Compensation 6th Canadian Edition By Margaret Yap, Jerry Newman,
Bruce Gerhart (Test Bank All Chapters, 100% Original Verified, A+
Grade) Answers At The End Of Each Chapter
Chapter 1
1) Which of the following is NOT a contributing factor to wage determination?
A) gender
B) education
C) size of organization
D) volunteer experience
E) tenure
2) Pay for executives should supposedly to be tied to:
A) the company's financial performance
B) the company's reputation
C) the financial needs of the employee
D) the company's growth potential
E) the cost of living index
3) Which of the following refers to a multiple meaning of compensation?
A) societal
B) employee
C) stockholder
D) relational
E) personal
4) Which of the following is NOT part of an employee's total compensation?
A) paid vacation
B) health insurance
C) relational returns
D) cost-of-living adjustments
E) pay
Version 1 1
,5) Which of the following best describes relational returns?
A) all rewards received by employees, including cash compensation, benefits, and
psychological returns
B) all forms of financial returns and tangible services that employees receive as part of
an employment
C) programs that help employees better integrate their work and life responsibilities
D) one-time payments for meeting previously established performance objectives
E) the psychological returns people believe they receive in the workplace
6) _____ includes cash compensation, benefits, and relational returns.
A) Total compensation
B) Total cash benefit
C) Total base pay
D) Total rewards
E) Total incentive
7) Which of the following is NOT a form of relational return?
A) employment security
B) recognition and status
C) work-life balance
D) challenging work
E) learning opportunities
8) Working with great co-workers is a(n) _____.
A) incentive
B) entitlement
C) relational return
D) network of returns
E) benefit
Version 1 2
,9) Which of the following statements is true about the forms of pay?
A) Relational returns are more transactional than total compensation.
B) Unlike relational returns, total compensation typically refers to the psychological
returns people believe they receive in the workplace.
C) Base pay, incentives, and cost-of-living adjustments are the typical relational returns.
D) Merit increases refer to the same percentage increase that everyone receives
regardless of performance in order to maintain pay levels relative to increases in the
cost of living.
E) Base pay tends to reflect the value of the work or skills and generally ignores
differences attributable to individual employees.
10) A merit increase is best described as:
A) an increment to base pay that recognizes past work behaviour.
B) psychological returns employees believe they receive in the workplace.
C) a one-time reward for past performance that does not increase base pay.
D) percentage increment to base pay provided to all employees regardless of
performance.
E) compensation given to provide for items that are in short supply.
11) Which of the following best describes cost-of-living adjustment?
A) one-time payments for meeting previously established performance objectives
B) increment to base pay in recognition of past work behaviour
C) percentage increment to base pay provided to all employees regardless of
performance
D) compensation to provide for items that are in short supply
E) consolidated pay which is not subject to any change regardless of the cost-of-living
12) _____ refer to one-time payments for meeting previously established performance objectives.
A) Cost-of-living adjustments
B) Incentives
C) Merit increments
D) Relational returns
E) Allowances
Version 1 3
, 13) Which of the following is a work/life program?
A) stock options
B) health insurance
C) telecommuting
D) employment Insurance
E) cost-of-living adjustment
14) _____ refers to the compensation given to purchase items that are in short supply.
A) Variable pay
B) Incentive
C) Cost-of-living adjustment
D) Allowance
E) Wage
15) Which of the following is true of the present value perspective?
A) It considers today's initial offers to employees.
B) It considers future bonuses, merit increases, and promotions.
C) It establishes a limit on the amount spent on benefits.
D) It creates an external competitiveness through future promises.
E) It assesses the present value of a company to offer stock options to employees.
16) Which of the following is a form of relational return?
A) life Insurance
B) allowances
C) recognition and status
D) monitory incentives
E) benefits
17) Internal alignment may be achieved by:
A) creation of cross-functional departments
B) matching competitors' wage rates
C) paying below-market base wages but offering training and rapid promotion
D) compensating employees at above-market rates
E) comparing pay between jobs or skill levels inside a single organization
Version 1 4
Bruce Gerhart (Test Bank All Chapters, 100% Original Verified, A+
Grade) Answers At The End Of Each Chapter
Chapter 1
1) Which of the following is NOT a contributing factor to wage determination?
A) gender
B) education
C) size of organization
D) volunteer experience
E) tenure
2) Pay for executives should supposedly to be tied to:
A) the company's financial performance
B) the company's reputation
C) the financial needs of the employee
D) the company's growth potential
E) the cost of living index
3) Which of the following refers to a multiple meaning of compensation?
A) societal
B) employee
C) stockholder
D) relational
E) personal
4) Which of the following is NOT part of an employee's total compensation?
A) paid vacation
B) health insurance
C) relational returns
D) cost-of-living adjustments
E) pay
Version 1 1
,5) Which of the following best describes relational returns?
A) all rewards received by employees, including cash compensation, benefits, and
psychological returns
B) all forms of financial returns and tangible services that employees receive as part of
an employment
C) programs that help employees better integrate their work and life responsibilities
D) one-time payments for meeting previously established performance objectives
E) the psychological returns people believe they receive in the workplace
6) _____ includes cash compensation, benefits, and relational returns.
A) Total compensation
B) Total cash benefit
C) Total base pay
D) Total rewards
E) Total incentive
7) Which of the following is NOT a form of relational return?
A) employment security
B) recognition and status
C) work-life balance
D) challenging work
E) learning opportunities
8) Working with great co-workers is a(n) _____.
A) incentive
B) entitlement
C) relational return
D) network of returns
E) benefit
Version 1 2
,9) Which of the following statements is true about the forms of pay?
A) Relational returns are more transactional than total compensation.
B) Unlike relational returns, total compensation typically refers to the psychological
returns people believe they receive in the workplace.
C) Base pay, incentives, and cost-of-living adjustments are the typical relational returns.
D) Merit increases refer to the same percentage increase that everyone receives
regardless of performance in order to maintain pay levels relative to increases in the
cost of living.
E) Base pay tends to reflect the value of the work or skills and generally ignores
differences attributable to individual employees.
10) A merit increase is best described as:
A) an increment to base pay that recognizes past work behaviour.
B) psychological returns employees believe they receive in the workplace.
C) a one-time reward for past performance that does not increase base pay.
D) percentage increment to base pay provided to all employees regardless of
performance.
E) compensation given to provide for items that are in short supply.
11) Which of the following best describes cost-of-living adjustment?
A) one-time payments for meeting previously established performance objectives
B) increment to base pay in recognition of past work behaviour
C) percentage increment to base pay provided to all employees regardless of
performance
D) compensation to provide for items that are in short supply
E) consolidated pay which is not subject to any change regardless of the cost-of-living
12) _____ refer to one-time payments for meeting previously established performance objectives.
A) Cost-of-living adjustments
B) Incentives
C) Merit increments
D) Relational returns
E) Allowances
Version 1 3
, 13) Which of the following is a work/life program?
A) stock options
B) health insurance
C) telecommuting
D) employment Insurance
E) cost-of-living adjustment
14) _____ refers to the compensation given to purchase items that are in short supply.
A) Variable pay
B) Incentive
C) Cost-of-living adjustment
D) Allowance
E) Wage
15) Which of the following is true of the present value perspective?
A) It considers today's initial offers to employees.
B) It considers future bonuses, merit increases, and promotions.
C) It establishes a limit on the amount spent on benefits.
D) It creates an external competitiveness through future promises.
E) It assesses the present value of a company to offer stock options to employees.
16) Which of the following is a form of relational return?
A) life Insurance
B) allowances
C) recognition and status
D) monitory incentives
E) benefits
17) Internal alignment may be achieved by:
A) creation of cross-functional departments
B) matching competitors' wage rates
C) paying below-market base wages but offering training and rapid promotion
D) compensating employees at above-market rates
E) comparing pay between jobs or skill levels inside a single organization
Version 1 4
