HSA 4340 EXAM QUESTIONS AND ANSWERS
A department manager has no responsibility for apparent compensation inequities other than reporting
them to human resources.
a. True
b. False - CORRECT ANSWER✅✅b. false
A particular strength of the team appraisal process lies in the implicit assumption that all team members
perform at an equivalent level.
a. True
b. False - CORRECT ANSWER✅✅b. false
A department manager should never make a specific salary offer within the context of a selection
interview.
a. True
b. False - CORRECT ANSWER✅✅a. true
The Health Insurance Portability and Accountability Act (HIPAA) has essentially replaced the major
provisions of the Federal Insurance Contributions Act (FICA).
a. True
b. False - CORRECT ANSWER✅✅b. false
The terms "average" and "standard" are not interchangeable; the actual "average" of a group's
performance is always higher than "standard" performance.
a. True
b. False - CORRECT ANSWER✅✅a. true
Completed performance appraisals can at times be considered legal documentation that the
organization could be penalized for discarding.
a. True
b. False - CORRECT ANSWER✅✅a. true
,Workers' Compensation is a benefit that is mandated by law.
a. True
b. False - CORRECT ANSWER✅✅a. true
It is not necessary for a department manager to know how the compensation systems works because
such systems are the responsibility of human resources.
a. True
b. False - CORRECT ANSWER✅✅b. false
Portable benefits have been an innovation of recent years to serve an increasingly mobile work force.
a. True
b. False - CORRECT ANSWER✅✅a. true
The benefits most preferred by the majority of employees are health insurance, paid vacations, and
flexible sick-time plans.
a. True
b. False - CORRECT ANSWER✅✅b. false
The single most important objective of performance appraisal is improvement of performance in the job
the person presently holds.
a. True
b. False - CORRECT ANSWER✅✅a. true
There is little value in regularly appraising the performance of an individual who regularly does standard
work and can go no higher in position or pay.
a. True
b. False - CORRECT ANSWER✅✅b. false
,The manager should be familiar with current pay scales for all positions in the department and be able
to explain to employees how the scales are administered.
a. True
b. False - CORRECT ANSWER✅✅a. true
It is essential for the department manager to be intimately knowledgeable of all of the organization's
benefits plans.
a. True
b. False - CORRECT ANSWER✅✅b. false
Rather than rely solely on information from human resources, the department manager should
periodically make an independent survey of wages for comparable positions in the community.
a. True
b. False - CORRECT ANSWER✅✅b. false
Many highly effective job-description based appraisal systems use only a three point scale.
a. True
b. False - CORRECT ANSWER✅✅a. true
In an appraisal rating scale it is best to use an even number of scale points, such as four or six, to
discourage users from automatically focusing on a midpoint.
a. True
b. False - CORRECT ANSWER✅✅b. false
Unemployment compensation is generally made available to people who voluntarily resign their
employment or who are discharged for cause.
O True
6 False - CORRECT ANSWER✅✅F
, A result of the steady replacement of defined benefit pension plans with defined contribution plans has
been the increase of individuals' level of responsibility concerning their own eventual retirement
income.
a. True
b. False - CORRECT ANSWER✅✅a. true
Individual employees have the right to know the hourly rate minimum and maximums for their pay scale
as well as their own actual rates of pay.
a. True
b. False - CORRECT ANSWER✅✅a. true
Pay affects:
a. employee motivation
b. absenteeism and turnover
c. level of employee satisfaction
d. all of the above - CORRECT ANSWER✅✅d. all of the above
When a lower level position is paid more than a higher level position it is known as:
a. internal equity
b. external equity
c. salary range
d. salary inversion
e. longevity - CORRECT ANSWER✅✅d. salary inversion
As compared with timing appraisals to coincide with each employee's anniversary date, the practice of
evaluating all employees during the same brief time period:
a. is recommended as the preferred timing of appraisals by external regulatory agencies.
b. Has been proven to consistently produce inadequate appraisals that lack depth of detail.
c. Enhances the accuracy with which a known budgeted amount of merit increase money can be
distributed.
A department manager has no responsibility for apparent compensation inequities other than reporting
them to human resources.
a. True
b. False - CORRECT ANSWER✅✅b. false
A particular strength of the team appraisal process lies in the implicit assumption that all team members
perform at an equivalent level.
a. True
b. False - CORRECT ANSWER✅✅b. false
A department manager should never make a specific salary offer within the context of a selection
interview.
a. True
b. False - CORRECT ANSWER✅✅a. true
The Health Insurance Portability and Accountability Act (HIPAA) has essentially replaced the major
provisions of the Federal Insurance Contributions Act (FICA).
a. True
b. False - CORRECT ANSWER✅✅b. false
The terms "average" and "standard" are not interchangeable; the actual "average" of a group's
performance is always higher than "standard" performance.
a. True
b. False - CORRECT ANSWER✅✅a. true
Completed performance appraisals can at times be considered legal documentation that the
organization could be penalized for discarding.
a. True
b. False - CORRECT ANSWER✅✅a. true
,Workers' Compensation is a benefit that is mandated by law.
a. True
b. False - CORRECT ANSWER✅✅a. true
It is not necessary for a department manager to know how the compensation systems works because
such systems are the responsibility of human resources.
a. True
b. False - CORRECT ANSWER✅✅b. false
Portable benefits have been an innovation of recent years to serve an increasingly mobile work force.
a. True
b. False - CORRECT ANSWER✅✅a. true
The benefits most preferred by the majority of employees are health insurance, paid vacations, and
flexible sick-time plans.
a. True
b. False - CORRECT ANSWER✅✅b. false
The single most important objective of performance appraisal is improvement of performance in the job
the person presently holds.
a. True
b. False - CORRECT ANSWER✅✅a. true
There is little value in regularly appraising the performance of an individual who regularly does standard
work and can go no higher in position or pay.
a. True
b. False - CORRECT ANSWER✅✅b. false
,The manager should be familiar with current pay scales for all positions in the department and be able
to explain to employees how the scales are administered.
a. True
b. False - CORRECT ANSWER✅✅a. true
It is essential for the department manager to be intimately knowledgeable of all of the organization's
benefits plans.
a. True
b. False - CORRECT ANSWER✅✅b. false
Rather than rely solely on information from human resources, the department manager should
periodically make an independent survey of wages for comparable positions in the community.
a. True
b. False - CORRECT ANSWER✅✅b. false
Many highly effective job-description based appraisal systems use only a three point scale.
a. True
b. False - CORRECT ANSWER✅✅a. true
In an appraisal rating scale it is best to use an even number of scale points, such as four or six, to
discourage users from automatically focusing on a midpoint.
a. True
b. False - CORRECT ANSWER✅✅b. false
Unemployment compensation is generally made available to people who voluntarily resign their
employment or who are discharged for cause.
O True
6 False - CORRECT ANSWER✅✅F
, A result of the steady replacement of defined benefit pension plans with defined contribution plans has
been the increase of individuals' level of responsibility concerning their own eventual retirement
income.
a. True
b. False - CORRECT ANSWER✅✅a. true
Individual employees have the right to know the hourly rate minimum and maximums for their pay scale
as well as their own actual rates of pay.
a. True
b. False - CORRECT ANSWER✅✅a. true
Pay affects:
a. employee motivation
b. absenteeism and turnover
c. level of employee satisfaction
d. all of the above - CORRECT ANSWER✅✅d. all of the above
When a lower level position is paid more than a higher level position it is known as:
a. internal equity
b. external equity
c. salary range
d. salary inversion
e. longevity - CORRECT ANSWER✅✅d. salary inversion
As compared with timing appraisals to coincide with each employee's anniversary date, the practice of
evaluating all employees during the same brief time period:
a. is recommended as the preferred timing of appraisals by external regulatory agencies.
b. Has been proven to consistently produce inadequate appraisals that lack depth of detail.
c. Enhances the accuracy with which a known budgeted amount of merit increase money can be
distributed.
