MAN 3301- F13 FINAL EXAM 75 STUDY GUIDE QUESTIONS (NO ANSWERS)
1) Firms which pay below the average labor market price for jobs will most likely have
________.
A) higher productivity levels
B) higher turnover rates
C) lower unit labor costs
D) fewer grievances
2) What is the LEAST likely reason that a firm would use job evaluation?
A) eliminating pay inequities
B) identifying the organization's job structure
C) estimating the average industrial wage rate
D) developing a hierarchy of job value for creating a pay structure
3) Pay differentials need to be greater to be meaningful, especially ________.
A) at lower job levels
B) at higher job levels
C) during periods of recession
D) during periods of inflation
4) Ryan, an HR manager at a publishing firm, may begin broadbanding jobs. Which of the
following is NOT a benefit of broadbanding?
A) focusing on vertical promotional options
B) simplifying the firm's compensation system
C) encouraging employees to develop laterally
D) adding flexibility to the firm's compensation system
5) As an HR manager at an electronics firm, you learn that the position of Technician I at your
firm is underpaid. What would be the best way to handle this situation?
A) notify the affected workers and their union representatives
B) immediately increase the pay for workers in that job
C) give workers in that job a bonus at the end of the year
D) wait until the next broadbanding opportunity
6) As an HR manager, you learn that an employee is being overpaid. What would be the best way
to handle this situation?
A) promote the employee to a job in a higher pay grade
B) bring the job rate and employee into line with a pay cut
C) freeze the rate until cost-of-living increases bring it into line
D) redesign the job by quantifying it with the factor comparison method
7) Which of the following is a disadvantage associated with team-based pay?
A) Exemplary performers become disgruntled and quit.
B) Performance standards are difficult to develop.
C) Output is difficult to categorize and assess.
D) Members lack the time to assist others.
, 8) Current trends in executive pay involve linking compensation with ________.
A) multi-year contract packages
B) deferred stock options
C) performance results
D) seniority systems
9) In most cases, a firm prefers to link the salary growth of its highest level managers to market
rates and ________.
A) cost of living increases
B) public compensation policies
C) overall corporate performance
D) contingent worker compensation
10) The objective of ________ is to improve productivity by rewarding those who best assist in
achieving this goal.
A) performance-based pay
B) cost-of-living allowances
C) skill-based pay
D) salary compression
11) PetFair, a national chain of pet supply stores, employs nearly 1,000 workers. In the past two
years, the firm's market share has dropped and employee turnover has increased. The vice
president of human resources at PetFair suggests implementing a new compensation policy to
improve the firm's performance and retain quality workers. Currently, PetFair employees receive
compensation primarily based on years with the firm and job level. Which of the following, if
true, best supports the argument that PetFair should implement a competency-based pay system?
A) PetFair uses the classification method to price management jobs.
B) PetFair sales representatives earn straight commissions.
C) PetFair managers experience variable work assignments.
D) PetFair offers a profit-sharing plan to top executives.
12) The ________ of the Dodd-Frank Act gives shareholders an advisory vote on executive pay.
A) cap and trade proviso
B) clawback policy
C) say on pay provision
D) golden parachute clause
1) Firms which pay below the average labor market price for jobs will most likely have
________.
A) higher productivity levels
B) higher turnover rates
C) lower unit labor costs
D) fewer grievances
2) What is the LEAST likely reason that a firm would use job evaluation?
A) eliminating pay inequities
B) identifying the organization's job structure
C) estimating the average industrial wage rate
D) developing a hierarchy of job value for creating a pay structure
3) Pay differentials need to be greater to be meaningful, especially ________.
A) at lower job levels
B) at higher job levels
C) during periods of recession
D) during periods of inflation
4) Ryan, an HR manager at a publishing firm, may begin broadbanding jobs. Which of the
following is NOT a benefit of broadbanding?
A) focusing on vertical promotional options
B) simplifying the firm's compensation system
C) encouraging employees to develop laterally
D) adding flexibility to the firm's compensation system
5) As an HR manager at an electronics firm, you learn that the position of Technician I at your
firm is underpaid. What would be the best way to handle this situation?
A) notify the affected workers and their union representatives
B) immediately increase the pay for workers in that job
C) give workers in that job a bonus at the end of the year
D) wait until the next broadbanding opportunity
6) As an HR manager, you learn that an employee is being overpaid. What would be the best way
to handle this situation?
A) promote the employee to a job in a higher pay grade
B) bring the job rate and employee into line with a pay cut
C) freeze the rate until cost-of-living increases bring it into line
D) redesign the job by quantifying it with the factor comparison method
7) Which of the following is a disadvantage associated with team-based pay?
A) Exemplary performers become disgruntled and quit.
B) Performance standards are difficult to develop.
C) Output is difficult to categorize and assess.
D) Members lack the time to assist others.
, 8) Current trends in executive pay involve linking compensation with ________.
A) multi-year contract packages
B) deferred stock options
C) performance results
D) seniority systems
9) In most cases, a firm prefers to link the salary growth of its highest level managers to market
rates and ________.
A) cost of living increases
B) public compensation policies
C) overall corporate performance
D) contingent worker compensation
10) The objective of ________ is to improve productivity by rewarding those who best assist in
achieving this goal.
A) performance-based pay
B) cost-of-living allowances
C) skill-based pay
D) salary compression
11) PetFair, a national chain of pet supply stores, employs nearly 1,000 workers. In the past two
years, the firm's market share has dropped and employee turnover has increased. The vice
president of human resources at PetFair suggests implementing a new compensation policy to
improve the firm's performance and retain quality workers. Currently, PetFair employees receive
compensation primarily based on years with the firm and job level. Which of the following, if
true, best supports the argument that PetFair should implement a competency-based pay system?
A) PetFair uses the classification method to price management jobs.
B) PetFair sales representatives earn straight commissions.
C) PetFair managers experience variable work assignments.
D) PetFair offers a profit-sharing plan to top executives.
12) The ________ of the Dodd-Frank Act gives shareholders an advisory vote on executive pay.
A) cap and trade proviso
B) clawback policy
C) say on pay provision
D) golden parachute clause
