5/19/25, 4:50 AM HRM Final Exam
HRM TEST BABK FINAL EXAM \\NEWEST VERSION 2025\2026 TEST BANK EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
compensation package mix of base pay (hourly wage or annual salary), benefits, and
incentive pay
money offered to encourage employees to strive for higher
incentive pay levels of performance
types: individual rewards, group rewards, organization-level
rewards
cost of living increase = given to employees to help their wages
keep up with
inflation and maintain their purchasing power. It's not
based on performance, but rather on changes in the
cost of basic goods and services (like housing, food,
and transportation).
merit pay increase = performance based, permanent
increase, system of linking pay increases to ratings on
performance appraisals
types of individual rewards
bonus = under-utilized, employees love it, less costly,
not rolled into base pay, must re-earn in each period
piecework (piece-rate) = you get paid for each piece of
work you achieve/produce, common in garment
making, orgs usually take advantage of workers
though, ex: factory worker is paid $2 for every T-shirt
they sew. If they sew 50 shirts in one day, they earn
$100 (50 shirts × $2 per shirt), not a good plan for
teamwork or orgs with complex jobs/employee
empowerment
commission = pay calculated as a percentage of sales,
kinda combines piece rates and bonuses, retail/real
1/1
4
, 5/19/25, 4:50 AM HRM Final Exam
estate, ex: a car salesperson earns a 10% commission
on
each car they sell. If they sell a car for $30,000, they
earn $3,000 in commission for that sale.
gainsharing = measures increases in
productivity/effectiveness and distributes a portion of
each gain to employees, common in factories,
encourages employees to give suggestions on saving
money, ex: if a factory enjoys a productivity gain worth
$30,000, half the gain might be the company's share. The
other $15,000 would be distributed among the
types of group rewards
employees in the factory.
group-based bonus = encourages people to work
together, group bump in pay, tend to be for smaller
work groups, these bonuses reward the members of
a group for
attaining a specific goal, usually measured in terms of physical
output
Gainsharing = based on measurable operational
improvements and uses a formula, ongoing
Group bonus = based on hitting a goal and may be
discretionary or less formal, one time
2/1
4
HRM TEST BABK FINAL EXAM \\NEWEST VERSION 2025\2026 TEST BANK EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
compensation package mix of base pay (hourly wage or annual salary), benefits, and
incentive pay
money offered to encourage employees to strive for higher
incentive pay levels of performance
types: individual rewards, group rewards, organization-level
rewards
cost of living increase = given to employees to help their wages
keep up with
inflation and maintain their purchasing power. It's not
based on performance, but rather on changes in the
cost of basic goods and services (like housing, food,
and transportation).
merit pay increase = performance based, permanent
increase, system of linking pay increases to ratings on
performance appraisals
types of individual rewards
bonus = under-utilized, employees love it, less costly,
not rolled into base pay, must re-earn in each period
piecework (piece-rate) = you get paid for each piece of
work you achieve/produce, common in garment
making, orgs usually take advantage of workers
though, ex: factory worker is paid $2 for every T-shirt
they sew. If they sew 50 shirts in one day, they earn
$100 (50 shirts × $2 per shirt), not a good plan for
teamwork or orgs with complex jobs/employee
empowerment
commission = pay calculated as a percentage of sales,
kinda combines piece rates and bonuses, retail/real
1/1
4
, 5/19/25, 4:50 AM HRM Final Exam
estate, ex: a car salesperson earns a 10% commission
on
each car they sell. If they sell a car for $30,000, they
earn $3,000 in commission for that sale.
gainsharing = measures increases in
productivity/effectiveness and distributes a portion of
each gain to employees, common in factories,
encourages employees to give suggestions on saving
money, ex: if a factory enjoys a productivity gain worth
$30,000, half the gain might be the company's share. The
other $15,000 would be distributed among the
types of group rewards
employees in the factory.
group-based bonus = encourages people to work
together, group bump in pay, tend to be for smaller
work groups, these bonuses reward the members of
a group for
attaining a specific goal, usually measured in terms of physical
output
Gainsharing = based on measurable operational
improvements and uses a formula, ongoing
Group bonus = based on hitting a goal and may be
discretionary or less formal, one time
2/1
4
