Test Bank for Strategic Compensation A Human Resource Management Approach, 11th Edition by Joseph J. Martocchio Chapters 1-14 Covered

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, All Chapters v v
Answers Included v v




Strategic Compensation: A Human Resource Management Approach, 11e (Martocchio)
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Chapter 1 Strategic Compensation: A Component of Human Resource Systems
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1) refers to the design and implementation of compensation systems to reinforce the
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objectives of both HR strategies and competitive business strategies.
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A) Extrinsic compensation v


B) Strategic compensation v


C) Strategic analysis v


D) Intrinsic compensation v


Answer: B
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Difficulty: Moderate v


Skill: Concept
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AACSB: Analytical Thinking
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LO: 1.1: Define strategic compensation.
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2) Protection programs are what type of compensation benefits?
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A) External
B) Non-monetary rewards v


C) Internal
D) Monetary
Answer: B
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Difficulty: Moderate v


Skill: Concept
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AACSB: Analytical Thinking
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LO: 1.1: Define strategic compensation.
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3) Which of the following is NOT an example of a core compensation?
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A) Medical insurance v


B) End-of-year bonuses v


C) Merit pay v


D) Monetary compensation v


Answer: A
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Difficulty: Moderate v


Skill: Concept
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AACSB: Reflective Thinking
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LO: 1.1: Define strategic compensation.
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,4) Since the COVID-19 epidemic restrictions eased and allowed employees to return to work,
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many companies have been offering higher pay increases. Approximately, how much have pay
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increases been?
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A) Less than 2% v v


B) 2% up to 2.9%
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C) 3% up to 3.8%
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D) 4% or more
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Answer: D
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Difficulty: Challenging v


Skill: Concept
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AACSB: Application of Knowledge v v v


vLO: 1.1: Define strategic
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compensation.
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5) Employee benefits refer to . v v v v


A) salary and bonuses v v


B) monetary compensation v


C) nonmonetary rewards v


D) effective compensation practices v v


Answer: C
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Difficulty: Easy v


Skill: Concept
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AACSB: Reflective Thinking v v v


LO: 1.1: Define strategic compensation.
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6) Which of the following is a specific tactical HR compensation decision?
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A) Performance appraisal v


B) Seniority pay v


C) Recruitment
D) Training
Answer:
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vB
Difficulty: Moderate v


Skill: Concept
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AACSB: Analytical Thinking v v v


LO: 1.1: Define strategic compensation.
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7) compensation refers to the mental state of employees as a result of their
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performance on the job.
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A) Intrinsic
B) Extrinsic
C) Core
D) Monetary
Answer: A
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Difficulty: Moderate v


Skill: Concept
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AACSB: Reflective Thinking v v v


LO: 1.1: Define strategic compensation.
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, 8) Compensation represents both the intrinsic and extrinsic rewards employees receive for
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performing their jobs. Briefly describe both types of rewards and indicate the professionals who
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are responsible for managing them.
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Answer: Intrinsic compensation reflects employees' psychological mind-sets that result from
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performing their jobs. Extrinsic compensation includes both monetary and nonmonetary rewards.
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Organizational development professionals promote intrinsic compensation through effective job
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design. Compensation professionals are responsible for extrinsic compensation. Extrinsic
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compensation includes both monetary and nonmonetary rewards. Compensation professionals
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establish monetary compensation programs to reward employees according to their job
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performance levels or for learning job-related knowledge or skills. Nonmonetary rewards include
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protection programs (e.g., medical insurance), paid time off (e.g., vacations), and services (e.g.,
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day care assistance). Most compensation professionals refer to nonmonetary rewards as
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employee benefits.
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Difficulty: Moderate v


Skill: Concept
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AACSB: Analytical Thinking v v v


LO: 1.1: Define strategic compensation.
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9) Which of following contributed greatly to the need for a strategic approach to compensation?
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A) Advances in technology v v


B) Dramatic increases in CEO compensation v v v v


C) Higher productivity per worker v v v


D) Greater inequality in wealth v v v


Answer: A
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Difficulty: Moderate v


Skill: Concept
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AACSB: Analytical Thinking v v v


LO: 1.2: Summarize the role of compensation as a strategic business partner.
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10) Which of the following shifts in workforce composition makes it necessary to have a
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strategic approach to compensation issues?
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A) Fewer employees are earning college degrees.
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B) More women entered the labor force after the pandemic.
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C) A leadership gap due to retiring baby boomers.
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D) Most younger employees do not have the same work ethic.
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Answer: C
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Difficulty: Moderate v


Skill: Concept
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AACSB: Application of Knowledge v v v v


LO: 1.2: Summarize the role of compensation as a strategic business partner.
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