LATEST MGN 470 Chapter 9- Training Exam Questions And Answers

1. What does employee compensation refer to? - ANSWER- all forms of pay or rewards to employees, both direct and indirect 2. What is considered to be a common goal of compensation policies? - ANSWER- to control the compensation budget 3. What item identifies the salary component of a compensation system? - ANSWER- base pay 4. Based on productivity research, what amount of increase in employee output is expected following implementation of a pay-for-performance program? - ANSWER- 15 to 35 percent 5. What is a manager attempting to do by using a pay-for-performance standard? - ANSWER- increase employee output through linking performance with desired employee rewards 6. Under what circumstances will employees deem that compensation is equitable? - ANSWER- when the compensation is perceived to be equal to the value of the work performed 7. How are employees classified when their compensation is calculated on the basis of weekly, or monthly periods? - ANSWER- salaried employees 8. What are employees who are compensated on an hourly basis also known as? - ANSWER- wage earners 9. Which of the following is an external factor that can influence the wage mix? - ANSWER- the cost of living 10. Which of the following is an internal factor that can influence the wage mix? - ANSWER- employee's relative worth 11. What is the measure of the average change in prices over time in a large "basket" of goods and services purchased by Canadians known as? - ANSWER- the consumer price index 12. Which of the following is an external factor that can influence the rates of wages required to recruit or retain competent employees? - ANSWER- labour market conditions 13. What will most likely result from determining wage increases solely on the basis of the CPI? - ANSWER- pay rates within a pay structure will be compressed 14. What would an employer wishing to raise the "real wages" of employees have to do? - ANSWER- grant wage increases larger than the cost of living 15. What do labour-market conditions reflect? - ANSWER- the forces of supply and demand for qualified workers within an area 16. What are organizations with formal job systems more likely to rely on to determine wage rates? - ANSWER- job evaluation 17. What is the proper term for the process of determining the relative worth of jobs in order to determine pay rates? - ANSWER- job evaluation 18. Which method of comparison is NOT used in job evaluation? - ANSWER- job worth system 19. Which system of job evaluation is being used when raters are simply arranging jobs in order from highest to lowest relative worth based on their overall knowledge of the jobs? - ANSWER- job ranking 20. What is the simplest method of job evaluation? - ANSWER- ranking method 21. Which system of job evaluation is being used when jobs are classified according to a series of predetermined pay grades? - ANSWER- job classification system 22. What must an employer do to create a job classification system? - ANSWER- create job grades with increasing amounts of responsibility, skill, knowledge, or ability 23. What is known as a quantitative job evaluation procedure that determines a job's relative value on the basis of quantitative assessments of specific job elements? - ANSWER- the point system 24. What factors are used as the basis for creating a point system for job evaluation? - ANSWER- compensable factors 25. What is required of managers who wish to use the point system of job evaluation? - ANSWER- they must evaluate jobs based on compensable factors 26. What are the five most commonly used compensable factors in a factor comparison system? - ANSWER- skill; mental effort; physical effort; responsibility; working conditions 27. Which step is unnecessary when creating a factor comparison system? - ANSWER- assignment of total points to each compensable factor 28. What is the term used for the area from which employers obtain certain types of workers? - ANSWER- labour market 29. What would be the most likely geographic scope for a wage and salary survey for highly specialized jobs? - ANSWER- national 30. When conducting a wage and salary survey, what is important for the employer to survey? - ANSWER- a wide variety of employers in the industry 31. How can the relationship between the relative worth of jobs and their pay rates be represented? - ANSWER- with a wage curve 32. What would an employer do to encourage an employee to accept a promotion to a job in a higher grade? - ANSWER- increase the size of successive rate ranges 33. What type of compensation program compensates employees for the knowledge they possess? - ANSWER- skill-based pay plans 34. What do skill-based pay plans encourage employees to do? - ANSWER- display an array of competencies that can be applied to a range of jobs 35. Which pay system would an organization likely use to establish greater job-staffing flexibility? - ANSWER- skill-based pay 36. What is the name of the incentive plan in which both employees and the organization share the financial gains according to a predetermined formula that reflects improved productivity and profitability? - ANSWER- gain sharing plan 37. Which type of incentive plan rewards team members when agreed-upon performance standards are met or exceeded? - ANSWER- group-based incentive plan 38. In which type of incentive plan does an employer pay special sums based on the organization's net income over a specified period? - ANSWER- profit sharing plan 39. What condition must exist for an incentive plan to work well? - ANSWER- a "clear line of sight" from employee performance to organizational performance 40. Which type of compensation is intended to improve the quality of work lives and personal lives of employees? - ANSWER- employee benefits