Compensation, 13e Barry Gerhart, Jerry Newman (Test Bank All
Chapters, 100% Original Verified, A+ Grade) Answers At The End Of
Each Chapter
Chapter 01
1) When unemployment increases, the proportion of the population covered by health
insurance decreases.
⊚ true
⊚ false
2) The degree to which pay influences individual and aggregate motivation among
employees is called a sorting effect.
⊚ true
⊚ false
3) Base wage is the overtime pay given to employees who are exempt from regulations of
the Fair Labor Standards Act.
⊚ true
⊚ false
4) Commissions are an example of incentives.
⊚ true
⊚ false
5) Most U.S. firms use merit pay increases.
⊚ true
⊚ false
6) Base wage reflects both the value of the work and individual employee skills and
experience.
Version 1 1
, ⊚ true
⊚ false
7) Pension and health benefits are a very large component of total compensation for many
large companies such as American Airlines and GM.
⊚ true
⊚ false
8) Unlike for merit adjustments, the potential size of an incentive payment will generally be
known before receiving the payment.
⊚ true
⊚ false
9) Procedural fairness suggests that the way a pay decision is made is of less importance to
employees than the results of the decision.
⊚ true
⊚ false
10) If the objective is to increase customer satisfaction, then incentive programs and merit
pay might be used to pay for performance.
⊚ true
⊚ false
11) Objectives guide the design of pay systems and provide standards for evaluating their
effectiveness.
⊚ true
⊚ false
Version 1 2
,12) Even if federal compensation laws change, it is unnecessary to change pay systems to
ensure continued compliance.
⊚ true
⊚ false
13) Internal alignment pertains to the pay rates both for employees doing equal work and for
those doing dissimilar work.
⊚ true
⊚ false
14) Since HR research contains information useful to managers, most managers read research
in HR management and compensation journals.
⊚ true
⊚ false
15) Management and HR research has conclusively shown that goal setting and job
enrichment produce the largest and most reliable increases in job performance.
⊚ true
⊚ false
16) Fairness is affected through employees' comparisons of their pay to the pay of others in
the organization.
⊚ true
⊚ false
Version 1 3
, 17) Consultant surveys are often presented as studies that reveal cause and effect.
⊚ true
⊚ false
18) In Japan, the traditional characters for the word "compensation" are based on the symbols
for logs and water, suggesting that compensation provides the necessities in life.
⊚ true
⊚ false
19) The relationship between variables is most often addressed through the use of statistical
analysis.
⊚ true
⊚ false
20) The R 2, which is an output from a regression analysis, is different from correlation in
that it tells us what percentage of the variation is accounted for by the variables we are using to
predict or explain.
⊚ true
⊚ false
21) Which of the following programs introduced by Congress includes restrictions on
executive pay that are designed to discourage executives from taking "unnecessary and excessive
risks"?
Version 1 4
Chapters, 100% Original Verified, A+ Grade) Answers At The End Of
Each Chapter
Chapter 01
1) When unemployment increases, the proportion of the population covered by health
insurance decreases.
⊚ true
⊚ false
2) The degree to which pay influences individual and aggregate motivation among
employees is called a sorting effect.
⊚ true
⊚ false
3) Base wage is the overtime pay given to employees who are exempt from regulations of
the Fair Labor Standards Act.
⊚ true
⊚ false
4) Commissions are an example of incentives.
⊚ true
⊚ false
5) Most U.S. firms use merit pay increases.
⊚ true
⊚ false
6) Base wage reflects both the value of the work and individual employee skills and
experience.
Version 1 1
, ⊚ true
⊚ false
7) Pension and health benefits are a very large component of total compensation for many
large companies such as American Airlines and GM.
⊚ true
⊚ false
8) Unlike for merit adjustments, the potential size of an incentive payment will generally be
known before receiving the payment.
⊚ true
⊚ false
9) Procedural fairness suggests that the way a pay decision is made is of less importance to
employees than the results of the decision.
⊚ true
⊚ false
10) If the objective is to increase customer satisfaction, then incentive programs and merit
pay might be used to pay for performance.
⊚ true
⊚ false
11) Objectives guide the design of pay systems and provide standards for evaluating their
effectiveness.
⊚ true
⊚ false
Version 1 2
,12) Even if federal compensation laws change, it is unnecessary to change pay systems to
ensure continued compliance.
⊚ true
⊚ false
13) Internal alignment pertains to the pay rates both for employees doing equal work and for
those doing dissimilar work.
⊚ true
⊚ false
14) Since HR research contains information useful to managers, most managers read research
in HR management and compensation journals.
⊚ true
⊚ false
15) Management and HR research has conclusively shown that goal setting and job
enrichment produce the largest and most reliable increases in job performance.
⊚ true
⊚ false
16) Fairness is affected through employees' comparisons of their pay to the pay of others in
the organization.
⊚ true
⊚ false
Version 1 3
, 17) Consultant surveys are often presented as studies that reveal cause and effect.
⊚ true
⊚ false
18) In Japan, the traditional characters for the word "compensation" are based on the symbols
for logs and water, suggesting that compensation provides the necessities in life.
⊚ true
⊚ false
19) The relationship between variables is most often addressed through the use of statistical
analysis.
⊚ true
⊚ false
20) The R 2, which is an output from a regression analysis, is different from correlation in
that it tells us what percentage of the variation is accounted for by the variables we are using to
predict or explain.
⊚ true
⊚ false
21) Which of the following programs introduced by Congress includes restrictions on
executive pay that are designed to discourage executives from taking "unnecessary and excessive
risks"?
Version 1 4
