company

the minimum wage change each year

13. Which of the following is NOT another name for gain sharing? 

Control-based compensation

The Scanlon plan

The Rucker plan

Improshare

14. 14. At a comprehensive point of view, a(n) _____ includes anything an employee values and desires that an employer is able and willing to offer in exchange for employee contributions. 

organizational reward system

employee stock ownership plan

competency-based pay system

merit-pay method

15. Gain sharing plans consist of all EXCEPT which of the following elements:

A financial bonus

An internal equity

A philosophy of cooperation

An involvement system

16. The gatekeeper in a managed care health insurance plan is the

insurance cost monitor

primary care physician

the employee

the HR representative

17. __________ is not legally required, and, because of unemployment compensation, many firms do not offer it.

Severance pay

Short-term disability

Retirement pay

Cost shifting

18. ______________cover 128 million workers in the United States.

Point-of-service programs

Defined-contribution programs

Defined-benefit programs

Workers’ compensation programs 

19. Reviews of both laboratory and field tests of _____________ are quite consistent. Individuals tend to follow a norm of fairness and to use it as a basis for distributing rewards.

organizational needs

equity theory

the internal labor market

the external labor market

20. ________________ provides a supplemental, one-time payment when death is accidental, and it provides a range of benefits when employees become disabled—that is, when they cannot perform the main functions of their occupations.

Medical underwriting

Disability coverage 

A preferred provider payment

A point-of-service plan

21. Open pay systems tend to work best when

effort and performance are related closely over a long time span

job performance can be measured objectively

there is a union to negotiate pay increases

business strategy matches the organizational development stage