1
,Strategic yCompensation: yA yHuman yResource yManagement yApproach, y11e
y(Martocchio) yChapter y1 Strategic yCompensation: yA yComponent yof yHuman
yResource ySystems
1) yrefers yto ythe ydesign yand yimplementation yof ycompensation ysystems yto yreinforce
ythe yobjectives yof yboth yHR ystrategies yand ycompetitive ybusiness ystrategies.
A) Extrinsic ycompensation
B) Strategic ycompensation
C) Strategic yanalysis
D) Intrinsic ycompensation
yAnswer: y B
Difficulty: y Moderate
ySkill: y Concept
AACSB: y y Analytical yThinking
LO: y y 1.1: yDefine ystrategic ycompensation.
2) Protection yprograms yare ywhat ytype yof ycompensation ybenefits?
A) External
B) Non-monetary yrewards
C) Internal
D) Monetary
yAnswer:
y B
Difficulty: y Moderate
ySkill: y Concept
AACSB: y y Analytical yThinking
LO: y y 1.1: yDefine ystrategic ycompensation.
3) Which yof ythe yfollowing yis yNOT yan yexample yof ya ycore ycompensation?
A) Medical yinsurance
B) End-of-year ybonuses
C) Merit ypay
D) Monetary ycompensation
yAnswer: y A
Difficulty: y Moderate
ySkill: y Concept
AACSB: y y Reflective yThinking
LO: y y 1.1: yDefine ystrategic ycompensation.
2
,4) Since ythe yCOVID-19 yepidemic yrestrictions yeased yand yallowed yemployees yto yreturn yto
ywork, ymany ycompanies yhave ybeen yoffering yhigher ypay yincreases. yApproximately, yhow
ymuch yhave ypay yincreases ybeen?
A) Less ythan y2%
B) 2% yup yto y2.9%
C) 3% yup yto y3.8%
D) 4% yor ymore
yAnswer: y D
Difficulty: y Challenging
ySkill: y Concept
AACSB: y Application yof yKnowledge
y LO: y 1.1: yDefine ystrategic
ycompensation.
5) Employee ybenefits yrefer yto y .
A) salary yand ybonuses
B) monetary ycompensation
C) nonmonetary yrewards
D) effective ycompensation ypractices
yAnswer: y C
Difficulty: y Easy
ySkill: y Concept
AACSB: y y Reflective yThinking
LO: y y 1.1: yDefine ystrategic ycompensation.
6) Which yof ythe yfollowing yis ya yspecific ytactical yHR ycompensation ydecision?
A) Performance yappraisal
B) Seniority ypay
C) Recruitment
D) Training
yAnswer:
y B
Difficulty: y Moderate
ySkill: y Concept
AACSB: y y Analytical yThinking
LO: y y 1.1: yDefine ystrategic ycompensation.
7) ycompensation yrefers yto ythe ymental ystate yof yemployees yas ya yresult yof
ytheir yperformance yon ythe yjob.
A) Intrinsic
B) Extrinsic
C) Core
D) Monetary
yAnswer:
y A
Difficulty: y Moderate
ySkill: y Concept
AACSB: y y Reflective yThinking
3
, LO: y y 1.1: yDefine ystrategic ycompensation.
4
,Strategic yCompensation: yA yHuman yResource yManagement yApproach, y11e
y(Martocchio) yChapter y1 Strategic yCompensation: yA yComponent yof yHuman
yResource ySystems
1) yrefers yto ythe ydesign yand yimplementation yof ycompensation ysystems yto yreinforce
ythe yobjectives yof yboth yHR ystrategies yand ycompetitive ybusiness ystrategies.
A) Extrinsic ycompensation
B) Strategic ycompensation
C) Strategic yanalysis
D) Intrinsic ycompensation
yAnswer: y B
Difficulty: y Moderate
ySkill: y Concept
AACSB: y y Analytical yThinking
LO: y y 1.1: yDefine ystrategic ycompensation.
2) Protection yprograms yare ywhat ytype yof ycompensation ybenefits?
A) External
B) Non-monetary yrewards
C) Internal
D) Monetary
yAnswer:
y B
Difficulty: y Moderate
ySkill: y Concept
AACSB: y y Analytical yThinking
LO: y y 1.1: yDefine ystrategic ycompensation.
3) Which yof ythe yfollowing yis yNOT yan yexample yof ya ycore ycompensation?
A) Medical yinsurance
B) End-of-year ybonuses
C) Merit ypay
D) Monetary ycompensation
yAnswer: y A
Difficulty: y Moderate
ySkill: y Concept
AACSB: y y Reflective yThinking
LO: y y 1.1: yDefine ystrategic ycompensation.
2
,4) Since ythe yCOVID-19 yepidemic yrestrictions yeased yand yallowed yemployees yto yreturn yto
ywork, ymany ycompanies yhave ybeen yoffering yhigher ypay yincreases. yApproximately, yhow
ymuch yhave ypay yincreases ybeen?
A) Less ythan y2%
B) 2% yup yto y2.9%
C) 3% yup yto y3.8%
D) 4% yor ymore
yAnswer: y D
Difficulty: y Challenging
ySkill: y Concept
AACSB: y Application yof yKnowledge
y LO: y 1.1: yDefine ystrategic
ycompensation.
5) Employee ybenefits yrefer yto y .
A) salary yand ybonuses
B) monetary ycompensation
C) nonmonetary yrewards
D) effective ycompensation ypractices
yAnswer: y C
Difficulty: y Easy
ySkill: y Concept
AACSB: y y Reflective yThinking
LO: y y 1.1: yDefine ystrategic ycompensation.
6) Which yof ythe yfollowing yis ya yspecific ytactical yHR ycompensation ydecision?
A) Performance yappraisal
B) Seniority ypay
C) Recruitment
D) Training
yAnswer:
y B
Difficulty: y Moderate
ySkill: y Concept
AACSB: y y Analytical yThinking
LO: y y 1.1: yDefine ystrategic ycompensation.
7) ycompensation yrefers yto ythe ymental ystate yof yemployees yas ya yresult yof
ytheir yperformance yon ythe yjob.
A) Intrinsic
B) Extrinsic
C) Core
D) Monetary
yAnswer:
y A
Difficulty: y Moderate
ySkill: y Concept
AACSB: y y Reflective yThinking
3
, LO: y y 1.1: yDefine ystrategic ycompensation.
4
