Midterm Exam

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Question 1 (1 point)

What do compensation managers use to recognize differences in the relative net worth of jobs and to establish pay differentials based upon management priorities?

Question 1 options:

Job analysis

Internal consistency

Strategic analysis

Job evaluation

Question 2 (1 point)

A company using this competitive strategy seeks to offer a product or service that is completely unique from other competitors in their market segment.

Question 2 options:

Prospector strategy

Differentiation strategy

Lowest-cost strategy

Defender strategy

Question 3 (1 point)

This law made it illegal to pay women less for performing equal work as men.

Question 3 options:

Fair Labor Standards Act of 1938

Equal Pay Act of 1963

Civil Rights Act of 1964

Davis-Bacon Act of 1931

Question 4 (1 point)

Southwest Airlines uses this competitive strategy by keeping overhead low, thus passing a price advantage on to consumers.

Question 4 options:

High quality strategy

Lowest-cost strategy

Differentiation strategy

Brand notoriety

Question 5 (1 point)

Which of the following would be an exle of a non-monetary reward?

Question 5 options:

Day care assistance

Medical insurance

All of the above


Question 6 (1 point)

This term suggests that a loss is likely for the firm, and that the individual will be left with little control.

Question 6 options:

Negative equity

Reverse opportunity



Question 7 (1 point)

What US federal law established a national minimum wage for employees involved in commerce (rather than just those employed by companies working for the US government), as well as prohibit most employment of minors in oppressive child labor?

Question 7 options:

The Equal Pay Act of 1963

The Family and Medical Leave Act of 1993

The Fair Labor Standards Act of 1938

The Civil Rights Act of 1964

Question 8 (1 point)

What represents the pay rate differences for jobs and employee contributions of unequal worth to a company?

Question 8 options:

Incentive pay

Pay structures

Retention pay

Merit pay

Question 9 (1 point)

Which of these is a company sponsored program that provides income to workers throughout their retirement?

Question 9 options:

Severance plans

Loyalty plans

Pension plans

Longevity plans

Question 10 (1 point)

Which of these actions would HR seek to encourage in attempting to create a lowest-cost competitive strategy?

Question 10 options:

High concern for the quantity of output

High concern for the quality of output

An employee long-term focus

Unpredictable employee behavior

Question 11 (1 point)


Which of the following is NOT a protected characteristic by Title VII of the Civil Rights Act of 1964?

Question 11 options:

Sexual orientation


National origin


Question 12 (1 point)

This amendment to the US Constitution gives Congress the power to regulate commerce with foreign nations, individual states, and Indian Tribes.

Question 12 options:

The Fourteenth Amendment, Section 1

The First Amendment

Article I, Section 8

The Fifth Amendment

Question 13 (1 point)

This provision mandates that federal government agencies take affirmative action in providing jobs for individuals with disabilities?

Question 13 options:


Executive Order 11478

The Government Employee Rights Act of 1991

The Rehabilitation Act

Question 14 (1 point)

Intentionally treating women less favorably than men solely based upon their gender would be what form of discrimination?

Question 14 options:

Disparate causality

Disparate impact

Disparate treatment

Situational discrimination

Question 15 (1 point)

What governmental agency enforces the Equal Pay Act of 1963 (in addition to enforcing many other employment discrimination laws)?

Question 15 options:





Question 16 (1 point)

Which of these was given as a reason why union influence has diminished?

Question 16 options:

All of the above

Union companies demonstrating lower profits than non-union companies

Foreign automobile manufacturers producing higher quality vehicles

Technological advances

Question 17 (1 point)

This type of bargaining occurs when unions shift from bargaining for large pay increases to simply bargaining for greater job security.

Question 17 options:





Question 18 (1 point)

The Americans with Disabilities Act of 1990 (ADA. applies to companies that employ at least how many workers?

Question 18 options:





Question 19 (1 point)

These types of jobs are subject to the FLSA overtime provisions?

Question 19 options:





Question 20 (1 point)

Which of the following is NOT a branch of the federal government?

Question 20 options:

Executive branch

Legislative branch

Service branch

Judicial branch

Question 21 (1 point)

This term refers to a difference between the output of a human judgment processes and that of an objective, accurate assessment. This difference could be due to bias, prejudice, or other subjective, extraneous influences.

Question 21 options:

Content validity

Rating error

The performance appraisal process

A first-impression effect

Question 22 (1 point)

The collective bargaining system was established by passage of which federal Act?

Question 22 options:

National Labor Relations Act

National Labor Regulations Act

Union Labor Relations Act

Union Labor Regulations Act

Question 23 (1 point)

Which comparison system requires the rater to place a specific number of employees into groups that represent the entire range of performances?

Question 23 options:

The critical incident technique


Forced distribution

Paired comparison

Question 24 (1 point)

Similar-to-me effects and halo effects are part of which type of rater’s errors?

Question 24 options:

Errors of strictness

Contrast errors

Illegal discriminatory bias

Bias errors

Question 25 (1 point)

Which of the following is an advantage of seniority pay systems?

Question 25 options:

They encourage employees to continue to increase their skill sets

They help to promote product quality

They reward employees on an objective basis

They reward exemplary performance

Question 26 (1 point)

This performance appraisal system relies on many appropriate sources of information and works well for team-based work teams.

Question 26 options:

Trait systems

360-degree performance appraisal

Critical incident technique

Comparison system

Question 27 (1 point)

This performance appraisal system is based on employees and supervisors identifying on-the-job behaviors and behavioral outcomes that distinguish successful from unsuccessful performances.

Question 27 options:

Behavioral observation scales

Critical incident technique

Forced distribution system

Behaviorally anchored rating scales

Question 28 (1 point)

With these errors, supervisors tend to rate employees’ performances lower than they would be if compared against objective criteria.

Question 28 options:

Leniency errors

Critical errors

Contrast errors

Strictness errors

Question 29 (1 point)

In 2011, employees were expected to earn average merit increases of what percent?

Question 29 options:





Question 30 (1 point)

This occurs when a rater generalizes good performance behavior in one aspect of the job to all aspects of the job.

Question 30 options:

Negative halo effect

Positive halo effect

Similar-to-me effect

First-impression effect

Question 31 (1 point)

Which of the following is true about the level of risk involved with incentive pay?

Question 31 options:

The level of risk depends on the extent to which employees control the attainment of a desired goal.

The level of risk decreases as incentive pay represents a greater proportion of total core compensation.

The level of risk is dependent on subjective performance appraisals.

The level of risk is lower for higher-level employees than those who are lower in the job structure.

Question 32 (1 point)

Which type of individual incentive plan focuses on accomplishments such as improving attendance or safety records?

Question 32 options:

Referral plans

Piecework plans

Behavior encouragement plans

Management incentive plans

Question 33 (1 point)

The concept that a hard working employee is likely to stay at an incentive pay position is better known as this.

Question 33 options:

Structural effect

Output effect

Sorting effect

Representative effect

Question 34 (1 point)

This incentive plan uses a value-added formula to measure productivity.

Question 34 options:

Scanlon Plan


Piecework plan

Rucker Plan

Question 35 (1 point)

This group incentive system was designed to provide employees with financial incentives for increasing customer satisfaction, increasing productivity, lowering costs, or improving safety.

Question 35 options:

Profit sharing

Gain Sharing

Team based

Small group

Question 36 (1 point)

Which of the following is true of incentive pay?

Question 36 options:

Incentive pay is considered part of an employee’s fringe compensation.

Award levels are subjective.

The criteria for judging an award tends to be objective, such as quantity produced.

The amount of the award paid for attainment of goals is not communicated in advance.

Question 37 (1 point)

Profit sharing plans and employee stock option plans are incentives on what level?

Question 37 options:





Question 38 (1 point)

Which gain sharing program measures productivity physically rather than in terms of dollar savings, and emphasizes the rapid completion of products by employees?

Question 38 options:



The Scanlon Plan

Management incentive plan

Question 39 (1 point)

The general rule of thumb is that short-term company goals last less than how long?

Question 39 options:

1 year

1 month

6 months

5 years

Question 40 (1 point)

This formula for determining the amount available for profit sharing uses a specific percentage of annual profits contingent upon the successful attainment of a specified profit goal.

Question 40 options:

Differed first-dollar-of-profits

Graduated first-dollar-of-profits

Fluctuating first-dollar-of-profits

Fixed first-dollar-of-profits

Question 41 (1 point)

This term refers to the degree to which the job enables the employee to work on it from start to finish.

Question 41 options:


Task significance

Skill variety

Task identity

Question 42 (1 point)

Employees would need to learn these types of skills in order to develop self-managed work teams.

Question 42 options:





Question 43 (1 point)

This term reflects an approach to job design that results in the development of more intrinsically motivating and interesting work.

Question 43 options:

Job security

Job variety

Job enrichment

Job identity

Question 44 (1 point)

This type of pay system rewards employees for successfully acquiring new job-related knowledge.

Question 44 options:

Person-focused pay

Competency-based pay

Merit pay

Incentive pay

Question 45 (1 point)

Which pay model promotes learning and skills development for a wide variety of jobs from different job families?

Question 45 options:

Skill blocks


Job-point accrual


Question 46 (1 point)

Which company emphasizes globalization, product services, and six sigma quality improvements for corporate growth? This company also offers a renowned two-year global program for high potential HR professionals that includes the opportunity for cross-functional experience.

Question 46 options:

General Electric


Lincoln Electric


Question 47 (1 point)

In this pay-for-knowledge model, employees are rewarded for increasing their skills within a single job family, even if the skills do NOT build on each other.

Question 47 options:

Job-point accrual

Skill blocks



Question 48 (1 point)

Which of the following is a main reason for the increased costs associated with pay-for-knowledge programs?

Question 48 options:

Higher training costs

All of the above

Increased overhead costs

Higher payroll costs

Question 49 (1 point)

This term refers to the degree to which the job requires the person to do different tasks that involves the use of a number of different skills, abilities, and talents.

Question 49 options:

Task variety

Skill variety

Job flexibility

Task flexibility

Question 50 (1 point)

What is one of the main differences between a skill blocks model and a stair-step model?

Question 50 options:

The skill blocks model only emphasizes horizontal skills.

Stair-step models do not apply to jobs within the same family.

Employees do not progress to more complex jobs in the stair-step model.

The stair-step model addresses depth, while the skill blocks model emphasizes both horizontal and vertical skills.

Question 51 (1 point)

Market-based job evaluation uses which method to collect data to determine prevailing pay rates?

Question 51 options:





Question 52 (1 point)

These indicate the name of each job within a company’s job structure.

Question 52 options:

Job titles

Job specifications

Job summaries

Position headings

Question 53 (1 point)

These are the salient job characteristics that are the general basis for job evaluations and are used to establish relative pay rates.

Question 53 options:

Compensable factors

Job descriptions

Ranking plans

Occupation descriptions

Question 54 (1 point)

This clearly defines the relative value of each job among all jobs within a company.

Question 54 options:

Intra-organizational job markers

Internally consistent compensation system

Market comparison standards

Generalized work activities

Question 55 (1 point)

Which of the following are the four “universal compensable factors?”

Question 55 options:

cognitive ability, effort, skill, and responsibility

skill, effort, responsibility, and working conditions

skill, effort, cognitive ability, and working conditions

cognitive ability, effort, responsibility, and working conditions

Question 56 (1 point)

This overview concisely summarizes the job with two to four descriptive statements.

Question 56 options:

Job duties

Job preview

Job titles

Job summary

Question 57 (1 point)

What source is generally able to provide the most extensive and detailed information about how job duties are performed?

Question 57 options:

Benchmark jobs

Job incumbents

Job analysts


Question 58 (1 point)

This evaluation method uses quantitative methods to assign numerical values to compensable factors that describe jobs.

Question 58 options:

Point method

Market-based evaluation

Classification plan

Paired comparisons

Question 59 (1 point)

A job analysis method is this if it yields the kind of information that it was designed to provide and accurately assesses each job’s duties.

Question 59 options:





Question 60 (1 point)

In the job analysis process this term represents a group of positions that are identical with respect to their major tasks.

Question 60 options:


Job family



Question 61 (45 points)

Explain the job characteristics theory. How does it tie in with intrinsic compensation?

Question 61 options:

Question 62 (45 points)

Compare and contrast the various multi skill-based pay systems – the stair-step model, the skill blocks model, the job-point accrual model, and the cross-departmental model.

Question 62 options:

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