Management Question

 

QUESTION 4

1. As experience with competencies has grown, organizations are placing greater emphasis on business related descriptions of behaviors.

    True False

1 points 

QUESTION 5

1. Leadership, customer orientation, and functional expertise are examples of which group of competencies?

   		Personal characteristics
   		Organization specific
   		Visionary
   		Team dynamics

1 points 

QUESTION 6

1. In the point method, the second step in designing a plan is to:

   		scale the factors.
   		prepare a job evaluation manual.
   		determine the compensable factors.
   		conduct job analysis.

1 points 

QUESTION 7

1. One way to measure the validity of job evaluation is through_______ – the degree to which the job evaluation plan matches an agreed-upon pay structure for benchmark jobs.

   		depth
   		hit rates
   		tacit work
   		skill blocks

1 points 

QUESTION 8

1. Which of the following is often used to set pay ranges?

   		Weighted mean
   		Quartiles and percentiles
   		Median
   		Standard deviation

1 points 

QUESTION 9

1. A study of 400 compensation specialists revelad that:

   		current pay data had a larger effect on pay decisions than market data
   		job evaluation data had a larger effect on pay decisions than market data.
   		job titles had a larger effect on pay decisions than job evaluation data.
   		market data had a substantially larger effect on pay decisions than job evaluation data.

1 points 

QUESTION 10

1. ________ are the observable behaviors that indicate the level of competency within each competency set.

   		Core competencies
   		Behavior scale points
   		Competency indicators
   		Competency generators.

1 points 

QUESTION 11

1. Which of the following reasons makes competencies a risky foundation for a pay system?

   		Vagueness and subjectivity
   		Openness and nonquantifiable nature
   		The number of stakeholders and the lack of a global standard
   		Lack of motivation and objectivity

1 points 

QUESTION 12

1. MXB, Incorporated is a carwash service provider. It orders the jobs in the company on the basis of the least important job to the most important job. In this case, MXB is most likely using the:

   		paired-comparison method
   		alternation-ranking method
   		classification method
   		point method

1 points 

QUESTION 13

1. Evidence shows that in manufacturing, _______ is positively correlated with hourly wage level.

   		total cost
   		turnover
   		productivity
   		a job description

1 points 

QUESTION 14

1. Which of the following is a disadvantage of the ranking method of job evaluation?

   		It is initially more expensive than other job evaluation methods.
   		It is difficult to explain to employees.
   		It fails to tell employees what is important about their jobs.
   		It consumes more time than other job evaluation methods.

1 points 

QUESTION 15

1. Which of the following statistical measures shows how similar or dissimilar the market rates are from each other?

   		Median
   		Standard deviation
   		Weighted mean
   		Mean

1 points 

QUESTION 16

1. By encouraging employees to take charge of their own development, skill-based plans may give them more control over their work lives.

    True False

1 points 

QUESTION 17

1. In the context of job evaluation methods, two common ways of ranking are alternation ranking and

   		classification
   		scaling
   		paired comparison
   		policy capturing

1 points 

QUESTION 18

1. Employees in a multiskill system earn pay increases

   		by acquiring new knowledge
   		by increasing their productivity
   		based on job assignments
   		based on job content

1 points 

QUESTION 19

1. Each organization operates in a single homogenous labor market

    True False

1 points 

QUESTION 20

1. The final major decision in setting externally competitive pay and designing the corresponding pay structures is to

   		interpret survey results and construct the market line.
   		select relevant market competitors.
   		design grades and ranges or bands.
   		construct a pay policy line that reflects external pay policy.

1 points 

QUESTION 21

1. ________ minimizes the distortion of the central tendency cause by outliers.

   		Mean
   		Weighted mean
   		Median
   		Mode

1 points 

QUESTION 22

1. Which of the following is a job evaluation method that can group a wide range of work together in one system but leave too much room for manipulation?

   		Scaling
   		Classification
   		Ranking
   		Point

1 points 

QUESTION 23

1. An employee’s focus in a job-based approach is to

   		acquire skills.
   		acquire competencies.
   		seek promotions to earn more pay.
   		utilize skills efficiently.

1 points 

QUESTION 24

1. The first major decision in setting externally competitive pay and designing the corresponding pay structures is to

   		conduct a job evalution.
   		specify the employer’s competitive pay policy.
   		construct a pay policy line that reflects external pay policy.
   		select relevant market competitors

1 points 

QUESTION 25

1. In determining the compensation strategy, a major strategic decision is whether to mirror what competitors are paying.

    True False

1 points 

QUESTION 26

1. Who among the following is most likely to be working for ac ompany that uses a competency-based pay plan?

   		Julia, who focuses on getting promoted to get a pay increase
   		Carlos, who focuses on obtaining certifications in her field to get a pay increase
   		Juan, a manager who focuses on controlling costs through budgets and work assignmetns
   		Faiza, a manager who focuses on choosing the employees best suited for job roles

1 points 

QUESTION 27

1. In the past, compensation managers handled the appeal review procedures, but increasingly teams of managers and even peers are used.

    True False

1 points 

QUESTION 28

1. Employers continue to hire until the margninal revenue of the last hire equals his or her wage rate. This is based on the first labor market theory assumption that:

   		markets are competitive.
   		workers are homogeneous and interchangeable.
   		employers seek to maximize profits.
   		pay rates reflect all costs of employment.

1 points 

QUESTION 29

1. The ____________ pay strategy emphasizes external competitiveness and demphasizes internal alignment.

   		broad banding
   		reference rate
   		market pricing
   		job structure

1 points 

QUESTION 30

1. The reliability of job evaluation techniques is measured by:

   		surveying employee attitudes about the evaluation.
   		determining hit rates.
   		determining if different evaluators produce the same results.
   		asking the question “What does the evaluation measure?”

1 points 

QUESTION 31

1. ___________ is the additional output associated with the employment of one additional human resource unit, with other production factors held constant.

   		Productivy
   		The marginal product of labor
   		Incremental productivity.
   		The marginal revenue of labor

1 points 

QUESTION 32

1. Person-based plans have the potential to clarify new standards and behavioral expectations.

    True False

1 points 

QUESTION 33

1. _________measures reveal competitors’ use of performance-based cash payments.

   		Base pay
   		Total cash
   		Short-term incentive pay
   		Long-term incentive pay

1 points 

QUESTION 34

1. A job structure based upon job value orders jobs on the basis of the relative contribution of the skills, duties, and responsibilities of each job to the organization’s goals.

    True False

1 points 

QUESTION 35

1. If Company A raises its pay rate by one dollar per hour to hire additional workers and competitors immediately match the increase, what will be the most likely result?

   		Competitors of Company A will lose employees to Company A.
   		Company A will hire the needed workers at a higher wage rate.
   		The labor costs for Company A will increase, but it will be unable to hire additional workers.
   		Company A will hire higher quality workers.

1 points 

QUESTION 36

1. A small lawn care company has two mowers and four employees. If it hires another employee and the factors of production remain the same, how ill the productivity of the fifth employee compare to that of the current four employees?

   		There is not enough information to determine productivity.
   		The productivity will increase.
   		The productivity will reduce.
   		The productivity will remain the same.

1 points 

QUESTION 37

1. Graduating students usually find themselves in a quoted-labor market.

    True False

1 points 

QUESTION 38

1. Core competencies are often linked to mission statements that express an organization’s philosophy, values, business strategies, and plans.

    True False

1 points 

QUESTION 39

1. Research shows that the weights assigned to compensable factors can affect the resulting pay structure.

    True False

1 points 

QUESTION 40

1. It may be that an employer’s pay level will not gain any competitive advantage; however, the wrong pay level may put the organization at a serious disadvantage.

    True False

1 points 

QUESTION 41

1. Communication and employee involvement are crucial for acceptance of resulting pay structures.

    True False

1 points 

QUESTION 42

1. Which of the following is a characteristic of benchmark jobs?

   		They have unstable pay differentials.
   		They are unique to specific employers.
   		Their contents are obscure and change over time.
   		They employ a reasonable proportion of the workforce.

1 points 

QUESTION 43

1. _________is the process of systematically determining the relative worth of jobs to create a job structure for an organization.

   		Job descriptions
   		Job restructuring
   		Job evaluation
   		Job analysis

1 points 

QUESTION 44

1. Which of the following is an example of the demand side of labor?

   		The locations of potential employees.
   		The level of pay appicants will accept.
   		The pay level offered by an employer.
   		The qualifications of applicants.

1 points 

QUESTION 45

1. In most organizations, the responsibility for managing a pay survey lies with

   		top management.
   		the compensation manager.
   		outside consultants.
   		The facility or plant manager.

1 points 

QUESTION 46

1. Research shows that a lead pay strategy reduces turnover.

    True False

1 points 

QUESTION 47

1. Advocates of competencies say that by focusing on optimum performance rather than average performance competencies can help employees maintain their marketability.

    True False

1 points 

QUESTION 48

1. Skill-based plans establish single flat rates for each skill level regadless of performance or seniority.

    True False

1 points 

QUESTION 49

1. The estimates of competitors’ pay rates will be incorrect and the pay level and pay mix inappropriately established if:

   		employees demand for an increase in wages.
   		the cost for procuring labor is high.
   		the marginal revenue generated is low.
   		markets are incorrectly defined.

1 points 

QUESTION 50

1. In cases where the content of an organization’s jobs does not sufficiently match that of the jobs in the salary survey, an effort can be made to quantify the difference via benchmark conversion.

    True False

1 points 

QUESTION 51

1. When building a skill-based plan executive management is the source of information on defining the skills, arranging them into hierarchy, bundling them into skill blocks, and certifying whether a person actually possesses the skills.

    True False

1 points 

QUESTION 52

1. The pay-level policy that is most likely to reduce pay dissatisfaction is a(n)

   		match policy.
   		employer of choice policy.
   		lag policy.
   		lead policy.

1 points 

QUESTION 53

1. A market pay line

   		links a company’s benchmark jobs with market rates paid by competitors.
   		compares an organizaiton’s minimum and maximum pay rates for each skill level.
   		provides an accurate prediction of an organization’s entry level pay rates.
   		reflects an organization’s pay scale based on the ratings given by its employees.

1 points 

QUESTION 54

1. Regression smoothes large amounts of data while minimizing variations.

    True False

1 points 

QUESTION 55

1. Routine work is also termed

   		tacit work.
   		hygiene work.
   		transactional work.
   		system work.

1 points 

QUESTION 56

1. Which of the following is linked to high pay levels?

   		Higher training time
   		Reduced vacancy rates
   		Poorly performing employees
   		Increased absenteeism

1 points 

QUESTION 57

1. For organizations using a skill-competency-based pay system or generic job descriptions, the best approach for pricing jobs is

   		the benchmark job approach.
   		The low-high approach.
   		survey leveling.
   		benchmark conversion

1 points 

QUESTION 58

1. There is far less uniformity in the use of terms in person-based plans than there is in job-based plans.

    True False

1 points 

QUESTION 59

1. The final result of the job analysis-job description-job evaluation process is a hierarchy of work.

    True False

1 points 

QUESTION 60

1. Because employers are raising employee pay at various times during the year, survey data must updated using a process called

   		matching.
   		leading.
   		aging.
   		gaining.

1 points 

QUESTION 61

1. KayDen Coproration, a small organization with 15 employees, conducts job evaluation using the least expensive method for the first time. In this case, KayDen is most likely to have used the

   		ranking method.
   		Hay plan.
   		classification method.
   		point method.

1 points 

QUESTION 62

1. Both pay-level and pay-mix decisions focus on two objectives: 1. control costs and increase revenues and2. attract and retain employees.

    True False

1 points 

QUESTION 63

1. The three factors usually used to determine the relevant labor markets are the occupation, geography, and competitors.

    True False

1 points 

QUESTION 64

1. When designing the survey, three basic types of data are typically collected: information about the organization, information about the total compensation system, and specific pay data on each incumbent in the jobs under study.

    True False

1 points 

QUESTION 65

1. An employer offering lower base pay with high bonuses is likely signal that it is seeking risk-taking employees.

    True False

1 points 

QUESTION 66

1. ________are more likley to conduct job evaluations of senior management jobs.

   		Compensation analysts
   		Compensation managers
   		Peers
   		Junior incumbents

1 points 

QUESTION 67

1. Human capital theory assumes that people are paid at the value of their marginal product.

    True False

1 points 

QUESTION 68

1. Which of the follwoing is a disadvantage of the point method?

   		It can become bureaucratic and rule-bound.
   		It does not communicate what is valued.
   		It does not allow for comparisons.
   		It can leave too much room for manipulation.

1 points 

QUESTION 69

1. The second major decision in setting externally competitive pay and designing the corresponding pay structures is to

   		design grades and ranges.
   		specify relevant markets.
   		define the purpose of the survey.
   		specify the pay-level policy.

1 points 

QUESTION 70

1. The _________ method of job evaluation uses compensable factors.

   		ranking
   		Position Analysis Questionnaire
   		point
   		classification

1 points 

QUESTION 71

1. The reliability of a job evaluation can be improved by using evaluators who are familiar with the work and trained in the job evaluation process.

    True False

1 points 

QUESTION 72

1. A pay range exists whenever two or more rates are paid to employees in the same job.

    True False

1 points 

QUESTION 73

1. Which of the following is an example of a company that uses broad banding?

   		A company in which there are more lateral movements with no pay adjustments and few promotions
   		A company that pays all its employees the same salary
   		A company that has pay guidelines and controls designed right into the pay system
   		A company that has an unlimited total salary budget

1 points 

QUESTION 74

1. When there is an unusual level of turnover in a job, an employer is likely to conduct a market survey.

    True False

1 points 

QUESTION 75

1. Gramhold, Inc. a pharaceutical company, reduces its ten salary grades to just three broad bands. Which of the following statement is most likely to be true in this case?

   		Gramhold will experience more career moves within bands than career moves between bands.
   		Gramhold will face difficulty in defining job responsibilities broadly with the new structure.
   		Gramhold will find that the new structure hinders cross-functional growth.
   		Gramhold will offer recognition via titles rather than through cross-funtional experience and lateral progression.

1 points 

QUESTION 76

1. Which of the following is a difference between ranges and bands?

   		Ranges offer recognition via titles or career progression, whereas bands offer cross-functional experience and lateral progression.
   		Ranges are used by companies with global operations, whereas bands are used by companies with domestic operations.
   		Ranges eliminate layers of managerial jobs, wehreas bands emphasize the imporance of several layers of managerial jobs.
   		Ranges give managers “freedom to manage” pay, whereas bands give managers “freedom with guidelines.”

1 points 

QUESTION 77

1. Work-related documentation helps gain acceptance by employees and managers, is easier to understand, and can withstand a variety of challenges to the pay structure.

    True False

1 points 

QUESTION 78

1. _________ is a crucial factor that affects the perception of fairness of a skill-based plan.

   		The number of compensable factors
   		The design of the certification process
   		The extent of alignment with an organization’s strategy
   		the number of weights and factor degrees

1 points 

QUESTION 79

1. Among pay-mix alternatives, the percentage of base pay is highest in a

   		performance-driven policy.
   		work/life balance policy.
   		security or commitment policy.
   		market match policy.

1 points 

QUESTION 80

1. _________are often linked to mission statements that express an organization’s philosophy, values, business strategies, and plans.

   		Core competencies
   		Job-based systems
   		Skill-based systems
   		Bureaucratic systems

1 points 

QUESTION 81

1. A pure market pricing strategy carried to its extreme tends to ignore internal alignment completely.

    True False

1 points 

QUESTION 82

1. __________focuses attention on the competitive positions reflected in the pay relationships among organizations.

   		External competitiveness
   		Pay satisfaction
   		Utility theory
   		Labor demand

1 points 

QUESTION 83

1. Which of the following statements is true of pay level?

   		Pay level is directly proportional to labor costs.
   		The higher the pay level relative to what competitors pay, the lower the relative costs to provide similar products or services.
   		Pay level is independent of the number of employees in an organization.
   		Pay level is the same across all organizations for the same job.

1 points 

QUESTION 84

1. In the United States, the _______ is a major source of publicly available pay data, and it also calculates the consumer price index.

   		Department of Economics
   		Bureau of Labor Statistics
   		Chamber of Commerce
   		Compensation Association

1 points 

QUESTION 85

1. Validity refers to the degree to which an evaluation assesses the relative worth of of jobs to an organization.

    True False

1 points 

QUESTION 86

1. Which of the following statements is true regarding broad bands?

   		They foster cross-functional growth.
   		They remove limits on total salary budgets.
   		They support recognition via titles or career progression.
   		They increase the hierarchical nature of organizations.

1 points 

QUESTION 87

1. In the context of internal alignment, which of the following is the correct sequence?

   		Pay structure > Job description > Job evaluation > Job analysis
   		Job description > Job evaluation > Job structure
   		Job evaluation > Job description > Job structure
   		Job description > Pay structure > Job evaluation

1 points 

QUESTION 88

1. Competencies are derived from the _________ beliefs about the organization and its strategic intent.

   		competitors’
   		executive leadership’s
   		customers’
   		stakeholders’

1 points 

QUESTION 89

1. A major decison in job evaluation is to:

   		figure out how to eliminate the use of mulitple plans.
   		choose among alternative approaches.
   		figure out how to eliminate the use of single plans.
   		choose which stakeholders to eliminate in the process.

1 points 

QUESTION 90

1. From an external competitiveness perspective, the range is a control device.

    True False

1 points 

QUESTION 91

1. Generic factors and vague descriptions may be attractive to managers looking for flexibility, but they also reduce control and guidelines which make it more difficult to ensure people are treated fairly.

    True False

1 points 

QUESTION 92

1. Which of the following statements is true of pay ranges?

   		They usually lead to an increase in employee turnover.
   		They reflect the differences in performance or experience that an employer wishes to recognize with pay.
   		They cause employees to believe that their compensation cannot increase in the same job.
   		They are flexible enough to deal with differences in quality but not with the productivity of value or these quality variations.

1 points 

QUESTION 93

1. Managers often regard external market data as more objective than internal job evaluation.

    True False

1 points 

QUESTION 94

1. A ________approach controls cots by paying only as much as the work performed is worth, regardless of any greater skills the employee may posses.

   		competency-based
   		performance-based
   		skill-based
   		job-based

1 points 

QUESTION 95

1. Pay ranges for top-level management positions are smaller than pay ranges for entry-level managerial positions.

    True False

1 points 

QUESTION 96

1. Which of the following is least likely to be used in establishing skill-based certification methods?

   		On-the-job demonstration
   		College degree
   		Peer review
   		Tests

1 points 

QUESTION 97

1. Skill-based plans tend to work best in organizations using a(n)__________strategy.

   		laissez-faire
   		cost-cutter
   		innovator
   		defender

1 points 

QUESTION 98

1. The majority of application of skill-based pay have been in:

   		service industries.
   		education industries.
   		health-care industries.
   		manufacturing industries.

1 points 

QUESTION 99

1. The leadership of any organization is the best source of information on where the business should be going and how it is going to get there.

    True False

1 points 

QUESTION 100

1. A manager of a company could be a factor affecting the company’s external competitiveness.

    True False

 

1 points