MAN 3301-001 AND 002 F15 75 STUDY GUIDE QS FOR FINAL EXAM
1) If a person is to maintain a previous level of nominal wages, then a pay increase must be
roughly equivalent to the ________.
A) cost of living increase
B) industry average
C) national average
D) market rate
2) Which type of compensation increases an employee's base pay and contributes to cost control
over time??
A) merit pay
B) incentive pay
C) person-focused pay
D) seniority-based pay
3) The rationale for adopting seniority pay plans is described by which theory?
A) job-based theory
B) pay-for-performance theory
C) human capital theory
D) equity theory
4) 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.
5) Which type of profit sharing plan places company contributions in an irrevocable trust and
credits individual employees' accounts?
A) deferred plan
B) current plan
C) stock plan
D) defined plan
6) 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
7) 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.
8) Profit sharing is a compensation plan that helps HR managers with recruiting and retaining
employees.
a. true
b. false
9) What is the most important standard for determining pay?
A) pay leaders
B) market rates
C) geographic areas
D) organizational levels
10) When the United Auto Workers negotiate with GM and Ford for higher wages, which
legislation supports the union's right to engage in collective bargaining?
A) Title VII of the Civil Rights Act
B) Equal Pay Act
C) Davis-Bacon Act
D) National Labor Relations Act
11) Which Act requires federal construction contractors with projects valued in excess of $2,000
to pay at least the prevailing wages in the area?
A) Railway Labor Act
B) Davis-Bacon Act
C) Norris-LaGuardia Act
D) Fair Labor Standards Act
12) 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 market pay rate
D) developing a hierarchy of job value for creating a pay structure
13) Which of the following is NOT one of the universal job factors of the factor comparison
method?
A) working conditions
B) abstract thinking skills
C) physical requirements
D) responsibilities
14) Nicole, an HR professional, needs to develop a job evaluation for a data analyst position at
her firm. Nicole's manager wants a quantitative job evaluation that will be useful for a long time.
1) If a person is to maintain a previous level of nominal wages, then a pay increase must be
roughly equivalent to the ________.
A) cost of living increase
B) industry average
C) national average
D) market rate
2) Which type of compensation increases an employee's base pay and contributes to cost control
over time??
A) merit pay
B) incentive pay
C) person-focused pay
D) seniority-based pay
3) The rationale for adopting seniority pay plans is described by which theory?
A) job-based theory
B) pay-for-performance theory
C) human capital theory
D) equity theory
4) 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.
5) Which type of profit sharing plan places company contributions in an irrevocable trust and
credits individual employees' accounts?
A) deferred plan
B) current plan
C) stock plan
D) defined plan
6) 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
7) 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.
8) Profit sharing is a compensation plan that helps HR managers with recruiting and retaining
employees.
a. true
b. false
9) What is the most important standard for determining pay?
A) pay leaders
B) market rates
C) geographic areas
D) organizational levels
10) When the United Auto Workers negotiate with GM and Ford for higher wages, which
legislation supports the union's right to engage in collective bargaining?
A) Title VII of the Civil Rights Act
B) Equal Pay Act
C) Davis-Bacon Act
D) National Labor Relations Act
11) Which Act requires federal construction contractors with projects valued in excess of $2,000
to pay at least the prevailing wages in the area?
A) Railway Labor Act
B) Davis-Bacon Act
C) Norris-LaGuardia Act
D) Fair Labor Standards Act
12) 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 market pay rate
D) developing a hierarchy of job value for creating a pay structure
13) Which of the following is NOT one of the universal job factors of the factor comparison
method?
A) working conditions
B) abstract thinking skills
C) physical requirements
D) responsibilities
14) Nicole, an HR professional, needs to develop a job evaluation for a data analyst position at
her firm. Nicole's manager wants a quantitative job evaluation that will be useful for a long time.
